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, |
| 2007 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| |||||
Income from continuing operations |
| $ | 5,078 |
| $ | 4,202 |
| $ | 4,838 |
| $ | 2,197 |
| $ | 1,410 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Minority interest (a) |
|
| 75 |
|
| 111 |
|
| 74 |
|
| 76 |
|
| 62 |
|
Adjusted income from equity investments (b) |
|
| (28 | ) |
| (52 | ) |
| (53 | ) |
| (5 | ) |
| 72 |
|
|
|
| 5,125 |
|
| 4,261 |
|
| 4,859 |
|
| 2,268 |
|
| 1,544 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for taxes on income (other than |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
foreign oil and gas taxes) |
|
| 1,577 |
|
| 1,545 |
|
| 632 |
|
| 891 |
|
| 593 |
|
Interest and debt expense (c) |
|
| 344 |
|
| 297 |
|
| 305 |
|
| 270 |
|
| 337 |
|
Portion of lease rentals representative of the interest factor |
|
| 60 |
|
| 52 |
|
| 47 |
|
| 40 |
|
| 8 |
|
|
|
| 1,981 |
|
| 1,894 |
|
| 984 |
|
| 1,201 |
|
| 938 |
|
Earnings before fixed charges |
| $ | 7,106 |
| $ | 6,155 |
| $ | 5,843 |
| $ | 3,469 |
| $ | 2,482 |
|
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and debt expense including capitalized interest (c) |
| $ | 403 |
| $ | 352 |
| $ | 331 |
| $ | 285 |
| $ | 343 |
|
Portion of lease rentals representative of the interest factor |
|
| 60 |
|
| 52 |
|
| 47 |
|
| 40 |
|
| 8 |
|
Total fixed charges |
| $ | 463 |
| $ | 404 |
| $ | 378 |
| $ | 325 |
| $ | 351 |
|
Ratio of earnings to fixed charges |
|
| 15.35 |
|
| 15.24 |
|
| 15.46 |
|
| 10.67 |
|
| 7.07 |
|
(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. The 2007 amount includes a pre-tax charge of $167 million for the redemption and partial repurchase of various debt issues. |