Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information | |
Entity Registrant Name | OCCIDENTAL PETROLEUM CORP /DE/ |
Entity Central Index Key | 797468 |
Document Type | 10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 806,059,898 |
Document Fiscal Year Focus | 2013 |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $3,771 | $1,592 |
Trade receivables, net | 5,653 | 4,916 |
Inventories | 1,328 | 1,344 |
Other current assets | 1,186 | 1,640 |
Total current assets | 11,938 | 9,492 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 1,713 | 1,894 |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation, depletion and amortization of $31,844 at September 30, 2013 and $28,032 at December 31, 2012 | 55,027 | 52,064 |
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 759 | 760 |
TOTAL ASSETS | 69,437 | 64,210 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 600 | 600 |
Accounts payable | 5,671 | 4,708 |
Accrued liabilities | 2,488 | 1,966 |
Domestic and foreign income taxes | 83 | 16 |
Total current liabilities | 8,842 | 7,290 |
LONG-TERM DEBT, NET | 6,961 | 7,023 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Deferred domestic and foreign income taxes | 7,048 | 6,039 |
Other | 3,618 | 3,810 |
Total deferred credits and other liabilities | 10,666 | 9,849 |
STOCKHOLDERS' EQUITY | ||
Common stock, at par value | 178 | 178 |
Treasury stock | -5,148 | -5,091 |
Additional paid-in capital | 7,508 | 7,441 |
Retained earnings | 40,700 | 37,990 |
Accumulated other comprehensive loss | -448 | -502 |
Total equity attributable to common stock | 42,790 | 40,016 |
Noncontrolling interest | 178 | 32 |
Total stockholders' equity | 42,968 | 40,048 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $69,437 | $64,210 |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CONSOLIDATED CONDENSED BALANCE SHEETS | ||
PROPERTY, PLANT AND EQUIPMENT, accumulated depreciation, depletion and amortization | $31,844 | $28,032 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUES AND OTHER INCOME | ||||
Net sales | $6,449 | $5,965 | $18,283 | $18,001 |
Interest, dividends and other income | 26 | 26 | 89 | 65 |
Gain on sale of equity investment | 131 | |||
TOTAL REVENUES AND OTHER INCOME | 6,475 | 5,991 | 18,503 | 18,066 |
COSTS AND OTHER DEDUCTIONS | ||||
Cost of sales | 3,214 | 3,176 | 9,531 | 9,186 |
Selling, general and administrative and other operating expenses | 459 | 394 | 1,347 | 1,163 |
Taxes other than on income | 186 | 172 | 568 | 513 |
Exploration expense | 68 | 69 | 196 | 263 |
Interest and debt expense, net | 29 | 36 | 93 | 94 |
TOTAL COSTS AND OTHER DEDUCTIONS | 3,956 | 3,847 | 11,735 | 11,219 |
Income before income taxes and other items | 2,519 | 2,144 | 6,768 | 6,847 |
Provision for domestic and foreign income taxes | -1,037 | -855 | -2,782 | -2,869 |
Income from equity investments | 106 | 90 | 288 | 293 |
Income from continuing operations | 1,588 | 1,379 | 4,274 | 4,271 |
Discontinued operations, net | -5 | -4 | -14 | -9 |
NET INCOME | $1,583 | $1,375 | $4,260 | $4,262 |
BASIC EARNINGS PER COMMON SHARE | ||||
Income from continuing operations (in dollars per share) | $1.97 | $1.70 | $5.30 | $5.26 |
Discontinued operations, net (in dollars per share) | ($0.01) | ($0.01) | ($0.02) | ($0.01) |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $1.96 | $1.69 | $5.28 | $5.25 |
DILUTED EARNINGS PER COMMON SHARE | ||||
Income from continuing operations (in dollars per share) | $1.97 | $1.70 | $5.30 | $5.26 |
Discontinued operations, net (in dollars per share) | ($0.01) | ($0.01) | ($0.02) | ($0.01) |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $1.96 | $1.69 | $5.28 | $5.25 |
DIVIDENDS PER COMMON SHARE (in dollars per share) | $0.64 | $0.54 | $1.92 | $1.62 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||
Net income | $1,583 | $1,375 | $4,260 | $4,262 | ||||
Other comprehensive income (loss) items: | ||||||||
Foreign currency translation gains (losses) | 2 | -8 | ||||||
Reclassification to income of realized foreign currency translation losses | 28 | [1] | ||||||
Pension and postretirement gains | 9 | [2] | 11 | [2] | 27 | [2] | 24 | [2] |
Unrealized (losses) gains on derivatives | -2 | [3] | 1 | [3] | 10 | [3] | ||
Reclassification to income of realized gains on derivatives | -1 | [4] | -4 | [4] | -24 | [4] | ||
Other comprehensive income, net of tax | 8 | [5] | 9 | [5] | 54 | [5] | 2 | [5] |
Comprehensive income | $1,591 | $1,384 | $4,314 | $4,264 | ||||
[1] | Included in the net gain on sale of the investment in Carbocloro, a Brazilian chemical facility. | |||||||
[2] | Net of tax of $(5) and $(6) for the three months ended September 30, 2013 and 2012, respectively, and $(16) and $(14) for the nine months ended September 30, 2013 and 2012. | |||||||
[3] | Net of tax of zero and $1 for the three months ended September 30, 2013 and 2012, respectively, and $(1) and $(7) for the nine months ended September 30, 2013 and 2012. | |||||||
[4] | Net of tax of zero for each of the three months ended September 30, 2013 and 2012, and $2 and $14 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||
[5] | There were no other comprehensive income (loss) items related to noncontrolling interests in 2013 and 2012. |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Pension and postretirement gains, tax | ($5) | ($6) | ($16) | ($14) |
Unrealized (losses) gains on derivatives, tax | 0 | 1 | -1 | -7 |
Reclassification to income of realized gains on derivatives, tax | $0 | $0 | $2 | $14 |
CONSOLIDATED_CONDENSED_STATEME3
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income | $4,260 | $4,262 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Discontinued operations, net | 14 | 9 |
Depreciation, depletion and amortization of assets | 3,896 | 3,320 |
Deferred income tax provision | 1,016 | 1,255 |
Other noncash charges to income | 258 | 139 |
Gain on sale of equity investment | -131 | |
Undistributed earnings from equity investments | -40 | -14 |
Dry hole expenses | 115 | 221 |
Changes in operating assets and liabilities, net | 445 | -663 |
Operating cash flow from continuing operations | 9,833 | 8,529 |
Operating cash flow from discontinued operations, net of taxes | -47 | -30 |
Net cash provided by operating activities | 9,786 | 8,499 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital expenditures | -6,551 | -7,716 |
Payments for purchases of assets and businesses | -342 | -1,164 |
Sale of equity investment, net | 270 | |
Other, net | 3 | 9 |
Net cash used by investing activities | -6,620 | -8,871 |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 1,736 | |
Payments of long-term debt | -66 | |
Proceeds from issuance of common stock | 27 | 61 |
Purchases of treasury stock | -64 | -204 |
Contributions from noncontrolling interest | 145 | |
Cash dividends paid | -1,034 | -1,252 |
Other, net | 5 | 10 |
Net cash (used) provided by financing activities | -987 | 351 |
Increase (decrease) in cash and cash equivalents | 2,179 | -21 |
Cash and cash equivalents-beginning of period | 1,592 | 3,781 |
Cash and cash equivalents-end of period | $3,771 | $3,760 |
General
General | 9 Months Ended |
Sep. 30, 2013 | |
General | |
General | 1. General |
In these unaudited consolidated condensed financial statements, “Occidental” means Occidental Petroleum Corporation, a Delaware corporation (OPC), or OPC and one or more entities in which it owns a controlling interest (subsidiaries). 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 Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in consolidated financial statements and the notes. These consolidated condensed financial statements should be read in conjunction with the consolidated financial statements and the notes thereto in Occidental’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
