EXHIBIT 12
3M COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions)
|
|
|
Three months |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
ended |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
Mar. 31, |
|
Year |
|
Year |
|
Year |
|
Year |
|
Year |
|
||||||
|
|
|
2010 |
|
2009 |
|
2008 |
|
2007 |
|
2006 |
|
2005 |
|
||||||
|
EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Income before income taxes* |
|
$ |
1,403 |
|
$ |
4,632 |
|
$ |
5,108 |
|
$ |
6,115 |
|
$ |
5,625 |
|
$ |
4,817 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest expense (including amortization of capitalized interest) |
|
53 |
|
236 |
|
231 |
|
229 |
|
139 |
|
112 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest component of the ESOP benefit expense |
|
— |
|
1 |
|
3 |
|
5 |
|
8 |
|
10 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Portion of rent under operating leases representative of the interest component |
|
20 |
|
76 |
|
77 |
|
70 |
|
70 |
|
64 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Equity in undistributed income of 20-50% owned companies |
|
3 |
|
4 |
|
6 |
|
5 |
|
6 |
|
4 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
TOTAL EARNINGS AVAILABLE FOR FIXED CHARGES |
|
$ |
1,473 |
|
$ |
4,941 |
|
$ |
5,413 |
|
$ |
6,414 |
|
$ |
5,836 |
|
$ |
4,999 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
FIXED CHARGES |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest on debt (including capitalized interest) |
|
53 |
|
246 |
|
243 |
|
235 |
|
138 |
|
105 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Interest component of the ESOP benefit expense |
|
— |
|
1 |
|
3 |
|
5 |
|
8 |
|
10 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Portion of rent under operating leases representative of the interest component |
|
20 |
|
76 |
|
77 |
|
70 |
|
70 |
|
64 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
TOTAL FIXED CHARGES |
|
$ |
73 |
|
$ |
323 |
|
$ |
323 |
|
$ |
310 |
|
$ |
216 |
|
$ |
179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
RATIO OF EARNINGS TO FIXED CHARGES |
|
20.2 |
|
15.3 |
|
16.8 |
|
20.7 |
|
27.0 |
|
27.9 |
|
||||||
*2009 results included net pre-tax charges of $194 million related to restructuring actions partially offset by a gain on sale of real estate. 2008 results included net pre-tax charges of $269 million, with charges related to restructuring actions, exit activities and a loss on sale of businesses partially offset by a gain on sale of real estate. 2007 results included pre-tax gains of $681 million, with net benefits from gains related to the sale of businesses and a gain on sale of real estate, which were partially offset by increases in environmental liabilities, restructuring actions, and exit activities. 2006 results included 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.