EXHIBIT 12
3M COMPANY
AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions)
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Three months |
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Ended |
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March 31, |
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Year |
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Year |
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Year |
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Year |
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Year |
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2007 |
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2006 |
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2005 |
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2004 |
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2003 |
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2002 |
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EARNINGS |
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Income before income taxes, minority interest, and cumulative effect of accounting change* |
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$ |
2,091 |
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$ |
5,625 |
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$ |
4,828 |
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$ |
4,303 |
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$ |
3,448 |
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$ |
2,775 |
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Add: |
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Interest expense |
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41 |
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139 |
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101 |
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88 |
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103 |
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100 |
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Interest component of the ESOP benefit expense |
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2 |
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8 |
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10 |
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12 |
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14 |
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16 |
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Portion of rent under operating leases representative of the interest component |
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17 |
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70 |
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64 |
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60 |
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53 |
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45 |
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Less: |
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Equity in undistributed income of 20-50% owned companies |
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1 |
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6 |
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4 |
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6 |
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7 |
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10 |
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TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES |
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$ |
2,150 |
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$ |
5,836 |
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$ |
4,999 |
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$ |
4,457 |
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$ |
3,611 |
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$ |
2,926 |
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FIXED CHARGES |
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Interest on debt |
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43 |
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138 |
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94 |
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78 |
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93 |
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100 |
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Interest component of the ESOP benefit expense |
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2 |
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8 |
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10 |
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12 |
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14 |
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16 |
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Portion of rent under operating leases representative of the interest component |
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17 |
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70 |
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64 |
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60 |
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53 |
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45 |
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TOTAL FIXED CHARGES |
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$ |
62 |
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$ |
216 |
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$ |
168 |
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$ |
150 |
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$ |
160 |
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$ |
161 |
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RATIO OF EARNINGS TO FIXED CHARGES |
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34.7 |
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27.0 |
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29.8 |
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29.7 |
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22.6 |
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18.2 |
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* First-quarter 2007 results included net pre-tax gains of $653 million, with net benefits from gains related to the sale of 3M’s branded pharmaceuticals business in Europe partially offset by an increase in environmental liabilities and restructuring actions. 2006 results included net pre-tax gains of $523 million, with net benefits from gains related to the sale of certain portions of 3M’s branded pharmaceuticals business partially offset by restructuring actions, acquired in-process research and development expenses, settlement costs of a previously disclosed antitrust class action, and environmental obligations related to the pharmaceuticals business. 2003 includes a $93 million pre-tax loss related to an adverse ruling associated with a lawsuit filed by LePage’s Inc. 2002 includes net pre-tax losses of $202 million, primarily related to the 2001/2002 corporate restructuring program.