EX-12 6 q22004_ex122.txt EXHIBIT 12.2 UNION OIL RATIO Exhibit 12.2
UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Six Months Ended June 30, ------------------------------- Millions of dollars 2004 2003 ------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations $ 566 $ 397 Provision for income taxes 327 301 Minority Interests 4 4 Distributions less than earnings from equity investments (16) (5) ------------------------------------------------------------------------------------------------------------------ Earnings subtotal 881 697 Fixed charges included in earnings: Interest expense 70 74 Interest portion of rentals 12 11 ------------------------------------------------------------------------------------------------------------------ Fixed charges subtotal 82 85 Earnings from continuing operations available before fixed charges $ 963 $ 782 ================================================================================================================== Fixed charges: Fixed charges included in earnings $ 82 $ 85 Capitalized interest 26 35 ------------------------------------------------------------------------------------------------------------------ Total fixed charges $ 108 $ 120 ------------------------------------------------------------------------------------------------------------------ Ratio of earnings from operations to fixed charges 8.9 6.5 ------------------------------------------------------------------------------------------------------------------ (a) Includes pre-tax Impairment of: 14 3 The ratio of earnings, excluding impairment, to fixed charges would be: 9.0 6.5 (b) Calculated as one-third of operating rental expense.