EX-12 7 exh12.txt COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES EXHIBIT 12 SOLUTIA INC. COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)
1998 1999 2000 2001 2002 ---- ---- ---- ---- ---- Income (loss) from continuing operations, before income taxes and equity earnings (loss) from affiliates(1)....... $352 $262 $ (5) $(111) $(32) Add: Fixed charges........................................... 58 62 85 83 98 Amortization of capitalized interest.................... 7 7 7 7 7 Dividends from affiliated companies..................... 37 60 45 30 25 Less: Interest capitalized.................................... (6) (13) (17) (2) (1) ---- ---- ---- ----- ---- Income as adjusted.................................. $448 $378 $115 $ 7 $ 97 ==== ==== ==== ===== ==== Fixed charges: Interest expensed and capitalized....................... 49 53 73 72 85 Estimate of interest within rental expense.............. 9 9 12 11 13 ---- ---- ---- ----- ---- Fixed charges....................................... $ 58 $ 62 $ 85 $ 83 $ 98 ==== ==== ==== ===== ==== Ratio of Earnings to Fixed Charges(2)....................... 7.72 6.10 1.35 0.08 0.99 -------- (1) Includes restructuring and other items of $17 million for the year ended December 31, 2002, $86 million for the year ended December 31, 2001, $107 million for the year ended December 31, 2000, and $61 million for the year ended December 31, 1999. (2) Earnings for the years ended December 31, 2002, and 2001, would have to be $1 million and $76 million higher, respectively, in order to achieve a one-to-one ratio.
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