EXHIBIT 12.2
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
STOCK DIVIDENDS OF TEXACO ON A TOTAL ENTERPRISE BASIS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND FOR
EACH OF THE FIVE YEARS ENDED DECEMBER 31, 1997
(MILLIONS OF DOLLARS)
FOR THE NINE
MONTHS ENDED YEARS ENDED DECEMBER 31,
SEPTEMBER 30, -----------------------------------------------------
1998 1997 1996 1995 1994(A) 1993(A)
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Income from continuing operations, before provision or
benefit for income taxes and cumulative effect of
accounting changes effective 1-1-95...................... $ 1,178 $ 3,514 $ 3,450 $ 1,201 $ 1,409 $ 1,392
Dividends from less than 50% owned companies more or (less)
than equity in net income................................ (3) (11) (4) 1 (1) (8)
Minority interest in net income............................ 43 68 72 54 44 17
Previously capitalized interest charged to income during
the period............................................... 12 25 27 33 29 33
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Total earnings............................................. 1,230 3,596 3,545 1,289 1,481 1,434
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Fixed charges and preferred stock dividends: Items charged
to income:
Interest charges....................................... 490 528 551 614 594 546
Interest factor attributable to operating lease
rentals.............................................. 68 112 129 110 118 91
Preferred stock dividends of subsidiaries guaranteed by
Texaco Inc........................................... 26 33 35 36 31 4
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Total items charged to income...................... 584 673 715 760 743 641
Interest capitalized....................................... 18 27 16 28 21 57
Interest on ESOP debt guaranteed by Texaco Inc............. 3 7 10 14 14 14
Preferred stock dividends (b).............................. 40 56 54 51 85 82
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Total combined fixed charges and preferred stock
dividends................................................ 645 763 795 853 863 794
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Earnings available for payment of combined fixed charges
and preferred stock dividends
(Total earnings and total items charged to income)....... $ 1,814 $ 4,269 $ 4,260 $ 2,049 $ 2,224 $ 2,075
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Ratio of earnings to combined fixed charges and preferred
stock dividends of Texaco on a total enterprise basis.... 2.81 5.60 5.36 2.40 2.58 2.61
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(a) Excludes discontinued operations.
(b) Preferred stock dividend requirements have been adjusted to reflect the
pre-tax earnings which would be required to cover the Series C Variable Rate
Cumulative Preferred Stock (redeemed on September 30, 1994), Series E
Variable Rate Cumulative Preferred Stock (exchanged for Common Stock on
November 8, 1994) and Market Auction Preferred Shares dividends and to
exclude the interest portion of the Series B and Series F ESOP Convertible
Preferred Stock dividends.