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3M Company 8-K 2006

Documents found in this filing:

  1. 8-K
  2. Ex-12
  3. Ex-23
  4. Ex-99
  5. Ex-99

EXHIBIT 12

3M COMPANY AND SUBSIDIARIES

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 AVAILABLE FOR 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 EARNINGS TO 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 LePage’s 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.

 



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