EXHIBIT 12
ASHLAND GLOBAL HOLDINGS INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
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| Six months ended |
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| Years ended September 30 |
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| March 31 |
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| 2017 |
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| 2016 |
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| 2015 |
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| 2014 |
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| 2013 |
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| 2018 |
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| 2017 |
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EARNINGS |
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Income (loss) from continuing operations |
| $ | (105 | ) |
| $ | (283 | ) |
| $ | (12 | ) |
| $ | (121 | ) |
| $ | 301 |
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| $ | 59 |
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| $ | (37 | ) |
Income tax expense (benefit) |
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| 7 |
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| (25 | ) |
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| (139 | ) |
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| (290 | ) |
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| 48 |
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| 15 |
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| (45 | ) |
Interest expense |
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| 123 |
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| 162 |
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| 148 |
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| 149 |
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| 208 |
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| 64 |
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| 60 |
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Interest portion of rental expense |
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| 16 |
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| 17 |
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| 15 |
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| 20 |
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| 15 |
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| 8 |
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| 8 |
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Amortization of deferred debt expense |
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| 109 |
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| 18 |
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| 18 |
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| 14 |
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| 65 |
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| 4 |
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| 97 |
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Distributions in excess of (less than) earnings of unconsolidated affiliates |
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| 1 |
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| 1 |
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| 1 |
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| (9 | ) |
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| (10 | ) |
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| $ | 151 |
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| $ | (110 | ) |
| $ | 31 |
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| $ | (237 | ) |
| $ | 627 |
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| $ | 150 |
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| $ | 83 |
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FIXED CHARGES |
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Interest expense |
| $ | 123 |
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| $ | 162 |
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| $ | 148 |
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| $ | 149 |
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| $ | 208 |
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| $ | 64 |
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| $ | 60 |
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Interest portion of rental expense |
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| 16 |
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| 17 |
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| 15 |
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| 20 |
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| 15 |
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| 8 |
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| 8 |
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Amortization of deferred debt expense |
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| 109 |
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| 18 |
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| 18 |
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| 14 |
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| 65 |
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| 4 |
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| 97 |
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Capitalized interest |
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| 1 |
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| 1 |
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| 2 |
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| 1 |
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| 1 |
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| — |
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| 1 |
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| $ | 249 |
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| $ | 198 |
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| $ | 183 |
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| $ | 184 |
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| $ | 289 |
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| $ | 76 |
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| $ | 166 |
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RATIO OF EARNINGS TO FIXED CHARGES |
| (A) |
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| (B) |
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| (C) |
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| (D) |
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| 2.17 |
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| 1.97 |
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| (E) |
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(A) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $98 million would have been required for the year ended September 30, 2017.
(B) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $308 million would have been required for the year ended September 30, 2016.
(C) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $152 million would have been required for the year ended September 30, 2015.
(D) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $421 million would have been required for the year ended September 30, 2014.
(E) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $83 million would have been required for the six months ended March 31, 2017.
