Occidental Petroleum 2002 Annual Report Download - page 77

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The tax effects of temporary differences resulting in deferred income taxes
at December 31, 2002 and 2001 were as follows (in millions):
2002 2001
-------------------------- --------------------------
DEFERRED DEFERRED Deferred Deferred
TAX TAX Tax Tax
Items resulting in temporary differences ASSETS LIABILITIES Assets Liabilities
============================================================= =========== =========== =========== ===========
Property, plant and equipment differences $ 87 $ 1,166 $ 100 $ 967
Equity investments including partnerships -- 375 -- 694
Environmental reserves 155 -- 178 --
Postretirement benefit accruals 129 -- 130 --
Deferred compensation and fringe benefits 135 -- 117 --
State income taxes 41 -- 54 --
All other 186 60 197 96
----------- ----------- ----------- -----------
Subtotal 733 1,601 776 1,757
Valuation allowance -- -- (8) --
----------- ----------- ----------- -----------
Total deferred taxes $ 733 $ 1,601 $ 768 $ 1,757
============================================================= =========== =========== =========== ===========
Included in total deferred tax assets was a current portion aggregating
$114 million as of both December 31, 2002 and 2001 that was reported in prepaid
expenses and other.
A deferred tax liability of approximately $165 million at December 31, 2002
has not been recognized for temporary differences related to Occidental's
investment in certain foreign subsidiaries primarily as a result of unremitted
earnings of consolidated subsidiaries, as it is Occidental's intention,
generally, to reinvest such earnings permanently.
The discontinued operations include an income tax benefit of $18 million in
2002, income tax expense of $3 million in 2001 and income tax expense of $9
million in 2000.
The cumulative effect of changes in accounting principles was reduced by an
income tax benefit of $6 million in 2002 and $13 million in 2001.
Additional paid-in capital was credited $7 million in 2002 and 2001 for a
tax benefit resulting from the exercise of certain stock options.
Items included in OCI are net of a tax charge of $27 million in 2002,
benefit of $14 million in 2001 and charge of $6 million in 2000.
NOTE 11 STOCKHOLDERS' EQUITY
--------------------------------------------------------------------------------
The following is an analysis of common stock (shares in thousands):
Common Stock
============================================================= ================
BALANCE, DECEMBER 31, 1999 367,916
Issued 2,244
Options exercised and other, net (176)
------------------------------------------------------------- ----------------
BALANCE, DECEMBER 31, 2000 369,984
Issued 1,064
Options exercised and other, net 3,078
------------------------------------------------------------- ----------------
BALANCE, DECEMBER 31, 2001 374,126
Issued 1,027
Options exercised and other, net 2,707
------------------------------------------------------------- ----------------
BALANCE, DECEMBER 31, 2002 377,860
============================================================= ================
NONREDEEMABLE PREFERRED STOCK