1
EXHIBIT 11
PENNZOIL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
---------------------------------------------------------
1994 1993 1992 1991 1990
--------- -------- -------- -------- --------
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)
Income (loss) from continuing
operations........................... $(283,739) $160,236 $ 17,410 $ 40,098 $ 93,768
--------- -------- -------- -------- --------
Income tax provision (benefit)
Federal and foreign.................. (226,388) 52,737 (22,193) (23,988) 6,006
State................................ 5,033 6,468 3,410 3,928 1,917
--------- -------- -------- -------- --------
Total income tax provision
(benefit).................. (221,355) 59,205 (18,783) (20,060) 7,923
Interest charges....................... 497,799 199,410 243,351 260,069 247,107
--------- -------- -------- -------- --------
Income (loss) before income taxes and
interest charges..................... $ (7,295) $418,851 $241,978 $280,107 $348,798
========= ======== ======== ======== ========
Fixed charges.......................... $ 506,826 $210,830 $252,082 $270,516 $261,740
========= ======== ======== ======== ========
Ratio of earnings to fixed charges..... -- 1.99 -- 1.04 1.33
========= ======== ======== ======== ========
Amount by which fixed charges exceed
earnings............................. $ 514,121 $ -- $ 10,104 $ -- $ --
========= ======== ======== ======== ========
DETAIL OF INTEREST AND FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
--------------------------------------------------------
1994 1993 1992 1991 1990
-------- -------- -------- -------- --------
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)
Interest charges per Consolidated
Statement of Income which includes
amortization of debt discount, expense
and premium........................... $485,668 $190,968 $233,360 $253,943 $244,194
Add portion of rental expense
representative of interest
factor(1)............................. 21,158 19,862 18,722 16,573 14,987
Add interest charges of affiliate on
supported debt........................ -- -- -- -- 2,559
-------- -------- -------- -------- --------
Total fixed charges........... 506,826 210,830 252,082 270,516 261,740
Less interest capitalized per
Consolidated Statement of Income...... 9,027 11,420 8,731 10,447 13,321
Less outside investors' portion of
interest charges of affiliate on
supported debt........................ -- -- -- -- 1,312
-------- -------- -------- -------- --------
Total interest charges........ $497,799 $199,410 $243,351 $260,069 $247,107
======== ======== ======== ======== ========
- ---------------
(1) Interest factor based on management's estimates and approximates one-third
of rental expense.