Derivatives (Tables)

9 Months Ended

Sep. 30, 2016

Derivatives

Other comprehensive income related to derivatives

	After-tax
	Three months ended September 30				Nine months ended September 30
	2016		2015		2016		2015
Unrealized losses (gains) on derivatives	$	1	$	2	$	(13)	$	2
Reclassification to income of realized loss on derivatives	$	—	$	—	$	7	$	—

Gross and net fair values of outstanding derivatives

The following table presents the gross and net fair values of Occidental’s outstanding derivatives as of September 30, 2016 and December 31, 2015 (in millions):

	Asset Derivatives	Fair		Liability Derivatives	Fair
September 30, 2016	Balance Sheet Location	Value		Balance Sheet Location	Value
Cash-flow hedges(a)
Commodity contracts	Other current assets	$	—	Accrued liabilities	$	3
Derivatives not designated as hedging instruments (a)
	Other current assets	171		Accrued liabilities	242
Commodity contracts	Long-term receivables and other assets, net	13		Deferred credits and other liabilities	215
		184			457
Total gross fair value		184			460
Less: counterparty netting and cash collateral (b,c)		(149)			(171)
Total net fair value of derivatives		$	35		$	289

	Asset Derivatives	Fair		Liability Derivatives	Fair
December 31, 2015	Balance Sheet Location	Value		Balance Sheet Location	Value
Cash-flow hedges(a)
Commodity contracts	Other current assets	$	9	Accrued liabilities	$	1
Derivatives not designated as hedging instruments (a)
	Other current assets	626		Accrued liabilities	672
Commodity contracts	Long-term receivables and other assets, net	9		Deferred credits and other liabilities	275
		635			947
Total gross fair value		644			948
Less: counterparty netting and cash collateral (c,d)		(535)			(525)
Total net fair value of derivatives		$	109		$	423

(a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and presented on a net basis in the consolidated balance sheets.

(b) As of September 30, 2016, collateral received of zero has been netted against the derivative assets, and collateral paid of $22 million has been netted against derivative liabilities.

(c) Select clearinghouses and brokers require Occidental to post an initial margin deposit.  Collateral, mainly for initial margin, of $32 million and $3 million deposited by Occidental has not been reflected in these derivative fair value tables as of September 30, 2016 and December 31, 2015, respectively. This collateral is included in other current assets in the consolidated balance sheets as of September 30, 2016 and December 31, 2015, respectively.

(d) As of December 31, 2015, collateral received of $14 million has been netted against derivative assets, and collateral paid of $4 million has been netted against derivative liabilities.

Not designated as hedging instruments | Commodity contracts

Derivatives

Net volumes of outstanding commodity derivatives contracts

	Net Outstanding Position
	Long / (Short)
Commodity	2016	2015
Oil (million barrels)	44	83
Natural gas (billion cubic feet)	(49)	(5)
Carbon dioxide (billion cubic feet)	555	603