EXHIBIT 12
3M COMPANY
AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
Nine
Months
Ended
Sep. 30,
2002 2001 2000 1999 1998 1997
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EARNINGS
Income from continuing
operations before income
taxes, minority interest,
extraordinary loss and
cumulative effect
of accounting change* $2,219 2,186 $2,974 $2,880 $1,952 $3,440
Add:
Interest expense 73 143 127 125 139 94
Interest component of the
ESOP benefit expense 12 18 19 21 29 32
Portion of rent under
operating leases
representative of
the interest component 29 39 39 37 41 41
Less:
Equity in undistributed
income of 20-50 percent
owned companies 7 5 10 4 4 3
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TOTAL EARNINGS AVAILABLE
FOR FIXED CHARGES $2,326 $2,381 $3,149 $3,059 $2,157 $3,604
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FIXED CHARGES
Interest on debt 74 150 141 135 139 94
Interest component of
the ESOP benefit
expense 12 18 19 21 29 32
Portion of rent under
operating leases
representative of
the interest component 29 39 39 37 41 41
------ ------ ------ ------ ------ ------
TOTAL FIXED CHARGES $ 115 $ 207 $ 199 $ 193 $ 209 $ 167
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RATIO OF EARNINGS
TO FIXED CHARGES 20.2 11.5 15.8 15.8 10.3 21.6
* Nine months ended September 30, 2002, and year 2001 include non-recurring net
pre-tax losses of $202 million and $504 million, respectively, primarily related
to the 2001 restructuring plan. 2000 includes a non-recurring net pre-tax loss
of $23 million. 1999 includes a non-recurring net pre-tax gain of $100 million
relating to gains on divestitures, litigation expense, an investment valuation
adjustment, and a change in estimate that reduced 1998 restructuring charges.
1998 includes pre-tax restructuring charges of $493 million. 1997 includes a
pre-tax gain on the sale of National Advertising Company of $803 million.