Occidental Petroleum 2014 Annual Report Download - page 119

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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,
2014
2013
2012
2011
2010
Income from continuing operations (a)
$ (130)
$ 4,932
$ 3,829
$ 5,527
$ 3,851
Subtract:
Net income attributable to noncontrolling interest
(14)
—
—
—
(72)
Adjusted income from equity investments (b)
64
52
163
(33)
(60)
(80) 4,984 3,992 5,494 3,719
Add:
Provision for taxes on income (other than foreign oil and gas
taxes)
(280)
1,353
249
1,167
671
Interest and debt expense
77
132
149
313 (c) 133
Portion of lease rentals representative of the interest factor
52
60
58
57
55
(151) 1,545 456 1,537 859
Earnings before fixed charges
$ (231)
$ 6,529 $ 4,448 $ 7,031 $ 4,578
Fixed charges:
Interest and debt expense including capitalized interest
$ 257
$ 269
$ 254
$ 384 (c) $ 204
Portion of lease rentals representative of the interest factor
52
60
58
57
55
Total fixed charges
$ 309 $ 329 $ 312 $ 441 $ 259
Ratio of earnings to fixed charges
(0.75)
19.83
14.26
15.93
17.65
Insufficient coverage
$ (540) (d) $ —
$ —
$ —
$ —
Note: Results of California Resources Corporation have been reflected as discontinued operations for all periods presented.
(a) The 2014 amounts includes a $4.2 billion dollar after-tax impairment charge related to the decline in crude oil market prices, a $338 million after-tax
gain for the sale of the Hugoton assets, a $403 million after-tax gain for the sale of the BridgeTex assets, a $861 million after-tax gain for the sale of a
portion of an investment in the General Partner of Plains All-American Pipeline L.P., and a $1.2 billion after-tax impairment related to Josyln and mark
to market adjustments for Oxy's California Resources investment. The 2013 amount includes a $624 million after-tax gain for the sale of a portion of an
investment in the General Partner of Plains All-American Pipeline L.P., a $85 million after-tax gain for the sale of an investment in Carbocloro, a
Brazilian chemical facility and $387 million of after-tax charges related to the impairment of non-producing domestic acreage. The 2012 amount
includes after-tax charges of $1.1 billion for the impairment of domestic gas assets and related items.
(b) Represent adjustments to arrive at distributed income of equity investees.
(c) Excludes a pre-tax charge of $163 million for the early redemption of debt.
(d) The 2014 ratio of earnings to fixed charges excluding certain items (a) is 11.96