General

6 Months Ended

Jun. 30, 2022


NOTE 1 - GENERAL

NATURE OF OPERATIONS

Occidental conducts its operations through various subsidiaries and affiliates. Occidental has made its disclosures in accordance with United States generally accepted accounting principles as they apply to interim reporting, and condensed or omitted, as permitted by the U.S. Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in Consolidated Financial Statements and the notes thereto. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto in Occidental's Annual Report on Form 10-K for the year ended December 31, 2021.

In the opinion of Occidental’s management, the accompanying unaudited Consolidated Condensed Financial Statements in this report reflect all adjustments (consisting of normal recurring adjustments) that are necessary to fairly present Occidental’s results of operations and cash flows for the three and six months ended June 30, 2022 and 2021 and Occidental’s financial position as of June 30, 2022 and December 31, 2021. Certain data in the Consolidated Condensed Financial Statements and notes for prior periods have been reclassified to conform to the current presentation. The income and cash flows for the periods ended June 30, 2022 and 2021 are not necessarily indicative of the income or cash flows to be expected for the full year.

CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

Occidental considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents or restricted cash equivalents. The cash equivalents and restricted cash equivalents balances for the periods presented included investments in government money market funds in which the carrying value approximates fair value.

The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Consolidated Condensed Statements of Cash Flows as of June 30, 2022 and 2021:


millions	2022		2021
Cash and cash equivalents	$	1,362	$	4,569
Restricted cash and restricted cash equivalents included in other current assets	23		180
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net	16		17
Cash, cash equivalents, restricted cash and restricted cash equivalents	$	1,401	$	4,766

SUPPLEMENTAL CASH FLOW INFORMATION

The following table represents U.S. federal, domestic, state and international income taxes paid, tax refunds received and interest paid related to continuing operations during the six months ended June 30, 2022 and 2021, respectively:


millions	2022		2021
Income tax payments	$	962	$	302
Income tax refunds received	$	70	$	45
Interest paid (a)	$	846	$	793

(a) Net of capitalized interest of $30 million and $29 million for the six months ended June 30, 2022 and 2021, respectively.

DISCONTINUED OPERATIONS

The six months ended 2021 includes a $407 million after-tax loss contingency in discontinued operations associated with its former operations in Ecuador, which Occidental recorded in the first quarter of 2021. See Note 10 - Lawsuits, Claims, Commitments and Contingencies. In addition, the results of operations for Ghana for the six months ended June 30, 2021, an after-tax loss of $35 million, are presented as discontinued operations. The Ghana assets were sold in October 2021.