EXHIBIT 12 PENNZOIL-QUAKER STATE COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the six months ended June 30, ---------------------------------- 2000 1999 ------------- ------------- (Dollar amounts expressed in thousands) Loss from continuing operations before income from equity investees $ (19,036) $ (10,218) Distribution of income from equity investees 5,850 10,168 Amortization of capitalized interest 453 982 Income tax provision (benefit) (3,834) 10,509 Interest charges 60,590 54,218 ------------- ------------- Income before income tax provision (benefit) and interest charges $ 44,023 $ 65,659 ============= ============= Fixed charges $ 60,590 $ 54,218 ============= ============= Amount by which fixed charges exceeds earnings 16,567 ============= ============= Ratio of earnings to fixed charges 1.21 ============= ============= DETAIL OF INTEREST AND FIXED CHARGES For the six months ended June 30, ---------------------------------- 2000 1999 ------------- ------------- (Expressed in thousands) Interest charges per Consolidated Statement of Operations which includes amortization of debt discount, expense and premium $ 45,242 $ 38,822 Add: portion of rental expense representative of interest factor <F1> 15,348 15,396 ------------- ------------- Total fixed charges $ 60,590 $ 54,218 Less: interest capitalized per Consolidated Statement of Operations - - ------------- ------------- Total interest charges $ 60,590 $ 54,218 ============= ============= <FN> <F1> Interest factor based on management's estimates and approximates one-third of rental expense. </FN>