Masco (MAS) 10-Q 2013 Q1 Quarterly report

Exhibit 12

MASCO CORPORATION

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

	(Dollars in Millions)
	Three
	Months
	Ended
	Mar. 31,			Year Ended December 31,
	2013			2012		2011			2010			2009			2008
Earnings Before Income Taxes, Preferred Stock Dividends and Fixed Charges:
Income (loss) from continuing operations before income taxes	$	79		$	73	$	(392	)	$	(745	)	$	(151	)	$	(145	)
Deduct equity in undistributed loss (earnings) of fifty-percent-or- less-owned companies		(1	)		—		—			—			—			(1	)
Add interest on indebtedness, net		59			249		250			249			224			228
Add amortization of debt expense		2			7		7			7			5			4
Add estimated interest factor for rentals		8			31		33			36			44			51
Earnings (loss) before income taxes, noncontrolling interest, net, fixed charges and preferred stock dividends	$	147		$	360	$	(102	)	$	(453	)	$	122		$	137
Fixed Charges:
Interest on indebtedness	$	58		$	248	$	249		$	246		$	221		$	228
Amortization of debt expense		2			7		7			7			5			4
Estimated interest factor for rentals		8			31		33			36			44			51
Total fixed charges	$	68		$	286	$	289		$	289		$	270		$	283
Preferred stock dividends(a)	$	—		$	—	$	—		$	—		$	—		$	—
Combined fixed charges and preferred stock dividends	$	68		$	286	$	289		$	289		$	270		$	283
Ratio of earnings to fixed charges		2.2			1.3		(0.4	)		(1.6	)		0.5			0.5
Ratio of earnings to combined fixed charges and preferred stock dividends		2.2			1.3		(0.4	)		(1.6	)		0.5			0.5
Ratio of earnings to combined fixed charges and preferred stock dividends excluding certain items(b)		2.2			1.7		1.2			1.0			1.5			2.2

(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 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; 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; and the 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.