Occidental Petroleum 2003 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2003 Occidental Petroleum annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 158

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158

NOTE 6 LONG-TERM DEBT AND TRUST PREFERRED SECURITIES
--------------------------------------------------------------------------------
Long-term debt and trust preferred securities consisted of the following:
Balance at December 31, (in millions) 2003 2002
================================================================================ ========== ==========
OCCIDENTAL PETROLEUM CORPORATION
6.75% senior notes due 2012 $ 500 $ 500
7.65% senior notes due 2006 (a) 476 485
6.4% senior notes due 2013, redeemed March 31, 2003 -- 450
7.375% senior notes due 2008 (a) 426 436
8.45% senior notes due 2029 350 350
5.875% senior notes due 2007 (a) 318 323
9.25% senior debentures due 2019, putable August 1, 2004 at par (b) 300 300
4.25% medium-term notes due 2010 300 --
10.125% senior debentures due 2009 (a) 280 276
7.2% senior debentures due 2028 200 200
4% medium-term notes due 2007 (a) 178 175
6.5% senior notes due 2005 (a) 161 164
8.75% medium-term notes due 2023 100 100
4.101% medium-term notes due 2007 (a) 76 75
Medium-term notes due 2004 through 2008 (8.10% to 8.25% at December 31, 2003) 33 85
11.125% senior notes due 2010 12 12
---------- ----------
3,710 3,931
---------- ----------
SUBSIDIARY DEBT
1.08% to 7.5% unsecured notes due 2006 through 2030 313 280
---------- ----------
4,023 4,211
Less:
Unamortized discount, net (7) (8)
Current maturities (23) (206)
---------- ----------
TOTAL LONG-TERM DEBT 3,993 3,997
TRUST PREFERRED SECURITIES 453 455
---------- ----------
TOTAL $ 4,446 $ 4,452
================================================================================ ========== ==========
(a) Amounts include mark-to-market adjustments due to fair-value hedges.
(b) Amount is classified as non-current since Occidental does not expect debt
holders to put the debt on August 1, 2004. If the debt were put to
Occidental, it would refinance this amount on a long-term basis using
available lines of long-term bank credit.
In January 1999, Occidental issued 21,000,000 shares of 8.16-percent Trust
Originated Preferred Securities (trust preferred securities) to the public.
Holders of the trust preferred securities are entitled to cumulative cash
distributions at an annual rate of 8.16 percent of the liquidation amount of $25
per security. The trust preferred securities must be redeemed by January 20,
2039, but can be redeemed in whole, or in part, beginning January 20, 2004.
Starting July 1,
49
2003, upon adoption of SFAS No. 150, the trust preferred securities are
classified as a liability, and distributions on the trust preferred securities,
which were previously recorded as minority interest on the statement of
operations, are recorded as interest expense. On January 20, 2004, Occidental
redeemed all of the trust preferred securities for par of $453 million plus
accrued interest.
At March 31, 2003, Occidental redeemed its 6.4-percent senior notes due
2013 and recorded a pre-tax interest charge of $61 million. At December 31,
2003, Occidental had available lines of committed bank credit of approximately
$1.5 billion. Bank fees on these committed lines of credit ranged from 0.100
percent to 0.225 percent.
At December 31, 2003, minimum principal payments on long-term debt