EX-12 5 oxyexhibit1210q93016.htm EXHIBIT 12 Exhibit


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
 
 
 
 
2016

 
2015

 
2015

 
2014

 
2013

 
2012

 
2011

 
Income from continuing operations (a)
 
$
(734
)
 
$
(2,641
)
 
$
(8,146
)
 
$
(130
)
 
$
4,932

 
$
3,829

 
$
5,527

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

 
—

 
—

 
(14
)
 
—

 
—

 
—

 
Adjusted income from equity investments (b)
 
3

 
(10
)
 
21

 
64

 
52

 
163

 
(33
)
 
 
 
(731
)
 
(2,651
)
 
(8,125
)

(80
)
 
4,984

 
3,992

 
5,494

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for taxes on income (other than foreign oil and gas taxes)
 
(648
)
 
(768
)
 
(2,070
)
 
(280
)
 
1,353

 
249

 
1,167

 
Interest and debt expense
 
263

 
86

 
147

 
77

 
132

 
149

 
313

(c) 
Portion of lease rentals representative of the interest factor
 
47

 
52

 
63

 
52

 
60

 
58

 
57

 
 
 
(338
)
 
(630
)
 
(1,860
)

(151
)
 
1,545

 
456

 
1,537

 
Earnings before fixed charges
 
$
(1,069
)
 
$
(3,281
)
 
$
(9,985
)

$
(231
)
 
$
6,529

 
$
4,448

 
$
7,031

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest and debt expense including capitalized interest
 
$
263

 
$
207

 
$
285

 
$
257

 
$
269

 
$
254

 
$
384

(c) 
Portion of lease rentals representative of the interest factor
 
47

 
52

 
63

 
52

 
60

 
58

 
57

 
Total fixed charges
 
$
310

 
$
259

 
$
348


$
309

 
$
329

 
$
312

 
$
441

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
(3.45
)
 
(12.65
)
 
(28.69
)
 
(0.75
)
 
19.83

 
14.26

 
15.93

 
Insufficient coverage
 
(1,379
)
(d) 
(3,540
)
(d) 
(10,333
)

(540
)



 
 
 
 
 
Note: Results of California Resources Corporation have been reflected as discontinued operations for all periods presented.
 
(a)
The 2016 amount includes a $78 million dollar after-tax impairment charge related to the special stock dividend of California Resources shares in the first quarter, a $103 million dollar after-tax charge related to terminated crude oil supply agreements, and a $61 million dollar impairment charge related to the sell of Occidental's Libya operations. The 2015 amounts includes a $1.3 billion dollar after-tax charge for domestic asset impairments and other related items, a $1.5 billion dollar after-tax charge for foreign asset impairments and other related items, a $63 million dollar after-tax gain on sale of an idled chemical site, a $96 million dollar after-tax charge for cost associated with severance, 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 2016 and 2015 third quarter ratio of earnings to fixed charges excluding certain items (a) were (2.67) and (1.94), respectively.