EX-12 4 ex12.txt
EXHIBIT 12 SOLUTIA INC. COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN MILLIONS) 2002 2003 2004 2005 2006 ------------- ------------- -------------- ------------- -------------- Income (loss) from continuing operations, before income taxes and equity earnings (loss) from affiliates (1) ........... (28) (419) (360) (77) (67) Add: Fixed charges............................... 98 131 125 95 114 Amortization of capitalized interest........ 7 6 7 5 4 Dividends from affiliated companies......... 25 - - - 25 Less: Interest capitalized........................ (1) (1) (3) (3) (4) ------------- ------------- -------------- ------------- -------------- Income as adjusted....................... 101 (283) (231) 20 72 ============= ============= ============== ============= ============== Fixed charges Interest expensed and capitalized........... 85 121 116 87 108 Estimate of interest within rental expense.................................. 13 10 9 8 6 ------------- ------------- -------------- ------------- -------------- Fixed charges......................... 98 131 125 95 114 ============= ============= ============== ============= ============== Ratio of Earnings to Fixed Charges (2)............ 1.03 (2.16) (1.86) 0.21 0.63 (1) Includes restructuring charges and other (gains)/charges of $(1) million for the year ended December 31, 2006, $15 million for the year ended December 31, 2005, $97 million for the year ended December 31, 2004, $238 million for the year ended December 31, 2003, and $17 million for the year ended December 31, 2002. (2) Earnings for the years ended December 31, 2006, 2005, 2004, and 2003, would have to be $42 million, $75 million, $356 million, and $414 million higher, respectively, in order to achieve a one-to-one ratio.