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 EACH OF THE FIVE YEARS ENDED DECEMBER 31, 1998
(MILLIONS OF DOLLARS)
YEARS ENDED DECEMBER 31,
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1998 1997 1996 1995 1994(A)
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Income from continuing operations, before provision or benefit
for income taxes and cumulative effect of accounting changes
effective 1-1-98 and 1-1-95.................................... $ 892 $ 3,514 $ 3,450 $ 1,201 $ 1,409
Dividends from less than 50% owned companies more or (less) than
equity in net income........................................... -- (11) (4) 1 (1)
Minority interest in net income.................................. 56 68 72 54 44
Previously capitalized interest charged to income during the
period......................................................... 22 25 27 33 29
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Total earnings................................................... 970 3,596 3,545 1,289 1,481
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Fixed charges and preferred stock dividends: Items charged to
income:
Interest charges............................................. 664 528 551 614 594
Interest factor attributable to operating lease
rentals.................................................... 120 112 129 110 118
Preferred stock dividends of subsidiaries guaranteed by
Texaco Inc................................................. 33 33 35 36 31
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Total items charged to income............................ 817 673 715 760 743
Interest capitalized............................................. 26 27 16 28 21
Interest on ESOP debt guaranteed by Texaco Inc................... 3 7 10 14 14
Preferred stock dividends (b).................................... 52 56 54 51 85
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Total combined fixed charges and preferred stock dividends....... 898 763 795 853 863
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Earnings available for payment of combined fixed
charges and preferred stock dividends (Total earnings and total
items charged to income)....................................... $ 1,787 $ 4,269 $ 4,260 $ 2,049 $ 2,224
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Ratio of earnings to combined fixed charges and
preferred stock dividends of Texaco on a total
enterprise basis............................................... 1.99 5.60 5.36 2.40 2.58
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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 ESOP Convertible Preferred
Stock dividends and the interest portion of the Series F ESOP Convertible
Preferred Stock (converted into Common Stock on February 16, 1999)
dividends.