EXHIBIT 12 | |
ASHLAND INC. | |
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |
(In millions) |
Six months ended | ||||||||||||||||||||||||||||
Years ended September 30 | March 31 | |||||||||||||||||||||||||||
2009 | 2008 | 2007 | 2006 | 2005 | 2010 | 2009 | ||||||||||||||||||||||
EARNINGS | ||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 78 | $ | 175 | $ | 201 | $ | 183 | $ | 1,958 | $ | 95 | $ | (71 | ) | |||||||||||||
Income tax expense (benefit) | 80 | 86 | 58 | 29 | (230 | ) | 53 | 8 | ||||||||||||||||||||
Interest expense | 163 | 9 | 9 | 8 | 87 | 70 | 74 | |||||||||||||||||||||
Interest portion of rental expense | 25 | 21 | 20 | 18 | 20 | 13 | 11 | |||||||||||||||||||||
Amortization of deferred debt expense | 52 | - | 1 | - | 3 | 72 | 16 | |||||||||||||||||||||
Distributions in excess of (less than) earnings | ||||||||||||||||||||||||||||
of unconsolidated affiliates | 1 | (10 | ) | (5 | ) | (6 | ) | (246 | ) | (6 | ) | (3 | ) | |||||||||||||||
$ | 399 | $ | 281 | $ | 284 | $ | 232 | $ | 1,592 | $ | 297 | $ | 35 | |||||||||||||||
FIXED CHARGES | ||||||||||||||||||||||||||||
Interest expense | $ | 163 | $ | 9 | $ | 9 | $ | 8 | $ | 87 | $ | 70 | $ | 74 | ||||||||||||||
Interest portion of rental expense | 25 | 21 | 20 | 18 | 20 | 13 | 11 | |||||||||||||||||||||
Amortization of deferred debt expense | 52 | - | 1 | - | 3 | 72 | 16 | |||||||||||||||||||||
Capitalized interest | 3 | - | 2 | 3 | 1 | 2 | 2 | |||||||||||||||||||||
$ | 243 | $ | 30 | $ | 32 | $ | 29 | $ | 111 | $ | 157 | $ | 103 | |||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | 1.64 | 9.37 | 8.88 | 8.00 | 14.34 | 1.89 | (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 $68 million would have been required for the six months ended March 31, 2009. |