Occidental Petroleum 2001 Annual Report Download - page 74

reportable segments were based on the distinct nature of their operations. They
are managed as separate business units because each requires and is responsible
for executing a unique business strategy. The oil and gas segment explores for,
develops, produces and markets crude oil and natural gas domestically and
internationally. The chemical segment manufactures and markets, domestically and
internationally, basic chemicals, specialty chemicals and vinyls. Additionally,
it has an investment in a petrochemical partnership.
Earnings of industry segments and geographic areas exclude interest income,
interest expense, environmental remediation expenses, unallocated corporate
expenses, cumulative effect of changes in accounting principles and
extraordinary items, but include income from equity investments and gains and
losses from dispositions of segment and geographic area assets.
Foreign income and other taxes and certain state taxes are included in
segment earnings on the basis of operating results. U.S. federal income taxes
are not allocated to segments except for amounts in lieu thereof that represent
the tax effect of operating charges resulting from purchase accounting
adjustments, which arose from the implementation in 1992 of SFAS No. 109 -
"Accounting for Income Taxes," and the tax effects resulting from major,
infrequently occurring transactions such as asset sales and legal settlements
that relate to segment results.
Identifiable assets are those assets used in the operations of the
segments. Corporate assets consist of cash, short-term investments, certain
corporate receivables, an intrastate pipeline (sold in the third quarter of
2001) and other assets.
62
INDUSTRY SEGMENTS
In millions
Oil and Gas Chemical Corporate Total
============================================================= =========== =========== =========== ===========
YEAR ENDED DECEMBER 31, 2001
Net sales(a) $ 10,893 (b) $ 3,092 (c) $ -- $ 13,985
=========== =========== =========== ===========
Pretax operating profit(loss)(d) $ 3,292 $ (437) $ (1,106)(f) $ 1,749
Income taxes (447) 43 (159)(g) (563)
Extraordinary loss, net -- -- (8) (8)
Cumulative effect of changes in accounting principles, net -- -- (24) (24)
----------- ----------- ----------- -----------
Net income(loss)(e) $ 2,845 (h) $ (394)(i) $ (1,297)(j) $ 1,154
=========== =========== =========== ===========
Unconsolidated equity investments $ 75 $ 663 $ 255 $ 993
=========== =========== =========== ===========
Property, plant and equipment additions, net (l) $ 1,223 $ 120 $ 58 $ 1,401
=========== =========== =========== ===========
Depreciation, depletion and amortization $ 750 $ 190 $ 31 $ 971
=========== =========== =========== ===========
Total assets $ 13,316 $ 4,074 $ 460 $ 17,850
============================================================= =========== =========== =========== ===========
YEAR ENDED DECEMBER 31, 2000
Net sales(a) $ 9,779 (b) $ 3,795 (c) $ -- $ 13,574
=========== =========== =========== ===========
Pretax operating profit(loss)(d) $ 3,012 $ 176 $ (177)(f) $ 3,011
Income taxes (595) (7) (840)(g) (1,442)
Extraordinary loss, net -- -- 1 1
Cumulative effect of changes in accounting principles, net -- -- -- --
----------- ----------- ----------- -----------
Net income(loss)(e) $ 2,417 (h) $ 169 (i) $ (1,016)(j) $ 1,570
=========== =========== =========== ===========
Unconsolidated equity investments $ 67 $ 1,203 $ 57 $ 1,327
=========== =========== =========== ===========
Property, plant and equipment additions, net(l) $ 791 $ 155 $ 6 $ 952
=========== =========== =========== ===========
Depreciation, depletion and amortization $ 670 $ 190 $ 41 $ 901
=========== =========== =========== ===========
Total assets $ 13,384 $ 4,848 $ 1,182 (k) $ 19,414
============================================================= =========== =========== =========== ===========
YEAR ENDED DECEMBER 31, 1999
Net sales(a) $ 4,599 (b) $ 3,221 (c) $ -- $ 7,820
=========== =========== =========== ===========
Pretax operating profit(loss)(d) $ 1,841 $ (23) $ (619)(f) $ 1,199
Income taxes (574) (14) (43)(g) (631)
Extraordinary loss, net -- -- (107) (107)
Cumulative effect of changes in accounting principles, net -- -- (13) (13)
----------- ----------- ----------- -----------
Net income(loss)(e) $ 1,267 (h) $ (37)(i) $ (782)(j) $ 448
=========== =========== =========== ===========
Unconsolidated equity investments $ 119 $ 1,388 $ 247 $ 1,754
=========== =========== =========== ===========
Property, plant and equipment additions, net(l) $ 474 $ 116 $ 11 $ 601
=========== =========== =========== ===========
Depreciation, depletion and amortization $ 577 $ 190 $ 38 $ 805
=========== =========== =========== ===========
Total assets $ 7,271 $ 5,346 $ 1,508 (k) $ 14,125
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Footnotes:
(a) Occidental has implemented EITF Issue No. 00-10, "Shipping and Handling
Fees and Costs" effective with the fourth quarter of 2000. As a result of