EXHIBIT 12
MASCO HOME FURNISHINGS GROUP
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
HISTORICAL
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PRO FORMA
DECEMBER 31, -----------------------
------------------------------------------ JUNE 30, DECEMBER 31, JUNE 30,
1991 1992 1993 1994 1995 1996 1995 1996
------ ------ ------ ------ ------ -------- ------------ --------
EARNINGS BEFORE INCOME
TAXES AND FIXED CHARGES:
Income (loss) before
income taxes............. $(53.4) $(23.9) $(16.7) $(16.3) $(11.8) $ 2.3 $ 53.6 $ 26.2
Deduct/add equity in
undistributed (earnings)
loss of
fifty-percent-or-less
owned companies......... 0.1 -- (0.1) 1.8 1.5 0.7 1.5 0.7
Add interest on
indebtedness............. 86.0 84.1 82.7 87.1 94.8 44.5 65.6 32.4
Add one-quarter rentals... 3.6 5.4 5.5 4.8 5.4 2.6 5.4 2.6
------ ------ ------ ------ ------ -------- ------------ --------
Earnings before income
taxes and fixed
charges............. $ 36.3 $ 65.6 $ 71.4 $ 77.4 $ 89.9 $ 50.1 $126.1 $ 61.9
------ ------ ------ ------ ------ -------- ------------ --------
------ ------ ------ ------ ------ -------- ------------ --------
FIXED CHARGES:
Interest on indebtedness.. $ 88.6 $ 84.7 $ 83.5 $ 88.2 $ 95.9 $ 45.0 $ 66.7 $ 32.9
One-quarter rentals....... 3.6 5.4 5.5 4.8 5.4 2.6 5.4 2.6
------ ------ ------ ------ ------ -------- ------------ --------
$ 92.2 $ 90.1 $ 89.0 $ 93.0 $101.3 $ 47.6 $ 72.1 $ 35.5
Ratio of earnings to fixed
charges.................. (a) (a) (a) (a) (a) 1.1 1.8 1.7
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(a) Earnings were insufficient to cover fixed charges by $55.9, $24.5, $17.6,
$15.6 and $11.4 for the years ended December 31, 1991 through 1995,
respectively.