EX-12 2 oxyexhibit1210q9302014.htm EXHIBIT OXY exhibit 12 10Q 9.30.2014


EXHIBIT 12
OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)
 
 
 
 
Nine Months Ended
September 30
 
 
Year Ended
December 31
 
 
 
2014

 
2013

 
2013

 
2012

 
2011

 
2010

 
2009

Income from continuing operations (a)
 
$
4,038

 
$
4,274

 
$
5,922

 
$
4,635

 
$
6,640

 
$
4,641

 
$
3,202

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add/(Subtract):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to noncontrolling interest
 
(8
)
 
—

 
—

 
—

 
—

 
(72
)
 
(51
)
Adjusted income from equity investments (b)
 
44

 
82

 
52

 
163

 
(33
)
 
(60
)
 
(88
)
 
 
4,074

 
4,356

 
5,974

 
4,798

 
6,607

 
4,509

 
3,063

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for taxes on income (other than foreign oil and gas taxes)
 
1,297

 
1,335

 
1,894

 
708

 
1,795

 
1,099

 
695

Interest and debt expense
 
52

 
93

 
118

 
130

 
135

(c) 
116

 
140

Portion of lease rentals representative of the interest factor
 
35

 
44

 
68

 
59

 
60

 
57

 
57

 
 
1,384

 
1,472

 
2,080

 
897

 
1,990

 
1,272

 
892

Earnings before fixed charges
 
$
5,458

 
$
5,828

 
$
8,054

 
$
5,695

 
$
8,597

 
$
5,781

 
$
3,955

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and debt expense including capitalized interest
 
$
194

 
$
203

 
$
269

 
$
254

 
$
221

(c) 
$
203

 
$
218

Portion of lease rentals representative of the interest factor
 
35

 
44

 
68

 
59

 
60

 
57

 
57

Total fixed charges
 
$
229

 
$
247

 
$
337

 
$
313

 
$
281

 
$
260

 
$
275

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
23.87

 
23.60

 
23.90

 
18.19

 
30.59

 
22.23

 
14.38

Note: Argentine operations have been reflected as discontinued operations for all periods.
 
(a)
The year ended December 31, 2013 amount includes a $665 million after-tax gain for the sale of a portion of an investment in the General Partner of Plains All-American Pipeline L.P., a $63 million after-tax gain for the sale of an investment in Carbocloro, a Brazilian chemical facility and $395 million of after-tax charges related to the impairment of non-producing domestic acreage. The year ended December 31, 2012 amount includes after-tax charges of $1.1 billion for the impairment of domestic gas assets and related items.
 
(b)
Represents adjustments to arrive at distributed income from equity investees.
 
(c)
Excludes a pre-tax charge of $163 million for the early redemption of debt.