XML 39 R17.htm IDEA: XBRL DOCUMENT
v3.24.0.1

LEASE COMMITMENTS | 12 Months Ended
--- | ---
Dec. 31, 2023
Leases [Abstract] |
LEASE COMMITMENTS |
NOTE 7 - LEASE COMMITMENTS
Occidental identifies leases through its accounts payable and contract monitoring processes. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. Occidental assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. Occidental uses its incremental borrowing rate at commencement date to determine the present value of lease payments. The incremental borrowing rate is the rate of interest that Occidental would pay to borrow an amount equal to the lease payments over a similar term on a collateralized basis in a similar economic environment. For assets except drilling rigs, Occidental does not separate lease and non-lease components as the non-lease portions were not significant. Occid ental has operating leases for oil and gas exploration and development equipment, including offshore and onshore drilling rigs of $385 million, office space of $339 million, compressors of $125 million, railcars of $112 million, marine transportation vessels of $110 million and $45 million consisting of storage facilities and other field equipment. Operating leases also include easements and real estate of $57 million. These operating leases have contract expiration terms ranging from one to 10 years. Occidental’s finance leases include compressors of $454 million, office space of $255 million, and $28 million of other assets. Property, plant and equipment included $738 million of finance leases at December 31, 2023. The following summarizes maturities of lease liabilities at December 31, 2023:
millions | Operating Leases (a) | Finance Leases (b) | Total
2024 | $ | 453 |  | $ | 146 |  | $ | 599 |
2025 | 291 |  | 136 |  | 427 |
2026 | 194 |  | 126 |  | 320 |
2027 | 101 |  | 113 |  | 214 |
2028 | 71 |  | 85 |  | 156 |
Thereafter | 190 |  | 256 |  | 446 |
Total lease payments | 1,300 |  | 862 |  | 2,162 |
Less: Discount | (127) |  | (125) |  | (252) |
Total lease liabilities | $ | 1,173 |  | $ | 737 |  | $ | 1,910 |
(a)The weighted-average remaining lease term is 4.5 years and the weighted-average discount rate is 4.94%. (b)The weighted-average remaining lease term is 6.3 years and the weighted-average discount rate is 4.61%. The following tables present Occidental’s total lease cost and other information for operating and finance lease liabilities for the years ended December 31:
millions | 2023 | 2022
Lease Cost |  |
Finance lease cost: |  |
Amortization of right-of-use assets | $ | 126 |  | $ | 83 |
Interest on lease liabilities | 27 |  | 20 |
Operating lease cost | 398 |  | 374 |
Short-term lease cost | 460 |  | 184 |
Total lease cost | $ | 1,011 |  | $ | 661 |
millions | 2023 | 2022
Cash payments related to leases |  |
Operating cash flows from finance lease | $ | 27 |  | $ | 20 |
Operating cash flows from operating leases | $ | 198 |  | $ | 191 |
Investing cash flows from operating leases | $ | 183 |  | $ | 81 |
Financing cash flows from finance leases | $ | 105 |  | $ | 83 |
Changes in Right-of-Use assets |  |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 226 |  | $ | 85 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 630 |  | $ | 525 |
LEASE COMMITMENTS |
NOTE 7 - LEASE COMMITMENTS
Occidental identifies leases through its accounts payable and contract monitoring processes. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. Occidental assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. Occidental uses its incremental borrowing rate at commencement date to determine the present value of lease payments. The incremental borrowing rate is the rate of interest that Occidental would pay to borrow an amount equal to the lease payments over a similar term on a collateralized basis in a similar economic environment. For assets except drilling rigs, Occidental does not separate lease and non-lease components as the non-lease portions were not significant. Occid ental has operating leases for oil and gas exploration and development equipment, including offshore and onshore drilling rigs of $385 million, office space of $339 million, compressors of $125 million, railcars of $112 million, marine transportation vessels of $110 million and $45 million consisting of storage facilities and other field equipment. Operating leases also include easements and real estate of $57 million. These operating leases have contract expiration terms ranging from one to 10 years. Occidental’s finance leases include compressors of $454 million, office space of $255 million, and $28 million of other assets. Property, plant and equipment included $738 million of finance leases at December 31, 2023. The following summarizes maturities of lease liabilities at December 31, 2023:
millions | Operating Leases (a) | Finance Leases (b) | Total
2024 | $ | 453 |  | $ | 146 |  | $ | 599 |
2025 | 291 |  | 136 |  | 427 |
2026 | 194 |  | 126 |  | 320 |
2027 | 101 |  | 113 |  | 214 |
2028 | 71 |  | 85 |  | 156 |
Thereafter | 190 |  | 256 |  | 446 |
Total lease payments | 1,300 |  | 862 |  | 2,162 |
Less: Discount | (127) |  | (125) |  | (252) |
Total lease liabilities | $ | 1,173 |  | $ | 737 |  | $ | 1,910 |
(a)The weighted-average remaining lease term is 4.5 years and the weighted-average discount rate is 4.94%. (b)The weighted-average remaining lease term is 6.3 years and the weighted-average discount rate is 4.61%. The following tables present Occidental’s total lease cost and other information for operating and finance lease liabilities for the years ended December 31:
millions | 2023 | 2022
Lease Cost |  |
Finance lease cost: |  |
Amortization of right-of-use assets | $ | 126 |  | $ | 83 |
Interest on lease liabilities | 27 |  | 20 |
Operating lease cost | 398 |  | 374 |
Short-term lease cost | 460 |  | 184 |
Total lease cost | $ | 1,011 |  | $ | 661 |
millions | 2023 | 2022
Cash payments related to leases |  |
Operating cash flows from finance lease | $ | 27 |  | $ | 20 |
Operating cash flows from operating leases | $ | 198 |  | $ | 191 |
Investing cash flows from operating leases | $ | 183 |  | $ | 81 |
Financing cash flows from finance leases | $ | 105 |  | $ | 83 |
Changes in Right-of-Use assets |  |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 226 |  | $ | 85 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 630 |  | $ | 525 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration