EX-99 16 ex99-15.txt EXHIBIT 99.15 Exhibit 99.15 Ashland Distribution Non-GAAP Metric Information ($, Thousands) POCKET PROFIT Q1 2007 Q1 2006 ------------- ----------- ----------- Operating Income 14,015 34,133 Income Taxes (5,392) (12,506) ----------- ----------- Net Income 8,623 21,627 Invested Capital October 31 636,528 549,155 Invested Capital November 30 651,065 546,713 Invested Capital December 31 650,572 590,220 ----------- ----------- Total 1,938,165 1,686,088 Average Invested Capital (Total/3) 646,051 562,029 Cost of Capital (9.5%/4) 2.375% 2.375% ----------- ----------- Cost of Capital $ (COC$) 15,344 13,348 Pocket Profit (6,721) 8,279 (Net Income less COC$) 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.