EXHIBIT 12
1
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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1996 1995(b) 1994(b) 1993(b) 1992(b)
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Fixed Charges:
Consolidated interest cost and
debt expense $ 79 $ 98 $ 83 $ 68 $ 79
Interest cost and debt expense
of operations held for sale 8 16 22 8 --
Interest allocable to rental
expense(c) 32 34 34 29 31
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Total $ 119 $148 $139 $105 $ 110
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Earnings:
Consolidated income (loss) from
continuing operations before
income tax expense (benefit)
and cumulative effect of change
in accounting principle $(408) $(47) $(69) $123 $(133)
Minority interest in net income
of subsidiaries having fixed
charges -- 2 9 2 2
Proportionate share of income
tax expense of 50 percent
owned but not controlled
affiliated companies 5 4 3 3 2
Equity in income of less than
50 percent owned affiliated
companies (16) (10) (7) (6) (5)
Dividends received from less
than 50 percent owned affiliated
companies 6 5 5 5 4
Fixed charges 119 148 139 105 110
Interest capitalized (3) (4) (12) (7) (2)
Amortization of previously
capitalized interest 9 14 23 5 1
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Total $(288) $112 $ 91 $230 $ (21)
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Ratio of Earnings to Fixed Charges N/A(d) .76(d) .65(d) 2.19 N/A(d)
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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
2
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 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 1996 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) Restated to exclude amounts related to international production and Canadian
upstream petroleum operations as these operations are now presented as
discontinued operations. (See Note 2 to the Consolidated Financial
Statements in the Company's 1996 Annual Report to Shareholders.)
(c) Represents one-third of total operating lease rental expense which is that
portion deemed to be interest.
(d) Earnings are inadequate to cover fixed charges by $407, $36, $48 and $131
million in 1996, 1995, 1994 and 1992, respectively, due largely to $356,
$93, $54 and $163 million pretax provisions for write-down of assets and
other matters. (See Note 2 to the Consolidated Financial Statements in the
Company's 1996 Annual Report to Shareholders.)