EX-12.2 14 dex122.txt COMPUTATION OF RATIO OF EARNINGS (UNION OIL COMPANY) EXHIBIT 12.2 UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
YEAR ENDED DECEMBER 31, ---------------------------------------------------- MILLIONS OF DOLLARS 2002 2001 2000 1999 1998 ------------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations $ 361 $ 626 $ 746 $ 141 $ 115 Provision for income taxes 287 457 500 128 181 Minority interests 6 41 16 16 7 Distributions (less than) greater than earnings from equity investments 6 69 (57) (4) (2) ------------------------------------------------------------------------------------------------------------------------------- Earnings subtotal (a) 660 1,193 1,205 281 301 Fixed charges included in earnings: Interest expense 179 192 210 199 177 Interest portion of rentals (b) 23 19 20 22 20 ------------------------------------------------------------------------------------------------------------------------------- Fixed charges subtotal 202 211 230 221 197 Earnings from continuing operations available before fixed charges $ 862 $ 1,404 $ 1,435 $ 502 $ 498 ------------------------------------------------------------------------------------------------------------------------------- Fixed charges: Fixed charges included in earnings 202 211 230 221 197 Capitalized interest 46 27 13 16 26 ------------------------------------------------------------------------------------------------------------------------------- Total fixed charges $ 248 $ 238 $ 243 $ 237 $ 223 ------------------------------------------------------------------------------------------------------------------------------- Ratio of earnings from continuing operations to fixed charges 3.5 5.9 5.9 2.1 2.2 ------------------------------------------------------------------------------------------------------------------------------- (a) Includes pre-tax impairment of : 47 137 66 23 102 The ratio of earnings, excluding impairment, to fixed charges would be: 3.7 6.5 6.2 2.2 2.7 (b) Calculated as one-third of operating rental expense.