EX-12 2 a12-7680_1ex12.htm EX-12

 

EXHIBIT 12

 

3M COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions)

 

 

 

Three
months
ended
March 31,
2012

 

Year
2011

 

Year
2010

 

Year
2009

 

Year
2008

 

Year
2007

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes*

 

$

1,603

 

$

6,031

 

$

5,755

 

$

4,632

 

$

5,108

 

$

6,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (including amortization of capitalized interest)

 

45

 

206

 

220

 

236

 

231

 

229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest component of the ESOP benefit expense

 

—

 

—

 

—

 

1

 

3

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rent under operating leases representative of the interest component

 

22

 

85

 

81

 

76

 

77

 

70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed income of 20-50% owned companies

 

2

 

4

 

4

 

4

 

6

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES

 

$

1,668

 

$

6,318

 

$

6,052

 

$

4,941

 

$

5,413

 

$

6,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on debt (including capitalized interest)

 

46

 

206

 

218

 

246

 

243

 

235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest component of the ESOP benefit expense

 

—

 

—

 

—

 

1

 

3

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rent under operating leases representative of the interest component

 

22

 

85

 

81

 

76

 

77

 

70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL FIXED CHARGES

 

$

68

 

$

291

 

$

299

 

$

323

 

$

323

 

$

310

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

24.5

 

21.7

 

20.2

 

15.3

 

16.8

 

20.7

 

*                 2009 results included net pre-tax charges of $194 million related to restructuring actions partially offset by a gain on sale of real estate. 2008 results included net pre-tax charges of $269 million, with charges related to restructuring actions, exit activities and a loss on sale of businesses partially offset by a gain on sale of real estate. 2007 results included pre-tax gains of $681 million, with net benefits from gains related to the sale of businesses and a gain on sale of real estate, which were partially offset by increases in environmental liabilities, restructuring actions, and exit activities.