EXHIBIT 12
SOLUTIA INC.
COMPUTATION OF THE RATIO OF EARNINGS TO FIXED CHARGES
(DOLLARS IN MILLIONS)
2002 2003 2004 2005 2006
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Income (loss) from continuing operations,
before income taxes and equity
earnings (loss) from affiliates (1) ........... (28) (419) (360) (77) (67)
Add:
Fixed charges............................... 98 131 125 95 114
Amortization of capitalized interest........ 7 6 7 5 4
Dividends from affiliated companies......... 25 - - - 25
Less:
Interest capitalized........................ (1) (1) (3) (3) (4)
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Income as adjusted....................... 101 (283) (231) 20 72
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Fixed charges
Interest expensed and capitalized........... 85 121 116 87 108
Estimate of interest within rental
expense.................................. 13 10 9 8 6
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Fixed charges......................... 98 131 125 95 114
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Ratio of Earnings to Fixed Charges (2)............ 1.03 (2.16) (1.86) 0.21 0.63
<FN>
(1) Includes restructuring charges and other (gains)/charges of $(1) million
for the year ended December 31, 2006, $15 million for the year ended December
31, 2005, $97 million for the year ended December 31, 2004, $238 million for
the year ended December 31, 2003, and $17 million for the year ended December
31, 2002.
(2) Earnings for the years ended December 31, 2006, 2005, 2004, and 2003,
would have to be $42 million, $75 million, $356 million, and $414 million
higher, respectively, in order to achieve a one-to-one ratio.