EXHIBIT 12 | |
ASHLAND INC. | |
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |
(In millions) |
Three months ended | |||||||||||||||||||||
Years ended September 30 | December 31 | ||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2009 | 2008 | |||||||||||||||
EARNINGS | |||||||||||||||||||||
Income (loss) from continuing operations | $ | 78 | $ | 175 | $ | 201 | $ | 183 | $ | 1,958 | $ | 76 | $ | (119) | |||||||
Income tax expense (benefit) | 80 | 86 | 58 | 29 | (230) | 29 | (1) | ||||||||||||||
Interest expense | 163 | 9 | 9 | 8 | 87 | 36 | 29 | ||||||||||||||
Interest portion of rental expense | 25 | 21 | 20 | 18 | 20 | 6 | 6 | ||||||||||||||
Amortization of deferred debt expense | 52 | - | 1 | - | 3 | 6 | 6 | ||||||||||||||
Distributions in excess of (less than) earnings | |||||||||||||||||||||
of unconsolidated affiliates | 1 | (10) | (5) | (6) | (246) | (1) | (3) | ||||||||||||||
$ | 399 | $ | 281 | $ | 284 | $ | 232 | $ | 1,592 | $ | 152 | $ | (82) | ||||||||
FIXED CHARGES | |||||||||||||||||||||
Interest expense | $ | 163 | $ | 9 | $ | 9 | $ | 8 | $ | 87 | $ | 36 | $ | 29 | |||||||
Interest portion of rental expense | 25 | 21 | 20 | 18 | 20 | 6 | 6 | ||||||||||||||
Amortization of deferred debt expense | 52 | - | 1 | - | 3 | 6 | 6 | ||||||||||||||
Capitalized interest | 3 | - | 2 | 3 | 1 | 1 | - | ||||||||||||||
$ | 243 | $ | 30 | $ | 32 | $ | 29 | $ | 111 | $ | 49 | $ | 41 | ||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 1.64 | 9.37 | 8.88 | 8.00 | 14.34 | 3.10 | (A) |
(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 $123 million would have been required for the three months ended December 31, 2008. |