Occidental Petroleum 2006 Annual Report Download - page 69
Download and view the complete annual report
Please find page 69 of the 2006 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.-
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
 |
 |
It is impossible at this time to determine the ultimate liabilities that OPC and its subsidiaries may incur resulting from any lawsuits, claims and
proceedings, audits, commitments, contingencies and related matters or the timing of these liabilities. If these matters were to be ultimately
resolved unfavorably at amounts substantially exceeding Occidental’s reserves, an outcome not currently anticipated, it is possible that such
outcome could have a material adverse effect upon Occidental’s consolidated financial position or results of operations. However, after taking into
account reserves, management does not expect the ultimate resolution of any of these matters to have a material adverse effect upon Occidental’s
consolidated financial position or results of operations.
NOTE 10 DOMESTIC AND FOREIGN INCOME AND OTHER TAXES
The domestic and foreign components of income from continuing operations before domestic and foreign income and other taxes were as follows:
The provisions (credits) for domestic and foreign income and other taxes from continuing operations consisted of the following:
As a result of changes in compensation programs in 2006, Occidental wrote off approximately $40 million of the related deferred tax asset that
had been recognized in the financial statements prior to the change. The 2005 federal income tax provision includes a $619 million tax benefit
related to the resolution of foreign tax credit issues with the Internal Revenue Service (IRS) and a $335 million tax benefit due to the reversal of
tax reserves no longer required. The 2005 income tax provision also includes a net $10 million charge related to a state tax issue. The 2004 federal
income tax provision includes tax benefits of $47 million resulting from the reversal of tax contingency reserves no longer required due to the
settlement of issues with the Internal Revenue Service.
The following is a reconciliation, stated as a percentage of pre-tax income, of the United States statutory federal income tax rate to Occidental’s
effective tax rate on income from continuing operations:
58