1 Exhibit 12 USL CAPITAL CORPORATION AND SUBSIDIARY COMPANIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------- -------------------- (Unaudited; in thousands) 1995 1994 1995 1994 -------- ------- -------- -------- Earnings: Income before taxes on income per statement of income . . . . . . . . . . . . . . . . $ 42,997 $39,774 $ 81,145 $ 70,607 Add Fixed charges . . . . . . . . . . . . . . . . . . . . . 68,705 53,686 135,499 106,790 Distributions and proceeds in excess of (less than) net income of associated companies . . . . . . . . . 202 105 212 216 -------- ------- -------- -------- Income as adjusted . . . . . . . . . . . . . . . . . . . . $111,904 $93,565 $216,856 $177,613 ======== ======= ======== ======== Fixed charges: Interest on indebtedness including amortization of debt issue costs and discount or premium thereon . . . . . . . . . . . . . . $ 67,996 $52,999 $134,078 $105,290 Interest factor of annual rentals(1) . . . . . . . . . . . 709 687 1,421 1,500 -------- ------- -------- -------- Fixed charges . . . . . . . . . . . . . . . . . . . . . . . $ 68,705 $53,686 $135,499 $106,790 ======== ======= ======== ======== Ratio of earnings to fixed charges . . . . . . . . . . . . 1.6 1.7 1.6 1.7 ======== ======= ======== ======== (1) The interest portion of annual rentals is estimated to be one-third of such rentals. 12