Segments

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segments

NOTE 12 - SEGMENTS

Occidental conducts its operations through three segments: (1) oil and gas (2) chemical and (3) midstream and marketing. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko acquisition-related costs and unallocated corporate expenses are included under corporate and eliminations. 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 table presents Occidental’s industry segments:

millions	Oil and gas (a)		Chemical		Midstream and marketing (b)		Corporate and eliminations (c)		Total
Three months ended June 30, 2021
Net sales	$	4,505	$	1,187	$	497	$	(231)	$	5,958
Income (loss) from continuing operations before income taxes	$	631	$	312	$	(30)	$	(770)	$	143
Income tax expense	—		—		—		(43)		(43)
Income (loss) from continuing operations	$	631	$	312	$	(30)	$	(813)	$	100
Three months ended June 30, 2020
Net sales	$	2,040	$	846	$	204	$	(162)	$	2,928
Income (loss) from continuing operations before income taxes	$	(7,734)	$	108	$	(7)	$	(551)	$	(8,184)
Income tax benefit	—		—		—		1,468		1,468
Income (loss) from continuing operations	$	(7,734)	$	108	$	(7)	$	917	$	(6,716)
millions	Oil and gas (a)		Chemical		Midstream and marketing (b)		Corporate and eliminations (c)		Total
Six months ended June 30, 2021
Net sales	$	8,169	$	2,275	$	1,304	$	(497)	$	11,251
Income (loss) from continuing operations before income taxes	$	569	$	563	$	252	$	(926)	$	458
Income tax expense	—		—		—		(59)		(59)
Income (loss) from continuing operations	$	569	$	563	$	252	$	(985)	$	399
Six months ended June 30, 2020
Net sales	$	7,100	$	1,808	$	994	$	(361)	$	9,541
Income (loss) from continuing operations before income taxes	$	(7,498)	$	294	$	(1,294)	$	(1,724)	$	(10,222)
Income tax benefit	—		—		—		1,493		1,493
Income (loss) from continuing operations	$	(7,498)	$	294	$	(1,294)	$	(231)	$	(8,729)

(a) The three months ended June 30, 2021 included $21 million of asset impairments and $140 million of net oil, gas, and CO2 derivative losses. The six months ended June 30, 2021 included $156 million of asset impairments and $180 million of net oil, gas, and CO2 derivative losses. The three months ended June 30, 2020 included $6.4 billion of asset impairments. The six months ended June 30, 2020 included $923 million of net oil, gas, and CO2 derivative gains and $7.0 billion of asset impairments.

(b) The three months ended June 30, 2021 included $180 million of net derivative mark-to-market losses, partially offset by a $22 million settlement gain. The six months ended June 30, 2021 included a $124 million of gains on sales, primarily from the sale of 11.5 million limited partner units in WES, and $165 million in derivative mark-to-market losses. The six months ended June 30, 2020 included $1.4 billion impairment of goodwill and a loss from an equity investment related to WES' write-off of its goodwill, partially offset by derivative mark-to-market gains of $305 million.

(c) The three months ended June 30, 2021 included $223 million of net derivative mark-to-market losses on interest rate swaps and $52 million of Anadarko acquisition-related costs. The six months ended June 30, 2021 included $176 million net derivative mark-to-market gains on interest rate swaps and $93 million of Anadarko acquisition-related costs. The three months ended June 30, 2020 included $149 million of Anadarko acquisition-related costs and $79 million of net derivative mark-to-market losses on warrants, partially offset by a $114 million Anadarko acquisition-related pension and termination benefits gain. The six months ended June 30, 2020 included $665 million of net derivative mark-to-market losses on interest rate swaps, $297 million of Anadarko acquisition-related costs, $5 million of net derivative mark-to-market gains on warrants, and the $114 million Anadarko acquisition-related pension and termination benefits gain.