EX-99 18 ex99-17.txt EXHIBIT 99.17 Exhibit 99.17 Ashland Distribution Non-GAAP Metric Information ($, Thousands) POCKET PROFIT Q3 2006 Q3 2005 ------------- ----------- ----------- Operating Income 30,103 30,647 Income Taxes (10,989) (11,203) ----------- ----------- Net Income 19,114 19,444 Invested Capital April 30 650,410 555,063 Invested Capital May 31 625,831 560,392 Invested Capital June 30 600,548 529,648 ----------- ----------- Total 1,876,789 1,645,103 Average Invested Capital (Total/3) 625,596 548,368 Cost of Capital (9.5%/4) 2.375% 2.375% ----------- ----------- Cost of Capital $ (COC$) 14,858 13,024 Pocket Profit 4,256 6,420 (Net Income less COC$) NOTES: (1) "Invested Capital" is defined as total assets less total liabilities, excluding intercompany receivables and payables. (2) For purposes of the Pocket Profit computation, Ashland has established an estimated cost of capital annual rate of 9.5%, which is intended to represent a reasonable estimate of the weighted average of Ashland's after-tax cost of long-term debt and the cost of equity, based on a targeted ratio of debt and equity to Ashland's total capitalization. (3) Pocket Profit is a Non-GAAP metric used by management to measure our overall performance as it relates to covering our cost of capital. (4) "Pocket Profit" is defined as: Operating Income less Income Taxes equals Net Income. The Average Invested Capital for the quarter is multiplied by 2.375% (9.5%/4) which equals the Cost of Capital, which is then subtracted from our Net Income to arrive at our Pocket Profit.