EX-99 16 ex99-15.txt EXHIBIT 99.15 Exhibit 99.15 Ashland Distribution Non-GAAP Metric Information ($, Thousands) POCKET PROFIT Q2 2007 Q2 2006 ------------- ----------- ----------- Operating Income 20,107 30,367 Income Taxes (7,237) (11,427) ----------- ----------- Net Income 12,870 18,940 Invested Capital January 31 673,306 620,182 Invested Capital February 28 690,211 626,511 Invested Capital March 31 661,400 588,884 ----------- ----------- Total 2,024,917 1,835,577 Average Invested Capital (Total/3) 674,972 611,859 Cost of Capital (9.5%/4) 2.375% 2.375% ----------- ----------- Cost of Capital $ (COC$) 16,031 14,532 Pocket Profit (3,161) 4,408 (Net Income less COC$) 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.