EXHIBIT 12
3M COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions)
|
| Year |
| Year |
| Year |
| Year |
| Year |
| |||||
EARNINGS |
|
|
|
|
|
|
|
|
|
|
| |||||
Income before income taxes* |
| $ | 5,755 |
| $ | 4,632 |
| $ | 5,108 |
| $ | 6,115 |
| $ | 5,625 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest expense (including amortization of capitalized interest |
| 220 |
| 236 |
| 231 |
| 229 |
| 139 |
| |||||
Interest component of the ESOP benefit expense |
| — |
| 1 |
| 3 |
| 5 |
| 8 |
| |||||
Portion of rent under operating leases representative of the interest component |
| 81 |
| 76 |
| 77 |
| 70 |
| 70 |
| |||||
Less: |
|
|
|
|
|
|
|
|
|
|
| |||||
Equity in undistributed income of 20-50% owned companies |
| 4 |
| 4 |
| 6 |
| 5 |
| 6 |
| |||||
TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES |
| $ | 6,052 |
| $ | 4,941 |
| $ | 5,413 |
| $ | 6,414 |
| $ | 5,836 |
|
FIXED CHARGES |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest on debt (including capitalized interest) |
| 218 |
| 246 |
| 243 |
| 235 |
| 138 |
| |||||
Interest component of the ESOP benefit expense |
| — |
| 1 |
| 3 |
| 5 |
| 8 |
| |||||
Portion of rent under operating leases representative of the interest component |
| 81 |
| 76 |
| 77 |
| 70 |
| 70 |
| |||||
TOTAL FIXED CHARGES |
| $ | 299 |
| $ | 323 |
| $ | 323 |
| $ | 310 |
| $ | 216 |
|
RATIO OF EARNINGS TO FIXED CHARGES |
| 20.2 |
| 15.3 |
| 16.8 |
| 20.7 |
| 27.0 |
| |||||
* 2009 results included net pre-tax charges of $194 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.
