EX-12.2 15 dex122.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (UNION OIL COMPANY OF CA) Computation of Ratio of Earnings to Fixed Charges (Union Oil Company of CA)

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

    2004
     2003
    2002
    2001
    2000
  

Earnings from continuing operations

    $ 1,180     $ 732    $ 354    $ 618    $ 745  

Provision for income taxes

      681       523      284      453      499  

Minority interests

      11       9      6      41      16  

Distributions greater (less) than earnings from equity investments

      (16 )     39      6      69      (57 )
    
 
  
  
  

Earnings subtotal (a)

      1,856       1,303      650      1,181      1,203  

Fixed charges included in earnings:

                                      

Interest expense

      127       190      179      192      210  

Interest portion of rentals (b)

      24       24      23      19      20  
    
 
  
  
  

Fixed charges subtotal

      151       214      202      211      230  

Earnings from continuing operations available before fixed charges

    $ 2,007     $ 1,517    $ 852    $ 1,392    $ 1,433  
    
 
  
  
  

Fixed charges:

                                      

Fixed charges included in earnings

    $ 151     $ 214    $ 202    $ 211    $ 230  

Capitalized interest

      65       60      46      27      13  
    
 
  
  
  

Total fixed charges

    $ 216     $ 274    $ 248    $ 238    $ 243  
    
 
  
  
  

Ratio of earnings from continuing operations to fixed charges

      9.3       5.5      3.4      5.8      5.9  
                                      

(a)    Includes pre-tax impairment of :

    $ 74     $ 93    $ 47    $ 137    $ 66  

The ratio of earnings, excluding impairment, to fixed charges would be:

      9.6       5.9      3.6      6.4      6.2  

(b) Calculated as one-third of operating rental expense.