In the opinion of Occidental’s management, the accompanying consolidated condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present Occidental’s consolidated financial position as of September 30, 2013, and the consolidated statements of income, comprehensive income and cash flows for the three and nine months ended September 30, 2013 and 2012, as applicable. The income and cash flows for the periods ended September 30, 2013 and 2012 are not necessarily indicative of the income or cash flows to be expected for the full year. | |
Certain financial statements and notes for the prior year have been reclassified to conform to the 2013 presentation. | |
Asset_Acquisitions_Disposition
Asset Acquisitions, Dispositions and Other | 9 Months Ended |
Sep. 30, 2013 | |
Asset Acquisitions, Dispositions and Other | |
Asset Acquisitions, Dispositions and Other | 2. Asset Acquisitions, Dispositions and Other |
In October 2013, Occidental sold a portion of its equity interest in the general partner of Plains All-American Pipeline, L.P. for approximately $1.4 billion, resulting in a pre-tax gain of approximately $1.0 billion. | |
In October 2013, the Board of Directors authorized the pursuit of the sale of a minority interest in the Middle East/North Africa operations and the pursuit of strategic alternatives for select assets, including oil and gas interests in the Williston Basin, Hugoton Field, Piceance Basin and other Rocky Mountain assets. | |
In May 2013, Occidental sold its investment in Carbocloro, a Brazilian chemical facility. Occidental received net proceeds of approximately $270 million and recorded a pre-tax gain of $131 million. | |
Dr. Ray Irani submitted his resignation as a director, effective as of May 15, 2013, and ceased serving as an executive of Occidental. In addition, certain other employees and several consulting arrangements were terminated during the second quarter. As a result of these developments and actions, Occidental recorded a $55 million pre-tax charge in the second quarter for the estimated costs of Dr. Irani’s employment and post-employment benefits, and the termination of other employees and consulting arrangements. | |
Occidental owns a 50% interest in BridgeTex Pipeline Company, LLC (BridgeTex), which is a variable interest entity that Occidental consolidates. This investment is not material to Occidental’s financial statements. At September 30, 2013 and December 31, 2012, the BridgeTex assets and liabilities mainly comprised property, plant and equipment and cash and cash equivalents. At September 30, 2013 and December 31, 2012, BridgeTex held approximately $123 million and $50 million, respectively, of money market funds classified as cash equivalents, which approximated fair value using Level 1 inputs. | |
Accounting_and_Disclosure_Chan
Accounting and Disclosure Changes | 9 Months Ended |
Sep. 30, 2013 | |
Accounting and Disclosure Changes | |
Accounting and Disclosure Changes | 3. Accounting and Disclosure Changes |
Offsetting Assets and Liabilities - Beginning in the quarter ended March 31, 2013, Occidental adopted new disclosure requirements relating to its derivatives in accordance with rules issued by the Financial Accounting Standards Board (FASB) in December 2011 and January 2013. These new rules require tabular disclosures of the outstanding derivatives’ gross and net fair values, now including those derivatives that are subject to a master netting or similar arrangement and qualify for net presentation, but are not offset in the consolidated balance sheet. | |
Reclassifications from Accumulated Other Comprehensive Income - Beginning in the quarter ended March 31, 2013, Occidental adopted new disclosure requirements for reporting amounts reclassified out of each component of accumulated other comprehensive income into the income statement in accordance with rules issued by the FASB in February 2013. | |
These new disclosures were not material to Occidental’s financial statements. | |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended |
Sep. 30, 2013 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 4. Supplemental Cash Flow Information |
Occidental paid United States federal, state and foreign income taxes for continuing operations of approximately $1.3 billion and $1.8 billion during the nine months ended September 30, 2013 and 2012, respectively. Interest paid totaled approximately $215 million and $167 million for the nine months ended September 30, 2013 and 2012, respectively. | |
Inventories
Inventories | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Inventories | ||||||||||
Inventories | 5. Inventories | |||||||||
A portion of inventories is valued under the LIFO method. The valuation of LIFO inventory for interim periods is based on Occidental’s estimates of year-end inventory levels and costs. Inventories as of September 30, 2013 and December 31, 2012 consisted of the following (in millions): | ||||||||||
2013 | 2012 | |||||||||
Raw materials | $ | 74 | $ | 70 | ||||||
Materials and supplies | 647 | 612 | ||||||||
Finished goods | 708 | 763 | ||||||||
1,429 | 1,445 | |||||||||
LIFO reserve | (101 | ) | (101 | ) | ||||||
Total | $ | 1,328 | $ | 1,344 |
Environmental_Liabilities_and_
Environmental Liabilities and Expenditures | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Environmental Liabilities and Expenditures | ||||||||||
Environmental Liabilities and Expenditures | 6. Environmental Liabilities and Expenditures | |||||||||
Occidental’s operations are subject to stringent federal, state, local and foreign laws and regulations related to improving or maintaining environmental quality. | ||||||||||
The laws that require or address environmental remediation, including the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and similar federal, state, local and foreign laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. OPC or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs. | ||||||||||
As of September 30, 2013, Occidental participated in or monitored remedial activities or proceedings at 160 sites. The following table presents Occidental’s environmental remediation reserves as of September 30, 2013, the current portion of which is included in accrued liabilities ($80 million) and the remainder in deferred credits and other liabilities — other ($254 million). The reserves are grouped as environmental remediation sites listed or proposed for listing by the United States Environmental Protection Agency on the CERCLA National Priorities List (NPL sites) and three categories of non-NPL sites — third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. | ||||||||||
Number of Sites | Reserve Balance | |||||||||
(in millions) | ||||||||||
NPL sites | 32 | $ | 51 | |||||||
Third-party sites | 75 | 91 | ||||||||
Occidental-operated sites | 22 | 118 | ||||||||
Closed or non-operated Occidental sites | 31 | 74 | ||||||||
Total | 160 | $ | 334 | |||||||
As of September 30, 2013, Occidental’s environmental reserves exceeded $10 million each at 10 of the 160 sites described above, and 112 of the sites had reserves from zero to $1 million each. Based on current estimates, Occidental expects to expend funds corresponding to approximately half of the current environmental reserves at the sites described above over the next three to four years and the balance at these sites over the subsequent 10 or more years. Occidental believes its range of reasonably possible additional losses beyond those liabilities recorded for environmental remediation at these sites could be up to $375 million. The status of Occidental’s involvement with the sites and related significant assumptions have not changed materially since December 31, 2012. For management’s opinion with respect to environmental matters, refer to Note 7. | ||||||||||
Lawsuits_Claims_Commitments_an
Lawsuits, Claims, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Lawsuits, Claims, Commitments and Contingencies | |
Lawsuits, Claims, Commitments and Contingencies | 7. Lawsuits, Claims, Commitments and Contingencies |
