EX-12 13 oxyexhibit1210q6302015.htm EXHIBIT 12 OXY Exhibit 12 10Q 6.30.2015


EXHIBIT 12
OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)
 
 
 
 
Six Months Ended June 30
 
 
Year Ended
December 31
 
 
 
2015

 
2014

 
2014

 
2013

 
2012

 
2011

 
2010

Income from continuing operations (a)
 
$
(35
)
 
$
2,298

 
$
(130
)
 
$
4,932

 
$
3,829

 
$
5,527

 
$
3,851

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

 
(5
)
 
(14
)
 
—

 
—

 
—

 
(72
)
Adjusted income from equity investments (b)
 
(17
)
 
(1
)
 
64

 
52

 
163

 
(33
)
 
(60
)
 
 
(52
)
 
2,292

 
(80
)
 
4,984

 
3,992

 
5,494

 
3,719

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for taxes on income (other than foreign oil and gas taxes)
 
(127
)
 
655

 
(280
)
 
1,353

 
249

 
1,167

 
671

Interest and debt expense
 
38

 
42

 
77

 
132

 
149

 
313

(c) 
133

Portion of lease rentals representative of the interest factor
 
31

 
28

 
52

 
60

 
58

 
57

 
55

 
 
(58
)
 
725

 
(151
)
 
1,545

 
456

 
1,537

 
859

Earnings before fixed charges
 
$
(110
)
 
$
3,017

 
$
(231
)
 
$
6,529

 
$
4,448

 
$
7,031

 
$
4,578

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and debt expense including capitalized interest
 
$
129

 
$
128

 
$
257

 
$
269

 
$
254

(c) 
$
384

 
$
204

Portion of lease rentals representative of the interest factor
 
31

 
28

 
52

 
30

 
58

 
57

 
55

Total fixed charges
 
$
160

 
$
156

 
$
309

 
$
299

 
$
312

 
$
441

 
$
259

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
(0.69
)
 
19.30

 
(0.75
)
 
19.83

 
14.26

 
15.93

 
17.65

Insufficient coverage
 
(270
)
(d) 
 
 
(540
)
 
 
 
 
 
 
 
 
Note: Results of California Resources Corporation have been reflected as discontinued operations for all periods presented.
 
(a)
The 2015 amounts includes a $177 million dollar after-tax charge for domestic asset impairments and other related items for the first quarter 2015, a $47 million dollar after-tax charge for foreign asset impairments and other related items, a $2 million dollar charge related to Phibro operation results, and a $25 million dollar charge for cost associated with the California Resources Corporation spin-off and other charges.
 
(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.
 
(d)
The 2015 second quarter ratio of earnings to fixed charges excluding certain items (a) is 0.88