EXHIBIT 12
3M COMPANY
AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions)
|
|
|
Three months |
|
Year |
|
Year |
|
Year |
|
Year |
|
Year |
|
|||||||||||
|
EARNINGS |
|
2005 |
|
2004 |
|
2003 |
|
2002 |
|
2001 |
|
2000 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Income from continuing operations before income taxes, minority interest, and cumulative effect of accounting change* |
|
$ |
1,220 |
|
$ |
4,555 |
|
$ |
3,657 |
|
$ |
3,005 |
|
$ |
2,186 |
|
$ |
2,974 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest expense |
|
25 |
|
88 |
|
103 |
|
100 |
|
143 |
|
127 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest component of the ESOP benefit expense |
|
3 |
|
12 |
|
14 |
|
16 |
|
18 |
|
19 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Portion of rent under operating leases representative of the interest component |
|
16 |
|
60 |
|
53 |
|
45 |
|
39 |
|
39 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Equity in undistributed income of 20-50% owned companies |
|
1 |
|
6 |
|
7 |
|
10 |
|
5 |
|
10 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES |
|
$ |
1,263 |
|
$ |
4,709 |
|
$ |
3,820 |
|
$ |
3,156 |
|
$ |
2,381 |
|
$ |
3,149 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
FIXED CHARGES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest on debt |
|
23 |
|
78 |
|
93 |
|
100 |
|
150 |
|
141 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Interest component of the ESOP benefit expense |
|
3 |
|
12 |
|
14 |
|
16 |
|
18 |
|
19 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
Portion of rent under operating leases representative of the interest component |
|
16 |
|
60 |
|
53 |
|
45 |
|
39 |
|
39 |
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
TOTAL FIXED CHARGES |
|
$ |
42 |
|
$ |
150 |
|
$ |
160 |
|
$ |
161 |
|
$ |
207 |
|
$ |
199 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
RATIO OF EARNINGS TO FIXED CHARGES |
|
30.1 |
|
31.4 |
|
23.9 |
|
19.6 |
|
11.5 |
|
15.8 |
|
|||||||||||
* 2003 includes a $93 million pre-tax loss related to an adverse ruling associated with a lawsuit filed by LePage’s Inc. 2002 and 2001 include net pre-tax losses of $202 million and $504 million, respectively, primarily related to the restructuring. 2000 includes non-recurring net pre-tax losses of $23 million.