EX-12 5 ex12.txt EXHIBIT 12 EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions)
Three months ended Years ended September 30 December 31 ---------------------------------------------------------- -------------------- 2002 2003 2004 2005 2006 2005 2006 -------- -------- --------- --------- -------- -------- -------- EARNINGS -------- Income from continuing operations $ 27 $ 103 $ 311 $ 1,958 $ 183 $ 35 $ 53 Income taxes 14 52 100 (230) 29 23 21 Interest expense 133 121 112 87 8 2 2 Interest portion of rental expense 19 20 20 20 18 5 5 Amortization of deferred debt expense 2 2 2 3 - - - Distributions in excess of (less than) earnings of unconsolidated affiliates 20 (89) (260) (246) (6) (1) (2) -------- -------- --------- --------- -------- -------- -------- $ 215 $ 209 $ 285 $ 1,592 $ 232 $ 64 $ 79 ======== ======== ========= ========= ======== ======== ======== FIXED CHARGES ------------- Interest expense $ 133 $ 121 $ 112 $ 87 $ 8 $ 2 $ 2 Interest portion of rental expense 19 20 20 20 18 5 5 Amortization of deferred debt expense 2 2 2 3 - - - Capitalized interest - - - 1 3 1 1 -------- -------- --------- --------- -------- -------- -------- $ 154 $ 143 $ 134 $ 111 $ 29 $ 8 $ 8 ======== ======== ========= ========= ======== ======== ======== RATIO OF EARNINGS TO FIXED CHARGES 1.40 1.46 2.13 14.34 8.00 8.00 9.88