EXHIBIT 12
ASHLAND INC.
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
(In millions)
Nine Months Ended
Years Ended September 30 June 30
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1995 1996 1997 1998 1999 1999 2000
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EARNINGS
Income (loss) from continuing operations $ (2) $ 115 $ 169 $ 178 $ 291 $ 176 $ 195
Income taxes - 71 125 114 193 110 135
Interest expense 153 154 148 133 141 103 142
Interest portion of rental expense 35 44 48 40 35 26 29
Amortization of deferred debt expense 1 1 1 1 1 1 2
Undistributed earnings of
unconsolidated affiliates (1) (3) (6) (62) (11) 3 (143)
Amounts related to significant affiliates*
Earnings 7 7 7 - - - -
Dividends (1) - - - - - -
---------- ---------- ----------- ---------- ---------- ---------- ----------
$ 192 $ 389 $ 492 $ 404 $ 650 $ 419 $ 360
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FIXED CHARGES
Interest expense $ 153 $ 154 $ 148 $ 133 $ 141 $ 103 $ 142
Interest portion of rental expense 35 44 48 40 35 26 29
Amortization of deferred debt expense 1 1 1 1 1 1 2
Capitalized interest - - 1 - - - -
Fixed charges of significant affiliates* 6 6 5 - - - -
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$ 195 $ 205 $ 203 $ 174 $ 177 $ 130 $ 173
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COMBINED FIXED CHARGES AND
PREFERRED STOCK DIVIDENDS
Preferred dividend requirements $ 19 $ 19 $ 9 $ - $ - $ - $ -
Ratio of pretax to net income** 1.04 1.61 1.74 - - - -
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Preferred dividends on a pretax basis 19 30 17 - - - -
Fixed charges 195 205 203 174 177 130 173
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$ 214 $ 235 $ 220 $ 174 $ 177 $ 130 $ 173
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RATIO OF EARNINGS TO
FIXED CHARGES *** 1.90 2.42 2.32 3.67 3.22 2.08
RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS **** 1.66 2.24 2.32 3.67 3.22 2.08
* Significant affiliates are companies accounted for on the equity
method that are 50% or greater owned or whose indebtedness has been
directly or indirectly guaranteed by Ashland or its consolidated
subsidiaries.
** Computed as income from continuing operations before income taxes
divided by income from continuing operations, which adjusts dividends
on preferred stock to a pretax basis.
*** Fixed charges exceeded earnings (as defined) by $3 million.
**** Combined fixed charges and preferred stock dividends exceeded earnings
(as defined) by $22 million.