EXHIBIT 12
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
2000 2001 2002 2003 2004
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Income (loss) from continuing operations, before income
taxes and equity earnings (loss) from affiliates(1)....... $ (5) $(111) $(32) $(482) $(296)
Add:
Fixed charges........................................... 85 83 98 131 125
Amortization of capitalized interest.................... 7 7 7 6 7
Dividends from affiliated companies..................... 45 30 25 -- --
Less:
Interest capitalized.................................... (17) (2) (1) (1) (3)
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Income as adjusted.................................. $115 $ 7 $ 97 $(346) (167)
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Fixed charges:
Interest expensed and capitalized....................... 73 72 85 121 116
Estimate of interest within rental expense.............. 12 11 13 10 9
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Fixed charges....................................... $ 85 $ 83 $ 98 $ 131 125
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Ratio of Earnings to Fixed Charges(2)....................... 1.35 0.08 0.99 (2.64) (1.34)
<FN>
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(1) Includes restructuring and other items of $141 million for the year ended December 31, 2004, $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, and $107 million for the year ended December 31, 2000.
(2) Earnings for the years ended December 31, 2004, 2003, 2002 and 2001, would have to be $292 million,
$477 million, $1 million and $76 million higher, respectively, in order to achieve a one-to-one ratio.