EXHIBIT 12

 

3M COMPANY AND SUBSIDIARIES

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

Year

 

Year

 

Year

 

Year

 

Year

 

 

  

2018

  

2017

  

2016

  

2015

  

2014

  

2013

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

$

3,315

 

$

7,548

 

$

7,053

 

$

6,823

 

$

7,026

 

$

6,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of capitalized interest

 

 

 9

 

 

19

 

 

21

 

 

22

 

 

22

 

 

21

 

Total fixed charges (excluding capitalized interest)

 

 

234

 

 

339

 

 

298

 

 

250

 

 

246

 

 

248

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in undistributed income of equity method investments

 

 

 6

 

 

11

 

 

 9

 

 

 5

 

 

(1)

 

 

(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EARNINGS

 

$

3,552

 

$

7,895

 

$

7,363

 

$

7,090

 

$

7,295

 

$

6,832

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

176

 

 

238

 

 

208

 

 

162

 

 

159

 

 

166

 

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

 

 

64

 

 

113

 

 

100

 

 

101

 

 

104

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL FIXED CHARGES

 

$

240

 

$

351

 

$

308

 

$

263

 

$

263

 

$

269

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

 

14.8

 

 

22.5

 

 

23.9

 

 

27.0

 

 

27.7

 

 

25.4

 

 

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).