OPC or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties or injunctive or declaratory relief. OPC or certain of its subsidiaries also are involved in proceedings under CERCLA and similar federal, state, local and foreign environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties and injunctive relief. Usually OPC or such subsidiaries are among many companies in these environmental proceedings and have to date been successful in sharing response costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or Occidental retains liability or indemnifies the other party for conditions that existed prior to the transaction. | |
Occidental accrues reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Occidental has disclosed its reserve balances for environmental matters. Reserve balances for other matters as of September 30, 2013 and December 31, 2012 were not material to Occidental’s consolidated balance sheets. Occidental also evaluates the amount of reasonably possible losses that it could incur as a result of the matters mentioned above. Occidental has disclosed its range of reasonably possible additional losses for sites where it is a participant in environmental remediation. Occidental believes that other reasonably possible losses that it could incur in excess of reserves accrued on the balance sheet would not be material to its consolidated financial position or results of operations. | |
During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and foreign tax jurisdictions. Although taxable years through 2009 for United States federal income tax purposes have been audited by the United States Internal Revenue Service (IRS) pursuant to its Compliance Assurance Program, subsequent taxable years are currently under review. Additionally, in December 2012, Occidental filed United States federal refund claims for tax years 2008 and 2009 which are subject to IRS review. Taxable years from 2000 through the current year remain subject to examination by foreign and state government tax authorities in certain jurisdictions. In certain of these jurisdictions, tax authorities are in various stages of auditing Occidental’s income taxes. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Occidental believes that the resolution of outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations. | |
OPC, its subsidiaries or both have indemnified various parties against specified liabilities those parties might incur in the future in connection with purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the other party incurring liabilities that reach specified thresholds. As of September 30, 2013, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves. | |
Retirement_and_Postretirement_
Retirement and Postretirement Benefit Plans | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Retirement and Postretirement Benefit Plans | ||||||||||||||||||
Retirement and Postretirement Benefit Plans | 8. Retirement and Postretirement Benefit Plans | |||||||||||||||||
The following table sets forth the components of the net periodic benefit costs for Occidental’s defined benefit pension and postretirement benefit plans for the three and nine months ended September 30, 2013 and 2012 (in millions): | ||||||||||||||||||
Three months ended September 30 | 2013 | 2012 | ||||||||||||||||
Net Periodic Benefit Costs | Pension | Postretirement | Pension | Postretirement | ||||||||||||||
Benefit | Benefit | Benefit | Benefit | |||||||||||||||
Service cost | $ | 3 | $ | 8 | $ | 3 | $ | 6 | ||||||||||
Interest cost | 6 | 11 | 6 | 10 | ||||||||||||||
Expected return on plan assets | (7 | ) | — | (7 | ) | — | ||||||||||||
Amortization of prior service cost | — | — | 1 | — | ||||||||||||||
Recognized actuarial loss | 10 | 9 | 4 | 10 | ||||||||||||||
Total | $ | 12 | $ | 28 | $ | 7 | $ | 26 | ||||||||||
Nine months ended September 30 | 2013 | 2012 | ||||||||||||||||
Net Periodic Benefit Costs | Pension | Postretirement | Pension | Postretirement | ||||||||||||||
Benefit | Benefit | Benefit | Benefit | |||||||||||||||
Service cost | $ | 10 | $ | 22 | $ | 9 | $ | 19 | ||||||||||
Interest cost | 19 | 32 | 20 | 32 | ||||||||||||||
Expected return on plan assets | (23 | ) | — | (23 | ) | — | ||||||||||||
Amortization of prior service cost | — | — | 1 | — | ||||||||||||||
Recognized actuarial loss | 18 | 29 | 14 | 27 | ||||||||||||||
Total | $ | 24 | $ | 83 | $ | 21 | $ | 78 | ||||||||||
Occidental contributed approximately $1 million in each of the three-month periods ended September 30, 2013 and 2012, and approximately $3 million and $4 million in the nine-month periods ended September 30, 2013 and 2012, respectively, to its defined benefit pension plans. | ||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair Value Measurements | 9. Fair Value Measurements | ||||||||||||||||
Occidental has categorized its assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1 — using quoted prices in active markets for identical assets or liabilities; Level 2 — using observable inputs, such as quoted prices for similar assets or liabilities; and Level 3 — using unobservable inputs. Transfers between levels, if any, are reported at the end of each reporting period. | |||||||||||||||||
Fair Values — Recurring | |||||||||||||||||
Occidental primarily applies the market approach for recurring fair value measurements, maximizes its use of observable inputs and minimizes its use of unobservable inputs. Occidental utilizes the mid-point price between bid and ask prices for valuing the majority of its assets and liabilities measured and reported at fair value. In addition to using market data, Occidental makes assumptions in valuing its assets and liabilities, including assumptions about the risks inherent in the inputs to the valuation technique. For assets and liabilities carried at fair value, Occidental measures fair value using the following methods: | |||||||||||||||||
Ø Commodity derivatives – Occidental values exchange-cleared commodity derivatives using closing prices provided by the exchange as of the balance sheet date. These derivatives are classified as Level 1. Over-the-Counter (OTC) bilateral financial commodity contracts, foreign exchange contracts, options and physical commodity forward purchase and sale contracts are generally valued using quotations provided by brokers or industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. These inputs are observable in the marketplace throughout the full term of the instrument and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. Occidental generally classifies these measurements as Level 2. | |||||||||||||||||
Ø Embedded commodity derivatives – Occidental values embedded commodity derivatives based on a market approach that considers various assumptions, including quoted forward commodity prices and market yield curves. The assumptions used include inputs that are observable and unobservable in the marketplace, and the fair value is designated as Level 3 within the valuation hierarchy. | |||||||||||||||||
Occidental generally uses an income approach to measure fair value when there is not a market-observable price for an identical or similar asset or liability. This approach utilizes management’s judgments regarding expectations of projected cash flows, and discounts those cash flows using a risk-adjusted discount rate. | |||||||||||||||||
The following tables provide fair value measurement information for such assets and liabilities that are measured on a recurring basis as of September 30, 2013 and December 31, 2012 (in millions): | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
September 30, 2013 Using | |||||||||||||||||
Netting and | Total Fair | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Collateral | (a) | Value | |||||||||||
Assets: | |||||||||||||||||
Commodity derivatives | $ | 551 | $ | 314 | $ | — | $ | (750 | ) | $ | 115 | ||||||
Liabilities: | |||||||||||||||||
Commodity derivatives | $ | 524 | $ | 344 | $ | — | $ | (784 | ) | $ | 84 | ||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using | |||||||||||||||||
Netting and | Total Fair | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Collateral | (a) | Value | |||||||||||
Assets: | |||||||||||||||||
Commodity derivatives | $ | 107 | $ | 312 | $ | — | $ | (301 | ) | $ | 118 | ||||||
Liabilities: | |||||||||||||||||
Commodity derivatives | $ | 99 | $ | 398 | $ | — | $ | (371 | ) | $ | 126 | ||||||
(a) Represents the impact of netting assets, liabilities and collateral when a legal right of offset exists. | |||||||||||||||||
Fair Values — Nonrecurring | |||||||||||||||||
During the three and nine months ended September 30, 2013 and 2012, Occidental did not have assets or liabilities measured at fair value on a non-recurring basis. | |||||||||||||||||
Other Financial Instruments | |||||||||||||||||
The carrying amounts of cash and cash equivalents and other on-balance-sheet financial instruments, other than fixed-rate debt, approximate fair value. The cost, if any, to terminate off-balance-sheet financial instruments is not significant. Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments’ maturities. The estimated fair values of Occidental’s debt as of September 30, 2013 and December 31, 2012 were approximately $7.7 billion and $8.2 billion, respectively, and its carrying value at each date was $7.6 billion. Occidental classifies its debt as Level 1. | |||||||||||||||||
Derivatives
Derivatives | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivatives | ||||||||||||||
Derivatives | ||||||||||||||
10. Derivatives | ||||||||||||||
Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Occidental applies hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. Otherwise, any fair value gains or losses are recognized in earnings in the current period. | ||||||||||||||
Occidental uses a variety of derivative instruments, including cash-flow hedges and derivative instruments not designated as hedging instruments, to establish, as of the date of production, the price it receives and to improve realized prices for oil and gas. Occidental only occasionally hedges its oil and gas production and, when it does, the volumes are usually insignificant. Additionally, Occidental’s Phibro trading unit engages in trading activities using derivatives for the purpose of generating profits mainly from market price changes of commodities. | ||||||||||||||
Cash-Flow Hedges | ||||||||||||||
Occidental entered into financial swap agreements in November 2012 for the sale of a portion of its natural gas production in California. These swap agreements hedge 50 million cubic feet of natural gas per day beginning in January 2013 through March 2014 and qualify as cash-flow hedges. The weighted-average strike price of these swaps is $4.30. | ||||||||||||||
Through March 31, 2012, Occidental held financial swap agreements related to the sale of 50 million cubic feet per day of its existing natural gas production from the Rocky Mountain region of the United States that qualified as cash-flow hedges at a weighted-average strike price of $6.07. | ||||||||||||||
Occidental’s marketing and trading operations store natural gas purchased from third parties at Occidental’s North American leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes through March 31, 2014. As of September 30, 2013 and December 31, 2012, Occidental had approximately 16 billion cubic feet and 20 billion cubic feet of natural gas held in storage, respectively. As of September 30, 2013 and December 31, 2012, Occidental had cash-flow hedges for the forecast sale, to be settled by physical delivery, of approximately 18 billion cubic feet and 20 billion cubic feet of natural gas, respectively. | ||||||||||||||
The following table presents the after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (AOCI) for derivative instruments classified as cash-flow hedges for the three and nine months ended September 30, 2013 and 2012 (in millions): | ||||||||||||||
Periods ended September 30 | ||||||||||||||
Three Months | Nine Months | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning Balance — AOCI | $ | (9 | ) | $ | (11 | ) | $ | (7 | ) | $ | 1 | |||
Unrealized (losses) gains recognized in AOCI | — | (2 | ) | 1 | 10 | |||||||||
Gains reclassified to income | (1 | ) | — | (4 | ) | (24 | ) | |||||||
Ending Balance — AOCI | $ | (10 | ) | $ | (13 | ) | $ | (10 | ) | $ | (13 | ) | ||
Occidental expects to reclassify an insignificant amount, based on the valuation as of September 30, 2013, of net after-tax derivative losses from AOCI into income during the next 12 months. The gains and losses reclassified to income were recognized in net sales, and the amount of the ineffective portion of cash-flow hedges was immaterial for the three and nine months ended September 30, 2013 and 2012. | ||||||||||||||
Derivatives Not Designated as Hedging Instruments | ||||||||||||||
The following table summarizes Occidental’s net volumes of outstanding commodity derivatives contracts not designated as hedging instruments, including both financial and physical derivative contracts as of September 30, 2013 and December 31, 2012. | ||||||||||||||
Net Outstanding Position | ||||||||||||||
Long / (Short) | ||||||||||||||
Commodity | 2013 | 2012 | ||||||||||||
Oil (million barrels) | (15 | ) | (4 | ) | ||||||||||
Natural gas (billion cubic feet) | (47 | ) | (170 | ) | ||||||||||
Precious metals (million troy ounces) | 1 | 1 | ||||||||||||
The volumes in the table above exclude contracts tied to index prices, for which the fair value, if any, is minimal at any point in time. These contracts do not expose Occidental to price risk because the contract prices fluctuate with index prices. | ||||||||||||||
In addition, Occidental typically has certain other commodity trading contracts, such as agricultural products, power and other metals, as well as foreign exchange contracts. These contracts were not material to Occidental as of September 30, 2013 and December 31, 2012. | ||||||||||||||
Occidental fulfills its short positions through its own production or by third-party purchase contracts. Subsequent to September 30, 2013, Occidental entered into purchase contracts for a substantial portion of the outstanding positions at quarter-end and has production capacity and the ability to enter into additional purchase contracts sufficient to satisfy the remaining positions. | ||||||||||||||
Approximately $56 million and $78 million of net gains from derivatives not designated as hedging instruments were recognized in net sales for the three months ended September 30, 2013 and 2012, respectively. Approximately $41 million and $42 million of net gains from derivatives not designated as hedging instruments were recognized in net sales for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Fair Value of Derivatives | ||||||||||||||
The following table presents the gross and net fair values of Occidental’s outstanding derivatives as of September 30, 2013 and December 31, 2012 (in millions): | ||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
September 30, 2013 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Cash-flow hedges (a) | ||||||||||||||
Commodity contracts | Other current assets | $ | 4 | Accrued liabilities | $ | 1 | ||||||||
Long-term receivables and other assets, net | — | Deferred credits and other liabilities | — | |||||||||||
4 | 1 | |||||||||||||
Derivatives not designated as hedging instruments (a) | ||||||||||||||
Commodity contracts | Other current assets | 841 | Accrued liabilities | 850 | ||||||||||
Long-term receivables and other assets, net | 20 | Deferred credits and other liabilities | 17 | |||||||||||
861 | 867 | |||||||||||||
Total gross fair value | 865 | 868 | ||||||||||||
Less: counterparty netting and cash collateral (b) (d) | (750 | ) | (784 | ) | ||||||||||
Total net fair value of derivatives | $ | 115 | $ | 84 | ||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
December 31, 2012 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Cash-flow hedges (a) | ||||||||||||||
