EX-12 4 ex12.txt EXHIBIT 12 COMPUTATION OF RATIO OF EARNINGS EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions)
Nine months ended Years ended September 30 June 30 --------------------------------------------------------- ---------------------- 2000 2001 2002 2003 2004 2004 2005 ---------- --------- --------- --------- ---------- ---------- ---------- EARNINGS -------- Income from continuing operations $ 272 $ 390 $ 115 $ 94 $ 398 $ 195 $ 1,893 Income taxes 179 266 68 44 150 111 (157) Interest expense 189 160 133 121 112 84 85 Interest portion of rental expense 39 40 35 33 35 25 29 Amortization of deferred debt expense 2 2 2 2 2 1 2 Distributions in excess of (less than) earnings of unconsolidated affiliates (113) (91) 20 (98) (263) (121) (253) ---------- --------- --------- --------- ---------- ---------- ---------- $ 568 $ 767 $ 373 $ 196 $ 434 $ 295 $ 1,599 ========== ========= ========= ========= ========== ========== ========== FIXED CHARGES ------------- Interest expense $ 189 $ 160 $ 133 $ 121 $ 112 $ 84 $ 85 Interest portion of rental expense 39 40 35 33 35 25 29 Amortization of deferred debt expense 2 2 2 2 2 1 2 ---------- --------- --------- --------- ---------- ---------- ---------- $ 230 $ 202 $ 170 $ 156 $ 149 $ 110 $ 116 ========== ========= ========= ========= ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 2.47 3.80 2.19 1.26 2.91 2.68 13.78