EX-12 2 a9302012exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES 9.30.2012 Exhibit 12


 
 
 
 
 
 
 
 
 
EXHIBIT 12
 
ASHLAND INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
 
 
Years ended September 30
 
 
2008
 
2009
 
2010
 
2011
 
2012
EARNINGS
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
87

 
$
(240
)
 
$
88

 
$
56

 
$
38

Income tax expense (benefit)
 
30

 
(83
)
 
(13
)
 
(53
)
 
(52
)
Interest expense
 
9

 
163

 
117

 
105

 
197

Interest portion of rental expense
 
20

 
25

 
26

 
25

 
28

Amortization of deferred debt expense
 
—

 
52

 
81

 
26

 
54

Distributions (less than) in excess of earnings
 
 

 
 

 
 

 
 

 
 

of unconsolidated affiliates
 
(10
)
 
1

 
(2
)
 
(12
)
 
(32
)
 
 
$
136

 
$
(82
)
 
$
297

 
$
147

 
$
233

FIXED CHARGES
 
 

 
 

 
 

 
 

 
 

Interest expense
 
$
9

 
$
163

 
$
117

 
$
105

 
$
197

Interest portion of rental expense
 
20

 
25

 
26

 
25

 
28

Amortization of deferred debt expense
 
—

 
52

 
81

 
26

 
54

Capitalized interest
 
—

 
3

 
2

 
—

 
1

 
 
$
29

 
$
243

 
$
226

 
$
156

 
$
280

RATIO OF EARNINGS TO FIXED CHARGES
 
4.69

 
(A)

 
1.31

 
(B)

 
(C)

(A) Deficiency Ratio - Due to the loss from continuing operations, the Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $325 million would have been required for the year ended September 30, 2009.
(B) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $9 million would have been required for the year ended September 30, 2011.
(C) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $47 million would have been required for the year ended September 30, 2012.