Occidental Petroleum 2008 Annual Report Download - page 80

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The following table provides fair value measurement information for such assets and liabilities that are measured on a recurring basis
(in millions):
Fair Value Measurements at December 31, 2008
Using
Description Total Fair Value Level 1 Level 2 Level 3
Assets:
Derivative financial instruments
Receivables, net $246 $ — $246 $ —
Long-term receivables, net 59 3 56 —
Investments in unconsolidated entities -
available-for-sale securities 1 1 — —
Total assets $306 $4 $302 $ —
Liabilities:
Derivative financial instruments
Accrued liabilities $200 $88 $112 $ —
Deferred credits and other liabilities-other 244 — 244 —
Total liabilities $444 $88 $356 $ —
NOTE 16 INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS
Occidental conducts its continuing operations through three segments: (1) oil and gas, (2) chemical and (3) midstream and marketing.
The oil and gas segment explores for, develops, produces and markets crude oil, NGLs, condensate and natural gas. The chemical segment
manufactures and markets basic chemicals, vinyls and performance chemicals. The midstream and marketing segment gathers, treats,
processes, transports, stores, trades and markets crude oil, natural gas, NGLs, condensate and CO 2 and generates and markets power.
Occidental changed its alignment of operating segments at the beginning of 2008. In previous years, oil and gas and a portion of the
midstream and marketing operations were reported as a single oil and gas segment and some of the corporate-directed midstream and
marketing operations were reported under corporate and other. In the last two years, the Dolphin Project began transporting natural gas to the
United Arab Emirates and Occidental acquired a common carrier pipeline system in the Permian Basin, various gas processing plants and
the remaining ownership interest in a cogeneration facility. The addition of these operations to the existing midstream and marketing
infrastructure caused management to realign its operating segments in order to increase its focus on these operations. All segment
information for prior periods has been revised to retrospectively reflect the current segment reporting structure. The change to segment
reporting had no effect on Occidental’s reported consolidated earnings. Each of the reportable segments represents separate and distinct
operations, is managed and receives resource allocation as a separate business unit and has its performance separately evaluated.
Earnings of industry segments and geographic areas generally exclude income taxes, interest income, interest expense,
environmental remediation expenses, unallocated corporate expenses and discontinued operations, but include gains and losses from
dispositions of segment and geographic area assets and income from the segments’ equity investments.
Identifiable assets are those assets used in the operations of the segments. Corporate assets consist of cash, short-term investments,
certain corporate receivables, an available-for-sale investment in Lyondell (sold in 2007) and the investment in Joslyn.
66
INDUSTRY SEGMENTS