Delaware
(State or other jurisdiction of
incorporation or organization)
|
|
95-4035997
(I.R.S. Employer
Identification No.)
|
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|
|
5 Greenway Plaza, Suite 110
Houston, Texas
(Address of principal executive offices)
|
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77046
(Zip Code)
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Class
|
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Outstanding at September 30, 2016
|
|
|
Common stock $.20 par value
|
|
764,188,495
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PAGE
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Part I
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Financial Information
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Item 1.
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||
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September 30, 2016 and December 31, 2015
|
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Three and nine months ended September 30, 2016 and 2015
|
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Three and nine months ended September 30, 2016 and 2015
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Nine months ended September 30, 2016 and 2015
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Item 2.
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Item 3.
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Item 4.
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|||
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Part II
|
Other Information
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||
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Item 1.
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|||
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Item 2.
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|||
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Item 6.
|
Item 1.
|
Financial Statements (unaudited)
|
|
|
2016
|
|
2015
|
|
||||
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||||
CURRENT LIABILITIES
|
|
|
|
|
|
||||
Current maturities of long-term debt
|
|
$
|
—
|
|
|
$
|
1,450
|
|
|
Accounts payable
|
|
3,392
|
|
|
3,069
|
|
|
||
Accrued liabilities
|
|
2,296
|
|
|
2,213
|
|
|
||
Liabilities of assets held for sale
|
|
—
|
|
|
110
|
|
|
||
Total current liabilities
|
|
5,688
|
|
|
6,842
|
|
|
||
|
|
|
|
|
|
||||
LONG-TERM DEBT, NET
|
|
8,333
|
|
|
6,855
|
|
|
||
|
|
|
|
|
|
||||
DEFERRED CREDITS AND OTHER LIABILITIES
|
|
|
|
|
|
||||
Deferred domestic and foreign income taxes
|
|
1,411
|
|
|
1,323
|
|
|
||
Other
|
|
3,902
|
|
|
4,039
|
|
|
||
|
|
5,313
|
|
|
5,362
|
|
|
||
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
||||
Common stock, at par value (892,165,801 shares at September 30, 2016 and 891,360,091 shares at December 31, 2015)
|
|
178
|
|
|
178
|
|
|
||
Treasury stock (127,977,306 shares at September 30, 2016 and 127,681,335 shares at December 31, 2015)
|
|
(9,143
|
)
|
|
(9,121
|
)
|
|
||
Additional paid-in capital
|
|
7,719
|
|
|
7,640
|
|
|
||
Retained earnings
|
|
23,836
|
|
|
25,960
|
|
|
||
Accumulated other comprehensive loss
|
|
(294
|
)
|
|
(307
|
)
|
|
||
Total stockholders’ equity
|
|
22,296
|
|
|
24,350
|
|
|
||
|
|
|
|
|
|
||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
$
|
41,630
|
|
|
$
|
43,409
|
|
|
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
REVENUES AND OTHER INCOME
|
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$
|
2,648
|
|
|
$
|
3,116
|
|
|
$
|
7,302
|
|
|
$
|
9,674
|
|
Interest, dividends and other income
|
|
25
|
|
|
31
|
|
|
72
|
|
|
88
|
|
||||
Gain on disposal of assets, net
|
|
60
|
|
|
99
|
|
|
198
|
|
|
94
|
|
||||
|
|
2,733
|
|
|
3,246
|
|
|
7,572
|
|
|
9,856
|
|
||||
COSTS AND OTHER DEDUCTIONS
|
|
|
|
|
|
|
|
|
||||||||
Cost of sales
|
|
1,338
|
|
|
1,413
|
|
|
3,863
|
|
|
4,450
|
|
||||
Selling, general and administrative and other operating
