EXHIBIT 12
STATEMENTS RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES--UNAUDITED(a)
Sun Company, Inc. and Subsidiaries
(Millions of Dollars Except Ratios)
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For the Years Ended
December 31
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1995 1994 1993
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Fixed Charges:
Consolidated interest cost and
debt expense $ 105 $ 97 $ 81
Interest cost and debt expense of
operations held for sale 16 22 8
Interest allocable to rental
expense(b) 34 35 29
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Total $ 155 $ 154 $ 118
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Earnings:
Consolidated income from continuing
operations before provision for
income taxes and cumulative effect
of change in accounting principle $ 319 $ 120 $ 426
Minority interest in net income of
subsidiaries having fixed charges 19 35 25
Proportionate share of provision for
income taxes of 50 percent owned but
not controlled affiliated companies 4 3 3
Equity in income of less than 50
percent owned affiliated companies (10) (7) (6)
Dividends received from less than 50
percent owned affiliated companies 5 5 5
Fixed charges 155 154 118
Interest capitalized (6) (15) (9)
Amortization of previously capitalized
interest 16 31 16
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Total $ 502 $ 326 $ 578
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Ratio of Earnings to Fixed Charges 3.24 2.12 4.90
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(a) The consolidated financial statements of Sun Company, Inc. and subsidiaries
contain the accounts of all subsidiaries that are controlled (generally
more than 50 percent owned) except those accounted for as investments held
for sale or discontinued operations. Prior to the fourth quarter of 1993,
coal and real estate operations were accounted for as discontinued
operations and, accordingly, were excluded from the computation of the
ratio of earnings to fixed charges. Effective in the fourth quarter of
1993, coal and real estate operations and their results of operations are
now included in continuing operations. Accordingly, beginning October 1,
1993, coal and real estate operations are included in the computation of
the ratio of earnings to fixed charges. (See Note 2 to the consolidated
financial statements in the Company's 1995 Annual Report to Shareholders.)
Affiliated companies over which the Company has the ability to exercise
significant influence but that are not controlled (generally 20 to 50
percent owned) are accounted for by the equity method.
(b) Represents one-third of total operating lease rental expense which is that
portion deemed to be interest.