Our adjusted EBITDA was $301 million, 13% above the $266 million of pro forma adjusted EBITDA in the prior year quarter. The greatest year-over-year improvement was within Specialty Ingredients with strong results from both the heritage Ashland and ISP businesses. In total and on the same basis ISP recorded historically, ISP generated approximately $120 million of EBITDA during the December 2011 quarter.Slide 4 details our key items. In total, two key items had a net unfavorable EPS impact on continuing operations of $0.44 in the December 2011 quarter. The first key item is a $19 million after tax charge or a negative $0.24 per share related to severance. This expense is related to the corporate cost reduction efforts we have previously described. The second key item was a $16 million after tax charge or a negative $0.20 per share through stepped-up inventory values related to the acquisition of ISP, as we noted last quarter. We have now worked through the stepped-up inventories and this will not be a key item going forward. In the year ago quarter four key items combined for a net unfavorable impact on earnings of a penny per share. I will also note that in the December 2011 quarter, Ashland’s results included $30 million of intangible amortization expense, primarily relating to the Hercules and ISP acquisitions. Without this amortization earnings per share would be roughly $0.27 higher, or $1.47 per share.
Ashland's Management Discusses F1Q12- Earnings Call Transcript
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