EXHIBIT 12
MASCO CORPORATION AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS
(DOLLARS IN THOUSANDS)
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THREE
MONTHS
ENDED YEAR ENDED DECEMBER 31
MARCH 31, ------------------------------------------------------
2002 2001 2000 1999 1998 1997
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EARNINGS BEFORE INCOME TAXES
AND FIXED CHARGES:
Income from continuing
operations before
income taxes $227,600 $ 300,700 $ 893,400 $ 904,100 $ 905,500 $733,800
Deduct/add equity in
undistributed
(earnings)/loss of
fifty-percent-or-
less-owned companies (1,880) (1,590) (9,640) (18,720) (24,070) (19,470)
Add interest on
indebtedness, net 51,740 233,440 193,000 121,520 115,700 94,780
Add amortization of debt
expense 4,800 10,300 2,430 1,350 2,130 2,310
Add estimated interest
factor for rentals 6,020 23,050 18,760 16,080 11,430 9,270
-------- ---------- ---------- ---------- ---------- --------
Earnings before income
taxes and fixed charges $288,280 $ 565,900 $1,097,950 $1,024,330 $1,010,690 $820,690
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FIXED CHARGES:
Interest on indebtedness $ 51,740 $ 239,290 $ 202,630 $ 129,860 $ 119,750 $ 97,910
Amortization of debt
expense 4,800 10,300 2,430 1,350 2,130 2,310
Estimated interest factor
for rentals 6,020 23,050 18,760 16,080 11,430 9,270
-------- ---------- ---------- ---------- ---------- --------
Total fixed charges $ 62,560 $ 272,640 $ 223,820 $ 147,290 $ 133,310 $109,490
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PREFERRED STOCK DIVIDENDS(a) 3,410 6,820 --- --- --- ---
-------- ---------- ---------- ---------- ---------- --------
Combined fixed charges and
preferred stock
dividends $ 65,970 $ 279,460 $ 223,820 $ 147,290 $ 133,310 $109,490
======== ========== ========== ========== ========== ========
Ratio of earnings to fixed
charges 4.6 2.1 4.9 7.0 7.6 7.5
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Ratio of earnings to combined
fixed charges and preferred
stock dividends(b)(c) 4.4 2.0 4.9 7.0 7.6 7.5
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(a) Represents amount of income before provision for income taxes required
to meet the preferred stock dividend requirements of the Company.
(b) Excluding the third quarter 2001 pre-tax non-cash charge of $530
million and the fourth quarter 2000 pre-tax non-cash charge of $145
million, the Ratio of Earnings to Combined Fixed Charges and Preferred
Stock Dividends would have been 3.9 and 5.6 for 2001 and 2000,
respectively.
(c) Prior years have not been adjusted to exclude goodwill amortization expense.