expenses
|
|
316
|
|
|
292
|
|
|
926
|
|
|
950
|
|
||||
Taxes other than on income
|
|
61
|
|
|
79
|
|
|
210
|
|
|
293
|
|
||||
Depreciation, depletion and amortization
|
|
1,046
|
|
|
1,123
|
|
|
3,218
|
|
|
3,268
|
|
||||
Asset impairments and related items
|
|
221
|
|
|
3,397
|
|
|
299
|
|
|
3,721
|
|
||||
Exploration expense
|
|
9
|
|
|
5
|
|
|
45
|
|
|
23
|
|
||||
Interest and debt expense, net
|
|
68
|
|
|
48
|
|
|
216
|
|
|
86
|
|
||||
|
|
3,059
|
|
|
6,357
|
|
|
8,777
|
|
|
12,791
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Loss before income taxes and other items
|
|
(326
|
)
|
|
(3,111
|
)
|
|
(1,205
|
)
|
|
(2,935
|
)
|
||||
Benefit from domestic and foreign income taxes
|
|
30
|
|
|
445
|
|
|
329
|
|
|
140
|
|
||||
Income from equity investments
|
|
58
|
|
|
60
|
|
|
142
|
|
|
154
|
|
||||
Loss from continuing operations
|
|
(238
|
)
|
|
(2,606
|
)
|
|
(734
|
)
|
|
(2,641
|
)
|
||||
Discontinued operations, net
|
|
(3
|
)
|
|
(3
|
)
|
|
432
|
|
|
(10
|
)
|
||||
NET LOSS
|
|
$
|
(241
|
)
|
|
$
|
(2,609
|
)
|
|
$
|
(302
|
)
|
|
$
|
(2,651
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
BASIC EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations
|
|
$
|
(0.31
|
)
|
|
$
|
(3.41
|
)
|
|
$
|
(0.96
|
)
|
|
$
|
(3.45
|
)
|
Discontinued operations, net
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.56
|
|
|
(0.01
|
)
|
||||
BASIC EARNINGS PER COMMON SHARE
|
|
$
|
(0.32
|
)
|
|
$
|
(3.42
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(3.46
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
DILUTED EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations
|
|
$
|
(0.31
|
)
|
|
$
|
(3.41
|
)
|
|
$
|
(0.96
|
)
|
|
$
|
(3.45
|
)
|
Discontinued operations, net
|
|
(0.01
|
)
|
|
(0.01
|
)
|
|
0.56
|
|
|
(0.01
|
)
|
||||
DILUTED EARNINGS PER COMMON SHARE
|
|
$
|
(0.32
|
)
|
|
$
|
(3.42
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(3.46
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
DIVIDENDS PER COMMON SHARE
|
|
$
|
0.76
|
|
|
$
|
0.75
|
|
|
$
|
2.26
|
|
|
$
|
2.22
|
|
|
|
|
|
|
|
|
|
|
||||||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net loss
|
|
$
|
(241
|
)
|
|
$
|
(2,609
|
)
|
|
$
|
(302
|
)
|
|
$
|
(2,651
|
)
|
Other comprehensive income (loss) items:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation gains (losses)
|
|
—
|
|
|
(1
|
)
|
|
1
|
|
|
(2
|
)
|
||||
Unrealized losses on available for sale investment
|
|
—
|
|
|
(246
|
)
|
|
—
|
|
|
(208
|
)
|
||||
Unrealized gains (losses) on derivatives
(a)
|
|
1
|
|
|
2
|
|
|
(12
|
)
|
|
2
|
|
||||
Pension and postretirement gains
(b)
|
|
4
|
|
|
1
|
|
|
16
|
|
|
5
|
|
||||
Reclassification to income of realized losses on derivatives
(c)
|
|
—
|
|
|
1
|
|
|
8
|
|
|
1
|
|
||||
Other comprehensive income (loss), net of tax
|
|
5
|
|
|
(243
|
)
|
|
13
|
|
|
(202
|
)
|
||||
Comprehensive loss
|
|
$
|
(236
|
)
|
|
$
|
(2,852
|
)
|
|
$
|
(289
|
)
|
|
$
|
(2,853
|
)
|
(a)
|
Net of tax of $(1) and $(1) for the three months ended September 30, 2016 and 2015, respectively, and $6 and $(1) for the nine months ended September 30, 2016 and 2015, respectively.
|
(b)
|
Net of tax of $(2) and $(1) for the three months ended September 30, 2016 and 2015, respectively, and $(9) and $(3) for the nine months ended September 30, 2016 and 2015, respectively.
|
(c)
|
Net of tax of zero for the three months ended September 30, 2016 and 2015, respectively, and $(4) and zero for the nine months ended September 30, 2016 and 2015, respectively.
|
|
|
2016
|
|
2015
|
|
||||
CASH FLOW FROM OPERATING ACTIVITIES
|
|
|
|
|
|
||||
Net Loss
|
|
$
|
(302
|
)
|
|
$
|
(2,651
|
)
|
|
Adjustments to reconcile net loss to net cash provided by
operating activities:
|
|
|
|
|
|
||||
Discontinued operations, net
|
|
(432
|
)
|
|
10
|
|
|
||
Depreciation, depletion and amortization of assets
|
|
3,218
|
|
|
3,268
|
|
|
||
Deferred income tax benefit
|
|
(162
|
)
|
|
