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EXHIBIT 12
 
ASHLAND INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In millions)
 
 
Years ended September 30
 
 
2011
 
2012
 
2013
 
2014
 
2015
EARNINGS
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
3

 
$
14

 
$
553

 
$
72

 
$
191

Income tax expense (benefit)
 
(70
)
 
(57
)
 
196

 
(188
)
 
(22
)
Interest expense
 
105

 
197

 
208

 
149

 
148

Interest portion of rental expense
 
25

 
28

 
25

 
29

 
20

Amortization of deferred debt expense
 
26

 
54

 
65

 
14

 
18

Distributions in excess of (less than) earnings
 
 
 
 
 
 
 
 
 
 
of unconsolidated affiliates
 
(12
)
 
(32
)
 
(15
)
 
(11
)
 
7

 
 
$
77

 
$
204

 
$
1,032

 
$
65

 
$
362

FIXED CHARGES
 
 

 
 

 
 

 
 

 
 

Interest expense
 
$
105

 
$
197

 
$
208

 
$
149

 
$
148

Interest portion of rental expense
 
25

 
28

 
25

 
29

 
20

Amortization of deferred debt expense
 
26

 
54

 
65

 
14

 
18

Capitalized interest
 
—

 
1

 
1

 
1

 
2

 
 
$
156

 
$
280

 
$
299

 
$
193

 
$
188

RATIO OF EARNINGS TO FIXED CHARGES
 
(A)

 
(B)

 
3.45

 
(C)

 
1.93

 
 
 
 
 
 
 
 
 
 
 
(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.