INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS

12 Months Ended

Dec. 31, 2012

INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS

INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS

NOTE 16 INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS

Occidental conducts its continuing operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing.  The oil and gas segment explores for, develops and produces oil and condensate, NGLs, and natural gas.  The chemical segment mainly manufactures and markets basic chemicals and vinyls.  The midstream and marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, CO2 and power.  It also trades around its assets, including transportation and storage capacity, and trades oil, NGLs, gas and other commodities.  The segment also invests in entities that conduct similar activities.

Earnings of industry segments and geographic areas exclude income taxes, interest income, interest expense, environmental remediation expenses, unallocated corporate expenses and discontinued operations, but include gains and losses from dispositions of segment and geographic area assets and income from the segments’ equity investments.  Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions.

Identifiable assets are those assets used in the operations of the segments.  Corporate assets consist of cash, certain corporate receivables and PP&E, and an investment in the Joslyn, Canada oil sands project.

Industry Segments

In millions	Oil and Gas			Chemical			Midstream and Marketing			Corporate and Eliminations			Total
YEAR ENDED DECEMBER 31, 2012
Net sales	$	18,906	(a)	$	4,580	(b)	$	1,399	(c)	$	(713	)	$	24,172
Pretax operating profit (loss)	$	7,095	(d)	$	720		$	439		$	(501)	(f,h)	$	7,753
Income taxes	—			—			—			(3,118)		(g,h)	(3,118		)
Discontinued operations, net	—			—			—			(37		)	(37		)
Net income (loss) attributable to common stock	$	7,095		$	720		$	439		$	(3,656	)	$	4,598
Investments in unconsolidated entities	$	113		$	108		$	1,662		$	11		$	1,894
Property, plant and equipment additions, net (i)	$	8,282		$	365		$	1,612		$	91		$	10,350
Depreciation, depletion and amortization	$	3,933		$	345		$	206		$	27		$	4,511
Total assets	$	44,004		$	3,854		$	12,762		$	3,590		$	64,210
YEAR ENDED DECEMBER 31, 2011
Net sales	$	18,419	(a)	$	4,815	(b)	$	1,447	(c)	$	(742	)	$	23,939
Pretax operating profit (loss)	$	10,241	(d)	$	861		$	448		$	(709)	(f,h)	$	10,841	(d)
Income taxes	—			—			—			(4,201)		(g,h)	(4,201		)
Discontinued operations, net	—			—			—			131			131
Net income (loss) attributable to common stock	$	10,241	(d)	$	861		$	448		$	(4,779	)	$	6,771
Investments in unconsolidated entities	$	128		$	121		$	1,812		$	11		$	2,072
Property, plant and equipment additions, net (i)	$	6,192		$	241		$	1,120		$	51		$	7,604
Depreciation, depletion and amortization	$	3,064		$	330		$	173		$	24		$	3,591
Total assets	$	38,967		$	3,754		$	11,962		$	5,361		$	60,044
YEAR ENDED DECEMBER 31, 2010
Net sales	$	14,276	(a)	$	4,016	(b)	$	1,471	(c)	$	(718	)	$	19,045
Pretax operating profit (loss)	$	7,151	(d,e)	$	438		$	472		$	(497)	(f,h)	$	7,564	(d,e)
Income taxes	—			—			—			(2,995)		(g,h)	(2,995		)
Discontinued operations, net	—			—			—			(39		)	(39		)
Net income (loss) attributable to common stock	$	7,151	(d,e)	$	438		$	472		$	(3,531	)	$	4,530	(e)
Investments in unconsolidated entities	$	123		$	135		$	1,770		$	11		$	2,039
Property, plant and equipment additions, net (i)	$	3,211		$	248		$	537		$	38		$	4,034
Depreciation, depletion and amortization	$	2,668		$	321		$	142		$	22		$	3,153
Total assets	$	31,855		$	3,755		$	10,445		$	6,377	(j)	$	52,432
(See footnotes on next page)

Footnotes:

(a) Oil sales represented approximately 90 percent, 87 percent and 86 percent of the oil and gas segment net sales for the years ended December 31, 2012, 2011 and 2010, respectively.

(b) Net sales for the chemical segment comprised the following products:

	Basic Chemicals		Vinyls		Other Chemicals
Year ended December 31, 2012	57	%	40	%	3	%
Year ended December 31, 2011	58	%	39	%	3	%
Year ended December 31, 2010	57	%	40	%	3	%

(c) Net sales for the midstream and marketing segment comprised the following:

	Gas Processing		Power		Marketing, Trading, Transportation and other
Year ended December 31, 2012	59	%	20	%	21	%
Year ended December 31, 2011	64	%	27	%	9	%
Year ended December 31, 2010	52	%	27	%	21	%

(d) The 2012 amount includes pre-tax charges of $1.7 billion for the impairment of domestic gas assets and related items.  The 2011 amount includes pre-tax charges of $35 million related to exploration write-offs in Libya and $29 million related to a Colombian net worth tax, and a pre-tax gain for the sale of an interest in a Colombian pipeline of $22 million.  The 2010 amount includes a $275 million pre-tax charge for asset impairments, predominantly of gas properties in the Rocky Mountain region.

(e) Includes amounts attributable to common stock after deducting a noncontrolling interest amount of $72 million.

(f) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items noted in footnote (h) below.

(g) Includes all foreign and domestic income taxes from continuing operations.

(h) Includes the following significant items affecting earnings for the years ended December 31:

Benefit (Charge)  (In millions)	2012			2011			2010
CORPORATE
Pre-tax operating profit (loss)
Premium on debt extinguishments	$	—		$	(163	)	$	—
Litigation reserves	(20		)	—			—
	$	(20	)	$	(163	)	$	—
Income taxes
State income tax charge	$	—		$	(33	)	$	—
Foreign tax credit carryforwards	—			—			80
Tax effect of pre-tax adjustments *	636			50			100
	$	636		$	17		$	180

*   Amounts represent the tax effect of all pre-tax adjustments listed, as well as those in footnote (d).

(i) Includes capital expenditures and capitalized interest, but excludes purchases of assets, net.  Also includes amounts attributable to the noncontrolling interest in a Colombian subsidiary for 2010.

(j) Includes Argentine assets, which were classified as held for sale.

GEOGRAPHIC AREAS

In millions

	Net sales (a)						Property, plant and equipment, net
For the years ended December 31,	2012		2011		2010		2012		2011		2010
United States	$	15,359	$	15,040	$	12,151	$	40,786	$	36,283	$	28,571
Foreign
Qatar	3,356		3,432		2,677		2,676		2,735		2,823
Oman	2,578		2,500		1,666		2,353		2,143		1,967
Colombia	1,027		1,054		999		1,041		854		715
Yemen	407		907		766		199		245		347
Bahrain	215		187		100		688		477		222
United Arab Emirates	—		—		—		2,104		971		1
Other Foreign	1,230		819		686		2,217		1,976		1,890
Total Foreign	8,813		8,899		6,894		11,278		9,401		7,965
Total	$	24,172	$	23,939	$	19,045	$	52,064	$	45,684	$	36,536

(a) Sales are shown by individual country based on the location of the entity making the sale.