LEASE COMMITMENTS (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of operating lease maturities

At December 31, 2019, Occidental’s leases expire based on the following schedule:

millions	Operating Leases(a)			Finance Leases(b)			Total
2020	$	555		$	53		$	608
2021	408			45			453
2022	136			41			177
2023	99			37			136
2024	81			34			115
Thereafter	254			275			529
Total lease payments	1,533			485			2,018
Less: Interest	(110		)	(87		)	(197		)
Total lease liabilities	$	1,423		$	398		$	1,821

^(a)  The weighted-average remaining lease term is 4.6 years and the weighted-average discount rate is 2.53%.

^(b) 

The weighted-average remaining lease term is 11.6 years and the weighted-average discount rate is 3.74%.

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

millions	Operating Leases			Finance Leases			Total
2019	$	90		$	7		$	97
2020	172			17			189
2021	64			16			80
2022	42			13			55
2023	28			8			36
Thereafter	136			43			179
Total lease payments	$	532		$	104		$	636
Less: Interest	(44		)	(18		)	(62		)
Total lease liabilities (a)	$	488		$	86		$	574

^(a) 

Excluded operating and finance leases associated with the Africa Assets of $74 million and $201 million, respectively.

Schedule of finance lease maturities

At December 31, 2019, Occidental’s leases expire based on the following schedule:

millions	Operating Leases(a)			Finance Leases(b)			Total
2020	$	555		$	53		$	608
2021	408			45			453
2022	136			41			177
2023	99			37			136
2024	81			34			115
Thereafter	254			275			529
Total lease payments	1,533			485			2,018
Less: Interest	(110		)	(87		)	(197		)
Total lease liabilities	$	1,423		$	398		$	1,821

^(a)  The weighted-average remaining lease term is 4.6 years and the weighted-average discount rate is 2.53%.

^(b) 

The weighted-average remaining lease term is 11.6 years and the weighted-average discount rate is 3.74%.

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

millions	Operating Leases			Finance Leases			Total
2019	$	90		$	7		$	97
2020	172			17			189
2021	64			16			80
2022	42			13			55
2023	28			8			36
Thereafter	136			43			179
Total lease payments	$	532		$	104		$	636
Less: Interest	(44		)	(18		)	(62		)
Total lease liabilities (a)	$	488		$	86		$	574

^(a) 

Excluded operating and finance leases associated with the Africa Assets of $74 million and $201 million, respectively.

Schedule of lease related assets and liabilities

The following table presents lease balances and their location on the Consolidated Balance Sheet at December 31, 2019:

millions	Balance sheet location	2019
Assets:
Operating	Operating lease assets	$	1,385
Finance	Property, plant and equipment	397
Total lease assets		$	1,782
Liabilities:
Current
Operating	Current operating lease liabilities	$	569
Finance	Current maturities of long-term debt	51
Non-current
Operating	Deferred credits and other liabilities - Operating lease liabilities	854
Finance	Long-term debt, net	347
Total lease liabilities		$	1,821

Schedule of future net minimum lease payments for noncancelable operating leases

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:

millions	Operating 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 Acquisition.

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:

millions	Year ended December 31, 2019
Lease cost classification(a)
Operating lease costs(b)
Property, plant and equipment, net		$	449
Operating expense and cost of sales		391
Selling, general and administrative expenses		92
Finance lease cost
Amortization of ROU assets		19
Interest on lease liabilities		2
Total lease cost		$	953

^(a)  Amounts reflected are gross before joint-interest recoveries.

^(b)  Included short-term lease cost of $404 million for the twelve months ended December 31, 2019, and variable lease cost of $162 million for the twelve months ended December 31, 2019.

millions	Year ended December 31, 2019
Operating cash flows		$	262
Investing cash flows		$	112
Financing cash flows (a)		$	19

^(a) 

Excludes cash received of approximately $300 million associated with the failed sale-leaseback, see Note 4 - Acquisitions, Dispositions and Other.