Printer Friendly

PENNZOIL ADOPTS FINANCIAL ACCOUNTING STARDARD NO. 106 IN FOURTH QUARTER

PENNZOIL ADOPTS FINANCIAL ACCOUNTING STARDARD NO. 106 IN FOURTH QUARTER
 HOUSTON, Dec. 27 /PRNewswire/ -- Pennzoil Co. (NYSE: PZL) announced today it will adopt the recently issued Financial Accounting Standard No. 106, retroactive to Jan. 1, 1991.
 The new standard, which must be implemented by most American companies no later than 1993, requires that the costs of providing postretirement benefits other than pensions, such as life and medical insurance coverage, must be accrued over the employee's active career.
 The one-time, cumulative effect on prior-year results from adopting the standard is expected to reduce 1991 net income by approximately $49 million, or $1.21 per share, and requires the restatement of previously reported 1991 quarterly results. The charge is non-cash and adhering to the new standard will not affect Pennzoil's cash flow.
 In addition to the one-time charge, Pennzoil's postretirement life insurance and medical coverage expense is expected to increase by approximately $2.5 million, before tax, as a result of adopting the new accounting standard.
 Pennzoil said that the decision to adopt the standard early was made in order to remove any uncertainty or speculation about the amount of the non-cash charge or its effect on future periods.
 -0- 12/27/91
 /CONTACT: Robert Harper of Pennzoil, 713-546-8536/
 (PZL) CO: Pennzoil Co. ST: Texas IN: OIL SU:


SM -- NY031 -- 5559 12/27/91 17:44 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 27, 1991
Words:225
Previous Article:AMERICAN STOCK EXCHANGE DAILY REPORT
Next Article:DWG CORP. SHAREHOLDERS ELECT DIRECTORS; ANNOUNCE DIVIDEND
Topics:


Related Articles
ASHLAND EXPECTS CHARGES TO RESULT IN LOSS IN FISCAL FOURTH QUARTER, YEAR
AMOCO ADOPTING NEW ACCOUNTING STANDARDS IN FOURTH QUARTER
ETHYL REPORTS HIGHER 1992 RESULTS
BUCKEYE PARTNERS ANNOUNCES FOURTH QUARTER EARNINGS AND QUARTERLY DISTRIBUTION
ARCO ADOPTS FINANCIAL ACCOUNTING STANDARDS NOS. 106 AND 109 RETROACTIVE TO JAN. 1, 1992
EXXON ADOPTS ACCOUNTING CHANGES
QUAKER STATE ANNOUNCES STRUCTURAL AND ACCOUNTING CHANGES WITH ITS 1992 RESULTS
OCCIDENTAL PETROLEUM CORP. ANNOUNCES 1992 RESULTS
SHELL OIL ANNOUNCES FOURTH-QUARTER, FULL-YEAR EARNINGS
PENNZOIL ACTS TO IMPROVE FINANCIAL FLEXIBILITY, MAXIMIZE GROWTH OPPORTUNITIES

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters