EX-12 7 ex12.txt EXHIBIT 12 EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions)
Years ended September 30 ---------------------------------------------------- 2002 2003 2004 2005 2006 -------- -------- -------- -------- -------- EARNINGS Income from continuing operations $ 27 $ 103 $ 311 $ 1,958 $ 183 Income tax expense (benefit) 14 52 100 (230) 29 Interest expense 133 121 112 87 8 Interest portion of rental expense 19 20 20 20 18 Amortization of deferred debt expense 2 2 2 3 - Distributions in excess of (less than) earnings of unconsolidated affiliates 20 (89) (260) (246) (6) -------- -------- -------- -------- -------- $ 215 $ 209 $ 285 $ 1,592 $ 232 ======== ======== ======== ======== ======== FIXED CHARGES Interest expense $ 133 $ 121 $ 112 $ 87 $ 8 Interest portion of rental expense 19 20 20 20 18 Amortization of deferred debt expense 2 2 2 3 - Capitalized interest - - - 1 3 -------- -------- -------- -------- -------- $ 154 $ 143 $ 134 $ 111 $ 29 ======== ======== ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES 1.40 1.46 2.13 14.34 8.00