EX-12 3 q32004_ex122.txt EXHIBIT 12.2 UNION OIL Exhibit 12.2
UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Nine Months Ended September 30, ------------------------------- Millions of dollars 2004 2003 ------------------------------------------------------------------------------------------------------------------ Earnings from continuing operations $ 905 $ 556 Provision for income taxes 502 449 Minority Interests 6 8 Distributions greater (less) than earnings from equity investments (13) 12 ------------------------------------------------------------------------------------------------------------------ Earnings subtotal 1,400 1,025 Fixed charges included in earnings: Interest expense 99 119 Interest portion of rentals 18 17 ------------------------------------------------------------------------------------------------------------------ Fixed charges subtotal 117 136 Earnings from continuing operations available before fixed charges $ 1,517 $ 1,161 ================================================================================================================== Fixed charges: Fixed charges included in earnings $ 117 $ 136 Capitalized interest 44 46 ------------------------------------------------------------------------------------------------------------------ Total fixed charges $ 161 $ 182 ------------------------------------------------------------------------------------------------------------------ Ratio of earnings from operations to fixed charges 9.4 6.4 ------------------------------------------------------------------------------------------------------------------ (a) Includes pre-tax Impairment of: 42 86 The ratio of earnings, excluding impairment, to fixed charges would be: 9.7 6.9 (b) Calculated as one-third of operating rental expense.