Occidental Petroleum 2002 Annual Report Download - page 69

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SFAS NO. 140
In the fourth quarter of 2000, Occidental adopted the disclosure provisions
of SFAS No. 140, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities - a Replacement of FASB Statement No. 125", which
revises disclosure standards for asset securitizations and other financial asset
transfers. SFAS No. 140 also contains provisions which revise certain criteria
for accounting for securitizations, financial-asset transfers and collateral.
These accounting provisions were adopted by Occidental on April 1, 2001. The
implementation of the provisions of SFAS No. 140 did not have an impact on
Occidental's consolidated financial position or results of operations.
NOTE 5 INVENTORIES
--------------------------------------------------------------------------------
Inventories of approximately $190 million and $214 million were valued
under the LIFO method at December 31, 2002 and 2001, respectively. Inventories
consisted of the following (in millions):
Balance at December 31, 2002 2001
============================================= ========== ==========
Raw materials $ 54 $ 53
Materials and supplies 125 119
Work in process -- --
Finished goods 319 252
---------- ----------
498 424
LIFO reserve (7) (10)
---------- ----------
TOTAL $ 491 $ 414
============================================= ========== ==========
NOTE 6 LONG-TERM DEBT
--------------------------------------------------------------------------------
Long-term debt consisted of the following (in millions):
Balance at December 31, 2002 2001
===================================================================================== ========== ==========
OCCIDENTAL PETROLEUM CORPORATION
6.75% senior notes due 2012 $ 500 $ 500
7.65% senior notes due 2006 (a) 485 457
6.4% senior notes due 2013, subject to remarketing April 1, 2003 450 450
7.375% senior notes due 2008 (a) 436 394
8.45% senior notes due 2029 350 350
5.875% senior notes due 2007 (a) 323 297
9.25% senior debentures due 2019, putable August 1, 2004 at par 300 300
10.125% senior debentures due 2009 276 276
7.2% senior debentures due 2028 200 200
4% medium-term notes due 2007 175 --
6.75% senior notes due 2002 -- 163
6.5% senior notes due 2005 (a) 164 155
8.75% medium-term notes due 2023 100 100
Medium-term notes due 2003 through 2008 (7.45% to 8.25% at December 31, 2002) 85 120
4.101% medium-term notes due 2007 75 --
11.125% senior notes due 2010 12 12
---------- ----------
3,931 3,774
---------- ----------
SUBSIDIARY DEBT
4.8% unsecured notes due 2006 20 20
7.2% unsecured notes due 2020 7 7
1.05% to 7% unsecured notes due 2003 through 2030 253 273
---------- ----------
4,211 4,074
Less:
Unamortized discount, net (8) (9)
Current maturities (206) --
---------- ----------
TOTAL LONG-TERM DEBT $ 3,997 $ 4,065
===================================================================================== ========== ==========
(a) Amounts include mark-to-market adjustments due to fair-value hedges.