3M (MMM) 10-Q 2009 Q2 Quarterly report

EXHIBIT 12

3M COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions)

	Six months
	Ended
	June 30,		Year		Year		Year		Year		Year
	2009		2008		2007		2006		2005		2004
EARNINGS
Income before income taxes, noncontrolling interest, and cumulative effect of accounting change*	$	1,902	$	5,108	$	6,115	$	5,625	$	4,817	$	4,291
Add:
Interest expense (including amortization of capitalized interest)	118		231		229		139		112		100
Interest component of the ESOP benefit expense	1		3		5		8		10		12
Portion of rent under operating leases representative of the interest component	37		77		70		70		64		60
Less:
Equity in undistributed income of 20-50% owned companies	2		6		5		6		4		6
TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES	$	2,056	$	5,413	$	6,414	$	5,836	$	4,999	$	4,457
FIXED CHARGES
Interest on debt (including capitalized interest)	125		243		235		138		105		90
Interest component of the ESOP benefit expense	1		3		5		8		10		12
Portion of rent under operating leases representative of the interest component	37		77		70		70		64		60
TOTAL FIXED CHARGES	$	163	$	323	$	310	$	216	$	179	$	162
RATIO OF EARNINGS TO FIXED CHARGES	12.6		16.8		20.7		27.0		27.9		27.5

*2009 results included pre tax charges of $168 million related to restructuring actions partially offset by a gain on sale of real estate. 2008 results included net pre-tax charges of $269 million, with charges related to restructuring actions, exit activities and a loss on sale of businesses partially offset by a gain on sale of real estate. 2007 results included pre-tax gains of $681 million, with net benefits from gains related to the sale of businesses and a gain on sale of real estate, which were partially offset by increases in environmental liabilities, restructuring actions, and exit activities. 2006 results included pre-tax gains of $523 million, with net benefits from gains related to the sale of certain portions of 3M’s branded pharmaceuticals business partially offset by restructuring actions, acquired in-process research and development expenses, settlement costs of a previously disclosed antitrust class action, and environmental obligations related to the pharmaceuticals business.