EX-12 5 dex12.htm STATEMENT RE SUNOCO & SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS Statement re Sunoco & Subsidiaries Computation of Ratio of Earnings

EXHIBIT 12

 

STATEMENT RE COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES(a)

Sunoco, Inc. and Subsidiaries

 

(Millions of Dollars Except Ratio)

 

    

For the Six

Months Ended

June 30, 2003


 
     (UNAUDITED)  

Fixed Charges:

        

Consolidated interest cost and debt expense

   $ 57  

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

   $ 81  
    


Earnings:

        

Consolidated income before income tax expense

   $ 262  

Minority interest in net income of subsidiaries having fixed charges

     8  

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

     (7 )

Dividends received from less than 50 percent owned investees

     5  

Fixed charges

     81  

Interest capitalized

     (1 )

Amortization of previously capitalized interest

     1  
    


Total

   $ 351  
    


Ratio of Earnings to Fixed Charges

     4.33  
    



(a)   The consolidated financial statements of Sunoco, Inc. and subsidiaries contain the accounts of all operations 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 facility maturing in 2006, which amounted to $29 million at June 30, 2003. Epsilon’s interest and debt expense totaled $2 million for the six months ended June 30, 2003.
(c)   Represents one-third of total operating lease rental expense which is that portion deemed to be interest.

 

 

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