EXHIBIT 12
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
1998 1999 2000 2001 2002
---- ---- ---- ---- ----
Income (loss) from continuing operations, before income
taxes and equity earnings (loss) from affiliates(1)....... $352 $262 $ (5) $(111) $(32)
Add:
Fixed charges........................................... 58 62 85 83 98
Amortization of capitalized interest.................... 7 7 7 7 7
Dividends from affiliated companies..................... 37 60 45 30 25
Less:
Interest capitalized.................................... (6) (13) (17) (2) (1)
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Income as adjusted.................................. $448 $378 $115 $ 7 $ 97
==== ==== ==== ===== ====
Fixed charges:
Interest expensed and capitalized....................... 49 53 73 72 85
Estimate of interest within rental expense.............. 9 9 12 11 13
---- ---- ---- ----- ----
Fixed charges....................................... $ 58 $ 62 $ 85 $ 83 $ 98
==== ==== ==== ===== ====
Ratio of Earnings to Fixed Charges(2)....................... 7.72 6.10 1.35 0.08 0.99
<FN>
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(1) Includes restructuring and other items of $17 million for the year ended December 31, 2002, $86 million for
the year ended December 31, 2001, $107 million for the year ended December 31, 2000, and $61 million for the
year ended December 31, 1999.
(2) Earnings for the years ended December 31, 2002, and 2001, would have to be $1 million and $76 million higher,
respectively, in order to achieve a one-to-one ratio.
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