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 | ) |
|
|
| | | | | |
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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. | |
