EX-12 3 ex12.txt EXHIBIT 12 SOLUTIA INC. COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS)
2001 2002 2003 2004 2005 ----------- ------------- ------------- -------------- ------------- Income (loss) from continuing operations, before income taxes and equity earnings (loss) from affiliates (1) ..... (111) (32) (482) (296) (71) Add: Fixed charges.......................... 83 98 131 125 95 Amortization of capitalized interest... 7 7 6 7 5 Dividends from affiliated companies.... 30 25 - - - Less: Interest capitalized................... (2) (1) (1) (3) (3) --------- ------------- ------------- -------------- ------------- Income as adjusted................ 7 97 (346) (167) 26 ========= ============= ============= ============== ============= Fixed charges Interest expensed and capitalized... 72 85 121 116 87 Estimate of interest within rental expense.......................... 11 13 10 9 8 --------- ------------- ------------- -------------- ------------- Fixed charges................ 83 98 131 125 95 ========= ============= ============= ============== ============= Ratio of Earnings to Fixed Charges (2)...... 0.08 0.99 (2.64) (1.34) 0.27 (1) Includes restructuring and other items of $15 million for the year ended December 31, 2005, $141 million for the year ended December 31, 2004, $343 million for the year ended December 31, 2003, $17 million for the year ended December 31, 2002, and $86 million for the year ended December 31, 2001. (2) Earnings for the years ended December 31, 2005, 2004, 2003, and 2002, would have to be $69 million, $292 million, $477 million, and $1 million higher, respectively, in order to achieve a one-to-one ratio.