Masco (MAS) 10-Q 2017 Q3 Quarterly report

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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