SPIN-OFF OF CALIFORNIA RESOURCES CORPORATION

12 Months Ended

Dec. 31, 2016

SPIN-OFF OF CALIFORNIA RESOURCES CORPORATION

SPIN-OFF OF CALIFORNIA RESOURCES CORPORATION

NOTE 17 SPIN-OFF OF CALIFORNIA RESOURCES CORPORATION

On November 30, 2014, Occidental's California oil and gas operations and related assets were spun-off through the pro rata distribution of 81.3 percent of the outstanding shares of common stock of California Resources, creating an independent, publicly traded company. Occidental shareholders at the close of business on the record date of November 17, 2014 received 0.4 shares of California Resources for every share of Occidental common stock held.

In connection with the spin-off, California Resources distributed to Occidental $4.95 billion in restricted cash and $1.15 billion in unrestricted cash. The $4.95 billion distribution was used solely to pay dividends, repurchase shares of Occidental stock and repay debt within eighteen months following the distribution.

On March 24, 2016, Occidental distributed all of its remaining 71.5 million shares of common stock of California Resources to stockholders of record as of February 29, 2016 as a special stock dividend.

Sales and other operating revenues and income from discontinued operations related to California Resources were as follows:

For the years ended December 31, (in millions)	2014
Sales and other operating revenue from discontinued operations	$	3,951
Income from discontinued operations before-tax	1,205
Income tax expense	440
Income from discontinued operations	$	765