EX-12 12 exhibit12123117.htm EXHIBIT 12
Exhibit 12
MASCO CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

|  | (Dollars in Millions)
|  | Year Ended December 31,
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  | $ | 885 |  |  | $ | 830 |  |  | $ | 689 |  |  | $ | 507 |  |  | $ | 386 |
Deduct equity in undistributed (earnings) loss of fifty-percent-or-less-owned companies |  | (1 | ) |  | (2 | ) |  | (2 | ) |  | 2 |  |  | (16 | )
Add interest on indebtedness, net |  | 167 |  |  | 185 |  |  | 222 |  |  | 221 |  |  | 230 |
Add amortization of debt expense |  | 4 |  |  | 5 |  |  | 5 |  |  | 5 |  |  | 6 |
Add estimated interest factor for rentals |  | 22 |  |  | 21 |  |  | 19 |  |  | 33 |  |  | 31 |
Earnings before income taxes, noncontrolling interest, fixed charges and preferred stock dividends |  | $ | 1,077 |  |  | $ | 1,039 |  |  | $ | 933 |  |  | $ | 768 |  |  | $ | 637 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on indebtedness |  | $ | 170 |  |  | $ | 190 |  |  | $ | 223 |  |  | $ | 221 |  |  | $ | 229 |
Amortization of debt expense |  | 4 |  |  | 5 |  |  | 5 |  |  | 5 |  |  | 6 |
Estimated interest factor for rentals |  | 22 |  |  | 21 |  |  | 19 |  |  | 33 |  |  | 31 |
Total fixed charges |  | $ | 196 |  |  | $ | 216 |  |  | $ | 247 |  |  | $ | 259 |  |  | $ | 266 |
Preferred stock dividends (A) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Combined fixed charges and preferred stock dividends |  | $ | 196 |  |  | $ | 216 |  |  | $ | 247 |  |  | $ | 259 |  |  | $ | 266 |
Ratio of earnings to fixed charges |  | 5.5 |  |  | 4.8 |  |  | 3.8 |  |  | 3.0 |  |  | 2.4 |
Ratio of earnings to combined fixed charges and preferred stock dividends |  | 5.5 |  |  | 4.8 |  |  | 3.8 |  |  | 3.0 |  |  | 2.4 |
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (B) |  | 5.5 |  |  | 4.8 |  |  | 3.8 |  |  | 2.9 |  |  | 2.4 |

(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.