(417
|
)
|
|
||
Other noncash charges to income
|
|
79
|
|
|
359
|
|
|
||
Asset impairments and related items
|
|
139
|
|
|
3,364
|
|
|
||
Gain on sale of assets, net
|
|
(198
|
)
|
|
(94
|
)
|
|
||
Undistributed earnings from affiliates
|
|
(4
|
)
|
|
(3
|
)
|
|
||
Dry hole expenses
|
|
33
|
|
|
4
|
|
|
||
Changes in operating assets and liabilities, net
|
|
(460
|
)
|
|
(938
|
)
|
|
||
Other operating, net
|
|
(313
|
)
|
|
(499
|
)
|
|
||
Operating cash flow from continuing operations
|
|
1,598
|
|
|
2,403
|
|
|
||
Operating cash flow from discontinued operations
|
|
870
|
|
|
(17
|
)
|
|
||
Net cash provided by operating activities
|
|
2,468
|
|
|
2,386
|
|
|
||
|
|
|
|
|
|
||||
CASH FLOW FROM INVESTING ACTIVITIES
|
|
|
|
|
|
||||
Capital expenditures
|
|
(1,845
|
)
|
|
(4,192
|
)
|
|
||
Change in capital accrual
|
|
(207
|
)
|
|
(652
|
)
|
|
||
Purchase of businesses and assets, net
|
|
(82
|
)
|
|
(52
|
)
|
|
||
Proceeds from sale of assets and equity investments, net
|
|
323
|
|
|
151
|
|
|
||
Equity investments and other, net
|
|
(165
|
)
|
|
(373
|
)
|
|
||
Net cash used by investing activities
|
|
(1,976
|
)
|
|
(5,118
|
)
|
|
||
|
|
|
|
|
|
||||
CASH FLOW FROM FINANCING ACTIVITIES
|
|
|
|
|
|
||||
Change in restricted cash
|
|
1,193
|
|
|
2,254
|
|
|
||
Proceeds from long-term debt, net
|
|
2,718
|
|
|
1,478
|
|
|
||
Payment of long-term debt, net
|
|
(2,710
|
)
|
|
—
|
|
|
||
Proceeds from issuance of common stock
|
|
32
|
|
|
34
|
|
|
||
Purchases of treasury stock
|
|
(22
|
)
|
|
(586
|
)
|
|
||
Cash dividends paid
|
|
(1,724
|
)
|
|
(1,690
|
)
|
|
||
Net cash (used) provided by financing activities
|
|
(513
|
)
|
|
1,490
|
|
|
||
|
|
|
|
|
|
||||
Decrease in cash and cash equivalents
|
|
(21
|
)
|
|
(1,242
|
)
|
|
||
Cash and cash equivalents — beginning of period
|
|
3,201
|
|
|
3,789
|
|
|
||
Cash and cash equivalents — end of period
|
|
$
|
3,180
|
|
|
$
|
2,547
|
|
|
|
|
|
|
|
|
||||
The accompanying notes are an integral part of these consolidated financial statements.
|
|
|
|
2016
|
|
2015
|
|
||||
|
|
|
|
|
|
||||
Raw materials
|
|
$
|
77
|
|
|
$
|
73
|
|
|
Materials and supplies
|
|
503
|
|
|
568
|
|
|
||
Finished goods
|
|
397
|
|
|
395
|
|
|
||
|
|
977
|
|
|
1,036
|
|
|
||
|
|
|
|
|
|
||||
Revaluation to LIFO
|
|
(50
|
)
|
|
(50
|
)
|
|
||
Total
|
|
$
|
927
|
|
|
$
|
986
|
|
|
|
|
Number of Sites
|
|
Reserve Balance
(in millions) |
|
|||
|
|
|
|
|
|
|||
NPL sites
|
|
35
|
|
|
$
|
68
|
|
|
Third-party sites
|
|
69
|
|
|
126
|
|
|
|
Occidental-operated sites
|
|
17
|
|
|
100
|
|
|
|
Closed or non-operated Occidental sites
|
|
29
|
|
|
126
|
|
|
|
Total
|
|
150
|
|
|
$
|
420
|
|
|
Three months ended September 30
|
|
2016
|
|
2015
|
||||||||||||
Net Periodic Benefit Costs
|
|
Pension Benefit
|
|
Post-retirement Benefit
|
|
Pension Benefit
|
|
Post-retirement Benefit
|
||||||||
Service cost
|
|
$
|
2
|
|
|
$
|
4
|
|
|
$
|
2
|
|
|
$
|
7
|
|
Interest cost
|
|
4
|
|
|
9
|
|
|
5
|
|
|
10
|
|
||||
Expected return on plan assets
|
|
(6
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
||||
Recognized actuarial loss
|
|
3
|
|
|
3
|
|
|
3
|
|
|
6
|
|
||||
Total
|
|
$
|
3
|
|
|
$
|
16
|
|
|
$
|
3
|
|
|
$
|
23
|
|
Nine months ended September 30
|
|
2016
|
|
2015
|
||||||||||||
Net Periodic Benefit Costs
|
|
Pension Benefit
|
|
Post-retirement Benefit
|
|
Pension Benefit
|
|
Post-retirement Benefit
|
||||||||
Service cost
|
|
$
|
6
|
|
|
$
|
14
|
|
|
$
|
6
|
|
|
$
|
21
|
|
Interest cost
|
|
12
|
|
|
29
|
|
|
15
|
|
|
30
|
|
||||
Expected return on plan assets
|
|
(18
|
)
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
||||
Recognized actuarial loss
|
|
9
|
|
|
14
|
|
|
7
|
|
|
20
|
|
||||
Settlement loss
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
11
|
|
|
$
|
57
|
|
|
$
|
7
|
|
|
$
|
71
|
|
Ø
|
Occidental values exchange-cleared commodity derivatives using closing prices provided by the exchange as of the balance sheet date.
