EXHIBIT 12 PENNZOIL -- QUAKER STATE COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES <Table> <Caption> 1997 1998 1999 2000 2001 ------- -------- -------- -------- -------- Loss 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) 8,112 17,658 8,505 Interest charges......................... 77,217 86,753 107,195 121,957 120,240 ------- -------- -------- -------- -------- Income before income tax provision and interest charges....................... $68,991 $ 7,856 $105,559 $144,804 $119,054 ======= ======== ======== ======== ======== Fixed charges............................ $84,658 $ 87,008 $107,195 $121,957 $120,240 ======= ======== ======== ======== ======== Ratio of earnings to fixed charges....... -- -- -- 1.19 -- ======= ======== ======== ======== ======== Amount by which fixed charges exceed earnings............................... $15,667 $ 79,152 $ 1,636 $ 1,186 ======= ======== ======== ======== ======== 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 ------- -------- -------- -------- -------- Total fixed charges............ $84,658 $ 87,008 $107,195 $121,957 $120,240 Less: interest capitalized per Consolidated Statement of Income....... 7,441 255 -- -- -- ------- -------- -------- -------- -------- Total interest charges......... $77,217 $ 86,753 $107,195 $121,957 $120,240 ======= ======== ======== ======== ======== </Table> - --------------- (1) Interest factor based on management's estimates and approximates one-third of rental expense.