CALCULATION OF
RATIO OF EARNINGS TO FIXED CHARGES
(Millions)
2005
2004
2003
2002
2001
EARNINGS
Income before income taxes, minority interest, and cumulative effect of
accounting change*
$
4,828
$
4,303
$
3,448
$
2,775
$
1,988
Add:
Interest expense
101
88
103
100
143
Interest component of the ESOP benefit expense
10
12
14
16
18
Portion of rent under operating leases representative of the interest
component
64
60
53
45
39
Less:
Equity in undistributed income of 20-50% owned companies
4
6
7
10
5
TOTAL EARNINGS AVAILABLEFOR FIXED CHARGES
$
4,999
$
4,457
$
3,611
$
2,926
$
2,183
FIXED CHARGES
Interest on debt
94
78
93
100
150
Interest component of the ESOP benefit expense
10
12
14
16
18
Portion of rent under operating leases representative of the interest
component
64
60
53
45
39
TOTAL FIXED CHARGES
$
168
$
150
$
160
$
161
$
207
RATIO OF EARNINGSTO FIXED CHARGES
29.8
29.7
22.6
18.2
10.5
* As discussed in Note 1 to the Consolidated Financial
Statements, effective January 1, 2006, 3M adopted SFAS No. 123R. Since 3M
elected to use the modified retrospective method prior periods have been
restated, resulting in a reduction in earnings and in the ratio of earnings to
fixed charges. 2003 includes a $93 million pre-tax loss related to an adverse
ruling associated with a lawsuit filed by LePages Inc. 2002 and 2001 include
net pre-tax losses of $202 million and $504 million, respectively, primarily
related to the 2001/2002 corporate restructuring program.
Bet you've never seen portfolio analytics like these.