O
ccidental values its available for sale investment based on the common stock closing share price as of the balance sheet date. These derivatives and investments are classified as Level 1.
|
Ø
|
Over-the-Counter (OTC) bilateral financial commodity contracts, foreign exchange contracts, options and physical commodity forward purchase and sale contracts are generally classified as Level 2 and are generally valued using quotations provided by brokers or industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace.
|
Ø
|
Occidental values commodity derivatives based on a market approach that considers various assumptions, including quoted forward commodity prices and market yield curves. The assumptions used include inputs that are generally unobservable in the marketplace or are observable but have been adjusted based upon various assumptions, and the fair value is designated as Level 3 within the valuation hierarchy.
|
Fair Value Measurements at December 31, 2015:
|
|
|
|
|
|
|
||||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting and
Collateral
|
|
Total Fair
Value
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
557
|
|
|
$
|
87
|
|
|
$
|
—
|
|
|
$
|
(535
|
)
|
|
$
|
109
|
|
Available for sale investment
|
|
$
|
167
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
167
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Commodity derivatives
|
|
$
|
544
|
|
|
$
|
404
|
|
|
$
|
—
|
|
|
$
|
(525
|
)
|
|
$
|
423
|
|
(in millions)
|
|
Fair Value Measurements at December 31, 2015 Using
|
|
Net
Book Value
(a)
|
|
Total Pre-tax
(Non-cash) Impairment Loss
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Description
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
|
||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impaired proved oil and gas assets - international
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,666
|
|
|
$
|
7,359
|
|
|
$
|
4,693
|
|
Impaired proved oil and gas assets - domestic
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
625
|
|
|
$
|
1,655
|
|
|
$
|
1,030
|
|
Impaired Midstream assets
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
50
|
|
|
$
|
891
|
|
|
$
|
841
|
|
Impaired Chemical property, plant, and equipment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
124
|
|
|
$
|
121
|
|
|
|
After-tax
|
||||||||||||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Unrealized losses (gains) on derivatives
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
(13
|
)
|
|
$
|
2
|
|
Reclassification to income of realized loss on derivatives
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
|
Net Outstanding Position
|
||||
|
|
Long / (Short)
|
||||
Commodity
|
|
2016
|
|
2015
|
||
Oil (million barrels)
|
|
44
|
|
|
83
|
|
Natural gas (billion cubic feet)
|
|
(49
|
)
|
|
(5
|
)
|
Carbon dioxide
(billion cubic feet)
|
|
555
|
|
|
603
|
|
|
|
Asset Derivatives
|
|
Fair
|
|
Liability Derivatives
|
|
Fair
|
||||
September 30, 2016
|
|
Balance Sheet Location
|
|
Value
|
|
Balance Sheet Location
|
|
Value
|
||||
Cash-flow hedges
(a)
|
|
|
|
|
|
|
|
|
||||
Commodity contracts
|
|
Other current assets
|
|
$
|
—
|
|
|
Accrued liabilities
|
|
$
|
3
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(a)
|
|
|
|
|
|
|
|
|
||||
Commodity contracts
|
|
Other current assets
|
|
171
|
|
|
Accrued liabilities
|
|
242
|
|
||
Long-term receivables and other assets, net
|
|
13
|
|
|
Deferred credits and other liabilities
|
|
215
|
|
||||
|
|
|
|
184
|
|
|
|
|
457
|
|
||
Total gross fair value
|
|
|
|
184
|
|
|
|
|
460
|
|
||
Less: counterparty netting and cash collateral
(b,c)
|
|
|
|
(149
|
)
|
|
|
|
(171
|
)
|
||
Total net fair value of derivatives
|
|
|
|
$
|
35
|
|
|
|
|
$
|
289
|
|
|
|
Asset Derivatives
|
|
Fair
|
|
Liability Derivatives
|
|
Fair
|
||||
December 31, 2015
|
|
Balance Sheet Location
|
|
Value
|
|
Balance Sheet Location
|
|
Value
|
||||
Cash-flow hedges
(a)
|
|
|
|
|
|
|
|
|
||||
Commodity contracts
|
|
Other current assets
|
|
$
|
9
|
|
|
Accrued liabilities
|
|
$
|
1
|
|
|
|
|
|
|
|
|
|
|
||||
Derivatives not designated as hedging instruments
(a)
|
|
|
|
|
|
|
|
|
||||
Commodity contracts
|
|
Other current assets
|
|
626
|
|
|
Accrued liabilities
|
|
672
|
|
||
Long-term receivables and other assets, net
|
|
9
|
|
|
Deferred credits and other liabilities
|
|
275
|
|
||||
|
|
|
|
635
|
|
|
|
|
947
|
|
||
Total gross fair value
|
|
|
|
644
|
|
|
|
|
948
|
|
||
Less: counterparty netting and cash collateral
(c,d)
|
|
|
|
(535
|
)
|
|
|
|
(525
|
)
|
||
Total net fair value of derivatives
|
|
|
|
$
|
109
|
|
|
|
|
$
|
423
|
|
(a)
|
Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and presented on a net basis in the consolidated balance sheets.
|
(b)
|
As of
September 30, 2016
, collateral received of zero has been netted against the derivative assets, and collateral paid of $22 million has been netted against derivative liabilities.
