EXHIBIT 12
3M COMPANY AND SUBSIDIARIES
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Millions)
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Six months ended |
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June 30, |
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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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2018 |
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2017 |
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2016 |
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2015 |
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2014 |
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2013 |
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EARNINGS |
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Income before income taxes |
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$ |
3,315 |
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$ |
7,548 |
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$ |
7,053 |
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$ |
6,823 |
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$ |
7,026 |
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$ |
6,562 |
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Add: |
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Amortization of capitalized interest |
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9 |
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19 |
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21 |
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22 |
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22 |
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21 |
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Total fixed charges (excluding capitalized interest) |
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234 |
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339 |
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298 |
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250 |
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246 |
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248 |
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Less: |
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Equity in undistributed income of equity method investments |
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6 |
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11 |
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9 |
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5 |
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(1) |
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(1) |
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TOTAL EARNINGS |
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$ |
3,552 |
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$ |
7,895 |
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$ |
7,363 |
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$ |
7,090 |
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$ |
7,295 |
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$ |
6,832 |
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FIXED CHARGES |
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Interest expense (including capitalized interest and excluding expense on early extinguishment of debt) |
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176 |
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238 |
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208 |
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162 |
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159 |
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166 |
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Portion of rent expense under operating leases representative of the interest factor |
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64 |
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113 |
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100 |
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101 |
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104 |
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103 |
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TOTAL FIXED CHARGES |
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$ |
240 |
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$ |
351 |
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$ |
308 |
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$ |
263 |
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$ |
263 |
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$ |
269 |
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RATIO OF EARNINGS TO FIXED CHARGES |
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14.8 |
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22.5 |
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23.9 |
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27.0 |
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27.7 |
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25.4 |
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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).