3M (MMM) 8-K 2017 FY Annual Report on Form 10-K

EXHIBIT 12

3M COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions)

	Year		Year		Year		Year		Year
	2017		2016		2015		2014		2013
EARNINGS
Income before income taxes	$	7,548	$	7,053	$	6,823	$	7,026	$	6,562
Add:
Amortization of capitalized interest		19		21		22		22		21
Total fixed charges (excluding capitalized interest)		339		298		250		246		248
Less:
Equity in undistributed income of equity method investments		11		9		5		(1)		(1)
TOTAL EARNINGS	$	7,895	$	7,363	$	7,090	$	7,295	$	6,832
FIXED CHARGES
Interest expense (including capitalized interest and excluding expense on early extinguishment of debt)		238		208		162		159		166
Portion of rent expense under operating leases representative of the interest factor		113		100		101		104		103
TOTAL FIXED CHARGES	$	351	$	308	$	263	$	263	$	269
RATIO OF EARNINGS TO FIXED CHARGES		22.5		23.9		27.0		27.7		25.4

For purposes of calculating the ratio above:

Earnings is defined as income before income taxes, amortization of capitalized interest, and fixed charges (less capitalized interest), excluding equity in undistributed income of equity method investments. Fixed charges consist of interest expense (including capitalized interest and excluding any expense related to early extinguishment of debt) and approximately one-third of rent expense under operating leases (considered representative of the interest factor).