Occidental Petroleum 2001 Annual Report Download - page 30

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events, including Occidental's senior debt rating falling below investment
grade. In such an event, the amount of proceeds outstanding at that time would
have to be funded through other means, which could result in an increase in debt
recorded on the consolidated balance sheets along with a corresponding increase
in the accounts receivable balance. The consolidated income statement effect of
such an event would not be significant.
v CONTRACTUAL OBLIGATIONS
The table below summarizes and cross-references certain contractual
obligations that are disclosed in the Consolidated Balance Sheets (CBS) and/or
the accompanying Notes.
(In millions) Payments Due by Year
-------------------------------------------------------
Contractual 2003 2005 2007 and
Obligations Total 2002 to 2004 to 2006 thereafter
=============== ========== ========== ========== ========== ==========
Long-Term
Debt (CBS
and Note 6)(a) $ 4,065 $ -- $ 829 $ 852 $ 2,384
Capital
Leases (CBS
and Note 8) 27 1 1 1 24
Operating
Leases
(Note 8)(b) 426 67 102 70 187
Fixed and
Determinable
Purchase
Obligations
(Note 9)(c) 81 15 26 22 18
Other Long-Term
Contracts
(Notes 1, 7
and 12)(e) 1,105 137 145 360 (d) 463
---------- ---------- ---------- ---------- ----------
TOTAL $ 5,704 $ 220 $ 1,103 $ 1,305 $ 3,076
=============== ========== ========== ========== ========== ==========
(a) Includes principal payments, unamortized discounts and mark-to-market
adjustments related to fair-value hedges.
(b) Offset by sub lease rental income.
(c) Excludes capital commitments.
(d) The $360 million receivable securitization amount is reflected in the
2005-2006 year column since Occidental could finance the amount with its
committed credit line, which becomes due in 2006, if the program was
terminated.
(e) Includes the $282 million natural gas delivery commitment (CBS), the $360
million receivable securitization program and the $463 million Trust
Preferred Securities (CBS).
COMMITMENTS
In addition to those discussed above, Occidental has entered into
commitments on behalf of entities, whether or not affiliated with Occidental,
including performance bonds and guarantees of environmental, financial or other
obligations. Occidental's liability under these commitments arises only if the
entity primarily responsible fails to perform its contractual obligations. In
management's opinion, it is unlikely that any of these commitments will have a
material adverse effect upon Occidental's consolidated financial position or
results of operations.
23
ANALYSIS OF FINANCIAL POSITION
The changes in the following components of Occidental's balance sheet are
discussed below:
SELECTED BALANCE SHEET COMPONENTS