EX-12 10 comprati.txt EXHIBIT 12 EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS (In millions)
Years Ended September 30 ------------------------------------------------------------- 1997 1998 1999 2000 2001 ---------- ---------- ---------- ---------- ---------- EARNINGS -------- Income from continuing operations $ 169 $ 178 $ 291 $ 292 $ 406 Income taxes 125 114 193 191 275 Interest expense 148 133 141 189 160 Interest portion of rental expense 48 40 35 39 41 Amortization of deferred debt expense 1 1 1 2 2 Undistributed earnings of unconsolidated affiliates (6) (62) (11) (112) (90) Earnings of significant affiliates* 7 - - - - ---------- ---------- ---------- ---------- ---------- $ 492 $ 404 $ 650 $ 601 $ 794 ========== ========== ========== ========== ========== FIXED CHARGES ------------- Interest expense $ 148 $ 133 $ 141 $ 189 $ 160 Interest portion of rental expense 48 40 35 39 41 Amortization of deferred debt expense 1 1 1 2 2 Capitalized interest 1 - - - - Fixed charges of significant affiliates* 5 - - - - ---------- ---------- ---------- ---------- ---------- $ 203 $ 174 $ 177 $ 230 $ 203 ========== ========== ========== ========== ========== COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS ------------------------- Preferred dividend requirements $ 9 $ - $ - $ - $ - Ratio of pretax to net income** 1.74 - - - - ---------- ---------- ---------- ---------- ---------- Preferred dividends on a pretax basis 17 - - - - Fixed charges 203 174 177 230 203 ---------- ---------- ---------- ---------- ---------- $ 220 $ 174 $ 177 $ 230 $ 203 ========== ========== ========== ========== ========== RATIO OF EARNINGS TO FIXED CHARGES 2.42 2.32 3.67 2.61 3.91 RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS 2.24 2.32 3.67 2.61 3.91
* Significant affiliates are companies accounted for on the equity method that are 50% or greater owned or whose indebtedness has been directly or indirectly guaranteed by Ashland or its consolidated subsidiaries. ** Computed as income from continuing operations before income taxes divided by income from continuing operations, which adjusts dividends on preferred stock to a pretax basis.