EXHIBIT 12 PENNZOIL-QUAKER STATE COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the nine months ended September 30 ---------------------------------- 2000 1999 ------------- ------------- (Dollar amounts expressed in thousands) Loss from continuing operations before income from equity investees $ (21,256) $ (23,888) Distribution of income from equity investees 18,250 21,227 Amortization of capitalized interest 679 1,472 Income tax provision 17,272 9,617 Interest charges 92,055 81,926 ------------- ------------- Income before income tax provision and interest charges $ 107,000 $ 90,354 ============= ============= Fixed charges $ 92,055 $ 81,926 ============= ============= Amount by which fixed charges exceeds earnings - - ============= ============= Ratio of earnings to fixed charges 1.16 1.10 ============= ============= DETAIL OF INTEREST AND FIXED CHARGES For the nine months ended September 30 ---------------------------------- 2000 1999 ------------- ------------- (Expressed in thousands) Interest charges per Consolidated Statement of Operations which includes amortization of debt discount, expense and premium $ 69,576 $ 58,965 Add: portion of rental expense representative of interest factor <F1> 22,479 22,961 ------------- ------------- Total fixed charges $ 92,055 $ 81,926 Less: interest capitalized per Consolidated Statement of Operations - - ------------- ------------- Total interest charges $ 92,055 $ 81,926 ============= ============= <FN> <F1> Interest factor based on management's estimates and approximates one-third of rental expense. </FN>