Occidental Petroleum 2002 Annual Report Download - page 29

Investments in unconsolidated subsidiaries $ 1,056 $ 993
Property, plant and equipment, net $ 13,036 $ 12,791
Current maturities of long-term debt and capital
lease liabilities $ 206 $ --
Accounts payable $ 785 $ 715
Accrued liabilities $ 914 $ 849
Dividends payable $ 193 $ 94
Current obligation under natural gas delivery
commitment $ -- $ 137
Long-term debt, net $ 3,997 $ 4,065
Long-term obligation under natural gas delivery
commitment $ -- $ 145
Other deferred credits and liabilities $ 2,228 $ 2,322
Minority interest $ 333 $ 2,224
Trust Preferred Securities $ 455 $ 463
Stockholders' equity $ 6,318 $ 5,634
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The higher balance in trade receivables at December 31, 2002, compared with
December 31, 2001, reflects higher product prices during the fourth quarter of
2002 versus 2001. The increase in receivables from joint ventures, partnerships
and other is due to higher mark-to-market adjustments on derivative financial
instruments in the marketing and trading group. The increase in inventories was
primarily the result of higher gas trading inventory. The increase in income tax
receivable was due to a tax receivable from the Equistar sale. The decrease in
the long-term receivables, net, account is due to the redemption of the notes
from the Altura partners. The higher balance in investments in unconsolidated
subsidiaries primarily reflects the Dolphin Project and Lyondell acquisitions,
partially offset by the sale of the Equistar investment. The increase in the net
balance in property, plant and equipment reflects capital spending, partially
offset by depreciation, depletion and amortization.
The increase in current maturities of long-term debt reflects a
reclassification of the current portion of long-term debt. The increase in
accounts payable is due to higher payable balances in the oil and gas marketing
and trading operations. The increase in accrued liabilities is due to the timing
of interest accruals on debt. The increase in dividends payable is due to an
early declaration of the first quarter 2003 dividend payable in April 2003. The
decrease in long-term debt primarily reflects the reclassification of long-term
debt to current maturities, partially offset by mark-to-market adjustments
related to fair value hedges on a portion of the debt. In accordance with hedge
accounting, applicable debt balances are also marked to fair value, which
offsets the change in fair value of the derivative. The current and long-term
portions of the obligations under the natural gas delivery commitment were
eliminated since this commitment was terminated in 2002. Other deferred credits
and liabilities include deferred compensation, other post-retirement benefits,
environmental remediation reserves, contract advances, deferred revenue and
other deferred items. The decrease in minority interest is due to the redemption
of the remaining Altura interests in May 2002. The 2002 minority interest
balance also includes $75 million of preferred stock issued to a financial
institution by a subsidiary of Occidental in December 2002. The increase in
stockholders' equity primarily reflects net income, partially offset by
dividends on common stock.
FINANCING ACTIVITY
In 2003, Occidental expects to record a pre-tax interest charge of $50 -
$70 million to repay a $450 million 6.4-percent senior notes issue that has ten
years of remaining life, but is subject to remarketing on April 1, 2003.
Occidental intends to refinance part of this issue on a long-term basis.
In February 2002, Occidental filed a shelf registration statement for up to
$1 billion of its senior debt securities, subordinated debt securities,
preferred stock, common stock, depositary shares, warrants, stock purchase
contracts, stock purchase units, preferred securities of two subsidiary trusts
and Occidental's guarantees of such preferred securities. In November 2002,
Occidental issued $175 million of 4-percent Medium-Term Senior Notes, Series C,
and $75 million of 4.101-percent Medium-Term Senior Notes, Series C, due 2007
for net combined proceeds of approximately $249 million. The net proceeds were
used for general corporate purposes. Occidental may issue the remaining $750