Lease Commitments (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Schedule of Operating Lease Maturities

The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date:

millions	Operating Leases			Finance Leases			Total
Remainder of 2019	$	90		$	7		$	97
2020	172			25			197
2021	64			15			79
2022	42			12			54
2023	28			7			35
Thereafter	136			42			178
Total lease payments	532			108			640
Less: Interest	(44		)	(22		)	(66		)
Total lease liabilities	$	488		$	86		$	574

At September 30, 2019, Occidental's leases expire based on the following schedule:

	Operating			Finance
millions	Leases (a)			Leases (b)			Total
Remainder of 2019	$	119		$	8		$	127
2020	390			38			428
2021	197			15			212
2022	129			12			141
2023	94			7			101
Thereafter	311			42			353
Total lease payments	1,240			122			1,362
Less: Interest	(101		)	(22		)	(123		)
Total lease liabilities	$	1,139		$	100		$	1,239

(a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79%.

(b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92%.

Schedule of Finance Lease Maturities

At September 30, 2019, Occidental's leases expire based on the following schedule:

	Operating			Finance
millions	Leases (a)			Leases (b)			Total
Remainder of 2019	$	119		$	8		$	127
2020	390			38			428
2021	197			15			212
2022	129			12			141
2023	94			7			101
Thereafter	311			42			353
Total lease payments	1,240			122			1,362
Less: Interest	(101		)	(22		)	(123		)
Total lease liabilities	$	1,139		$	100		$	1,239

(a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79%.

(b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92%.

The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date:

millions	Operating Leases			Finance Leases			Total
Remainder of 2019	$	90		$	7		$	97
2020	172			25			197
2021	64			15			79
2022	42			12			54
2023	28			7			35
Thereafter	136			42			178
Total lease payments	532			108			640
Less: Interest	(44		)	(22		)	(66		)
Total lease liabilities	$	488		$	86		$	574

Schedule of Lease Related Assets and Liabilities

The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2019:

millions	Balance sheet location	2019
Assets:
Operating	Operating lease assets	$	1,078
Finance	Property, plant and equipment	97
Total lease assets		$	1,175
Liabilities:
Current
Operating	Current operating lease liabilities	$	463
Finance	Current maturities of long-term debt	31
Non-current
Operating	Deferred credits and other liabilities - Operating lease liabilities	676
Finance	Long-term debt, net - Occidental	69
Total lease liabilities		$	1,239

Schedule of Future Net Minimum Fixed Lease Payments

At December 31, 2018, future undiscounted net minimum fixed lease payments for non-cancellable operating leases, prepared in accordance with accounting standards prior to the adoption of ASC 842, were as follows:

	Operating
millions	Leases
2019	$	186
2020	147
2021	96
2022	68
2023	49
Thereafter	158
Total minimum lease payments(a)	$	704

(a) The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Merger.

Schedule of Lease Costs

The following tables present Occidental's total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities.

Lease cost classification(a)	Three months ended September 30, 2019		Nine months ended September 30, 2019
millions
Operating lease costs(b)
Property, plant and equipment, net	$	139	$	321
Cost of sales	133		271
Selling, general and administrative expenses	26		61
Finance lease cost
Amortization of ROU assets	5		11
Interest on lease liabilities	1		1
	$	304	$	665
(a) Amounts reflected are gross before joint-interest recoveries.
(b) Includes short-term lease cost of $139 million and $295 million for the three and nine months ended September 30, 2019, respectively, and variable lease cost of $55 million and $115 million for the three and nine months ended September 30, 2019, respectively.

millions	Nine months ended September 30, 2019
Operating cash flows	$	162
Investing cash flows	83
Financing cash flows	11