DERIVATIVES (Tables)

12 Months Ended

Dec. 31, 2017

DERIVATIVES

Gross and net fair values of outstanding derivatives

As of December 31, 2017		Fair Value Measurements Using			Netting(b)	Total Fair Value
(in millions)	Balance Sheet Location	Level 1	Level 2	Level 3
Assets:
Cash-flow hedges (a)
Commodity contracts	Other current assets	—	3	—	—	3
Derivatives not designated as hedging instruments (a)
	Other current assets	485	227	—	(517)	195
Commodity contracts	Long-term receivables and other assets, net	1	2	—	(1)	2
Liabilities:
Derivatives not designated as hedging instruments (a)
	Accrued liabilities	535	222	—	(517)	240
Commodity contracts	Deferred credits and liabilities	1	3	—	(1)	3

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

(b) These amounts do not include collateral. As of December 31, 2017, no collateral received has been netted against derivative assets and collateral paid of $54 million has been netted against derivative liabilities. Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $53 million as of December 31, 2017, deposited by Occidental, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets.

As of December 31, 2016		Fair Value Measurements Using			Netting (b)	Total Fair Value
(in millions)	Balance Sheet Location	Level 1	Level 2	Level 3
Assets:
Cash-flow hedges (a)
	Other current assets	—	1	—	—	1
Commodity contracts	Long-term receivables and other assets, net	—	—	—	—	—
Derivatives not designated as hedging instruments (a)
	Other current assets	166	57	—	(196)	27
Commodity contracts	Long-term receivables and other assets, net	2	3	—	(2)	3
Liabilities:
Cash-flow hedges (a)
	Accrued liabilities	—	6	—	—	6
Commodity contracts	Deferred credits and liabilities	—	—	—	—	—
Derivatives not designated as hedging instruments (a)
	Accrued liabilities	172	51	—	(196)	27
Commodity contracts	Deferred credits and liabilities	1	6	—	(2)	5

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

(b) These amounts do not include collateral. As of December 31, 2016, collateral received of $4 million has been netted against derivative assets and collateral paid of $13 million has been netted against derivative liabilities. Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $25 million as of December 31, 2016, deposited by Occidental, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets.

Not designated as hedging instruments | Commodity contracts

DERIVATIVES

Summary of net sales related to the outstanding commodity derivative instruments

As of December 31, (in millions, except Long/(Short) volumes)	2017		2016
Unrealized gain (loss) on derivatives not designated as hedges
Oil commodity contracts	$	(47)	$	(5)
Natural gas commodity contracts	$	1	$	1
Outstanding net volumes on derivatives not designated as hedges
Oil Commodity Contracts
Volume (MMBOE)	61		67
Price Per Bbl	$	57.38	$	53.86
Natural gas commodity contracts
Volume (Bcf)	(47)		(12)
Price Per MMBTU	$	2.73	$	3.19