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Industry Segments
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Industry Segments
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, NGL 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, NGL, natural gas, carbon dioxide (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 September 30, 2018
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
2,889

 
$
1,185

 
$
1,367

 
$
(225
)
 
$
5,216

Pre-tax operating profit (loss)
 
$
767

(a) 
$
321

 
$
1,698

(b) 
$
(207
)
(c) 
$
2,579

Income taxes
 
—

 
—

 
—

 
(710
)
(d) 
(710
)
Net income (loss)
 
$
767

 
$
321

 
$
1,698

 
$
(917
)
 
$
1,869

 
 
 
 
 
 
 
 
 
 
 
Three months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
1,865

 
$
1,071

 
$
266

 
$
(203
)
 
$
2,999

Pre-tax operating profit (loss)
 
$
220

 
$
200

 
$
4

 
$
(149
)
(c) 
$
275

Income taxes
 
—

 
—

 
—

 
(85
)
(d) 
(85
)
Net income (loss)
 
$
220

 
$
200

 
$
4

 
$
(234
)
 
$
190



 
 
Oil
 
 
 
Midstream
 
Corporate
 
 
 
 
and
 
 
 
and
 
and
 
 
 
 
Gas
 
Chemical
 
Marketing
 
Eliminations
 
Total
Nine months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
7,874

 
$
3,515

 
$
2,359

 
$
(686
)
 
$
13,062

Pre-tax operating profit (loss)
 
$
2,297

(a) 
$
936

 
$
2,127

(b) 
$
(584
)
(c) 
$
4,776

Income taxes
 
—

 
—

 
—

 
(1,351
)
(d) 
(1,351
)
Net income (loss)
 
$
2,297

 
$
936

 
$
2,127

 
$
(1,935
)
 
$
3,425

 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
5,607

 
$
3,295

 
$
747

 
$
(633
)
 
$
9,016

Pre-tax operating profit (loss)
 
$
1,067

(e) 
$
600

 
$
76

(f) 
$
(481
)
(c) 
$
1,262

Income taxes
 
—

 
—

 
—

 
(448
)
(d) 
(448
)
Net income (loss)
 
$
1,067

 
$
600

 
$
76

 
$
(929
)
 
$
814

 
(a) Includes $196 million impairment related to proved properties and inventory in Qatar.
(b) Includes $902 million gain on the sale of non-core domestic midstream assets.
(c) Includes unallocated net interest expense, administration expense, environmental remediation and other items.
(d) Includes all foreign and domestic income taxes from continuing operations.
(e) Includes a gain on sale of domestic oil and gas assets, including South Texas, of $510 million.
(f) Includes a non-cash fair value gain of $94 million on the Plains equity investment.