INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS

12 Months Ended

Dec. 31, 2013

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.  Additionally, the midstream and marketing segment 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, 2013
Net sales	$	19,132	(a)	$	4,673	(b)	$	1,538	(c)	$	(888	)	$	24,455
Pretax operating profit (loss)	$	7,894	(d)	$	743	(e)	$	1,573	(f)	$	(533)	(g),(i)	$	9,677	(d),(e),(f)
Income taxes	—			—			—			(3,755)		(h),(i)	(3,755		)
Discontinued operations, net	—			—			—			(19		)	(19		)
Net income (loss)	$	7,894		$	743		$	1,573		$	(4,307	)	$	5,903
Investments in unconsolidated entities	$	108		$	34		$	1,307		$	10		$	1,459
Property, plant and equipment additions, net (j)	$	7,106		$	435		$	1,482		$	165		$	9,188
Depreciation, depletion and amortization	$	4,753		$	346		$	212		$	36		$	5,347
Total assets	$	46,213		$	3,947		$	14,374		$	4,909		$	69,443
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)	(g),(i)	$	7,753	(d)
Income taxes	—			—			—			(3,118)		(h),(i)	(3,118		)
Discontinued operations, net	—			—			—			(37		)	(37		)
Net income (loss)	$	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 (j)	$	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)	(g),(i)	$	10,841	(d)
Income taxes	—			—			—			(4,201)		(h),(i)	(4,201		)
Discontinued operations, net	—			—			—			131			131
Net income (loss)	$	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 (j)	$	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

(See footnotes on next page)

Footnotes:

(a)   Oil sales represented approximately 89 percent, 90 percent and 87 percent of the oil and gas segment net sales for the years ended December 31, 2013, 2012 and 2011, respectively.

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

	Basic Chemicals	Vinyls	Other Chemicals
Year ended December 31, 2013	55%	42%	3%
Year ended December 31, 2012	57%	40%	3%
Year ended December 31, 2011	58%	39%	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, 2013	51%	36%	13%
Year ended December 31, 2012	59%	27%	14%
Year ended December 31, 2011	64%	35%	1%

(d)   The 2013 amount includes pre-tax charges of $607 million for the impairment of domestic non-producing acreage.  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.

(e)   Includes a pre-tax gain of $131 million for the sale of an investment in Carbocloro.

(f)    Includes a pre-tax gain of $1,030 million for the sale of a portion of  an investment in Plains Pipeline and other items.

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

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

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

Benefit (Charge)  (In millions)	2013			2012			2011
CORPORATE
Pre-tax operating profit (loss)
Premium on debt extinguishments	$	—		$	—		$	(163	)
Litigation reserves	—			(20		)	—
Charge for former executives and consultants	(55		)	—			—
	$	(55	)	$	(20	)	$	(163	)
Income taxes
State income tax charge	$	—		$	—		$	(33	)
Tax effect of pre-tax adjustments *	(179		)	636			50
	$	(179	)	$	636		$	17

*   Amounts represent the tax effect of the pre-tax adjustments listed in this note, as well as those in footnotes (d), (e) and (f).

(j)    Includes capital expenditures and capitalized interest, but excludes acquisition and disposition of assets.

GEOGRAPHIC AREAS

In millions

	Net sales (a)						Property, plant and equipment, net
For the years ended December 31,	2013		2012		2011		2013		2012		2011
United States	$	16,009	$	15,359	$	15,040	$	42,956	$	40,786	$	36,283
Foreign
Qatar	2,995		3,356		3,432		2,605		2,676		2,735
Oman	2,567		2,578		2,500		2,509		2,353		2,143
Colombia	1,022		1,027		1,054		1,259		1,041		854
United Arab Emirates	—		—		—		3,131		2,104		971
Other Foreign	1,862		1,852		1,913		3,361		3,104		2,698
Total Foreign	8,446		8,813		8,899		12,865		11,278		9,401
Total	$	24,455	$	24,172	$	23,939	$	55,821	$	52,064	$	45,684

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