|
(c)
|
Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $32 million and $3 million deposited by Occidental has not been reflected in these derivative fair value tables as of September 30, 2016 and December 31, 2015, respectively. This collateral is included in other current assets in the consolidated balance sheets as of
September 30, 2016
and
December 31, 2015
, respectively.
|
(d)
|
As of
December 31, 2015
, collateral received of $14 million has been netted against derivative assets, and collateral paid of $4 million has been netted against derivative liabilities.
|
|
|
Oil
|
|
|
|
Midstream
|
|
Corporate
|
|
|
||||||||||
|
|
and
|
|
|
|
and
|
|
and
|
|
|
||||||||||
|
|
Gas
|
|
Chemical
|
|
Marketing
|
|
Eliminations
|
|
Total
|
||||||||||
Three months ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
1,660
|
|
|
$
|
988
|
|
|
$
|
202
|
|
|
$
|
(202
|
)
|
|
$
|
2,648
|
|
Pre-tax operating profit (loss)
|
|
$
|
(51
|
)
|
(a)
|
$
|
117
|
|
|
$
|
(180
|
)
|
|
$
|
(154
|
)
|
(b)
|
$
|
(268
|
)
|
Income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30
|
|
(c)
|
30
|
|
|||||
Discontinued operations, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||
Net income (loss)
|
|
$
|
(51
|
)
|
|
$
|
117
|
|
|
$
|
(180
|
)
|
|
$
|
(127
|
)
|
|
$
|
(241
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
2,054
|
|
|
$
|
1,008
|
|
|
$
|
231
|
|
|
$
|
(177
|
)
|
|
$
|
3,116
|
|
Pre-tax operating profit (loss)
|
|
$
|
(3,128
|
)
|
(d)
|
$
|
272
|
|
(e)
|
$
|
24
|
|
|
$
|
(219
|
)
|
(b)
|
$
|
(3,051
|
)
|
Income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
445
|
|
(c)
|
445
|
|
|||||
Discontinued operations, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
(3
|
)
|
|||||
Net income (loss)
|
|
$
|
(3,128
|
)
|
|
$
|
272
|
|
|
$
|
24
|
|
|
$
|
223
|
|
|
$
|
(2,609
|
)
|
|
|
Oil
|
|
|
|
Midstream
|
|
Corporate
|
|
|
||||||||||
|
|
and
|
|
|
|
and
|
|
and
|
|
|
||||||||||
|
|
Gas
|
|
Chemical
|
|
Marketing
|
|
Eliminations
|
|
Total
|
||||||||||
Nine months ended September 30, 2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
4,560
|
|
|
$
|
2,786
|
|
|
$
|
476
|
|
|
$
|
(520
|
)
|
|
$
|
7,302
|
|
Pre-tax operating profit (loss)
|
|
$
|
(653
|
)
|
(a)
|
$
|
419
|
|
(e)
|
$
|
(333
|
)
|
|
$
|
(496
|
)
|
(b)
|
$
|
(1,063
|
)
|
Income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329
|
|
(c)
|
329
|
|
|||||
Discontinued operations, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
432
|
|
|
432
|
|
|||||
Net income (loss)
|
|
$
|
(653
|
)
|
|
$
|
419
|
|
|
$
|
(333
|
)
|
|
$
|
265
|
|
|
$
|
(302
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nine months ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
|
$
|
6,405
|
|
|
$
|
3,038
|
|
|
$
|
722
|
|
|
$
|
(491
|
)
|
|
$
|
9,674
|
|
Pre-tax operating profit (loss)
|
|
$
|
(3,039
|
)
|
(d)
|
$
|
547
|
|
(e)
|
$
|
96
|
|
|
$
|
(385
|
)
|
(b)
|
$
|
(2,781
|
)
|
Income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
140
|
|
(c)
|
140
|
|
|||||
Discontinued operations, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
|
(10
|
)
|
|||||
Net income (loss)
|
|
$
|
(3,039
|
)
|
|
$
|
547
|
|
|
$
|
96
|
|
|
$
|
(255
|
)
|
|
$
|
(2,651
|
)
|
(a)
|
The three and nine months ended September 30, 2016 include pre-tax impairment charges of $112 million related to Occidental's Libya operations and $160 million related to terminated crude oil supply contracts partially offset by pre-tax gains of $59 million on the sale of South Texas Eagle Ford non-operated properties. The nine months ended
September 30, 2016
also reflected a $121 million pre-tax gain on the sale of Occidental's Piceance Basin operations in Colorado.
|
(b)
|
Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items.
|
(c)
|
Includes all foreign and domestic income taxes from continuing operations.
|
(d)
|
The three months ended September 30, 2015 includes pre-tax impairment charges of $3.1 billion. In September 2015, Occidental entered into a sales agreement to sell its Williston operations in North Dakota, and as such an impairment charge of $756 million was recorded to write down the net book value of the assets and liabilities held for sale to the sales price. Due to the significant decline in oil and gas futures prices, Occidental also recorded impairment charges on proved and unproved properties related to Occidental's domestic gas operations of $924 million, Iraq operations of $760 million and Libya operations of $676 million. The nine months ended September 30, 2015 also reflected first quarter impairment charges of $195 million for Occidental's South Texas Eagle Ford non-operated properties and $41 million to write-off the remaining investment in Yemen due to the collapse of the country's government.
