EX-12 2 exhibit1209302017.htm EXHIBIT 12
Exhibit 12
MASCO CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

|  | (Dollars in Millions)
|  | Nine Months Ended September 30, |  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  | $ | 724 |  |  | $ | 830 |  |  | $ | 689 |  |  | $ | 507 |  |  | $ | 386 |  |  | $ | 155 |
Deduct equity in undistributed (earnings) loss of fifty-percent-or-less-owned companies |  | (1 | ) |  | (2 | ) |  | (2 | ) |  | 2 |  |  | (16) |  |  | — |
Add interest on indebtedness, net |  | 130 |  |  | 185 |  |  | 222 |  |  | 221 |  |  | 230 |  |  | 249 |
Add amortization of debt expense |  | 3 |  |  | 5 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 7 |
Add estimated interest factor for rentals |  | 15 |  |  | 21 |  |  | 19 |  |  | 33 |  |  | 31 |  |  | 31 |
Earnings before income taxes, noncontrolling interest, fixed charges and preferred stock dividends |  | $ | 871 |  |  | $ | 1,039 |  |  | $ | 933 |  |  | $ | 768 |  |  | $ | 637 |  |  | $ | 442 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on indebtedness |  | $ | 130 |  |  | $ | 190 |  |  | $ | 223 |  |  | $ | 221 |  |  | $ | 229 |  |  | $ | 248 |
Amortization of debt expense |  | 3 |  |  | 5 |  |  | 5 |  |  | 5 |  |  | 6 |  |  | 7 |
Estimated interest factor for rentals |  | 15 |  |  | 21 |  |  | 19 |  |  | 33 |  |  | 31 |  |  | 31 |
Total fixed charges |  | $ | 148 |  |  | $ | 216 |  |  | $ | 247 |  |  | $ | 259 |  |  | $ | 266 |  |  | $ | 286 |
Preferred stock dividends (A) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Combined fixed charges and preferred stock dividends |  | $ | 148 |  |  | $ | 216 |  |  | $ | 247 |  |  | $ | 259 |  |  | $ | 266 |  |  | $ | 286 |
Ratio of earnings to fixed charges |  | 5.9 |  |  | 4.8 |  |  | 3.8 |  |  | 3.0 |  |  | 2.4 |  |  | 1.5 |
Ratio of earnings to combined fixed charges and preferred stock dividends |  | 5.9 |  |  | 4.8 |  |  | 3.8 |  |  | 3.0 |  |  | 2.4 |  |  | 1.5 |
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (B) |  | 5.9 |  |  | 4.8 |  |  | 3.8 |  |  | 2.9 |  |  | 2.4 |  |  | 1.7 |

(A) Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company.
(B) Excludes the 2014 litigation settlement income of $9 million; the 2012 non-cash, pre-tax impairment charge for other intangible assets of $42 million and litigation expense of $1 million.
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