EXHIBIT 12
MASCO CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(DOLLARS IN MILLIONS)
-----------------------------------------------------
THREE
MONTHS
ENDED YEAR ENDED DECEMBER 31,
MARCH 31, -----------------------------------------
2006 2005 2004 2003 2002 2001
--------- ------ ------ ------ ------ -----
EARNINGS BEFORE INCOME TAXES,
PREFERRED STOCK DIVIDENDS
AND FIXED CHARGES:
Income from continuing operations
before income taxes, minority
interest and cumulative effect
of accounting change, net $327 $1,412 $1,542 $1,247 $ 933 $256
Deduct equity in undistributed
(earnings) of fifty-percent-or-
less-owned companies -- (1) (1) -- (10) (1)
Add interest on indebtedness, net 63 246 214 252 226 230
Add amortization of debt expense 2 6 6 13 13 10
Add estimated interest factor for
rentals 12 40 34 31 24 21
---- ------ ------ ------ ------ ----
Earnings before income taxes,
minority interest, cumulative
effect of accounting change,
net, fixed charges and preferred
stock dividends $404 $1,703 $1,795 $1,543 $1,186 $516
==== ====== ====== ====== ====== ====
FIXED CHARGES:
Interest on indebtedness $ 64 $ 244 $ 214 $ 253 $ 225 $234
Amortization of debt expense 2 6 6 13 13 10
Estimated interest factor for
rentals 12 40 34 31 24 21
---- ------ ------ ------ ------ ----
Total fixed charges $ 78 $ 290 $ 254 $ 297 $ 262 $265
==== ====== ====== ====== ====== ====
PREFERRED STOCK DIVIDENDS(A) $ -- $ -- $ 8 $ 16 $ 14 $ 7
---- ------ ------ ------ ------ ----
Combined fixed charges and
preferred stock dividends $ 78 $ 290 $ 262 $ 313 $ 276 $272
==== ====== ====== ====== ====== ====
Ratio of earnings to fixed charges 5.2 5.9 7.1 5.2 4.5 1.9
==== ====== ====== ====== ====== ====
Ratio of earnings to combined fixed
charges and preferred stock
dividends(B)(C) 5.2 5.9 6.9 4.9 4.3 1.9
==== ====== ====== ====== ====== ====
(A) Represents amount of income before provision for income taxes required to
meet the preferred stock dividend requirements of the Company.
(B) Excluding the 2005 pre-tax income of $6 million related to the Behr
litigation settlement, the non-cash, pre-tax goodwill impairment charge of
$69 million and the pre-tax impairment charge of $45 million relating to
financial investments, the 2004 pre-tax income of $30 million related to
the Behr litigation settlement, the non-cash, pre-tax goodwill impairment
charge of $112 million, and the pre-tax impairment charge of $21 million
related to a marketable security, the 2003 pre-tax income of $72 million
related to the Behr litigation settlement and the non-cash, pre-tax
goodwill impairment charge of $53 million, the 2002 pre-tax net charge of
$147 million related to the Behr litigation settlement, and the 2001
non-cash, pre-tax charge of $530 million, the Ratio of Earnings to Combined
Fixed Charges and Preferred Stock Dividends would be 6.2, 7.2, 4.9, 4.8 and
3.8 for the years 2005, 2004, 2003, 2002 and 2001, respectively.
(C) The year 2001 includes goodwill amortization expense.
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