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EXHIBIT 12
PENNZOIL - QUAKER STATE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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1996 1997 1998 1999 2000
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Income from continuing operations
before equity income from partnerships ...... $ 2,927 $ (8,244) $ (60,407) $ (18,144) $ (13,019)
Distribution of income from partnerships ........... 16,600 7,460 18,941
Amortization of capitalized interest ............... 575 1,292 1,904 1,510 905
Income tax provision (benefit) ..................... (4,383) (1,274) (36,994) 8,112 17,658
Interest charges ................................... 70,074 77,217 86,753 107,195 121,957
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Income before income tax provision
and interest charges ........................ $ 69,193 $ 68,991 $ 7,856 $ 106,133 $ 146,442
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Fixed charges ...................................... $ 80,177 $ 84,658 $ 87,008 $ 107,195 $ 121,957
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Ratio of earnings to fixed charges ................. -- -- -- -- 1.20
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Amount by which fixed charges exceed earnings ...... $ 10,984 $ 15,667 $ 79,152 $ 1,062
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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 ............... $ 65,174 $ 69,221 $ 70,198 $ 80,588 $ 94,895
Add: portion of rental expense
representative of interest factor (1) ............ 15,003 15,437 16,810 26,607 27,062
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Total fixed charges .............................. $ 80,177 $ 84,658 $ 87,008 $ 107,195 $ 121,957
Less: interest capitalized per Consolidated
Statement of Income .............................. 10,103 7,441 255 -- --
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Total interest charges ........................... $ 70,074 $ 77,217 $ 86,753 $ 107,195 $ 121,957
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(1) Interest factor based on management's estimates and approximates one-third
of rental expense.