EX-12 3 a13-19634_1ex12.htm EX-12

EXHIBIT 12

 

3M COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions)

 

 

 

Nine months
ended

 

 

 

 

 

 

 

 

 

 

 

 

 

September
30,

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes*

 

$

5,004

 

$

6,351

 

$

6,031

 

$

5,755

 

$

4,632

 

$

5,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (including amortization of capitalized interest)

 

128

 

191

 

206

 

220

 

236

 

231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest component of the ESOP benefit expense

 

—

 

—

 

—

 

—

 

1

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rent under operating leases representative of the interest component

 

76

 

92

 

85

 

81

 

76

 

77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed income of 20-50% owned companies

 

(1

)

3

 

4

 

4

 

4

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES

 

$

5,209

 

$

6,631

 

$

6,318

 

$

6,052

 

$

4,941

 

$

5,413

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on debt (including capitalized interest)

 

129

 

194

 

206

 

218

 

246

 

243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest component of the ESOP benefit expense

 

—

 

—

 

—

 

—

 

1

 

3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portion of rent under operating leases representative of the interest component

 

76

 

92

 

85

 

81

 

76

 

77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL FIXED CHARGES

 

$

205

 

$

286

 

$

291

 

$

299

 

$

323

 

$

323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

25.4

 

23.2

 

21.7

 

20.2

 

15.3

 

16.8

 

 

*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.

 

1