EXHIBIT 12
PENNZOIL-QUAKER STATE COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the six months ended
June 30,
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1999 1998
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(Dollar amounts expressed in thousands)
Income (loss) from continuing operations
before income from equity investees $ (10,218) $ (7,423)
Distribution of income from equity investees 10,168 14,069
Amortization of capitalized interest 982 884
Income tax provision 10,509 6,829
Interest charges 54,218 44,406
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Income before income tax provision and interest charges $ 65,659 $ 58,765
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Fixed charges $ 54,218 $ 44,661
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Amount by which fixed charges exceeds earnings
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Ratio of earnings to fixed charges 1.21 1.32
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DETAIL OF INTEREST AND FIXED CHARGES
For the six months ended
June 30,
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1999 1998
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(Expressed in thousands)
Interest charges per Consolidated Statement of Income
which includes amortization of debt discount, expense and premium $ 38,822 $ 34,412
Add: portion of rental expense representative of interest factor <F1> 15,396 10,249
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Total fixed charges $ 54,218 $ 44,661
Less: interest capitalized per Consolidated Statement of Income - 255
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Total interest charges $ 54,218 $ 44,406
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<FN>
<F1> Interest factor based on management's estimates and approximates one-third of rental expense.
</FN>