EXHIBIT 12 PENNZOIL-QUAKER STATE COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the nine months ended September 30, ---------------------------------- 1999 1998 ------------- ------------- (Dollar amounts expressed in thousands) Loss from continuing operations before income from equity investees $ (23,888) $ (17,142) Distribution of income from equity investees 21,227 24,427 Amortization of capitalized interest 1,472 1,349 Income tax provision 9,617 8,336 Interest charges 81,926 66,996 ------------- ------------- Income before income tax provision and interest charges $ 90,354 $ 83,966 ============= ============= Fixed charges $ 81,926 $ 67,251 ============= ============= Amount by which fixed charges exceeds earnings - ============= ============= Ratio of earnings to fixed charges 1.10 1.25 ============= ============= DETAIL OF INTEREST AND FIXED CHARGES For the nine months ended September 30, ---------------------------------- 1999 1998 ------------- ------------- (Expressed in thousands) Interest charges per Consolidated Statement of Income which includes amortization of debt discount, expense and premium $ 58,965 $ 51,644 Add: portion of rental expense representative of interest factor <F1> 22,961 15,607 ------------- ------------- Total fixed charges $ 81,926 $ 67,251 Less: interest capitalized per Consolidated Statement of Income - 255 ------------- ------------- Total interest charges $ 81,926 $ 66,996 ============= ============= <FN> <F1> Interest factor based on management's estimates and approximates one-third of rental expense. </FN>