Occidental Petroleum 2008 Annual Report Download - page 70

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A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
For the years ended December 31, (in millions) 2008 2007
Balance at January 1, $83 $77
Additions based on tax positions related to the current year 57 13
Reductions based on tax positions related to prior years and settlements (78) (7)
Balance at December 31, $62 $83
Occidental continues to recognize an estimate of potential interest and penalties related to liabilities for unrecognized tax benefits in the
provisions for domestic and foreign income and other taxes and these amounts were not material for the years ended December 31, 2008,
2007 and 2006.
Occidental is subject to audit by various tax authorities in varying periods. See Note 9 for a discussion of these matters.
It is unlikely that Occidental’s liabilities for unrecognized tax benefits related to existing matters would increase or decrease within the
next twelve months by a material amount. Occidental cannot reasonably estimate a range of potential changes in such benefits due to the
unresolved nature of the various audits.
NOTE 11 STOCKHOLDERS' EQUITY
The following is an analysis of common stock issuances:
(shares in thousands) Common Stock
Balance, December 31, 2005 804,430
Issued 57,257
Options exercised and other, net 8,992
Balance, December 31, 2006 870,679
Issued 2,933
Options exercised and other, net 3,512
Balance, December 31, 2007 877,124
Issued 2,018
Options exercised and other, net 2,281
Balance, December 31, 2008 881,423
In May 2006, Occidental amended its Restated Certificate of Incorporation to increase the number of authorized shares of common
stock to 1.1 billion. The par value per share remained unchanged.
TREASURY STOCK
In February and July 2008, Occidental increased the number of shares authorized for its share repurchase program from 55 to 75
million and 75 to 95 million, respectively. Additionally, Occidental purchased shares from the trustee of its defined contribution savings plan
during the years ended December 31, 2008, 2007 and 2006.
In 2008, 2007 and 2006, Occidental purchased 19.8 million, 20.6 million and 30.6 million shares, respectively, under the programs
at an average cost of $76.33, $54.75 and $48.20 per share, respectively.
NONREDEEMABLE PREFERRED STOCK
Occidental has authorized 50,000,000 shares of preferred stock with a par value of $1.00 per share. At December 31, 2008, 2007 and
2006, Occidental had no outstanding shares of preferred stock.
56
EARNINGS PER SHARE