EXHIBIT 12
PENNZOIL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the nine months ended
September 30,
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1994 1993
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(Dollar amounts expressed in thousands)
Income (loss) from continuing operations $ (272,254) $ 67,800
Income tax provision (benefit)
Federal and foreign (212,719) 47,421
State 3,723 5,964
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Total income tax provision (benefit) (208,996) 53,385
Interest charges 441,525 156,054
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Income (loss) before income tax provision (benefit) and interest charges $ (39,726) $ 277,239
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Fixed charges $ 448,434 $ 163,500
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Ratio of earnings to fixed charges -- 1.70
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Amount by which fixed charges exceed earnings $ 488,159 $ --
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DETAIL OF INTEREST AND FIXED CHARGES
For the nine months ended
September 30,
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1994 1993
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(Expressed in thousands)
Interest charges per Consolidated Statement of Income
which includes amortization of debt discount, expense and premium $ 430,688 $ 148,838
Add: portion of rental expense representative of interest factor <F1> 17,746 14,662
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Total fixed charges $ 448,434 $ 163,500
Less: interest capitalized per Consolidated Statement of Income 6,909 7,446
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Total interest charges $ 441,525 $ 156,054
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<FN>
<F1> Interest factor based on management's estimates and approximates one-third of rental expense.