EX-12 4 a6302013exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 6.30.2013 Exhibit 12


 
 
 
 
 
 
 
 
 
 
 
  EXHIBIT 12
 
ASHLAND INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended
 
Years ended September 30
 
June 30
 
2012
 
2011
 
2010
 
2009
 
2008
 
2013
 
2012
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
38

 
$
56

 
$
88

 
$
(240
)
 
$
87

 
$
274

 
$
310

Income tax (benefit) expense
(52
)
 
(53
)
 
(13
)
 
(83
)
 
30

 
84

 
112

Interest expense
197

 
105

 
117

 
163

 
9

 
169

 
152

Interest portion of rental expense
28

 
25

 
26

 
25

 
20

 
21

 
16

Amortization of deferred debt expense
54

 
26

 
81

 
52

 
—

 
62

 
18

Distributions (less than) in excess of earnings
 

 
 

 
 

 
 

 
 

 
 
 
 
of unconsolidated affiliates
(32
)
 
(12
)
 
(2
)
 
1

 
(10
)
 
(13
)
 
(21
)
 
$
233

 
$
147

 
$
297

 
$
(82
)
 
$
136

 
$
597

 
$
587

 
 

 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES


 
 

 
 

 
 

 
 

 
 

 
 

Interest expense
$
197

 
$
105

 
$
117

 
$
163

 
$
9

 
$
169

 
$
152

Interest portion of rental expense
28

 
25

 
26

 
25

 
20

 
21

 
16

Amortization of deferred debt expense
54

 
26

 
81

 
52

 
—

 
62

 
18

Capitalized interest
1

 
—

 
2

 
3

 
—

 
1

 
—

 
$
280

 
$
156

 
$
226

 
$
243

 
$
29

 
$
253

 
$
186

 
 
 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
(C)

 
(B)

 
1.31

 
(A)

 
4.69

 
2.36

 
3.16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A) Deficiency Ratio - Due to the loss from continuing operations, the Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $325 million would have been required for the year ended September 30, 2009.
(B) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $9 million would have been required for the year ended September 30, 2011.
(C) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $47 million would have been required for the year ended September 30, 2012.