Occidental Petroleum 2002 Annual Report Download - page 50

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We have audited the consolidated balance sheets of Occidental Petroleum
Corporation and subsidiaries as of December 31, 2002 and 2001, and the related
consolidated statements of operations, stockholders' equity, comprehensive
income, and cash flows for each of the years in the three-year period ended
December 31, 2002. In connection with our audits of the consolidated financial
statements, we also have audited the accompanying financial statement schedule.
These consolidated financial statements and financial statement schedule are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements and financial statement
schedule based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Occidental
Petroleum Corporation and subsidiaries as of December 31, 2002 and 2001, and the
results of their operations and their cash flows for each of the years in the
three-year period ended December 31, 2002, in conformity with accounting
principles generally accepted in the United States of America. Also in our
opinion, the related financial statement schedule, when considered in relation
to the basic consolidated financial statements taken as a whole, presents
fairly, in all material respects, the information set forth therein.
As explained in Note 4 to the financial statements, effective January 1,
2002, the Company changed its method of accounting for the impairment of
goodwill and other intangibles. Effective January 1, 2001, the Company changed
its method of accounting for derivative instruments and hedging activities.
/s/ KPMG LLP
Los Angeles, California
February 7, 2003
34
CONSOLIDATED STATEMENTS OF OPERATIONS Occidental Petroleum Corporation
In millions, except per-share amounts and Subsidiaries
For the years ended December 31, 2002 2001 2000
====================================================================== ========== ========== ==========
REVENUES
Net sales $ 7,338 $ 8,102 $ 8,504
Interest, dividends and other income 143 223 263
Gains on disposition of assets, net 10 10 639
---------- ---------- ----------
7,491 8,335 9,406
---------- ---------- ----------
COSTS AND OTHER DEDUCTIONS
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
Depreciation, depletion and amortization of assets 1,012 965 894
Environmental remediation 23 109 --
Exploration expense 176 184 94
Interest and debt expense, net 295 401 510
---------- ---------- ----------
5,568 5,953 6,297
---------- ---------- ----------
INCOME BEFORE TAXES AND OTHER ITEMS 1,923 2,382 3,109
Provision for domestic and foreign income and other taxes 422 556 1,434