Masco (MAS) 10-Q 2015 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
	Sep. 30,			Year Ended December 31,
	2015			2014		2013			2012		2011			2010
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges:
Income (loss) from continuing operations before income taxes	$	529		$	507	$	386		$	155	$	(322	)	$	51
Deduct equity in undistributed (earnings) loss of fifty-percent- or-less-owned companies	(2		)	2		(16		)	—		(9		)	—
Add interest on indebtedness, net	168			221		230			249		250			249
Add amortization of debt expense	4			5		6			7		7			7
Add estimated interest factor for rentals	14			33		31			31		33			36
Earnings (loss) before income taxes, noncontrolling interest, fixed charges and preferred stock dividends	$	713		$	768	$	637		$	442	$	(41	)	$	343
Fixed Charges:
Interest on indebtedness	$	169		$	221	$	229		$	248	$	249		$	246
Amortization of debt expense	4			5		6			7		7			7
Estimated interest factor for rentals	14			33		31			31		33			36
Total fixed charges	$	187		$	259	$	266		$	286	$	289		$	289
Preferred stock dividends(a)	$	—		$	—	$	—		$	—	$	—		$	—
Combined fixed charges and preferred stock dividends	$	187		$	259	$	266		$	286	$	289		$	289
Ratio of earnings to fixed charges	3.8			3.0		2.4			1.5		(0.1		)	1.2
Ratio of earnings to combined fixed charges and preferred stock dividends	3.8			3.0		2.4			1.5		(0.1		)	1.2
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items (b)	3.8			2.9		2.4			1.7		1.4			1.3

(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; 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 $1 million and non-cash and pre-tax impairment charges for financial investments of $34 million.

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