EXHIBIT 12
MASCO CORPORATION AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(THOUSANDS OF DOLLARS)
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NINE
MONTHS
ENDED YEAR ENDED DECEMBER 31
SEPT. 30, ------------------------------------------------------
2001 2000 1999 1998 1997 1996
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EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES:
Income before income
taxes* $109,200 $ 893,400 $ 904,100 $ 905,500 $733,800 $575,600
Deduct/add equity in
undistributed
(earnings)/loss of
fifty-percent-or-
less-owned companies 190 (9,640) (18,720) (24,070) (19,470) (12,310)
Add interest on
indebtedness, net 177,110 193,000 121,520 115,700 94,780 78,790
Add amortization of debt
expense 5,490 2,430 1,350 2,130 2,310 1,400
Add estimated interest
factor for rentals 17,290 18,760 16,080 11,430 9,270 7,120
-------- ---------- ---------- ---------- -------- --------
Earnings before income
taxes and fixed charges $309,280 $1,097,950 $1,024,330 $1,010,690 $820,690 $650,600
======== ========== ========== ========== ======== ========
FIXED CHARGES:
Interest on indebtedness $184,070 $ 202,630 $ 129,860 $ 119,750 $ 97,910 $ 81,250
Amortization of debt
expense 5,490 2,430 1,350 2,130 2,310 1,400
Estimated interest factor
for rentals 17,290 18,760 16,080 11,430 9,270 7,120
-------- ---------- ---------- ---------- -------- --------
$206,850 $ 223,820 $ 147,290 $ 133,310 $109,490 $ 89,770
======== ========== ========== ========== ======== ========
Ratio of earnings to fixed
charges 1.5 4.9 7.0 7.6 7.5 7.2
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* Income before income taxes for the nine months ended September 30, 2001
includes a $530 million pre-tax, non-cash charge for the write-down of certain
investments.