Derivatives (Tables)

6 Months Ended

Jun. 30, 2013

Derivatives

Cash-flow hedges - after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (in millions)

	Periods ended June 30
	Three months						Six Months
	2013			2012			2013			2012
Beginning Balance — AOCI	$	(17	)	$	(13	)	$	(7	)	$	1
Unrealized gains (losses) recognized in AOCI	7			(2		)	1			12
Losses reclassified to income	1			4			(3		)	(24		)
Ending Balance — AOCI	$	(9	)	$	(11	)	$	(9	)	$	(11	)

Gross and net fair values of outstanding derivatives (in millions)

June 30, 2013	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	5		Accrued liabilities	$	1
	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	—
		5				1
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	544			Accrued liabilities	573
	Long-term receivables and other assets, net	23			Deferred credits and other liabilities	19
		567				592
Total gross fair value		572				593
Less: counterparty netting and cash collateral (b)(d)		(476		)		(529		)
Total net fair value of derivatives		$	96			$	64

December 31, 2012	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	11		Accrued liabilities	$	1
	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	1
		11				2
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	386			Accrued liabilities	479
	Long-term receivables and other assets, net	22			Deferred credits and other liabilities	16
		408				495
Total gross fair value		419				497
Less: counterparty netting and cash collateral (c)(d)		(301		)		(371		)
Total net fair value of derivatives		$	118			$	126

(a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and qualify for net presentation in the consolidated balance sheet.

(b) As of June 30, 2013, collateral received of $37 million has been netted against derivative assets and collateral paid of $90 million has been netted against derivative liabilities.

(c) As of December 31, 2012, collateral received of $25 million has been netted against derivative assets and collateral paid of $95 million has been netted against derivative liabilities.

(d) Select clearinghouses and brokers require Occidental to post an initial margin deposit.  Collateral, mainly for initial margin, of $94 million and $116 million deposited by Occidental, has not been reflected in these derivative fair value tables, but is included in the other current assets balance as of June 30, 2013 and December 31, 2012, respectively.

Derivatives Not Designated as Hedging Instruments | Commodity Contracts

Derivatives

Schedule of outstanding derivative instruments

	Net Outstanding Position
	Long / (Short)
Commodity	2013		2012
Oil (million barrels)	(23	)	(17	)
Natural gas (billion cubic feet)	(80	)	(217	)
Precious metals (million troy ounces)	1		1