EXHIBIT 12 PENNZOIL-QUAKER STATE COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the three months ended March 31, ---------------------------------- 1999 1998 ------------- ------------- (Dollar amounts expressed in thousands) Income (loss) from continuing operations before income from equity investees $ (6,797) $ (6,015) Distribution of income from equity investees 3,598 6,614 Amortization of capitalized interest 491 453 Income tax provision 2,407 1,936 Interest charges 25,702 21,676 ------------- ------------- Income before income tax provision and interest charges $ 25,401 $ 24,664 ============= ============= Fixed charges $ 25,702 $ 21,931 ============= ============= Amount by which fixed charges exceeds earnings $ 301 - ============= ============= Ratio of earnings to fixed charges - 1.12 ============= ============= DETAIL OF INTEREST AND FIXED CHARGES For the three months ended March 31, ---------------------------------- 1999 1998 ------------- ------------- (Expressed in thousands) Interest charges per Consolidated Statement of Income which includes amortization of debt discount, expense and premium $ 17,741 $ 17,001 Add: portion of rental expense representative of interest factor <F1> 7,961 4,930 ------------- ------------- Total fixed charges $ 25,702 $ 21,931 Less: interest capitalized per Consolidated Statement of Income - 255 ------------- ------------- Total interest charges $ 25,702 $ 21,676 ============= ============= <FN> <F1> Interest factor based on management's estimates and approximates one-third of rental expense. </FN>