EXHIBIT 12
OCCIDENTAL PETROLEUM CORPORATION AND SUBSIDIARIES
COMPUTATION OF TOTAL ENTERPRISE RATIOS OF EARNINGS TO FIXED CHARGES
(Amounts in millions, except ratios)
For the years ended December 31, | 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||
Income from continuing operations | $ | 4,435 | $ | 5,040 | $ | 2,406 | $ | 1,559 | $ | 1,167 | ||||||
Add: | ||||||||||||||||
Minority interest (a) | 111 | 73 | 75 | 62 | 77 | |||||||||||
Adjusted income from equity investments (b) | (35 | ) | (50 | ) | (6 | ) | 69 | 308 | ||||||||
4,511 | 5,063 | 2,475 | 1,690 | 1,552 | ||||||||||||
Add: | ||||||||||||||||
Provision (credit) for taxes on income (other than foreign oil and gas taxes) | 1,632 | 705 | 976 | 658 | (49 | ) | ||||||||||
Interest and debt expense (c) | 292 | 300 | 266 | 335 | 310 | |||||||||||
Portion of lease rentals representative of the interest factor | 52 | 47 | 40 | 8 | 6 | |||||||||||
1,976 | 1,052 | 1,282 | 1,001 | 267 | ||||||||||||
Earnings before fixed charges | $ | 6,487 | $ | 6,115 | $ | 3,757 | $ | 2,691 | $ | 1,819 | ||||||
Fixed charges: | ||||||||||||||||
Interest and debt expense including capitalized interest (c) | $ | 347 | $ | 326 | $ | 281 | $ | 341 | $ | 321 | ||||||
Portion of lease rentals representative of the interest factor | 52 | 47 | 40 | 8 | 6 | |||||||||||
Total fixed charges | $ | 399 | $ | 373 | $ | 321 | $ | 349 | $ | 327 | ||||||
Ratio of earnings to fixed charges | 16.26 | 16.39 | 11.70 | 7.71 | 5.56 |
(a) | Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges. |
(b) | Represents income from less-than-50-percent-owned equity investments adjusted to reflect only dividends received. |
(c) | Includes proportionate share of interest and debt expense of less-than-50-percent-owned equity investments. |