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INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS | 12 Months Ended
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Dec. 31, 2017
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS |
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS |
NOTE 16 INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS
Occidental conducts its continuing 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, NGLs, 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, NGLs, natural gas, CO 2 and power. It also trades around its assets, including transportation and storage capacity. Additionally, the midstream and marketing segment operates a crude oil export terminal, as well as invests in entities that conduct similar activities. Results of industry segments and geographic areas 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. Identifiable assets are those assets used in the operations of the segments. Corporate assets consist of cash and restricted cash, certain corporate receivables and PP&E.
Industry Segments |  |  |  |  |  |  |  |  |  |  |
(in millions) |  | Oil and Gas |  | Chemical |  | Midstream and Marketing |  | Corporate and Eliminations |  | Total |
Year ended December 31, 2017 |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 7,870 | (a) | $ | 4,355 | (b) | $ | 1,157 | (c) | $ | (874) |  | $ | 12,508 |
Pretax operating profit (loss) |  | $ | 1,111 | (d) | $ | 822 |  | $ | 85 | (e) | $ | (690) | (f) | $ | 1,328 |
Income taxes |  | — |  | — |  | — |  | (17) | (g) | (17) |
Net income (loss) attributable to common stock |  | $ | 1,111 |  | $ | 822 |  | $ | 85 |  | $ | (707) |  | $ | 1,311 |
Investments in unconsolidated entities |  | $ | — |  | $ | 771 |  | $ | 739 |  | $ | 5 |  | $ | 1,515 |
Property, plant and equipment additions, net (h) |  | $ | 2,968 |  | $ | 323 |  | $ | 296 |  | $ | 64 |  | $ | 3,651 |
Depreciation, depletion and amortization |  | $ | 3,269 |  | $ | 352 |  | $ | 340 |  | $ | 41 |  | $ | 4,002 |
Total assets |  | $ | 23,595 |  | $ | 4,364 |  | $ | 11,775 |  | $ | 2,292 |  | $ | 42,026 |
Year ended December 31, 2016 |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 6,377 | (a) | $ | 3,756 | (b) | $ | 684 | (c) | $ | (727) |  | $ | 10,090 |
Pretax operating profit (loss) |  | $ | (636) | (d) | $ | 571 | (i) | $ | (381) | (e) | $ | (1,218) | (f) | $ | (1,664) |
Income taxes |  | — |  | — |  | — |  | 662 | (g) | 662 |
Discontinued operations, net |  | — |  | — |  | — |  | 428 | (j) | 428 |
Net income (loss) attributable to common stock |  | $ | (636) |  | $ | 571 |  | $ | (381) |  | $ | (128) |  | $ | (574) |
Investments in unconsolidated entities |  | $ | — |  | $ | 730 |  | $ | 666 |  | $ | 5 |  | $ | 1,401 |
Property, plant and equipment additions, net (h) |  | $ | 1,998 |  | $ | 353 |  | $ | 370 |  | $ | 59 |  | $ | 2,780 |
Depreciation, depletion and amortization |  | $ | 3,575 |  | $ | 340 |  | $ | 313 |  | $ | 40 |  | $ | 4,268 |
Total assets |  | $ | 24,130 |  | $ | 4,348 |  | $ | 11,059 |  | $ | 3,572 |  | $ | 43,109 |
Year ended December 31, 2015 |  |  |  |  |  |  |  |  |  |  |
Net sales |  | $ | 8,304 | (a) | $ | 3,945 | (b) | $ | 891 | (c) | $ | (660) |  | $ | 12,480 |
Pretax operating profit (loss) |  | $ | (8,060) | (d) | $ | 542 | (i) | $ | (1,194) | (e) | $ | (764) | (f) | $ | (9,476) |
Income taxes |  | — |  | — |  | — |  | 1,330 | (g) | 1,330 |
Discontinued operations, net |  | $ | — |  | — |  | — |  | 317 | (j) | 317 |
Net income (loss) attributable to common stock |  | $ | (8,060) |  | $ | 542 |  | $ | (1,194) |  | $ | 883 |  | $ | (7,829) |
Investments in unconsolidated entities |  | $ | 4 |  | $ | 550 |  | $ | 708 |  | $ | 5 |  | $ | 1,267 |
Property, plant and equipment additions, net (h) |  | $ | 4,485 |  | $ | 271 |  | $ | 611 |  | $ | 42 |  | $ | 5,409 |
Depreciation, depletion and amortization |  | $ | 3,886 |  | $ | 371 |  | $ | 249 |  | $ | 38 |  | $ | 4,544 |
Total assets |  | $ | 23,591 |  | $ | 3,982 |  | $ | 10,175 |  | $ | 5,661 |  | $ | 43,409 |
(See footnotes on next page) |  |  |  |  |  |  |  |  |  |  |
Footnotes:
| (a) |  | Oil sales represented approximately 90 percent of the oil and gas segment net sales for the years ended December 31, 2017, 2016 and 2015.
