EXHIBIT 12 | |||||||||||||||||||||||||||
ASHLAND INC. | |||||||||||||||||||||||||||
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES | |||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Three months ended | |||||||||||||||||||||||||||
Years ended September 30 | December 31 | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2011 | 2010 | 2014 | 2013 | |||||||||||||||||||||
EARNINGS | |||||||||||||||||||||||||||
Income from continuing operations | $ | 72 | $ | 553 | $ | 14 | $ | 3 | $ | 7 | $ | 40 | $ | 88 | |||||||||||||
Income tax expense (benefit) | (188 | ) | 196 | (57 | ) | (70 | ) | (41 | ) | 3 | 18 | ||||||||||||||||
Interest expense | 149 | 208 | 197 | 105 | 117 | 37 | 38 | ||||||||||||||||||||
Interest portion of rental expense | 29 | 25 | 28 | 25 | 26 | 5 | 7 | ||||||||||||||||||||
Amortization of deferred debt expense | 14 | 65 | 54 | 26 | 81 | 4 | 3 | ||||||||||||||||||||
Distributions less than earnings | |||||||||||||||||||||||||||
of unconsolidated affiliates | (11 | ) | (15 | ) | (32 | ) | (12 | ) | (1 | ) | (1 | ) | — | ||||||||||||||
$ | 65 | $ | 1,032 | $ | 204 | $ | 77 | $ | 189 | $ | 88 | $ | 154 | ||||||||||||||
FIXED CHARGES | |||||||||||||||||||||||||||
Interest expense | $ | 149 | $ | 208 | $ | 197 | $ | 105 | $ | 117 | $ | 37 | $ | 38 | |||||||||||||
Interest portion of rental expense | 29 | 25 | 28 | 25 | 26 | 5 | 7 | ||||||||||||||||||||
Amortization of deferred debt expense | 14 | 65 | 54 | 26 | 81 | 4 | 3 | ||||||||||||||||||||
Capitalized interest | 1 | 1 | 1 | — | 2 | — | — | ||||||||||||||||||||
$ | 193 | $ | 299 | $ | 280 | $ | 156 | $ | 226 | $ | 46 | $ | 48 | ||||||||||||||
RATIO OF EARNINGS TO FIXED CHARGES | (D) | 3.45 | (C) | (B) | (A) | 1.91 | 3.21 | ||||||||||||||||||||
(A) Deficiency Ratio - The Ratio of Earnings to Fixed Charges was less than 1x. To achieve a ratio of 1x, additional total earnings of $37 million would have been required for the year ended September 30, 2010. | |||||||||||||||||||||||||||
(B) 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. | |||||||||||||||||||||||||||
(C) 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. | |||||||||||||||||||||||||||
(D) 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. | |||||||||||||||||||||||||||