EXHIBIT 12.1
PENNZOIL - QUAKER STATE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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1997 1998 1999 2000 2001
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Income from continuing operations
before equity income from partnerships $(8,244) $(60,407) $(17,822) $(11,956) $(47,004)
Distribution of income from partnerships 16,600 6,564 16,240 36,463
Amortization of capitalized interest 1,292 1,904 1,510 905 850
Income tax provision (benefit) (1,274) (36,994) 7,790 16,595 8,505
Interest charges 77,217 86,753 107,195 121,957 120,240
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Income before income tax provision
and interest charges $68,991 $ 7,856 $105,237 $143,741 $119,054
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Fixed charges $84,658 $ 87,008 $107,195 $121,957 $120,240
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Ratio of earnings to fixed charges - - - 1.18 -
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Amount by which fixed charges exceed earnings $15,667 $ 79,152 $ 1,958 $ 1,186
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DETAIL OF INTEREST AND FIXED CHARGES
Interest charges per Consolidated Statement
of Income which includes amortization of
debt discount, expense and premium $69,221 $ 70,198 $ 80,588 $ 94,895 $ 92,079
Add: portion of rental expense
representative of interest factor (1) 15,437 16,810 26,607 27,062 28,161
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Total fixed charges $84,658 $ 87,008 $107,195 $121,957 $120,240
Less: interest capitalized per Consolidated
Statement of Income 7,441 255 - - -
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Total interest charges $77,217 $ 86,753 $107,195 $121,957 $120,240
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(1) Interest factor based on management's estimates and approximates one-third of rental expense.