Occidental Petroleum 2001 Annual Report Download - page 65

generally, to reinvest such earnings permanently.
The extraordinary loss that resulted from the early extinguishment of debt
was reduced by an income tax benefit of $4 million in 2001 and $61 million in
1999.
The cumulative effect of changes in accounting principles was reduced by an
income tax benefit of $13 million in 2001 and $7 million in 1999.
Additional paid-in capital was credited $7 million in 2001 for a tax
benefit resulting from the exercise of certain stock options.
Items included in OCI are net of a tax benefit of $14 million in 2001 and
charges of $6 million and $5 million in 2000 and 1999, respectively.
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NOTE 11 STOCKHOLDERS' EQUITY
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The following is an analysis of nonredeemable preferred stock and common
stock (shares in thousands):
Nonredeemable Common
Preferred Stock Stock
============================================= =============== ===============
BALANCE, DECEMBER 31, 1998 4,852 347,722
Issued -- 4,610
Preferred stock conversions/redemptions (4,852) 15,708
Options exercised and other, net -- (124)
--------------------------------------------- --------------- ---------------
BALANCE, DECEMBER 31, 1999 -- 367,916
Issued 2,244
Options exercised and other, net (176)
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BALANCE, DECEMBER 31, 2000 -- 369,984
Issued 1,064
Options exercised and other, net 3,078
--------------------------------------------- --------------- ---------------
BALANCE, DECEMBER 31, 2001 -- 374,126
============================================= =============== ===============
NONREDEEMABLE PREFERRED STOCK
Occidental has authorized 50,000,000 shares of preferred stock with a par
value of $1.00 per share. In February 1994, Occidental issued 11,388,340 shares
of $3.00 cumulative CXY-indexed convertible preferred stock in a public offering
for net proceeds of approximately $557 million. The shares were convertible into
Occidental common stock in accordance with a conversion formula that was indexed
to the market price of the common shares of CanadianOxy. In August 1999,
Occidental called for redemption all of the outstanding shares of such preferred
stock. In 1999, 4,847,130 shares of CXY-indexed convertible preferred stock were
converted by the holders into 15,708,176 shares of Occidental's common stock.
At December 31, 2001 and 2000, Occidental had no outstanding shares of
preferred stock.
STOCK INCENTIVE PLANS
STOCK OPTIONS AND STOCK APPRECIATION RIGHTS
The 1987 Stock Plan, as amended, provided for the grant of incentive stock
options (ISOs), nonqualified stock options (NQSOs) and stock appreciation rights
(SARs) to the executive officers and other key employees of Occidental and its
subsidiaries. An aggregate of 9,000,000 shares of common stock was reserved for
issuance upon exercise of ISOs, NQSOs or SARs granted. Options granted under the
plan were granted at an exercise price not less than the fair market value on
the date of grant and the price may not be changed except to reflect a change in
capitalization. The 1987 Plan provides that outstanding options and SARs will be
accelerated if Occidental enters into one or more agreements to dispose of
substantially all the assets or 50 percent, or more of the capital stock, of
Occidental by sale, merger, reorganization or liquidation in one transaction or
a related series of transactions. In an acceleration event, optionees subject to