EX-12 32 a9302016exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


 
 
 
 
 
 
 
 
 
EXHIBIT 12
 
ASHLAND GLOBAL HOLDINGS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
 
 
Years ended September 30
 
 
2012
 
2013
 
2014
 
2015
 
2016
EARNINGS
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
14

 
$
553

 
$
72

 
$
191

 
$
3

Income tax expense (benefit)
 
(57
)
 
196

 
(188
)
 
(22
)
 
133

Interest expense
 
197

 
208

 
149

 
148

 
167

Interest portion of rental expense
 
28

 
25

 
29

 
20

 
22

Amortization of deferred debt expense
 
54

 
65

 
14

 
18

 
23

Distributions in excess of (less than) earnings
 
 
 
 
 
 
 
 
 
 
of unconsolidated affiliates
 
(32
)
 
(15
)
 
(11
)
 
7

 
5

 
 
$
204

 
$
1,032

 
$
65

 
$
362

 
$
353

FIXED CHARGES
 
 

 
 

 
 

 
 

 
 

Interest expense
 
$
197

 
$
208

 
$
149

 
$
148

 
$
167

Interest portion of rental expense
 
28

 
25

 
29

 
20

 
22

Amortization of deferred debt expense
 
54

 
65

 
14

 
18

 
23

Capitalized interest
 
1

 
1

 
1

 
2

 
1

 
 
$
280

 
$
299

 
$
193

 
$
188

 
$
213

RATIO OF EARNINGS TO FIXED CHARGES
 
(A)

 
3.45


(B)

 
1.93


1.66

 
 
 
 
 
 
 
 
 
 
 
(A) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $76 million would have been required for the year ended September 30, 2012.
 
(B) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $128 million would have been required for the year ended September 30, 2014.