Commodity contracts | Other current assets | $ | 11 | Accrued liabilities | $ | 1 | ||||||||
Long-term receivables and other assets, net | — | Deferred credits and other liabilities | 1 | |||||||||||
11 | 2 | |||||||||||||
Derivatives not designated as hedging instruments (a) | ||||||||||||||
Commodity contracts | Other current assets | 386 | Accrued liabilities | 479 | ||||||||||
Long-term receivables and other assets, net | 22 | Deferred credits and other liabilities | 16 | |||||||||||
408 | 495 | |||||||||||||
Total gross fair value | 419 | 497 | ||||||||||||
Less: counterparty netting and cash collateral (c) (d) | (301 | ) | (371 | ) | ||||||||||
Total net fair value of derivatives | $ | 118 | $ | 126 | ||||||||||
(a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and qualify for net presentation in the consolidated balance sheet. | ||||||||||||||
(b) As of September 30, 2013, collateral received of $13 million has been netted against derivative assets and collateral paid of $47 million has been netted against derivative liabilities. | ||||||||||||||
(c) As of December 31, 2012, collateral received of $25 million has been netted against derivative assets and collateral paid of $95 million has been netted against derivative liabilities. | ||||||||||||||
(d) Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $85 million and $116 million deposited by Occidental has not been reflected in these derivative fair value tables, but is included in the other current assets balance as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||
See Note 9 for fair value measurement disclosures on derivatives. | ||||||||||||||
Credit Risk | ||||||||||||||
A substantial portion of Occidental’s derivative transaction volume is executed through exchange-traded contracts, which are subject to minimal credit risk as a significant portion of these transactions is settled on a daily margin basis with select clearinghouses and brokers. Occidental executes the rest of its derivative transactions in the OTC market. Occidental is subject to counterparty credit risk to the extent the counterparty to the derivatives is unable to meet its settlement commitments. Occidental manages this credit risk by selecting counterparties that it believes to be financially strong, by spreading the credit risk among many such counterparties, by entering into master netting arrangements with counterparties and by requiring collateral, as appropriate. Occidental actively monitors the creditworthiness of each counterparty and records valuation adjustments to reflect counterparty risk, if necessary. | ||||||||||||||
Certain of Occidental’s OTC derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each would need to post. As of September 30, 2013 and December 31, 2012, Occidental had a liability of $19 million and $34 million, respectively, net of collateral posted of $28 million and $64 million, respectively. Occidental believes that if it had received a one-notch reduction in its credit ratings, it would not have resulted in a material change in its collateral-posting requirements as of September 30, 2013 and December 31, 2012. | ||||||||||||||
Industry_Segments
Industry Segments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Industry Segments | |||||||||||||||||
Industry Segments | |||||||||||||||||
11. Industry Segments | |||||||||||||||||
Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream, marketing and other (midstream and marketing). The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGL) 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, carbon dioxide (CO2) and power. It also trades around its assets, including transportation and storage capacity, and trades oil, NGLs, gas and other commodities. The segment also invests in entities that conduct similar activities. | |||||||||||||||||
Earnings of industry segments generally 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 assets and income from the segment 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. | |||||||||||||||||
The following tables present Occidental’s industry segment and corporate disclosures (in millions): | |||||||||||||||||
Oil and Gas | Chemical | Midstream | Corporate | Total | |||||||||||||
and | and | ||||||||||||||||
Marketing | Eliminations | ||||||||||||||||
Three months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Net sales | $ | 5,018 | $ | 1,200 | $ | 442 | $ | (211 | ) | $ | 6,449 | ||||||
Pretax operating profit (loss) | $ | 2,363 | $ | 181 | $ | 212 | $ | (131 | )(a) | $ | 2,625 | ||||||
Income taxes | — | — | — | (1,037 | )(b) | (1,037 | ) | ||||||||||
Discontinued operations, net | — | — | — | (5 | ) | (5 | ) | ||||||||||
Net income (loss) | $ | 2,363 | $ | 181 | $ | 212 | $ | (1,173 | ) | $ | 1,583 | ||||||
Three months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Net sales | $ | 4,635 | $ | 1,119 | $ | 389 | $ | (178 | ) | $ | 5,965 | ||||||
Pretax operating profit (loss) | $ | 2,026 | $ | 162 | $ | 156 | $ | (110 | )(a) | $ | 2,234 | ||||||
Income taxes | — | — | — | (855 | )(b) | (855 | ) | ||||||||||
Discontinued operations, net | — | — | — | (4 | ) | (4 | ) | ||||||||||
Net income (loss) | $ | 2,026 | $ | 162 | $ | 156 | $ | (969 | ) | $ | 1,375 | ||||||
Oil and Gas | Chemical | Midstream | Corporate | Total | |||||||||||||
and | and | ||||||||||||||||
Marketing | Eliminations | ||||||||||||||||
Nine months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Net sales | $ | 14,179 | $ | 3,562 | $ | 1,164 | $ | (622 | ) | $ | 18,283 | ||||||
Pretax operating profit (loss) | $ | 6,383 | $ | 615 | (c) | $ | 475 | $ | (417 | )(a) | $ | 7,056 | |||||
Income taxes | — | — | — | (2,782 | )(b) | (2,782 | ) | ||||||||||
Discontinued operations, net | — | — | — | (14 | ) | (14 | ) | ||||||||||
Net income (loss) | $ | 6,383 | $ | 615 | $ | 475 | $ | (3,213 | ) | $ | 4,260 | ||||||
Nine months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Net sales | $ | 14,032 | $ | 3,439 | $ | 1,044 | $ | (514 | ) | $ | 18,001 | ||||||
Pretax operating profit (loss) | $ | 6,573 | $ | 540 | $ | 364 | $ | (337 | )(a) | $ | 7,140 | ||||||
Income taxes | — | — | — | (2,869 | )(b) | (2,869 | ) | ||||||||||
Discontinued operations, net | — | — | — | (9 | ) | (9 | ) | ||||||||||
Net income (loss) | $ | 6,573 | $ | 540 | $ | 364 | $ | (3,215 | ) | $ | 4,262 | ||||||
(a) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items. The nine-month period ended September 30, 2013 includes a $55 million pre-tax charge for the estimated cost related to employment and post-employment benefits for Occidental’s former Executive Chairman and termination of certain other employees and consulting arrangements. | |||||||||||||||||
(b) Includes all foreign and domestic income taxes from continuing operations. | |||||||||||||||||
(c) The nine-month period ended September 30, 2013 includes a $131 million pre-tax gain for the sale of an investment in Carbocloro, a Brazilian chemical facility. | |||||||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share | ||||||||||||||
Earnings Per Share | 12. Earnings Per Share | |||||||||||||
Occidental’s instruments containing rights to nonforfeitable dividends granted in stock-based payment transactions are considered participating securities prior to vesting and, therefore, have been included in the earnings allocations in computing basic and diluted EPS under the two-class method. | ||||||||||||||
Basic EPS was computed by dividing net income, net of income allocated to participating securities, by the weighted-average number of common shares outstanding during each period, net of treasury shares and including vested but unissued shares and share units. The computation of diluted EPS reflects the additional dilutive effect of stock options and unvested stock awards. | ||||||||||||||
The following table presents the calculation of basic and diluted EPS for the three and nine months ended September 30, 2013 and 2012: | ||||||||||||||
