3M (MMM) 10-Q 2011 Q3 Quarterly report

EXHIBIT 12

3M COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions)

	Nine months ended Sept. 30, 2011		Year 2010		Year 2009		Year 2008		Year 2007		Year 2006
EARNINGS
Income before income taxes*	$	4,702	$	5,755	$	4,632	$	5,108	$	6,115	$	5,625
Add:
Interest expense (including amortization of capitalized interest)	156		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	63		81		76		77		70		70
Less:
Equity in undistributed income of 20-50% owned companies	3		4		4		6		5		6
TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES	$	4,918	$	6,052	$	4,941	$	5,413	$	6,414	$	5,836
FIXED CHARGES
Interest on debt (including capitalized interest)	155		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	63		81		76		77		70		70
TOTAL FIXED CHARGES	$	218	$	299	$	323	$	323	$	310	$	216
RATIO OF EARNINGS TO FIXED CHARGES	22.6		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.