EX-12 2 ash-ex12_10.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ash-ex12_10.htm

 

EXHIBIT 12

ASHLAND GLOBAL HOLDINGS INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended

 

 

 

Years ended September 30

 

 

June 30

 

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

 

2018

 

 

2017

 

EARNINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

(105

)

 

$

(283

)

 

$

(12

)

 

$

(121

)

 

$

301

 

 

$

95

 

 

$

(53

)

Income tax expense (benefit)

 

 

7

 

 

 

(25

)

 

 

(139

)

 

 

(290

)

 

 

48

 

 

 

10

 

 

 

(49

)

Interest expense

 

 

123

 

 

 

162

 

 

 

148

 

 

 

149

 

 

 

208

 

 

 

96

 

 

 

91

 

Interest portion of rental expense

 

 

16

 

 

 

17

 

 

 

15

 

 

 

20

 

 

 

15

 

 

 

11

 

 

 

12

 

Amortization of deferred debt expense

 

 

109

 

 

 

18

 

 

 

18

 

 

 

14

 

 

 

65

 

 

 

7

 

 

 

108

 

Distributions in excess of (less than) earnings of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unconsolidated affiliates

 

 

1

 

 

 

1

 

 

 

1

 

 

 

(9

)

 

 

(10

)

 

 

1

 

 

1

 

 

 

$

151

 

 

$

(110

)

 

$

31

 

 

$

(237

)

 

$

627

 

 

$

220

 

 

$

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FIXED CHARGES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

$

123

 

 

$

162

 

 

$

148

 

 

$

149

 

 

$

208

 

 

$

96

 

 

$

91

 

Interest portion of rental expense

 

 

16

 

 

 

17

 

 

 

15

 

 

 

20

 

 

 

15

 

 

 

11

 

 

 

12

 

Amortization of deferred debt expense

 

 

109

 

 

 

18

 

 

 

18

 

 

 

14

 

 

 

65

 

 

 

7

 

 

 

108

 

Capitalized interest

 

 

1

 

 

 

1

 

 

 

2

 

 

 

1

 

 

 

1

 

 

 

 

 

 

1

 

 

 

$

249

 

 

$

198

 

 

$

183

 

 

$

184

 

 

$

289

 

 

$

114

 

 

$

212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RATIO OF EARNINGS TO FIXED CHARGES

 

(A)

 

 

(B)

 

 

(C)

 

 

(D)

 

 

 

2.17

 

 

 

1.93

 

 

(E)

 

 

(A) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $98 million would have been required for the year ended September 30, 2017.

(B) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $308 million would have been required for the year ended September 30, 2016.

(C) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $152 million would have been required for the year ended September 30, 2015.

(D) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $421 million would have been required for the year ended September 30, 2014.

(E) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x.  To achieve a ratio of 1x, additional total earnings of $102 million would have been required for the nine months ended June 30, 2017.