EX-99 16 ex99-15.txt EXHIBIT 99.15 Exhibit 99.15 Ashland Distribution Non-GAAP Metric Information ($, Thousands) POCKET PROFIT Q4 2006 Q4 2005 ------------- ----------- ----------- Operating Income 25,582 19,283 Income Taxes (8,334) (7,232) ----------- ----------- Net Income 17,248 12,051 Invested Capital July 31 639,711 559,914 Invested Capital August 31 621,273 546,057 Invested Capital September 30 563,564 512,788 ----------- ----------- Total 1,824,548 1,618,759 Average Invested Capital (Total/3) 608,183 539,586 Cost of Capital (9.5%/4) 2.375% 2.375% ----------- ----------- Cost of Capital $ (COC$) 14,444 12,815 Pocket Profit 2,804 (764) (Net Income less COC$) 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.