|
(e)
|
The nine months ended September 30, 2016 and 2015 include gains on sale of the Occidental Tower and Indspec for $88 million and an idled chemical site for $98 million, respectively.
|
|
|
Three months ended
September 30
|
|
Nine months ended
September 30
|
|
||||||||||||
|
|
|
|
||||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Basic EPS
|
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations
|
|
$
|
(238
|
)
|
|
$
|
(2,606
|
)
|
|
$
|
(734
|
)
|
|
$
|
(2,641
|
)
|
|
Discontinued operations, net
|
|
(3
|
)
|
|
(3
|
)
|
|
432
|
|
|
(10
|
)
|
|
||||
Net loss
|
|
(241
|
)
|
|
(2,609
|
)
|
|
(302
|
)
|
|
(2,651
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Less: Net income allocated to participating securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Net loss, net of participating securities
|
|
(241
|
)
|
|
(2,609
|
)
|
|
(302
|
)
|
|
(2,651
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average number of basic shares
|
|
764.0
|
|
|
763.3
|
|
|
763.7
|
|
|
766.4
|
|
|
||||
Basic EPS
|
|
$
|
(0.32
|
)
|
|
$
|
(3.42
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(3.46
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted EPS
|
|
|
|
|
|
|
|
|
|
||||||||
Net loss, net of participating securities
|
|
$
|
(241
|
)
|
|
$
|
(2,609
|
)
|
|
$
|
(302
|
)
|
|
$
|
(2,651
|
)
|
|
Weighted average number of basic shares
|
|
764.0
|
|
|
763.3
|
|
|
763.7
|
|
|
766.4
|
|
|
||||
Dilutive effect of potentially dilutive securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
||||
Total diluted weighted average common shares
|
|
764.0
|
|
|
763.3
|
|
|
763.7
|
|
|
766.4
|
|
|
||||
Diluted EPS
|
|
$
|
(0.32
|
)
|
|
$
|
(3.42
|
)
|
|
$
|
(0.40
|
)
|
|
$
|
(3.46
|
)
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Net Sales
(a)
|
|
|
|
|
|
|
|
|
|
||||||||
Oil and Gas
|
|
$
|
1,660
|
|
|
$
|
2,054
|
|
|
$
|
4,560
|
|
|
$
|
6,405
|
|
|
Chemical
|
|
988
|
|
|
1,008
|
|
|
2,786
|
|
|
3,038
|
|
|
||||
Midstream and Marketing
|
|
202
|
|
|
231
|
|
|
476
|
|
|
722
|
|
|
||||
Eliminations
|
|
(202
|
)
|
|
(177
|
)
|
|
(520
|
)
|
|
(491
|
)
|
|
||||
|
|
$
|
2,648
|
|
|
$
|
3,116
|
|
|
$
|
7,302
|
|
|
$
|
9,674
|
|
|
Segment Results
(b)
|
|
|
|
|
|
|
|
|
|
||||||||
Oil and Gas
|
|
$
|
(51
|
)
|
|
$
|
(3,128
|
)
|
|
$
|
(653
|
)
|
|
$
|
(3,039
|
)
|
|
Chemical
|
|
117
|
|
|
272
|
|
|
419
|
|
|
547
|
|
|
||||
Midstream and Marketing
|
|
(180
|
)
|
|
24
|
|
|
(333
|
)
|
|
96
|
|
|
||||
|
|
(114
|
)
|
|
(2,832
|
)
|
|
(567
|
)
|
|
(2,396
|
)
|
|
||||
Unallocated Corporate Items
(b)
|
|
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
|
(62
|
)
|
|
(47
|
)
|
|
(203
|
)
|
|
(82
|
)
|
|
||||
Income tax benefit
|
|
30
|
|
|
445
|
|
|
329
|
|
|
140
|
|
|
||||
Other expense, net
|
|
(92
|
)
|
|
(172
|
)
|
|
(293
|
)
|
|
(303
|
)
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Loss from continuing operations
|
|
(238
|
)
|
|
(2,606
|
)
|
|
(734
|
)
|
|
(2,641
|
)
|
|
||||
Discontinued operations, net
|
|
(3
|
)
|
|
(3
|
)
|
|
432
|
|
|
(10
|
)
|
|
||||
Net loss
|
|
$
|
(241
|
)
|
|
$
|
(2,609
|
)
|
|
$
|
(302
|
)
|
|
$
|
(2,651
|
)
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil and Gas
|
|
|
|
|
|
|
|
|
||||||||
Asset sales gains and other
|
|
$
|
59
|
|
|
$
|
—
|
|
|
$
|
82
|
|
|
$
|
5
|
|
Asset impairments and related items - Domestic
|
|
—
|
|
|
(1,852
|
)
|
|
—
|
|
|
(2,102
|
)
|
||||
Asset impairments and related items - International
|
|
(61
|
)
|
|
(1,438
|
)
|
|
(61
|
