EX-99 5 ex99.txt COMPUTATION OF RATIO OF EARNINGS EXHIBIT 99 SOLUTIA INC. CALCULATION OF THE RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)
THREE MONTHS FOUR MONTHS ENDED ENDED MARCH 31, DECEMBER 31, 1997(1) 1998 1999 2000 2001 -------------------- ---- ---- ---- ------------ Income from continuing operations, before income taxes and equity earnings from affiliates(2)........... $ 37 $350 $267 $ 6 $ 30 Add: Fixed charges.............. 22 58 62 114 26 Amortization of capitalized interest................. 2 7 7 7 2 Dividends from affiliated companies................ 14 37 60 45 2 Less: Interest capitalized....... (4) (6) (13) (18) (1) ---- ---- ---- ---- ---- Income as adjusted..... $ 71 $446 $383 $154 $ 59 ==== ==== ==== ==== ==== Fixed charges Interest expensed and capitalized.............. 19 49 53 101 23 Amortization of debt premium.................. -- -- -- -- -- Estimate of interest within rental expense........... 3 9 9 13 3 ---- ---- ---- ---- ---- Fixed charges.......... $ 22 $ 58 $ 62 $114 $ 26 ==== ==== ==== ==== ==== Ratio of Earnings to Fixed Charges...................... 3.23 7.69 6.18 1.35 2.27 ==== ==== ==== ==== ==== ------- (1) We have not calculated the ratio of earnings to fixed charges for the periods before September 1, 1997. Historical computation of earnings to fixed charges is not considered meaningful before that date because we were not an independent company and Monsanto Company did not allocate debt to us. (2) Includes restructuring and other unusual items of $122 million for the year ended December 31, 2000, $63 million for the year ended December 31, 1999, and $72 million for the four months ended December 31, 1997.