EXHIBIT 12
PENNZOIL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the three months ended
March 31,
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1995 1994
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(Dollar amounts expressed in thousands)
Income before cumulative effect of change
in accounting principle $ 2,743 $ 10,738
Income tax provision (benefit)
Federal and foreign (1,325) 4,422
State 740 1,506
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Total income tax provision (benefit) (585) 5,928
Interest charges 54,494 47,318
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Income before income tax provision (benefit) and interest charges $ 56,652 $ 63,984
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Fixed charges $ 55,557 $ 49,493
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Ratio of earnings to fixed charges 1.02 1.29
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DETAIL OF INTEREST AND FIXED CHARGES
For the three months ended
March 31,
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1995 1994
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(Expressed in thousands)
Interest charges per Consolidated Statement of Income
which includes amortization of debt discount, expense and premium $ 49,542 $ 43,764
Add: portion of rental expense representative of interest factor <F1> 6,015 5,729
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Total fixed charges $ 55,557 $ 49,493
Less: interest capitalized per Consolidated Statement of Income 1,063 2,175
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Total interest charges $ 54,494 $ 47,318
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<FN>
<F1> Interest factor based on management's estimates and approximates one-third of rental expense.
</FN>