EXHIBIT 12
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
1999 2000 2001 2002 2003
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Income (loss) from continuing operations, before income
taxes and equity earnings (loss) from affiliates(1)....... $262 $ (5) $(111) $(32) $(482)
Add:
Fixed charges........................................... 62 85 83 98 131
Amortization of capitalized interest.................... 7 7 7 7 6
Dividends from affiliated companies..................... 60 45 30 25 --
Less:
Interest capitalized.................................... (13) (17) (2) (1) (1)
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Income as adjusted.................................. $378 $115 $ 7 $ 97 $(346)
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Fixed charges:
Interest expensed and capitalized....................... 53 73 72 85 121
Estimate of interest within rental expense.............. 9 12 11 13 10
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Fixed charges....................................... $ 62 $ 85 $ 83 $ 98 $ 131
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Ratio of Earnings to Fixed Charges(2)....................... 6.10 1.35 0.08 0.99 (2.64)
<FN>
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(1) Includes restructuring and other items of $343 million for the year ended December 31, 2003, $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, 2003, 2002, and 2001, would have to be $477 million, $1 million and
$76 million higher, respectively, in order to achieve a one-to-one ratio.