EXHIBIT 12

 

3M COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

  

2017

  

2016

  

2015

  

2014

  

2013

  

2012

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

5,876

 

$

7,053

 

$

6,823

 

$

7,026

 

$

6,562

 

$

6,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of capitalized interest

 

 

15

 

 

21

 

 

22

 

 

22

 

 

21

 

 

20

 

Total fixed charges (excluding capitalized interest)

 

 

238

 

 

298

 

 

250

 

 

246

 

 

248

 

 

263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed income of equity method investments

 

 

 8

 

 

 9

 

 

 5

 

 

(1)

 

 

(1)

 

 

 3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EARNINGS

 

$

6,121

 

$

7,363

 

$

7,090

 

$

7,295

 

$

6,832

 

$

6,631

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (including capitalized interest and excluding expense on early extinguishment of debt)

 

 

165

 

 

208

 

 

162

 

 

159

 

 

166

 

 

194

 

Portion of rent expense under operating leases representative of the interest factor

 

 

83

 

 

100

 

 

101

 

 

104

 

 

103

 

 

92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL FIXED CHARGES

 

$

248

 

$

308

 

$

263

 

$

263

 

$

269

 

$

286

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

 

24.7

 

 

23.9

 

 

27.0

 

 

27.7

 

 

25.4

 

 

23.2

 

 

For purposes of calculating the ratio above:

Earnings is defined as income before income taxes,  amortization of capitalized interest, and fixed charges (less capitalized interest), excluding equity in undistributed income of equity method investments. Fixed charges consist of interest expense (including capitalized interest and excluding any expense related to early extinguishment of debt) and approximately one-third of rent expense under operating leases (considered representative of the interest factor).