Occidental Petroleum 2008 Annual Report Download - page 108

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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, 2008 2007 2006 2005 2004
Income from continuing operations $6,839 $5,078 $4,202 $4,838 $2,197
Add:
Minority interest (a) 116 75 111 74 76
Adjusted income from equity investments (b) (84) (28) (52) (53) (5)
6,871 5,125 4,261 4,859 2,268
Add:
Provision for taxes on income (other than
foreign oil and gas taxes) 2,213 1,577 1,545 632 891
Interest and debt expense (c) 133 344 297 305 270
Portion of lease rentals representative of the interest factor 58 60 52 47 40
2,404 1,981 1,894 984 1,201
Earnings before fixed charges $9,275 $7,106 $6,155 $5,843 $3,469
Fixed charges:
Interest and debt expense including capitalized interest (c) $201 $403 $352 $331 $285
Portion of lease rentals representative of the interest factor 58 60 52 47 40
Total fixed charges $259 $463 $404 $378 $325
Ratio of earnings to fixed charges 35.81 15.35 15.24 15.46 10.67
(a) Represents minority interests in net income of majority-owned subsidiaries and partnerships having fixed charges.
(b) Represents income from equity investments adjusted to reflect only dividends received.
(c) Includes proportionate share of interest and debt expense of equity investments. The 2007 amount includes a pre-tax charge of $167
million for the redemption and partial repurchase of various debt issues.