EXHIBIT 12.3
UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31,
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Millions of dollars 2001 2000 1999 1998 1997
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Earnings from continuing operations $ 626 $ 746 $ 141 $ 115 $ 633
Provision for income taxes 457 500 128 181 90
Minority interests 41 16 16 7 9
Distributions (less than) greater than
earnings from equity investments 69 (57) (4) (2) (65)
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Earnings subtotal (a) 1,193 1,205 281 301 667
Fixed charges included in earnings:
Interest expense 192 210 199 177 183
Interest portion of rentals (b) 19 20 22 20 23
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Fixed charges subtotal 211 230 221 197 206
Earnings from continuing operations
available before fixed charges $1,404 $1,435 $ 502 $ 498 $ 873
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Fixed charges:
Fixed charges included in earnings 211 230 221 197 206
Capitalized interest 27 13 16 26 35
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Total fixed charges $ 238 $ 243 $ 237 $ 223 $ 241
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Ratio of earnings from continuing operations
to fixed charges 5.9 5.9 2.1 2.2 3.6
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<FN>
(a) Includes pre-tax impairment of : 137 66 23 102 69
The ratio of earnings, excluding
impairment, to fixed charges would be 6.5 6.2 2.2 2.7 3.9
(b) Calculated as one-third of operating rental expense.
</FN>