EX-12 6 a12312015exhibit12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit


 
 
 
 
 
 
 
 
 
 
 
  EXHIBIT 12
 
ASHLAND INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Years ended September 30
 
December 31
 
2015
 
2014
 
2013
 
2012
 
2011
 
2015
 
2014
EARNINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
$
191

 
$
72

 
$
553

 
$
14

 
$
3

 
$
91

 
$
40

Income tax expense (benefit)
(22
)
 
(188
)
 
196

 
(57
)
 
(70
)
 
20

 
3

Interest expense
148

 
149

 
208

 
197

 
105

 
39

 
37

Interest portion of rental expense
20

 
29

 
25

 
28

 
25

 
5

 
5

Amortization of deferred debt expense
18

 
14

 
65

 
54

 
26

 
3

 
4

Distributions in excess of (less than) earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
of unconsolidated affiliates
7

 
(11
)
 
(15
)
 
(32
)
 
(12
)
 
1

 
(1
)
 
$
362

 
$
65

 
$
1,032

 
$
204

 
$
77

 
$
159

 
$
88

 
 
 
 
 
 
 
 
 
 
 
 
 
 
FIXED CHARGES


 
 
 
 
 
 
 
 
 
 

 
 

Interest expense
$
148

 
$
149

 
$
208

 
$
197

 
$
105

 
$
39

 
$
37

Interest portion of rental expense
20

 
29

 
25

 
28

 
25

 
5

 
5

Amortization of deferred debt expense
18

 
14

 
65

 
54

 
26

 
3

 
4

Capitalized interest
2

 
1

 
1

 
1

 
—

 
—

 
—

 
$
188

 
$
193

 
$
299

 
$
280

 
$
156

 
$
47

 
$
46

 
 
 
 
 
 
 
 
 
 
 
 
 
 
RATIO OF EARNINGS TO FIXED CHARGES
1.93

 
(C)

 
3.45

 
(B)

 
(A)

 
3.38

 
1.91

 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $79 million would have been required for the year ended September 30, 2011.
(B) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $76 million would have been required for the year ended September 30, 2012.
(C) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $128 million would have been required for the year ended September 30, 2014.