Exhibit 12
MASCO CORPORATION
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
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| Ended |
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| June 30, |
| Year Ended December 31, |
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| 2014 |
| 2013 |
| 2012 |
| 2011 |
| 2010 |
| 2009 |
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Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges: |
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Income (loss) from continuing operations before income taxes |
| $ | 283 |
| $ | 450 |
| $ | 73 |
| $ | (383 | ) | $ | (745 | ) | $ | (151 | ) |
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Deduct equity in undistributed losses (earnings) of fifty-percent- or-less-owned companies |
| 2 |
| (16 | ) | — |
| (9 | ) | — |
| — |
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Add interest on indebtedness, net |
| 111 |
| 230 |
| 249 |
| 250 |
| 249 |
| 224 |
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Add amortization of debt expense |
| 2 |
| 6 |
| 7 |
| 7 |
| 7 |
| 5 |
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Add estimated interest factor for rentals |
| 16 |
| 31 |
| 31 |
| 33 |
| 36 |
| 44 |
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Earnings (loss) before income taxes, noncontrolling interest, net, fixed charges and preferred stock dividends |
| $ | 414 |
| $ | 701 |
| $ | 360 |
| $ | (102 | ) | $ | (453 | ) | $ | 122 |
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Fixed Charges: |
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Interest on indebtedness |
| $ | 111 |
| $ | 229 |
| $ | 248 |
| $ | 249 |
| $ | 246 |
| $ | 221 |
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Amortization of debt expense |
| 2 |
| 6 |
| 7 |
| 7 |
| 7 |
| 5 |
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Estimated interest factor for rentals |
| 16 |
| 31 |
| 31 |
| 33 |
| 36 |
| 44 |
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Total fixed charges |
| $ | 129 |
| $ | 266 |
| $ | 286 |
| $ | 289 |
| $ | 289 |
| $ | 270 |
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Preferred stock dividends(a) |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
| $ | — |
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Combined fixed charges and preferred stock dividends |
| $ | 129 |
| $ | 266 |
| $ | 286 |
| $ | 289 |
| $ | 289 |
| $ | 270 |
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Ratio of earnings to fixed charges |
| 3.2 |
| 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 |
| 3.2 |
| 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) |
| 3.2 |
| 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 charges for financial investments of $34 million; and the 2009 non-cash, pre-tax charge for goodwill impairment of $262 million; non-cash, pre-tax impairment charge for financial investments of $10 million and litigation expense of $7 million.