Periods ended September 30 | ||||||||||||||
Three months | Nine months | |||||||||||||
(in millions, except per-share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Basic EPS | ||||||||||||||
Income from continuing operations | $ | 1,588 | $ | 1,379 | $ | 4,274 | $ | 4,271 | ||||||
Discontinued operations, net | (5 | ) | (4 | ) | (14 | ) | (9 | ) | ||||||
Net income | 1,583 | 1,375 | 4,260 | 4,262 | ||||||||||
Less: Net income allocated to participating securities | (4 | ) | (3 | ) | (9 | ) | (8 | ) | ||||||
Net income, net of participating securities | $ | 1,579 | $ | 1,372 | $ | 4,251 | $ | 4,254 | ||||||
Weighted average number of basic shares | 805.1 | 809.7 | 804.8 | 810.1 | ||||||||||
Basic EPS | $ | 1.96 | $ | 1.69 | $ | 5.28 | $ | 5.25 | ||||||
Diluted EPS | ||||||||||||||
Net income, net of participating securities | $ | 1,579 | $ | 1,372 | $ | 4,251 | $ | 4,254 | ||||||
Weighted average number of basic shares | 805.1 | 809.7 | 804.8 | 810.1 | ||||||||||
Dilutive effect of potentially dilutive securities | 0.6 | 0.7 | 0.6 | 0.7 | ||||||||||
Total diluted weighted average common shares | 805.7 | 810.4 | 805.4 | 810.8 | ||||||||||
Diluted EPS | $ | 1.96 | $ | 1.69 | $ | 5.28 | $ | 5.25 |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Inventories | ||||||||||
Inventories (in millions) | ||||||||||
2013 | 2012 | |||||||||
Raw materials | $ | 74 | $ | 70 | ||||||
Materials and supplies | 647 | 612 | ||||||||
Finished goods | 708 | 763 | ||||||||
1,429 | 1,445 | |||||||||
LIFO reserve | (101 | ) | (101 | ) | ||||||
Total | $ | 1,328 | $ | 1,344 |
Environmental_Liabilities_and_1
Environmental Liabilities and Expenditures (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Environmental Liabilities and Expenditures | ||||||||||
Environmental loss contingencies by categories of sites | ||||||||||
Number of Sites | Reserve Balance | |||||||||
(in millions) | ||||||||||
NPL sites | 32 | $ | 51 | |||||||
Third-party sites | 75 | 91 | ||||||||
Occidental-operated sites | 22 | 118 | ||||||||
Closed or non-operated Occidental sites | 31 | 74 | ||||||||
Total | 160 | $ | 334 |
Retirement_and_Postretirement_1
Retirement and Postretirement Benefit Plans (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Retirement and Postretirement Benefit Plans | ||||||||||||||||||
Components of the net periodic benefit cost (in millions) | ||||||||||||||||||
Three months ended September 30 | 2013 | 2012 | ||||||||||||||||
Net Periodic Benefit Costs | Pension | Postretirement | Pension | Postretirement | ||||||||||||||
Benefit | Benefit | Benefit | Benefit | |||||||||||||||
Service cost | $ | 3 | $ | 8 | $ | 3 | $ | 6 | ||||||||||
Interest cost | 6 | 11 | 6 | 10 | ||||||||||||||
Expected return on plan assets | (7 | ) | — | (7 | ) | — | ||||||||||||
Amortization of prior service cost | — | — | 1 | — | ||||||||||||||
Recognized actuarial loss | 10 | 9 | 4 | 10 | ||||||||||||||
Total | $ | 12 | $ | 28 | $ | 7 | $ | 26 | ||||||||||
Nine months ended September 30 | 2013 | 2012 | ||||||||||||||||
Net Periodic Benefit Costs | Pension | Postretirement | Pension | Postretirement | ||||||||||||||
Benefit | Benefit | Benefit | Benefit | |||||||||||||||
Service cost | $ | 10 | $ | 22 | $ | 9 | $ | 19 | ||||||||||
Interest cost | 19 | 32 | 20 | 32 | ||||||||||||||
Expected return on plan assets | (23 | ) | — | (23 | ) | — | ||||||||||||
Amortization of prior service cost | — | — | 1 | — | ||||||||||||||
Recognized actuarial loss | 18 | 29 | 14 | 27 | ||||||||||||||
Total | $ | 24 | $ | 83 | $ | 21 | $ | 78 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis (in millions) | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
September 30, 2013 Using | |||||||||||||||||
Netting and | Total Fair | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Collateral | (a) | Value | |||||||||||
Assets: | |||||||||||||||||
Commodity derivatives | $ | 551 | $ | 314 | $ | — | $ | (750 | ) | $ | 115 | ||||||
Liabilities: | |||||||||||||||||
Commodity derivatives | $ | 524 | $ | 344 | $ | — | $ | (784 | ) | $ | 84 | ||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2012 Using | |||||||||||||||||
Netting and | Total Fair | ||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Collateral | (a) | Value | |||||||||||
Assets: | |||||||||||||||||
Commodity derivatives | $ | 107 | $ | 312 | $ | — | $ | (301 | ) | $ | 118 | ||||||
Liabilities: | |||||||||||||||||
Commodity derivatives | $ | 99 | $ | 398 | $ | — | $ | (371 | ) | $ | 126 | ||||||
(a) Represents the impact of netting assets, liabilities and collateral when a legal right of offset exists. | |||||||||||||||||
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivatives | ||||||||||||||
Cash-flow hedges - after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (in millions) | ||||||||||||||
Periods ended September 30 | ||||||||||||||
Three Months | Nine Months | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Beginning Balance — AOCI | $ | (9 | ) | $ | (11 | ) | $ | (7 | ) | $ | 1 | |||
Unrealized (losses) gains recognized in AOCI | — | (2 | ) | 1 | 10 | |||||||||
Gains reclassified to income | (1 | ) | — | (4 | ) | (24 | ) | |||||||
Ending Balance — AOCI | $ | (10 | ) | $ | (13 | ) | $ | (10 | ) | $ | (13 | ) | ||
Gross and net fair values of outstanding derivatives (in millions) | ||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
September 30, 2013 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Cash-flow hedges (a) | ||||||||||||||
Commodity contracts | Other current assets | $ | 4 | Accrued liabilities | $ | 1 | ||||||||
Long-term receivables and other assets, net | — | Deferred credits and other liabilities | — | |||||||||||
4 | 1 | |||||||||||||
Derivatives not designated as hedging instruments (a) | ||||||||||||||
Commodity contracts | Other current assets | 841 | Accrued liabilities | 850 | ||||||||||
Long-term receivables and other assets, net | 20 | Deferred credits and other liabilities | 17 | |||||||||||
861 | 867 | |||||||||||||
Total gross fair value | 865 | 868 | ||||||||||||
Less: counterparty netting and cash collateral (b) (d) | (750 | ) | (784 | ) | ||||||||||
Total net fair value of derivatives | $ | 115 | $ | 84 | ||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
December 31, 2012 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Cash-flow hedges (a) | ||||||||||||||
Commodity contracts | Other current assets | $ | 11 | Accrued liabilities | $ | 1 | ||||||||
Long-term receivables and other assets, net | — | Deferred credits and other liabilities | 1 | |||||||||||
11 | 2 | |||||||||||||
Derivatives not designated as hedging instruments (a) | ||||||||||||||
Commodity contracts | Other current assets | 386 | Accrued liabilities | 479 | ||||||||||
Long-term receivables and other assets, net | 22 | Deferred credits and other liabilities | 16 | |||||||||||
408 | 495 | |||||||||||||
Total gross fair value | 419 | 497 | ||||||||||||
Less: counterparty netting and cash collateral (c) (d) | (301 | ) | (371 | ) | ||||||||||
Total net fair value of derivatives | $ | 118 | $ | 126 | ||||||||||
(a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and qualify for net presentation in the consolidated balance sheet. | ||||||||||||||
(b) As of September 30, 2013, collateral received of $13 million has been netted against derivative assets and collateral paid of $47 million has been netted against derivative liabilities. | ||||||||||||||
(c) As of December 31, 2012, collateral received of $25 million has been netted against derivative assets and collateral paid of $95 million has been netted against derivative liabilities. | ||||||||||||||
(d) Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $85 million and $116 million deposited by Occidental has not been reflected in these derivative fair value tables, but is included in the other current assets balance as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||
Derivatives Not Designated as Hedging Instruments | Commodity Contracts | ||||||||||||||
Derivatives | ||||||||||||||
Schedule of outstanding derivative instruments | ||||||||||||||
Net Outstanding Position | ||||||||||||||
Long / (Short) | ||||||||||||||
Commodity | 2013 | 2012 | ||||||||||||
Oil (million barrels) | (15 | ) | (4 | ) | ||||||||||
Natural gas (billion cubic feet) | (47 | ) | (170 | ) | ||||||||||
Precious metals (million troy ounces) | 1 | 1 |
Industry_Segments_Tables
Industry Segments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Industry Segments | |||||||||||||||||
Industry segment and corporate disclosures (in millions) | |||||||||||||||||
Oil and Gas | Chemical | Midstream | Corporate | Total | |||||||||||||
and | and | ||||||||||||||||
Marketing | Eliminations | ||||||||||||||||
Three months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Net sales | $ | 5,018 | $ | 1,200 | $ | 442 | $ | (211 | ) | $ | 6,449 | ||||||
Pretax operating profit (loss) | $ | 2,363 | $ | 181 | $ | 212 | $ | (131 | )(a) | $ | 2,625 | ||||||
Income taxes | — | — | — | (1,037 | )(b) | (1,037 | ) | ||||||||||
Discontinued operations, net | — | — | — | (5 | ) | (5 | ) | ||||||||||
Net income (loss) | $ | 2,363 | $ | 181 | $ | 212 | $ | (1,173 | ) | $ | 1,583 | ||||||
Three months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Net sales | $ | 4,635 | $ | 1,119 | $ | 389 | $ | (178 | ) | $ | 5,965 | ||||||
Pretax operating profit (loss) | $ | 2,026 | $ | 162 | $ | 156 | $ | (110 | )(a) | $ | 2,234 | ||||||
Income taxes | — | — | — | (855 | )(b) | (855 | ) | ||||||||||
Discontinued operations, net | — | — | — | (4 | ) | (4 | ) | ||||||||||
Net income (loss) | $ | 2,026 | $ | 162 | $ | 156 | $ | (969 | ) | $ | 1,375 | ||||||
Oil and Gas | Chemical | Midstream | Corporate | Total | |||||||||||||
and | and | ||||||||||||||||
Marketing | Eliminations | ||||||||||||||||
Nine months ended | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Net sales | $ | 14,179 | $ | 3,562 | $ | 1,164 | $ | (622 | ) | $ | 18,283 | ||||||
Pretax operating profit (loss) | $ | 6,383 | $ | 615 | (c) | $ | 475 | $ | (417 | )(a) | $ | 7,056 | |||||
Income taxes | — | — | — | (2,782 | )(b) | (2,782 | ) | ||||||||||
Discontinued operations, net | — | — | — | (14 | ) | (14 | ) | ||||||||||
Net income (loss) | $ | 6,383 | $ | 615 | $ | 475 | $ | (3,213 | ) | $ | 4,260 | ||||||
Nine months ended | |||||||||||||||||
September 30, 2012 | |||||||||||||||||
Net sales | $ | 14,032 | $ | 3,439 | $ | 1,044 | $ | (514 | ) | $ | 18,001 | ||||||
Pretax operating profit (loss) | $ | 6,573 | $ | 540 | $ | 364 | $ | (337 | )(a) | $ | 7,140 | ||||||
Income taxes | — | — | — | (2,869 | )(b) | (2,869 | ) | ||||||||||
Discontinued operations, net | — | — | — | (9 | ) | (9 | ) | ||||||||||
Net income (loss) | $ | 6,573 | $ | 540 | $ | 364 | $ | (3,215 | ) | $ | 4,262 | ||||||
(a) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items. The nine-month period ended September 30, 2013 includes a $55 million pre-tax charge for the estimated cost related to employment and post-employment benefits for Occidental’s former Executive Chairman and termination of certain other employees and consulting arrangements. | |||||||||||||||||
(b) Includes all foreign and domestic income taxes from continuing operations. | |||||||||||||||||
(c) The nine-month period ended September 30, 2013 includes a $131 million pre-tax gain for the sale of an investment in Carbocloro, a Brazilian chemical facility. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Earnings Per Share | ||||||||||||||
Calculation of basic and diluted EPS | ||||||||||||||
Periods ended September 30 | ||||||||||||||
Three months | Nine months | |||||||||||||
(in millions, except per-share amounts) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Basic EPS | ||||||||||||||
Income from continuing operations | $ | 1,588 | $ | 1,379 | $ | 4,274 | $ | 4,271 | ||||||
Discontinued operations, net | (5 | ) | (4 | ) | (14 | ) | (9 | ) | ||||||
Net income | 1,583 | 1,375 | 4,260 | 4,262 | ||||||||||
Less: Net income allocated to participating securities | (4 | ) | (3 | ) | (9 | ) | (8 | ) | ||||||
Net income, net of participating securities | $ | 1,579 | $ | 1,372 | $ | 4,251 | $ | 4,254 | ||||||
Weighted average number of basic shares | 805.1 | 809.7 | 804.8 | 810.1 | ||||||||||
Basic EPS | $ | 1.96 | $ | 1.69 | $ | 5.28 | $ | 5.25 | ||||||
Diluted EPS | ||||||||||||||
Net income, net of participating securities | $ | 1,579 | $ | 1,372 | $ | 4,251 | $ | 4,254 | ||||||
Weighted average number of basic shares | 805.1 | 809.7 | 804.8 | 810.1 | ||||||||||
Dilutive effect of potentially dilutive securities | 0.6 | 0.7 | 0.6 | 0.7 | ||||||||||
Total diluted weighted average common shares | 805.7 | 810.4 | 805.4 | 810.8 | ||||||||||
Diluted EPS | $ | 1.96 | $ | 1.69 | $ | 5.28 | $ | 5.25 |
Asset_Acquisitions_Disposition1
Asset Acquisitions, Dispositions and Other (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | 31-May-13 | Oct. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Brazilian chemical facility | General Partner of Plains All American Pipeline,L.P | BridgeTex | BridgeTex | |||
Acquisitions, dispositions and other transactions | ||||||
Sale of equity investment, net | $270 | $270 | $1,400 | |||
Gain on sale of equity investment | 131 | 131 | 1,000 | |||
Charge for former executives and consultants | 55 | |||||
Percentage of ownership interest | 50.00% | 50.00% | ||||
Money market funds | $123 | $50 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Supplemental Cash Flow Information | ||
United States federal, state and foreign income taxes paid for continuing operations | $1,300,000,000 | $1,800,000,000 |
Interest Paid | $215,000,000 | $167,000,000 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories | ||
Raw materials | $74 | $70 |
Materials and supplies | 647 | 612 |
Finished goods | 708 | 763 |
Inventories, Gross | 1,429 | 1,445 |
LIFO reserve | -101 | -101 |
Total | $1,328 | $1,344 |
Environmental_Liabilities_and_2
Environmental Liabilities and Expenditures (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
site | |
Environmental Liabilities and Expenditures | |
Environmental remediation reserves, current, included in accrued liabilities | $80 |
Environmental remediation reserves, noncurrent, included in deferred credits and other liabilities - other | 254 |
Environmental remediation reserves | |
Number of Sites | 160 |
Reserve Balance | 334 |
Environmental reserves, exceeding $ ten million, threshold value | 10 |
Environmental reserves, exceeding $ ten million, number of sites | 10 |
Environmental reserves, range between zero to $ one million site category, number of sites | 112 |
Minimum period of expending second half of environmental reserves | 10 years |
Environmental remediation additional loss range | 375 |
Low end of range | |
Environmental remediation reserves | |
Environmental reserves, range between zero to $ one million site category | 0 |
Period of expending first half of environmental reserves | 3 years |
High end of range | |
Environmental remediation reserves | |
Environmental reserves, range between zero to $ one million site category | 1 |
Period of expending first half of environmental reserves | 4 years |
NPL sites | |
Environmental remediation reserves | |
Number of Sites | 32 |
Reserve Balance | 51 |
Third-party sites | |
Environmental remediation reserves | |
Number of Sites | 75 |
Reserve Balance | 91 |
Occidental-operated sites | |
Environmental remediation reserves | |
Number of Sites | 22 |
Reserve Balance | 118 |
Closed or non-operated Occidental sites | |
Environmental remediation reserves | |
Number of Sites | 31 |
Reserve Balance | $74 |
Retirement_and_Postretirement_2
Retirement and Postretirement Benefit Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Pension Benefit | ||||
Net periodic benefit costs: | ||||
Service cost | $3 | $3 | $10 | $9 |
Interest cost | 6 | 6 | 19 | 20 |
Expected return on plan assets | -7 | -7 | -23 | -23 |
Amortization of prior service cost | 1 | 1 | ||
