1
EXHIBIT 11
PENNZOIL COMPANY AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
------------------------------------------------------
1996 1995 1994 1993 1992
-------- --------- --------- -------- --------
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)
Income (loss) from continuing
operations.......................... $133,898 $(305,142) $(283,739) $160,236 $ 17,410
-------- --------- --------- -------- --------
Income tax provision (benefit)
Federal and foreign................. 27,563 (164,125) (226,388) 52,737 (22,193)
State............................... 7,665 (8,408) 5,033 6,468 3,410
-------- --------- --------- -------- --------
Total income tax provision
(benefit)................. 35,228 (172,533) (221,355) 59,205 (18,783)
Interest charges...................... 200,087 217,689 497,799 199,410 243,351
-------- --------- --------- -------- --------
Income (loss) before income tax
provision (benefit) and interest
charges............................. 369,213 $(259,986) $ (7,295) $418,851 $241,978
======== ========= ========= ======== ========
Fixed charges......................... 210,821 $ 221,920 $ 506,826 $210,830 $252,082
======== ========= ========= ======== ========
Ratio of earnings to fixed charges.... 1.75 -- -- 1.99 --
======== ========= ========= ======== ========
Amount by which fixed charges exceed
earnings............................ -- $ 481,906 $ 514,121 $ -- $ 10,104
======== ========= ========= ======== ========
DETAIL OF INTEREST AND FIXED CHARGES
FOR THE YEAR ENDED DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
(DOLLAR AMOUNTS EXPRESSED IN THOUSANDS)
Interest charges per consolidated
statement of income which includes
amortization of debt discount, expense
and premium........................... $188,155 $198,579 $485,668 $190,968 $233,360
Add portion of rental expense
representative of interest
factor(1)............................. 22,666 23,341 21,158 19,862 18,722
-------- -------- -------- -------- --------
Total fixed charges........... 210,821 221,920 506,826 210,830 252,082
Less interest capitalized per
consolidated statement of income...... 10,734 4,231 9,027 11,420 8,731
-------- -------- -------- -------- --------
Total interest charges........ 200,087 $217,689 $497,799 $199,410 $243,351
======== ======== ======== ======== ========
- ---------------
(1) Interest factor based on management's estimates and approximates one-third
of rental expense.