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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
___________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 8, 1995
____________________________
TEXACO INC.
(Exact name of registrant as specified in its charter)
Delaware 1-27 74-1383447
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation) Number) Identification Number)
2000 Westchester Avenue, 10650
White Plains, New York (Zip Code)
(Address of principal executive offices)
(914) 253-4000
(Registrant's telephone number, including area code)
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Item 5. Other Events
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1. On December 8, 1995, the Registrant announced that it will adopt
Statement of Financial Accounting Standards (SFAS) 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of" during the fourth quarter of this year. This new standard
must be adopted by all companies no later than 1996. The application
of this standard will result in a non-cash after-tax charge of
approximately $640 million against fourth quarter 1995 earnings.
Also, in accordance with SFAS 121, operating results for the first
three quarters of 1995 will be restated to comply with the provisions
of this standard regarding assets "to be disposed of." Write-downs of
non-core producing properties, being held for sale at January 1, 1995,
will be reclassified on the income statement as a cumulative effect of
an accounting change. These write-downs had previously been offset
against overall gains from U. S. producing property sales, which were
reported in Texaco's operating earnings for the first quarter of 1995.
In this connection, on December 8, 1995, the Registrant issued a press
release entitled "Texaco to Adopt Required Accounting Change in Fourth
Quarter of 1995", a copy of which is attached hereto as Exhibit 99.1
and made a part of hereof.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
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(c) Exhibits
99.1 Copy of press release issued by Texaco Inc. dated December 8, 1995,
entitled "Texaco to Adopt Required Accounting Change in Fourth
Quarter of 1995."
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PR8kdec8.doc
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
TEXACO INC.
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(Registrant)
By: R. E. Koch
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(Assistant Secretary)
Date: December 11, 1995
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EXHIBIT 99.1
TEXACO TO ADOPT REQUIRED ACCOUNTING CHANGE
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IN FOURTH QUARTER OF 1995
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SFAS 121 Results In Asset Impairment
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FOR RELEASE: FRIDAY, DECEMBER 8, 1995.
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WHITE PLAINS, N.Y., Dec. 8 - Texaco Inc. announced today that it
will adopt Statement of Financial Accounting Standards (SFAS) 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-Lived
Assets to Be Disposed Of" during the fourth quarter of this year. This new
standard must be adopted by all companies no later than 1996. For Texaco,
application of this standard will result in a non-cash after-tax charge of
approximately $640 million against fourth quarter 1995 earnings.
SFAS 121 requires that assets held for use be tested for impairment on
bases such as by individual producing fields -- a narrower basis than past
practice. If the undiscounted future cash flows are less than the net book
value, the asset is defined as impaired.
Approximately 75 percent of the fourth quarter charge being taken by
Texaco reflects the write-down of certain producing properties in the United
States. An example is the producing field impairment at the offshore
California Harvest Platform and related facilities where a history of
unanticipated permit modifications and delays and other environmental
requirements significantly reduced the value of the assets. The remaining
25 percent of the charge to earnings primarily relates to the write-down of
certain non-core assets, which are slated for disposition under Texaco's
plan for growth.
Also, in accordance with SFAS 121, operating results for the first
three quarters of 1995 will be restated to comply with the provisions of
this standard regarding assets "to be disposed of." Write-downs of
non-core producing properties, being held for sale at January 1, 1995, will
be reclassified on the income statement as a cumulative effect of an
accounting change. These write-downs had previously been offset against
overall gains from U.S. producing property sales, which were reported in
Texaco's operating earnings for the first quarter of 1995.
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CONTACTS: David J. Dickson 914-253-4128
Yorick P. Fonseca 914-253-7034