Occidental Petroleum 2001 Annual Report Download - page 75

this adoption, Occidental has added to revenues and cost of sales amounts
of transportation costs that previously had been accounted for as
deductions from revenues. There is no effect on income. Oil and gas
revenues include $34 million, $29 million and $27 million for 2001, 2000
and 1999, respectively. Chemical revenues include $238 million, $216
million and $183 million for 2001, 2000 and 1999, respectively.
(b) Approximately 54 percent of oil and gas sales revenues for 2001 were
attributable to oil and gas trading activity, compared with approximately
50 percent in 2000 and 43 percent in 1999. Oil sales represented
approximately 58 percent, 70 percent and 71 percent of net sales for the
periods ending December 31, 2001, 2000 and 1999, respectively.
63
Footnotes continued:
(c) Total product sales for the chemical segment were as follows:
Basic Chemicals Commodity Vinyl Resins Performance Chemicals
====================== ====================== ======================
YEAR ENDED DECEMBER 31, 2001 37% 46% 17%
Year ended December 31, 2000 32% 47% 21%
Year ended December 31, 1999 35% 40% 25%
(d) Research and development costs were $8 million in 2001, $16 million in 2000
and $20 million in 1999.
(e) Segment earnings include charges and credits in lieu of U.S. federal income
taxes. In 2001, the amounts allocated to the segments were charges of $56
million and a credit of $42 million in oil and gas and chemical,
respectively. In 2000, the amounts allocated to the segments were charges
of $32 million and a credit of $7 million in oil and gas and chemical,
respectively. In 1999, the amounts allocated to the segments were a charge
of $228 million and a credit of $16 million in oil and gas and chemical,
respectively. 2001, 2000 and 1999 reflect allocation of taxes to segments
for major, infrequently occurring transactions.
(f) Includes unallocated net interest expense, administration expense, pipeline
lease income, pipeline depreciation expense and other items.
(g) Includes unallocated income taxes.
(h) Includes the following special items for the years ended December 31:
Benefit (Charge) In millions 2001 2000 1999
==================================================================== ========== ========== ==========
OIL AND GAS
Gain on sale of interest in the Indonesian Tangguh LNG project(a) $ 399 $ -- $ --
Gain on sale of additional interests in Gulf of Mexico assets(a) 7 -- --
Gain on partial sale of Gulf of Mexico assets(a) -- 39 --
Write-down of various assets, real estate and investments -- (53) (9)
Loss on sale of office building(a) -- (14) --
Chevron litigation settlement(a) -- -- 488
Write-down of Peru producing operations(a) -- -- (29)
Claims, settlements, reorganization and other -- -- (35)
Gain on buyout of contingency payment(a) -- 41 --
Gain on receipt of contingency payment -- -- 11
-------------------------------------------------------------------- ---------- ---------- ----------
(a) These amounts are shown after-tax.
(i) Includes the following special items for the years ended December 31:
Benefit (Charge) In millions 2001 2000 1999
==================================================================== ========== ========== ==========
CHEMICAL
Write-down of Equistar investment $ (412) $ -- $ --
Credit from state tax rate adjustment 14 -- --
Write-down of chemical intermediate businesses and various assets -- (135) (159)
Gain on sale of Durez business(a) ` -- 13 --
Loss on foreign investment abandonment(a) -- (2) --
Write-downs by Equistar -- -- (28)
Severance, plant shutdown, idling and plant write-down costs (37) -- --
Gain on sale of a chemical plant by Equistar -- -- 12
Claims and settlements -- -- (9)
-------------------------------------------------------------------- ---------- ---------- ----------