| (b) |  | Net sales for the chemical segment comprised the following products:
|  | Basic Chemicals |  | Vinyls |  | Other Chemicals |
Year ended December 31, 2017 |  | 57% |  | 42% |  | 1% |
Year ended December 31, 2016 |  | 57% |  | 40% |  | 3% |
Year ended December 31, 2015 |  | 56% |  | 40% |  | 4% |
(c)Net sales for the midstream and marketing segment comprised the following:
|  | Gas Processing |  | Power |  | Marketing, Transportation and other * |
Year ended December 31, 2017 |  | 69% |  | 28% |  | 3% |
Year ended December 31, 2016 |  | 92% |  | 44% |  | (36)% |
Year ended December 31, 2015 |  | 70% |  | 31% |  | (1)% |
* Revenue from all marketing activities is reported on a net basis.
| (d) |  | The 2017 amount includes pre-tax asset sale gains of $655 million primarily related to South Texas and non-core acreage in the Permian basin and $397 million for the impairment of non-core proved and unproved Permian acreage. The 2016 amount includes pre-tax asset sale gains of $121 million and $59 million related to Piceance and South Texas oil and gas properties, pre-tax charges of $61 million related to the sale of Libya and the exit from Iraq, and pre-tax gain of $24 million for other related items. The 2015 amount includes pre-tax charges of $5 billion for impairment of international oil and gas assets and related items and $3.5 billion for the impairment of domestic oil and gas assets and related items.
| (e) |  | The 2017 amount includes pre-tax charges of $120 million related to asset impairments of idled facilities. The 2016 amount includes pre-tax charges of $160 million related to the termination of crude oil supply contracts. The 2015 amount includes pre-tax charges of $1.3 billion related to asset impairments and related items.
| (f) |  | Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items noted below.
Benefit (Charge) (in millions) |  | 2017 |  | 2016 |  | 2015 |
CORPORATE |  |  |  |  |  |  |
Pre-tax operating profit (loss) |  |  |  |  |  |  |
Asset sale losses |  | $ | — |  | $ | — |  | $ | (8) |
Asset impairments and related items |  | — |  | (619) |  | (235) |
Severance, spin-off and other |  | — |  | — |  | (118) |
|  | $ | — |  | $ | (619) |  | $ | (361) |
Income taxes |  |  |  |  |  |  |
Tax effect of pre-tax and other adjustments * |  | $ | 392 |  | $ | 424 |  | $ | 1,903 |
* Amounts represent the tax effect of the pre-tax adjustments listed in this note, as well as those in footnotes (d), (e) and (f).
| (g) |  | Includes all foreign and domestic income taxes from continuing operations.
| (h) |  | Includes capital expenditures and capitalized interest, but excludes acquisition and disposition of assets.
| (i) |  | The 2016 amount includes gain on sale of $57 million and $31 million related to Occidental Tower in Dallas, Texas, and a non-core specialty chemicals business, respectively. The 2015 amount includes the pre-tax charge of $121 million related to asset impairment partially offset by a $98 million gain on sale of an idled facility.
| (j) |  | Includes discontinued operations from Ecuador.
GEOGRAPHIC AREAS
(in millions) |  | Net sales (a) |  | Property, plant and equipment, net |
For the years ended December 31, |  | 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015 |
United States |  | $ | 8,085 |  | $ | 6,290 |  | $ | 7,479 |  | $ | 22,863 |  | $ | 24,004 |  | $ | 23,265 |
Foreign |  |  |  |  |  |  |  |  |  |  |  |  |
Oman |  | 1,397 |  | 1,101 |  | 1,631 |  | 1,962 |  | 1,858 |  | 1,292 |
Qatar |  | 1,394 |  | 1,206 |  | 1,449 |  | 1,236 |  | 1,299 |  | 1,354 |
Colombia |  | 555 |  | 463 |  | 570 |  | 807 |  | 741 |  | 821 |
United Arab Emirates |  | 808 |  | 664 |  | 477 |  | 4,241 |  | 4,373 |  | 4,484 |
Other Foreign |  | 269 |  | 366 |  | 874 |  | 65 |  | 62 |  | 423 |
Total Foreign |  | 4,423 |  | 3,800 |  | 5,001 |  | 8,311 |  | 8,333 |  | 8,374 |
Total |  | $ | 12,508 |  | $ | 10,090 |  | $ | 12,480 |  | $ | 31,174 |  | $ | 32,337 |  | $ | 31,639 |
| (a) |  | Sales are shown by individual country based on the location of the entity making the sale.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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