Pennzoil Quaker State 10-Q 2002 Q3 Quarterly report

EXHIBIT 12

PENNZOIL-QUAKER STATE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	For the nine months ended
	September 30,
	2002		2001
	(Dollar amounts expressed in
	thousands)
Income (loss) from continuing operations before income from equity investees	$	53,447	$	(11,841	)
Distribution of income from equity investees		7,604		14,900
Amortization of capitalized interest		112		638
Income tax provision		45,874		21,326
Interest charges		90,724		91,411
Income before income tax provision and interest charges	$	197,761	$	116,434
Fixed charges	$	90,724	$	91,411
Ratio of earnings to fixed charges		2.18		1.27

DETAIL OF INTEREST AND FIXED CHARGES

		For the nine months ended
		September 30,
		2002		2001
		(Expressed in thousands)
Interest charges per Consolidated Statement of Operations which includes amortization of debt discount, expense and premium		$	68,451	$	71,536
Add: portion of rental expense representative of interest factor (1)			22,273		19,875
	Total fixed charges	$	90,724	$	91,411
Less: interest capitalized per Consolidated Statement of Operations			—		—
	Total interest charges	$	90,724	$	91,411

(1) Interest factor based on management’s estimates and approximates one-third of rental expense.