| 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. | |