EX-12 8 f10k2001_ex12-3.txt UNION OIL RATIO OF EARNINGS/FIXED CHARGES EXHIBIT 12.3 UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Year ended December 31, --------------------------------------- Millions of dollars 2001 2000 1999 1998 1997 -------------------------------------------------------------------------------- Earnings from continuing operations $ 626 $ 746 $ 141 $ 115 $ 633 Provision for income taxes 457 500 128 181 90 Minority interests 41 16 16 7 9 Distributions (less than) greater than earnings from equity investments 69 (57) (4) (2) (65) -------------------------------------------------------------------------------- Earnings subtotal (a) 1,193 1,205 281 301 667 Fixed charges included in earnings: Interest expense 192 210 199 177 183 Interest portion of rentals (b) 19 20 22 20 23 -------------------------------------------------------------------------------- Fixed charges subtotal 211 230 221 197 206 Earnings from continuing operations available before fixed charges $1,404 $1,435 $ 502 $ 498 $ 873 -------------------------------------------------------------------------------- Fixed charges: Fixed charges included in earnings 211 230 221 197 206 Capitalized interest 27 13 16 26 35 -------------------------------------------------------------------------------- Total fixed charges $ 238 $ 243 $ 237 $ 223 $ 241 -------------------------------------------------------------------------------- Ratio of earnings from continuing operations to fixed charges 5.9 5.9 2.1 2.2 3.6 -------------------------------------------------------------------------------- (a) Includes pre-tax impairment of : 137 66 23 102 69 The ratio of earnings, excluding impairment, to fixed charges would be 6.5 6.2 2.2 2.7 3.9 (b) Calculated as one-third of operating rental expense.