EX-12 5 exh12.txt EXHIBIT 12 SOLUTIA INC. COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)
1999 2000 2001 2002 2003 ---- ---- ---- ---- ---- Income (loss) from continuing operations, before income taxes and equity earnings (loss) from affiliates(1)....... $262 $ (5) $(111) $(32) $(482) Add: Fixed charges........................................... 62 85 83 98 131 Amortization of capitalized interest.................... 7 7 7 7 6 Dividends from affiliated companies..................... 60 45 30 25 -- Less: Interest capitalized.................................... (13) (17) (2) (1) (1) ---- ---- ----- ---- ----- Income as adjusted.................................. $378 $115 $ 7 $ 97 $(346) ==== ==== ===== ==== ===== Fixed charges: Interest expensed and capitalized....................... 53 73 72 85 121 Estimate of interest within rental expense.............. 9 12 11 13 10 ---- ---- ----- ---- ----- Fixed charges....................................... $ 62 $ 85 $ 83 $ 98 $ 131 ==== ==== ===== ==== ===== Ratio of Earnings to Fixed Charges(2)....................... 6.10 1.35 0.08 0.99 (2.64) -------- (1) Includes restructuring and other items of $343 million for the year ended December 31, 2003, $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, 2003, 2002, and 2001, would have to be $477 million, $1 million and $76 million higher, respectively, in order to achieve a one-to-one ratio.