Occidental Petroleum 2002 Annual Report Download - page 23

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SELECTED EXPENSE ITEMS
In millions 2002 2001 2000
===================================== ======== ======== ========
Cost of sales $ 3,385 $ 3,626 $ 3,933
Selling, general and administrative
and other operating expenses $ 635 $ 665 $ 686
Write-down of assets $ 42 $ 3 $ 180
Exploration expense $ 176 $ 184 $ 94
Interest and debt expense, net $ 295 $ 401 $ 510
------------------------------------- -------- -------- --------
Cost of sales decreased in 2002, compared to 2001, and 2001 compared to
2000, due mainly to lower chemical raw material costs.
Selling, general and administrative and other operating expenses decreased
in 2002, compared to 2001, due mainly to 2001 severance and other charges.
Selling, general and administrative and other operating expenses decreased in
2001, compared to 2000, due mainly to a decrease in chemical selling costs.
The 2002 write-down of assets amount includes write-downs for certain
chemical assets. The 2000 amount includes the write-down of certain oil and gas
investments and the chemical intermediate businesses.
Exploration expense in 2002 includes a $33 million write-off for Lost Hills
leases and a $25 million write-off for the Thunderball deep gas well, both in
California. Exploration expense in 2001 includes expensing higher-cost
exploration wells, primarily the Gibraltar well in Colombia of $66 million.
The decrease in interest and debt expense in 2002, compared to 2001, and
2001 compared to 2000, reflects lower outstanding debt levels and lower interest
rates.
OTHER ITEMS
In millions 2002 2001 2000
===================================== ======== ======== ========
Provision for income taxes $ 422 $ 556 $ 1,434
Minority interest $ 77 $ 143 $ 185
Loss (income) from equity investments $ 261 $ 504 $ (67)
------------------------------------- -------- -------- --------
The 2002 provision for income taxes includes an income tax benefit of $406
million for the sale of the Equistar investment. The 2001 provision includes
income tax benefits of $172 million resulting from the write-down of the
Equistar investment, $188 million from the sale of the entity that owns a Texas
intrastate pipeline system, and a $70 million settlement of a state-tax issue.
The 2000 provision includes an income tax charge for the gain on the sale of the
CanadianOxy investment.
The decrease in minority interest in 2002, compared to 2001, was due to an
$84 million decrease in preferred distributions to the Altura partners. The
remaining Altura partnership interests were redeemed in May 2002. The decrease
in minority interest in 2001, compared to 2000, was due to a $38 million
decrease in the minority interest attributable to PolyOne, the minority interest
partner in OxyVinyls.
16
The 2002 loss from equity investments includes a pre-tax loss of $242
million from the sale of the Equistar investment in August 2002. The loss from
equity investments in 2001 includes a $412 million pre-tax write-down of
Equistar and a loss of $89 million from the Equistar equity investment.