EXHIBIT 12 | |||||||||||
SOLUTIA INC. | |||||||||||
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||
(Dollars in Millions) | |||||||||||
2003 | 2004 | 2005 | 2006 | 2007 | |||||||
Income (loss) from continuing operations, | |||||||||||
before income taxes and equity | |||||||||||
earnings (loss) from affiliates (1) | (364 | ) | (277 | ) | (83 | ) | (76 | ) | (215 | ) | |
Add: | |||||||||||
Fixed charges | 126 | 120 | 90 | 110 | 146 | ||||||
Amortization of capitalized interest | 6 | 7 | 5 | 4 | 5 | ||||||
Dividends from affiliated companies | - | - | - | 25 | - | ||||||
Less: | |||||||||||
Interest capitalized | (1 | ) | (3 | ) | (3 | ) | (4 | ) | (5 | ) | |
Income as adjusted | (233 | ) | (153 | ) | 9 | 59 | (69 | ) | |||
Fixed charges | |||||||||||
Interest expensed and capitalized | 116 | 111 | 82 | 104 | 139 | ||||||
Estimate of interest within rental | |||||||||||
expense | 10 | �� 9 | 8 | 6 | 7 | ||||||
Fixed charges | 126 | 120 | 90 | 110 | 146 | ||||||
Ratio of Earnings to Fixed Charges (2) | (1.86 | ) | (1.27 | ) | 0.10 | 0.54 | (0.47 | ) | |||
(1) Includes restructuring charges and other (gains)/charges of $4 million for the year ended December 31, 2007, $5 million for the year ended December 31, 2006, $14 million for the year ended December 31, 2005, $102 million for the year ended December 31, 2004, and $238 million for the year ended December 31, 2003. | |||||||||||
(2) Earnings for the years ended December 31, 2007, 2006, 2005, 2004, and 2003, would have to be $215 million, $51 million, $81 million, $273 million, and $359 million, respectively, in order to achieve a one-to-one ratio. | |||||||||||
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10-K Filing
Solutia Inactive 10-K2007 FY Annual report
Filed: 27 Feb 08, 12:00am