RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2015

Retirement and Postretirement Benefit Plans

Components of amounts recognized in the consolidated balance sheets (in millions)

(in millions)	Pension Benefits				Postretirement Benefits
As of December 31,	2015		2014		2015		2014
Amounts recognized in the consolidated balance sheet:
Other assets	$	45	$	57	$	—	$	—
Accrued liabilities	(7)		(6)		(58)		(57		)
Deferred credits and other liabilities — other	(65)		(68)		(921)		(980		)
	$	(27)	$	(17)	$	(979)	$	(1,037	)

After-tax balances included in AOCI (in millions)

AOCI included the following after-tax balances:
Net loss	$	93	$	83	$	197	$	255
Prior service cost	—		—		1		1
	$	93	$	83	$	198	$	256

Funding status of Occidental's plans (in millions)

For the years ended December 31,
Changes in the benefit obligation:
Benefit obligation — beginning of year	$	453	$	523	$	1,036	$	1,016
Service cost — benefits earned during the period	7		11		26		24
Interest cost on projected benefit obligation	18		23		40		44
Actuarial (gain) loss	(16)		53		(66)		83
Foreign currency exchange rate (gain) loss	(9)		(9)		—		—
Spin-off of California Resources	—		(105)		—		(72		)
Benefits paid	(42)		(43)		(57)		(59		)
Settlements	—		—		—		—
Benefit obligation — end of year	$	411	$	453	$	979	$	1,036
Changes in plan assets:
Fair value of plan assets — beginning of year	$	436	$	538	$	—	$	—
Actual return on plan assets	(21)		24		—		—
Employer contributions	—		7		—		—
Spin-off of California Resources	11		(90)		—		—
Benefits paid	(42)		(43)		—		—
Settlements	—		—		—		—
Fair value of plan assets — end of year	$	384	$	436	$	—	$	—
Funded/(Unfunded) status:	$	(27)	$	(17)	$	(979)	$	(1,036	)

Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with an accumulated benefit obligation in excess of plan assets and plan assets in excess of the accumulated benefit obligation

(in millions)	Accumulated Benefit Obligation in Excess of Plan Assets				Plan Assets in Excess of Accumulated Benefit Obligation
As of December 31,	2015		2014		2015		2014
Projected Benefit Obligation	$	160	$	173	$	251	$	280
Accumulated Benefit Obligation	$	156	$	168	$	251	$	280
Fair Value of Plan Assets	$	88	$	100	$	296	$	336

Components of the net periodic benefit cost (in millions)

	Pension Benefits						Postretirement Benefits
For the years ended December 31, (in millions)	2015		2014		2013		2015		2014		2013
Net periodic benefit costs:
Service cost — benefits earned during the period	$	7	$	11	$	13	$	26	$	24	$	29
Interest cost on projected benefit obligation	18		23		24		40		44		43
Expected return on plan assets	(27)		(33)		(31)		—		—		—
Recognized actuarial loss	10		6		19		27		20		38
Other costs and adjustments	(4)		(8)		(13)		1		1		1
Net periodic benefit cost	$	4	$	(1)	$	12	$	94	$	89	$	111

Weighted-average assumptions used to determine Occidental's benefit obligation and net periodic benefit cost for domestic plans

	Pension Benefits			Postretirement Benefits
For the years ended December 31,	2015		2014	2015	2014
Benefit Obligation Assumptions:
Discount rate	4.14%		3.81%	4.36%	3.99%
Rate of compensation increase	—	(a)	—	—	—
Net Periodic Benefit Cost Assumptions:
Discount rate	3.81%		4.45%	3.99%	4.75%
Assumed long term rate of return on assets	6.50%		6.50%	—	—
Rate of compensation increase	—	(a)	4.00%	—	—

(a) Plans requiring a salary increase assumption were separated with California Resources in 2014.

Fair values of Occidental's pension plan assets by asset category (in millions)

(in millions)	Fair Value Measurements at December 31, 2015 Using
Description	Level 1		Level 2		Level 3		Total
Asset Class:
U.S. government securities	$	16	$	—	$	—	$	16
Corporate bonds (a)	—		78		—		78
Common/collective trusts (b)	—		12		—		12
Mutual funds:
Bond funds	33		—		—		33
Blend funds	48		—		—		48
Common and preferred stocks (c)	169		—		—		169
Other	—		29		—		29
Total pension plan assets (d)	$	266	$	119	$	—	$	385

(in millions)	Fair Value Measurements at December 31, 2014 Using
Description	Level 1		Level 2		Level 3		Total
Asset Class:
U.S. government securities	$	15	$	—	$	—	$	15
Corporate bonds (a)	—		76		—		76
Common/collective trusts (b)	—		13		—		13
Mutual funds:
Bond funds	42		—		—		42
Blend funds	68		—		—		68
Common and preferred stocks (c)	196		—		—		196
Other	—		38		1		39
Total pension plan assets (d)	$	321	$	127	$	1	$	449

(a) This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries.

(b) This category includes investment funds that primarily invest in U.S. and non-U.S. common stocks and fixed-income securities.

(c) This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries.

(d) Amounts exclude net payables of approximately $1 million and $13 million as of December 31, 2015 and 2014, respectively.

Estimated future benefit payments, which reflect expected future service, as appropriate

For the years ended December 31, (in millions)	Pension Benefits		Postretirement Benefits
2016	$	42	$	59
2017	$	35	$	60
2018	$	34	$	60
2019	$	34	$	60
2020	$	35	$	60
2021 - 2025	$	226	$	301