EX-12 7 ex12.txt EX. 12 EXHIBIT 12 ASHLAND INC. COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (In millions)
Nine months ended Years ended September 30 June 30 ---------------------------------------------------- -------------------- 1998 1999 2000 2001 2002 2002 2003 -------- -------- -------- -------- -------- -------- --------- EARNINGS -------- Income (loss) from continuing operations $ 172 $ 283 $ 272 $ 390 $ 115 $ 75 $ 33 Income taxes 108 188 179 266 68 47 17 Interest expense 133 141 189 160 133 100 94 Interest portion of rental expense 39 34 39 40 35 26 23 Amortization of deferred debt expense 1 1 2 2 2 2 1 Distributions in excess of (less than) earnings of unconsolidated affiliates (62) (11) (112) (91) 20 (21) (55) -------- -------- -------- -------- -------- -------- --------- $ 391 $ 636 $ 569 $ 767 $ 373 $ 229 $ 113 ======== ======== ======== ======== ======== ======== ========= FIXED CHARGES ------------- Interest expense $ 133 $ 141 $ 189 $ 160 $ 133 $ 100 $ 94 Interest portion of rental expense 39 34 39 40 35 26 23 Amortization of deferred debt expense 1 1 2 2 2 2 1 -------- -------- -------- -------- -------- -------- --------- $ 173 $ 176 $ 230 $ 202 $ 170 $ 128 $ 118 ======== ======== ======== ======== ======== ======== ========= RATIO OF EARNINGS TO FIXED CHARGES 2.26 3.61 2.47 3.80 2.19 1.79 0.96