Industry Segments

3 Months Ended

Mar. 31, 2017

Industry Segments

Industry Segments

11. 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, CO2 and power.  It also trades around its assets, including transportation and storage capacity. Additionally, the midstream and marketing segment invests in entities that conduct similar activities.

Results 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 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.

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, 2017
Net sales	$	1,894		$	1,068	$	211		$	(216	)		$	2,957
Pre-tax operating profit (loss)	$	220		$	170	$	(47	)	$	(148	)	(a)	$	195
Income taxes	—			—		—			(78		)	(b)	(78		)
Net income (loss)	$	220		$	170	$	(47	)	$	(226	)		$	117
Three months ended March 31, 2016
Net sales	$	1,275		$	890	$	133		$	(175	)		$	2,123
Pre-tax operating profit (loss)	$	(485	)	$	214	$	(95	)	$	(197	)	(a)	$	(563	)
Income taxes	—			—		—			203			(b)	203
Discontinued operations, net	—			—		—			438				438
Net income (loss)	$	(485	)	$	214	$	(95	)	$	444			$	78

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

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