Masco (MAS) 10-Q 2012 Q2 Quarterly report

Exhibit 12

MASCO CORPORATION

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

	(Dollars in Millions)
	Six Months Ended June 30,		Year Ended December 31,
	2012		2011			2010			2009			2008			2007
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges:
(Loss) income from continuing operations before income taxes	$	34	$	(472	)	$	(741	)	$	(136	)	$	(134	)	$	867
Deduct equity in undistributed loss (earnings) of fifty-percent-or-less-owned companies		—		—			—			—			(1	)		(2	)
Add interest on indebtedness, net		130		250			249			224			228			258
Add amortization of debt expense		3		7			7			5			4			5
Add estimated interest factor for rentals		15		33			36			44			51			55
Earnings (loss) before income taxes, noncontrolling interest, net, fixed charges and preferred stock dividends	$	182	$	(182	)	$	(449	)	$	137		$	148		$	1,183
Fixed Charges:
Interest on indebtedness	$	130	$	249		$	246		$	221		$	228		$	259
Amortization of debt expense		3		7			7			5			4			5
Estimated interest factor for rentals		15		33			36			44			51			55
Total fixed charges	$	148	$	289		$	289		$	270		$	283		$	319
Preferred stock dividends(a)	$	—	$	—		$	—		$	—		$	—		$	—
Combined fixed charges and preferred stock dividends	$	148	$	289		$	289		$	270		$	283		$	319
Ratio of earnings to fixed charges		1.2		(0.6	)		(1.6	)		0.5			0.5			3.7
Ratio of earnings to combined fixed charges and preferred stock dividends		1.2		(0.6	)		(1.6	)		0.5			0.5			3.7
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items(b)		1.7		1.1			0.9			1.5			2.4			4.2

(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 pre-tax charge for legal settlements, net of $73 million; the 2011 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $494 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; 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; 2008 non-cash, pre-tax impairment charge for goodwill and other intangible assets of $415 million, financial investments of $58 million and litigation expense of $9 million; and the 2007 non-cash, pre-tax impairment charges for goodwill and other intangible assets of $119 million and the non-cash, pre-tax charge for financial investments of $22 million.