EX-12 4 dex12.htm COMPUTATION OF RATIO OF EARNINGS Computation of Ratio of Earnings

EXHIBIT 12

 

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

Sunoco, Inc. and Subsidiaries

 

(Millions of Dollars Except Ratios)

 

    

For the Three Months

Ended March 31


 
     2004

    2003

 
     (UNAUDITED)  

Fixed Charges:

                

Consolidated interest cost and debt expense

   $ 29     $ 29  

Interest allocable to rental expense(b)

     13       11  
    


 


Total

   $ 42     $ 40  
    


 


Earnings:

                

Consolidated income before income tax expense

   $ 145     $ 134  

Minority interest in net income of subsidiaries having fixed charges

     3       5  

Proportionate share of income tax expense of 50 percent-owned-but-not-controlled investees

     1       1  

Equity income of less than 50 percent owned investees

     (4 )     (2 )

Dividends received from less-than-50-percent-owned investees

     3       3  

Fixed charges

     42       40  

Interest capitalized

     (1 )     (1 )

Amortization of previously capitalized interest

     —         —    
    


 


Total

   $ 189     $ 180  
    


 


Ratio of Earnings to Fixed Charges

     4.50       4.50  
    


 



(a) The consolidated financial statements of Sunoco, Inc. and subsidiaries contain the accounts of all entities that are controlled (generally more than 50 percent owned) and variable interest entities for which the Company is the primary beneficiary. Corporate joint ventures and other investees over which the Company has the ability to exercise significant influence but that are not consolidated are accounted for by the equity method.
(b) Represents one-third of total operating lease rental expense which is that portion deemed to be interest.