)
|
|
(1,485
|
)
|
||||
Total Oil and Gas
|
|
$
|
(2
|
)
|
|
$
|
(3,290
|
)
|
|
$
|
21
|
|
|
$
|
(3,582
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Chemical
|
|
|
|
|
|
|
|
|
||||||||
Asset sales gains
|
|
$
|
—
|
|
|
$
|
98
|
|
|
$
|
88
|
|
|
$
|
98
|
|
Total Chemical
|
|
$
|
—
|
|
|
$
|
98
|
|
|
$
|
88
|
|
|
$
|
98
|
|
|
|
|
|
|
|
|
|
|
||||||||
Midstream and Marketing
|
|
|
|
|
|
|
|
|
||||||||
Asset impairments and related items
|
|
$
|
(160
|
)
|
|
$
|
(7
|
)
|
|
$
|
(160
|
)
|
|
$
|
(14
|
)
|
Total Midstream and Marketing
|
|
$
|
(160
|
)
|
|
$
|
(7
|
)
|
|
$
|
(160
|
)
|
|
$
|
(14
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Corporate
|
|
|
|
|
|
|
|
|
||||||||
Asset impairments
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(5
|
)
|
Spin-off costs and related items
|
|
—
|
|
|
(95
|
)
|
|
(78
|
)
|
|
(115
|
)
|
||||
Asset sales gains (losses)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(9
|
)
|
||||
Tax effect of pre-tax adjustments
(a)
|
|
36
|
|
|
667
|
|
|
69
|
|
|
766
|
|
||||
Discontinued operations, net
(b)
|
|
(3
|
)
|
|
(3
|
)
|
|
432
|
|
|
(10
|
)
|
||||
Total Corporate
|
|
$
|
33
|
|
|
$
|
566
|
|
|
$
|
423
|
|
|
$
|
627
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total
|
|
$
|
(129
|
)
|
|
$
|
(2,633
|
)
|
|
$
|
372
|
|
|
$
|
(2,871
|
)
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
||||||||||||
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Oil and Gas results
|
|
$
|
(51
|
)
|
|
$
|
(3,128
|
)
|
|
$
|
(653
|
)
|
|
$
|
(3,039
|
)
|
Chemical results
|
|
117
|
|
|
272
|
|
|
419
|
|
|
547
|
|
||||
Midstream and Marketing results
|
|
(180
|
)
|
|
24
|
|
|
(333
|
)
|
|
96
|
|
||||
Unallocated corporate items
|
|
(154
|
)
|
|
(219
|
)
|
|
(496
|
)
|
|
(385
|
)
|
||||
Pre-tax loss
|
|
(268
|
)
|
|
(3,051
|
)
|
|
(1,063
|
)
|
|
(2,781
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Income tax benefit (provision)
|
|
|
|
|
|
|
|
|
||||||||
Federal and state
|
|
242
|
|
|
747
|
|
|
767
|
|
|
919
|
|
||||
Foreign
|
|
(212
|
)
|
|
(302
|
)
|
|
(438
|
)
|
|
(779
|
)
|
||||
Total
|
|
30
|
|
|
445
|
|
|
329
|
|
|
140
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Loss from continuing operations
|
|
$
|
(238
|
)
|
|
$
|
(2,606
|
)
|
|
$
|
(734
|
)
|
|
$
|
(2,641
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Worldwide effective tax rate
|
|
11
|
%
|
|
15
|
%
|
|
31
|
%
|
|
5
|
%
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||
Production Volumes per Day
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Oil (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
|
|
181
|
|
|
204
|
|
|
189
|
|
|
203
|
|
|
Middle East/North Africa
|
|
164
|
|
|
207
|
|
|
172
|
|
|
195
|
|
|
Latin America
|
|
26
|
|
|
25
|
|
|
33
|
|
|
34
|
|
|
NGLs (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
|
|
55
|
|
|
58
|
|
|
54
|
|
|
55
|
|
|
Middle East/North Africa
|
|
31
|
|
|
22
|
|
|
27
|
|
|
15
|
|
|
Natural Gas (MMCF)
|
|
|
|
|
|
|
|
|
|
||||
United States
|
|
349
|
|
|
419
|
|
|
364
|
|
|
434
|
|
|
Middle East/North Africa
|
|
531
|
|
|
607
|
|
|
608
|
|
|
529
|
|
|
Latin America
|
|
8
|
|
|
9
|
|
|
8
|
|
|
10
|
|
|
Total Production Volumes (MBOE)
(a)
|
|
605
|
|
|
689
|
|
|
638
|
|
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||
Sales Volumes per Day
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Oil (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
|
|
181
|
|
|
204
|
|
|
189
|
|
|
203
|
|
|
Middle East/North Africa
