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MASCO CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
| (Dollars in Millions) | |||||||||||||||
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| Year Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges: | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | 434 | $ | 73 | $ | (392 | ) | $ | (745 | ) | $ | (151 | ) | |||
Deduct equity in undistributed (earnings) of fifty-percent-or-less-owned companies | — | — | — | — | — | |||||||||||
Add interest on indebtedness, net | 230 | 249 | 250 | 249 | 224 | |||||||||||
Add amortization of debt expense | 6 | 7 | 7 | 7 | 5 | |||||||||||
Add estimated interest factor for rentals | 31 | 31 | 33 | 36 | 44 | |||||||||||
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Earnings (loss) before income taxes, noncontrolling interest, fixed charges and preferred stock dividends | $ | 701 | $ | 360 | $ | (102 | ) | $ | (453 | ) | $ | 122 | ||||
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Fixed Charges: | ||||||||||||||||
Interest on indebtedness | $ | 229 | $ | 248 | $ | 249 | $ | 246 | $ | 221 | ||||||
Amortization of debt expense | 6 | 7 | 7 | 7 | 5 | |||||||||||
Estimated interest factor for rentals | 31 | 31 | 33 | 36 | 44 | |||||||||||
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Total fixed charges | $ | 266 | $ | 286 | $ | 289 | $ | 289 | $ | 270 | ||||||
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Preferred stock dividends (a) | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||
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Combined fixed charges and preferred stock dividends | $ | 266 | $ | 286 | $ | 289 | $ | 289 | $ | 270 | ||||||
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Ratio of earnings to fixed charges | 2.6 | 1.3 | (0.4 | ) | (1.6 | ) | 0.5 | |||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends | 2.6 | 1.3 | (0.4 | ) | (1.6 | ) | 0.5 | |||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items(b) | 2.6 | 1.7 | 1.2 | 1.0 | 1.5 | |||||||||||
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- (a)
- Represents amount of income before provision for income taxes required to meet the preferred stock dividend requirements of the Company.
- (b)
- Excludes the 2012 non-cash, pre-tax impairment charge for other intangible assets of $42 million and litigation expense of $77 million; the 2011 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $450 million and litigation expense of $9 million; the 2010 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $698 million and non-cash, pre-tax impairment charge for financial investments of $34 million; and the 2009 non-cash, pre-tax impairment charge for goodwill of $262 million; non-cash, pre-tax impairment charge for financial investments of $10 million and litigation expense of $7 million.
MASCO CORPORATION Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends