Occidental Petroleum 2001 Annual Report Download - page 48

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CONSOLIDATED STATEMENTS OF CASH FLOWS Occidental Petroleum Corporation
In millions and Subsidiaries
For the years ended December 31, 2001 2000 1999
================================================================================ ========== ========== ==========
CASH FLOW FROM OPERATING ACTIVITIES
Income from continuing operations $ 1,186 $ 1,569 $ 568
Adjustments to reconcile income to net cash provided by operating activities:
Depreciation, depletion and amortization of assets 971 901 805
Amortization of debt discount and deferred financing costs 5 7 12
Deferred income tax (benefit) provision (181) 413 183
Other noncash charges to income 508 170 275
Gains on disposition of assets, net and litigation settlement (10) (639) (762)
Loss(income) from equity investments 92 (67) (41)
Exploration expense 184 94 75
Changes in operating assets and liabilities:
Decrease(increase) in accounts and notes receivable 1,085 (201) (269)
Decrease(increase) in inventories 37 (39) 27
Decrease(increase) in prepaid expenses and other assets 72 34 13
(Decrease)increase in accounts payable and accrued liabilities (1,150) 367 90
Increase(decrease) in current domestic and foreign income taxes 4 (53) 263
Other operating, net (151) (155) (195)
---------- ---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 2,652 2,401 1,044
---------- ---------- ----------
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures (1,401) (952) (601)
Sale of businesses and disposal of property, plant and equipment, net 852 1,488 52
Proceeds from litigation settlement -- -- 775
Collection of note receivable -- -- 1,395
Buyout of operating leases -- -- (17)
Purchase of businesses, net (46) (3,715) (127)
Equity investments and other, net (141) 82 114
---------- ---------- ----------
NET CASH(USED)PROVIDED BY INVESTING ACTIVITIES (736) (3,097) 1,591
---------- ---------- ----------
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from long-term debt and non-recourse debt 861 2,447 835
Repayments of commercial paper and revolving credit agreements, net -- -- (2,201)
Payments of long-term debt, non-recourse debt and capital lease liabilities (2,258) (1,389) (1,305)
Proceeds from issuance of common stock 18 41 21
Proceeds from issuance of Trust Preferred Securities -- -- 508
Repurchase of Trust Preferred Securities (11) (12) (21)
Purchases for natural gas delivery commitment (121) (115) --
(Payments)proceeds of notes payable, net (2) (25) 9
Cash dividends paid (372) (369) (363)
Stock options exercised 72 2 --
Other financing, net (1) (1) --
---------- ---------- ----------
NET CASH (USED)PROVIDED BY FINANCING ACTIVITIES (1,814) 579 (2,517)
---------- ---------- ----------
INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS 102 (117) 118
CASH AND CASH EQUIVALENTS--BEGINNING OF YEAR 97 214 96
---------- ---------- ----------
CASH AND CASH EQUIVALENTS--END OF YEAR $ 199 $ 97 $ 214
================================================================================ ========== ========== ==========
The accompanying notes are an integral part of these financial statements.
39
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Occidental Petroleum Corporation
and Subsidiaries
NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
--------------------------------------------------------------------------------
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Occidental
Petroleum Corporation, all entities where it owns a majority voting interest
(subsidiaries) and their proportionate interests in oil and gas exploration and
production ventures. In these Notes, the term "Occidental" refers to Occidental
Petroleum Corporation and/or one or more of its subsidiaries. All material
intercompany accounts and transactions have been eliminated. Investments in less
than majority-owned enterprises, except for oil and gas exploration and
production ventures, are accounted for on the equity method (see Note 14).
In addition, certain financial statements, notes and supplementary data for
prior years have been changed to conform to the 2001 presentation.
NATURE OF OPERATIONS
Occidental is a multinational organization whose principal business
segments are oil and gas exploration, production and marketing and chemicals
production and marketing. In oil and gas, Occidental has active exploration and
production in the United States and in nine other countries. Occidental has
interests in basic chemicals (principally chlorine and caustic soda), vinyls,