Occidental Petroleum 2002 Annual Report Download - page 85

cost in 2002. The annual service costs would not be materially affected by these
changes.
63
The following table sets forth the funded status and amounts recognized in
Occidental's consolidated balance sheets for the defined benefit pension and
postretirement benefit plans at December 31, 2002 and 2001 (in millions):
Pension Benefits Postretirement Benefits
------------------------- -------------------------
Balance at December 31, 2002 2001 2002 2001
======================================================= ========== ========== ========== ==========
Unfunded obligation $ (106) $ (83) $ (515) $ (465)
Unrecognized net transition obligation -- 2 -- --
Unrecognized prior service cost 6 5 9 9
Unrecognized net (gain)loss 76 41 130 75
---------- ---------- ---------- ----------
Net amount recognized $ (24) $ (35) $ (376) $ (381)
========== ========== ========== ==========
Prepaid benefit cost $ 49 $ 38 $ -- $ --
Accrued benefit liability (96) (83) (376) (381)
Intangible assets 1 1 -- --
Accumulated other comprehensive income 22 9 -- --
---------- ---------- ---------- ----------
Net amount recognized $ (24) $ (35) $ (376) $ (381)
======================================================= ========== ========== ========== ==========
NOTE 14 INVESTMENTS AND TRANSACTIONS WITH AFFILIATES
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Investments in entities, other than oil and gas exploration and production
companies, in which Occidental has a voting stock interest of at least 20
percent, but not more than 50 percent, and certain partnerships are accounted
for on the equity method. At December 31, 2002, Occidental's equity investments
consisted of a 21-percent interest in Lyondell acquired in August 2002, a
24.5-percent interest in the entity that will own the pipeline being constructed
by DEL, the operator of the Dolphin Project, and other various partnerships and
joint ventures, discussed below. Equity investments paid dividends of $22
million, $27 million and $99 million to Occidental in 2002, 2001 and 2000,
respectively. Cumulative undistributed earnings since acquisition, in the amount
of $58 million, of 50-percent-or-less-owned companies have been accounted for by
Occidental under the equity method. At December 31, 2002, Occidental's
investments in unconsolidated subsidiaries exceeded the underlying equity in net
assets by $471 million.
Investments also include certain cost method investments, in which
Occidental owns less than 20 percent of the voting stock. Occidental's most
significant cost method investment is in Premcor, Inc, which became a
publicly-traded company in April 2002. In accordance with the provisions of SFAS
No. 115, "Accounting for Certain Investments in Debt and Equity Securities,"
this investment is being accounted for as an available-for-sale security and was
adjusted to fair value. As of December 31, 2002, an unrealized gain of $65
million, net of tax, is reflected in OCI.
Occidental's purchases from certain chemical partnerships at market-related
prices, in which it has investments, were $604 million, $656 million and $755
million in 2002, 2001 and 2000, respectively. Occidental's sales to certain
chemical partnerships at market-related prices, in which it has investments,
were $105 million, $68 million and $217 million, in 2002, 2001 and 2000,
respectively.
The following table presents Occidental's proportional interest in the
summarized financial information of its equity method investments (in millions):
For the years ended December 31, 2002 2001 2000