Industry Segments

3 Months Ended

Mar. 31, 2015

Industry Segments

Industry Segments

12. Industry Segments

Occidental conducts its 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, natural gas liquids (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, carbon dioxide (CO2) and power.  It also trades around its assets, including transportation and storage capacity, and trades oil, NGLs, gas and power.  Additionally, the midstream and marketing segment invests in entities that conduct similar activities.

Earnings of industry segments generally 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 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.

The following tables present Occidental’s industry segments (in millions):

	Oil					Midstream			Corporate
	and					and			and
	Gas			Chemical		Marketing			Eliminations			Total
Three months ended March 31, 2015
Net sales	$	2,009		$	1,000	$	197		$	(117	)	$	3,089
Pre-tax operating profit (loss)	$	(266	)(a)	$	139	$	(15	)	$	(92	)(a),(b)	$	(234	)
Income taxes	—			—		—			19		(c)	19
Discontinued operations, net	—			—		—			(3		)	(3		)
Net income (loss) attributable to common stock	$	(266	)	$	139	$	(15	)	$	(76	)	$	(218	)
Three months ended March 31, 2014
Net sales	$	3,602		$	1,220	$	340		$	(194	)	$	4,968
Pre-tax operating profit (loss)	$	1,719		$	136	$	164		$	(88	)(b)	$	1,931
Income taxes	—			—		—			(794		)(c)	(794		)
Discontinued operations, net	—			—		—			255			255
Net income attributable to noncontrolling interest	—			—		(2		)	—			(2		)
Net income (loss) attributable to common stock	$	1,719		$	136	$	162		$	(627	)	$	1,390

(a) Includes pre-tax charges of $310 million for the impairment of certain domestic and international oil and gas assets and other items and $14 million of corporate other items.

(b) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items.

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