EX-12 5 dex12.txt STATEMENT REGARDING COMPUTATION OF RATIOS EXHIBIT 12 STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a) Sunoco, Inc. and Subsidiaries (Millions of Dollars) For the Six Months Ended June 30, 2002 --------------- (UNAUDITED) Fixed Charges: Consolidated interest cost and debt expense $ 54 Proportionate share of interest cost and debt expense of 50 percent owned but not controlled investees (b) 2 Interest allocable to rental expense(c) 22 ----- Total $ 78 ===== Earnings: Consolidated loss before income tax benefit $(149) Minority interest in net income of subsidiaries having fixed charges 6 Proportionate share of income tax expense of 50 percent owned but not controlled investees 2 Equity in income of less than 50 percent owned investees (9) Dividends received from less than 50 percent owned investees 6 Fixed charges 78 Interest capitalized (1) Amortization of previously capitalized interest -- ----- Total $ (67) ===== Ratio of Earnings to Fixed Charges N/A (d) ===== ---------------- (a) The consolidated financial statements of Sunoco, Inc. and subsidiaries contain the accounts of all investees that are controlled (generally more than 50 percent owned). Corporate joint ventures and other investees over which the Company has the ability to exercise significant influence but that are not controlled (generally 20 to 50 percent owned) are accounted for by the equity method. (b) Consists of Sunoco's share of interest cost and debt expense of the Epsilon Products Company, LLC ("Epsilon") polypropylene joint venture in which the Company is a partner. Sunoco guarantees Epsilon's $120 million term loan due in 2006 and borrowings under Epsilon's $40 million revolving credit agreement, which amounted to $36 million at June 30, 2002. Epsilon's interest and debt expense totalled $3 million for the six months ended June 30, 2002. (c) Represents one-third of total operating lease rental expense which is that portion deemed to be interest. (d) Earnings are inadequate to cover fixed charges by $145 million.