EX-12 2 exhibit1203312018.htm EXHIBIT 12
Exhibit 12
MASCO CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

|  | (Dollars in Millions)
|  | Three Months Ended March 31, |  | Year Ended December 31,
|  | 2018 |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes (A) |  | $ | 200 |  |  | $ | 884 |  |  | $ | 833 |  |  | $ | 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 |  | 40 |  |  | 167 |  |  | 185 |  |  | 222 |  |  | 221 |  |  | 230 |
Add amortization of debt expense |  | 1 |  |  | 4 |  |  | 5 |  |  | 5 |  |  | 5 |  |  | 6 |
Add estimated interest factor for rentals |  | 5 |  |  | 22 |  |  | 21 |  |  | 19 |  |  | 33 |  |  | 31 |
Earnings before income taxes, noncontrolling interest, fixed charges and preferred stock dividends |  | $ | 246 |  |  | $ | 1,076 |  |  | $ | 1,042 |  |  | $ | 933 |  |  | $ | 768 |  |  | $ | 637 |
Fixed Charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest on indebtedness |  | $ | 41 |  |  | $ | 170 |  |  | $ | 190 |  |  | $ | 223 |  |  | $ | 221 |  |  | $ | 229 |
Amortization of debt expense |  | 1 |  |  | 4 |  |  | 5 |  |  | 5 |  |  | 5 |  |  | 6 |
Estimated interest factor for rentals |  | 5 |  |  | 22 |  |  | 21 |  |  | 19 |  |  | 33 |  |  | 31 |
Total fixed charges |  | $ | 47 |  |  | $ | 196 |  |  | $ | 216 |  |  | $ | 247 |  |  | $ | 259 |  |  | $ | 266 |
Preferred stock dividends (B) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Combined fixed charges and preferred stock dividends |  | $ | 47 |  |  | $ | 196 |  |  | $ | 216 |  |  | $ | 247 |  |  | $ | 259 |  |  | $ | 266 |
Ratio of earnings to fixed charges |  | 5.2 |  |  | 5.5 |  |  | 4.8 |  |  | 3.8 |  |  | 3.0 |  |  | 2.4 |
Ratio of earnings to combined fixed charges and preferred stock dividends |  | 5.2 |  |  | 5.5 |  |  | 4.8 |  |  | 3.8 |  |  | 3.0 |  |  | 2.4 |
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (C) |  | 5.2 |  |  | 5.5 |  |  | 4.8 |  |  | 3.8 |  |  | 2.9 |  |  | 2.4 |

(A) | Income from continuing operations before income taxes for the years ended December 31, 2013, 2014, and 2015 has not been restated for the adoption of ASC 606.

(B) Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company.
(C) Excludes the 2014 litigation settlement income of $9 million.
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