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LEASE COMMITMENTS | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
LEASE COMMITMENTS |
NOTE 7 - LEASE COMMITMENTS
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. For assets except drilling rigs, Occidental does not separate lease and non-lease components as the non-lease portions are not significant. Occid ental has operating leases for office space of $309 million, drilling rigs of $252 million, compressors of $214 million, railcars of $101 million, and $112 million of other assets. Occidental’s finance leases include compressors of $467 million, office space of $231 million, and $95 million of other assets. Property, plant and equipment included $777 million of finance lease assets as of December 31, 2024. The following summarizes maturities of lease liabilities as of December 31, 2024:
millions | Operating Leases (a) | Finance Leases (b) | Total
2025 | $ | 410 |  | $ | 172 |  | $ | 582 |
2026 | 264 |  | 161 |  | 425 |
2027 | 136 |  | 145 |  | 281 |
2028 | 76 |  | 115 |  | 191 |
2029 | 58 |  | 82 |  | 140 |
Thereafter | 137 |  | 265 |  | 402 |
Total lease payments | 1,081 |  | 940 |  | 2,021 |
Less: Discount | (93) |  | (147) |  | (240) |
Total lease liabilities | $ | 988 |  | $ | 793 |  | $ | 1,781 |
(a)The weighted-average remaining lease term is 4.0 years and the weighted-average discount rate is 4.77%. (b)The weighted-average remaining lease term is 5.7 years and the weighted-average discount rate is 4.80%. 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 | 2024 | 2023
Lease Cost |  |
Finance lease cost: |  |
Amortization of right-of-use assets | $ | 152 |  | $ | 126 |
Interest on lease liabilities | 36 |  | 27 |
Operating lease cost | 518 |  | 398 |
Short-term lease cost | 367 |  | 460 |
Total lease cost | $ | 1,073 |  | $ | 1,011 |
millions | 2024 | 2023
Cash payments related to leases |  |
Operating cash flows from finance leases | $ | 34 |  | $ | 27 |
Operating cash flows from operating leases | $ | 298 |  | $ | 198 |
Investing cash flows from operating leases | $ | 209 |  | $ | 183 |
Financing cash flows from finance leases | $ | 137 |  | $ | 105 |
Changes in Right-of-Use assets |  |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 195 |  | $ | 226 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 316 |  | $ | 630 |
LEASE COMMITMENTS |
NOTE 7 - LEASE COMMITMENTS
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. For assets except drilling rigs, Occidental does not separate lease and non-lease components as the non-lease portions are not significant. Occid ental has operating leases for office space of $309 million, drilling rigs of $252 million, compressors of $214 million, railcars of $101 million, and $112 million of other assets. Occidental’s finance leases include compressors of $467 million, office space of $231 million, and $95 million of other assets. Property, plant and equipment included $777 million of finance lease assets as of December 31, 2024. The following summarizes maturities of lease liabilities as of December 31, 2024:
millions | Operating Leases (a) | Finance Leases (b) | Total
2025 | $ | 410 |  | $ | 172 |  | $ | 582 |
2026 | 264 |  | 161 |  | 425 |
2027 | 136 |  | 145 |  | 281 |
2028 | 76 |  | 115 |  | 191 |
2029 | 58 |  | 82 |  | 140 |
Thereafter | 137 |  | 265 |  | 402 |
Total lease payments | 1,081 |  | 940 |  | 2,021 |
Less: Discount | (93) |  | (147) |  | (240) |
Total lease liabilities | $ | 988 |  | $ | 793 |  | $ | 1,781 |
(a)The weighted-average remaining lease term is 4.0 years and the weighted-average discount rate is 4.77%. (b)The weighted-average remaining lease term is 5.7 years and the weighted-average discount rate is 4.80%. 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 | 2024 | 2023
Lease Cost |  |
Finance lease cost: |  |
Amortization of right-of-use assets | $ | 152 |  | $ | 126 |
Interest on lease liabilities | 36 |  | 27 |
Operating lease cost | 518 |  | 398 |
Short-term lease cost | 367 |  | 460 |
Total lease cost | $ | 1,073 |  | $ | 1,011 |
millions | 2024 | 2023
Cash payments related to leases |  |
Operating cash flows from finance leases | $ | 34 |  | $ | 27 |
Operating cash flows from operating leases | $ | 298 |  | $ | 198 |
Investing cash flows from operating leases | $ | 209 |  | $ | 183 |
Financing cash flows from finance leases | $ | 137 |  | $ | 105 |
Changes in Right-of-Use assets |  |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | 195 |  | $ | 226 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 316 |  | $ | 630 |

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- 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
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- 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
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