Recognized actuarial loss | 10 | 4 | 18 | 14 |
Net periodic benefit cost | 12 | 7 | 24 | 21 |
Employer contributions | 1 | 1 | 3 | 4 |
Postretirement Benefit | ||||
Net periodic benefit costs: | ||||
Service cost | 8 | 6 | 22 | 19 |
Interest cost | 11 | 10 | 32 | 32 |
Recognized actuarial loss | 9 | 10 | 29 | 27 |
Net periodic benefit cost | $28 | $26 | $83 | $78 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Level 1 | ||
Fair Value - Other Financial Instruments | ||
Debt estimated fair value | $7,700,000,000 | $8,200,000,000 |
Debt carrying value | 7,600,000,000 | 7,600,000,000 |
Recurring | Level 1 | ||
Assets: | ||
Commodity derivatives | 551,000,000 | 107,000,000 |
Liabilities: | ||
Commodity derivatives | 524,000,000 | 99,000,000 |
Recurring | Level 2 | ||
Assets: | ||
Commodity derivatives | 314,000,000 | 312,000,000 |
Liabilities: | ||
Commodity derivatives | 344,000,000 | 398,000,000 |
Recurring | Netting and Collateral | ||
Assets: | ||
Commodity derivatives | -750,000,000 | -301,000,000 |
Liabilities: | ||
Commodity derivatives | -784,000,000 | -371,000,000 |
Recurring | Total Fair Value | ||
Assets: | ||
Commodity derivatives | 115,000,000 | 118,000,000 |
Liabilities: | ||
Commodity derivatives | $84,000,000 | $126,000,000 |
Derivatives_Details
Derivatives (Details) | Sep. 30, 2013 | Dec. 31, 2012 | Nov. 30, 2012 | Mar. 31, 2012 |
ft3 | ft3 | Natural Gas - Swaps through March 2014 (in cubic feet) | Natural Gas - Swaps through March 2012 (in cubic feet) | |
Cash-Flow Hedges | ||||
Daily volume | 50,000,000 | 50,000,000 | ||
Weighted-average strike price in dollars per cubic foot) | 0.0043 | 0.00607 | ||
Natural gas held in storage (in cubic feet) | 16,000,000,000 | 20,000,000,000 | ||
Forecast sale of natural gas from storage designated as cash-flow hedges (in cubic feet) | 18,000,000,000 | 20,000,000,000 |
Derivatives_Details_2
Derivatives (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Net After-tax Derivative Activity recorded in AOCI | ||||||||
Beginning Balance - AOCI | ($9) | ($11) | ($7) | $1 | ||||
Unrealized (losses) gains recognized in AOCI | -2 | [1] | 1 | [1] | 10 | [1] | ||
Gains reclassified to income | -1 | [2] | -4 | [2] | -24 | [2] | ||
Ending Balance - AOCI | ($10) | ($13) | ($10) | ($13) | ||||
[1] | Net of tax of zero and $1 for the three months ended September 30, 2013 and 2012, respectively, and $(1) and $(7) for the nine months ended September 30, 2013 and 2012. | |||||||
[2] | Net of tax of zero for each of the three months ended September 30, 2013 and 2012, and $2 and $14 for the nine months ended September 30, 2013 and 2012, respectively. |
Derivatives_Details_3
Derivatives (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Oil (in barrels) | Oil (in barrels) | Natural Gas (in cubic feet) | Natural Gas (in cubic feet) | Precious metals (in troy ounces) | Precious metals (in troy ounces) | |||||
bbl | bbl | ft3 | ft3 | ozt | ozt | |||||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||||||||||
Net Outstanding Position Long/(Short) | -15,000,000 | -4,000,000 | -47,000,000,000 | -170,000,000,000 | 1,000,000 | 1,000,000 | ||||
Net gains from derivatives not designated as hedging instruments recognized in net sales (in dollars) | $56 | $78 | $41 | $42 |
Derivatives_Details_4
Derivatives (Details 4) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Less: counterparty netting and cash collateral, asset | ($750) | ($301) |
Less: counterparty netting and cash collateral, liability | -784 | -371 |
Total net fair value, asset | 115 | 118 |
Total net fair value, liability | 84 | 126 |
Collateral received netted against derivative assets | 13 | 25 |
Collateral paid netted against derivative liabilities | 47 | 95 |
Collateral deposited with clearinghouses and brokers | 85 | 116 |
Credit risk contingent features | ||
Net derivative liabilities with credit-risk-contingent features | 19 | 34 |
Amount of collateral posted | 28 | 64 |
Commodity Contracts | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 865 | 419 |
Commodity contract derivative liability, gross | 868 | 497 |
Cash-flow hedges | Commodity Contracts | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 4 | 11 |
Commodity contract derivative liability, gross | 1 | 2 |
Cash-flow hedges | Commodity Contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 4 | 11 |
Cash-flow hedges | Commodity Contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 1 | 1 |
Cash-flow hedges | Commodity Contracts | Deferred credits and other liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 1 | |
Not designated as hedging instruments | Commodity Contracts | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 861 | 408 |
Commodity contract derivative liability, gross | 867 | 495 |
Not designated as hedging instruments | Commodity Contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 841 | 386 |
Not designated as hedging instruments | Commodity Contracts | Long-term receivables and other assets, net | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 20 | 22 |
Not designated as hedging instruments | Commodity Contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 850 | 479 |
Not designated as hedging instruments | Commodity Contracts | Deferred credits and other liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | $17 | $16 |
Industry_Segments_Details
Industry Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | 31-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
segment | segment | segment | segment | Brazilian chemical facility | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Operating segments | Corporate and Eliminations | Corporate and Eliminations | Corporate and Eliminations | Corporate and Eliminations | ||
Oil and Gas | Oil and Gas | Oil and Gas | Oil and Gas | Chemical | Chemical | Chemical | Chemical | Chemical | Midstream and Marketing | Midstream and Marketing | Midstream and Marketing | Midstream and Marketing | |||||||||||
Brazilian chemical facility | |||||||||||||||||||||||
Industry Segments | |||||||||||||||||||||||
Number of operating segments | 3 | 3 | 3 | 3 | |||||||||||||||||||
Segment Information | |||||||||||||||||||||||
Net sales | $6,449 | $5,965 | $18,283 | $18,001 | $5,018 | $4,635 | $14,179 | $14,032 | $1,200 | $1,119 | $3,562 | $3,439 | $442 | $389 | $1,164 | $1,044 | ($211) | ($178) | ($622) | ($514) | |||
Pretax operating profit (loss) | 2,625 | 2,234 | 7,056 | 7,140 | 2,363 | 2,026 | 6,383 | 6,573 | 181 | 162 | 615 | 540 | 212 | 156 | 475 | 364 | -131 | -110 | -417 | -337 | |||
Income taxes | -1,037 | -855 | -2,782 | -2,869 | -1,037 | -855 | -2,782 | -2,869 | |||||||||||||||
Discontinued operations, net | -5 | -4 | -14 | -9 | -5 | -4 | -14 | -9 | |||||||||||||||
Net income (loss) | 1,583 | 1,375 | 4,260 | 4,262 | 2,363 | 2,026 | 6,383 | 6,573 | 181 | 162 | 615 | 540 | 212 | 156 | 475 | 364 | -1,173 | -969 | -3,213 | -3,215 | |||
Charge for former executives and consultants | 55 | 55 | |||||||||||||||||||||
Gain on sale of equity investment | $131 | $131 | $131 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basic EPS | ||||
Income from continuing operations | $1,588 | $1,379 | $4,274 | $4,271 |
Discontinued operations, net | -5 | -4 | -14 | -9 |
NET INCOME | 1,583 | 1,375 | 4,260 | 4,262 |
Less: Net income allocated to participating securities | -4 | -3 | -9 | -8 |
Net income, net of participating securities | 1,579 | 1,372 | 4,251 | 4,254 |
Weighted average number of basic shares | 805.1 | 809.7 | 804.8 | 810.1 |
Basic EPS (in dollars per share) | $1.96 | $1.69 | $5.28 | $5.25 |
Diluted EPS | ||||
Net income, net of participating securities | $1,579 | $1,372 | $4,251 | $4,254 |
Weighted average number of basic shares | 805.1 | 809.7 | 804.8 | 810.1 |
Dilutive effect of potentially dilutive securities (in shares) | 0.6 | 0.7 | 0.6 | 0.7 |
Total diluted weighted average common shares | 805.7 | 810.4 | 805.4 | 810.8 |
Diluted EPS (in dollars per share) | $1.96 | $1.69 | $5.28 | $5.25 |