|
|
163
|
|
|
179
|
|
|
173
|
|
|
185
|
|
|
Latin America
|
|
31
|
|
|
34
|
|
|
34
|
|
|
34
|
|
|
NGLs (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
|
|
55
|
|
|
58
|
|
|
54
|
|
|
55
|
|
|
Middle East/North Africa
|
|
31
|
|
|
22
|
|
|
27
|
|
|
15
|
|
|
Natural Gas (MMCF)
|
|
|
|
|
|
|
|
|
|
||||
United States
|
|
349
|
|
|
419
|
|
|
364
|
|
|
434
|
|
|
Middle East/North Africa
|
|
531
|
|
|
607
|
|
|
608
|
|
|
529
|
|
|
Latin America
|
|
8
|
|
|
9
|
|
|
8
|
|
|
10
|
|
|
Total Sales Volumes (MBOE)
(a
)
|
|
609
|
|
|
670
|
|
|
640
|
|
|
655
|
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||
Production Volumes per Day
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Oil (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
(b)
|
|
181
|
|
|
188
|
|
|
189
|
|
|
186
|
|
|
Middle East/North Africa
(c)
|
|
164
|
|
|
168
|
|
|
163
|
|
|
159
|
|
|
Latin America
|
|
26
|
|
|
25
|
|
|
33
|
|
|
34
|
|
|
NGLs (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
(b)
|
|
55
|
|
|
55
|
|
|
53
|
|
|
52
|
|
|
Middle East/North Africa
|
|
31
|
|
|
22
|
|
|
27
|
|
|
15
|
|
|
Natural Gas (MMCF)
|
|
|
|
|
|
|
|
|
|
||||
United States
(b)
|
|
349
|
|
|
343
|
|
|
350
|
|
|
353
|
|
|
Middle East/North Africa
(c)
|
|
531
|
|
|
365
|
|
|
457
|
|
|
287
|
|
|
Latin America
|
|
8
|
|
|
9
|
|
|
8
|
|
|
10
|
|
|
Total Production Ongoing Operations (MBOE)
|
|
605
|
|
|
578
|
|
|
601
|
|
|
555
|
|
|
Operations Sold, Exited and Exiting
|
|
—
|
|
|
111
|
|
|
37
|
|
|
110
|
|
|
Total Production Volumes (MBOE)
(a)
|
|
605
|
|
|
689
|
|
|
638
|
|
|
665
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||
Sales Volumes per Day
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||
Oil (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
(b)
|
|
181
|
|
|
188
|
|
|
189
|
|
|
186
|
|
|
Middle East/North Africa
(d)
|
|
163
|
|
|
162
|
|
|
164
|
|
|
158
|
|
|
Latin America
|
|
31
|
|
|
34
|
|
|
34
|
|
|
34
|
|
|
NGLs (MBBL)
|
|
|
|
|
|
|
|
|
|
||||
United States
(b)
|
|
55
|
|
|
55
|
|
|
53
|
|
|
52
|
|
|
Middle East/North Africa
|
|
31
|
|
|
22
|
|
|
27
|
|
|
15
|
|
|
Natural Gas (MMCF)
|
|
|
|
|
|
|
|
|
|
||||
United States
(b)
|
|
349
|
|
|
343
|
|
|
350
|
|
|
353
|
|
|
Middle East/North Africa
(d)
|
|
531
|
|
|
365
|
|
|
457
|
|
|
287
|
|
|
Latin America
|
|
8
|
|
|
9
|
|
|
8
|
|
|
10
|
|
|
Total Sales Ongoing Operations (MBOE)
|
|
609
|
|
|
581
|
|
|
603
|
|
|
554
|
|
|
Operations Sold, Exited and Exiting
|
|
—
|
|
|
89
|
|
|
37
|
|
|
101
|
|
|
Total Sales Volumes (MBOE)
(a
)
|
|
609
|
|
|
670
|
|
|
640
|
|
|
655
|
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||||||
Average Realized Prices
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
Oil ($/BBL)
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
|
$
|
41.49
|
|
|
$
|
44.48
|
|
|
$
|
37.31
|
|
|
$
|
46.97
|
|
|
Middle East/North Africa
|
|
$
|
41.84
|
|
|
$
|
52.53
|
|
|
$
|
36.26
|
|
|
$
|
54.37
|
|
|
Latin America
|
|
$
|
39.66
|
|
|
$
|
42.46
|
|
|
$
|
35.50
|
|
|
$
|
48.53
|
|
|
Total Worldwide
|
|
$
|
41.49
|
|
|
$
|
47.78
|
|
|
$
|
36.70
|
|
|
$
|
50.33
|
|
|
NGLs ($/BBL)
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
|
$
|
15.21
|
|
|
$
|
13.72
|
|
|
$
|
13.12
|
|
|
$
|
16.06
|
|
|
Middle East/North Africa
|
|
$
|
14.63
|
|
|
$
|
17.12
|
|
|
$
|
14.47
|
|
|
$
|
19.25
|
|
|
Total Worldwide
|
|
$
|
14.99
|
|
|
$
|
14.68
|
|
|
$
|
13.58
|
|
|
$
|
16.73
|
|
|
Natural Gas ($/MCF)
|
|
|
|
|
|
|
|
|
|
||||||||
United States
|
|
$
|
2.30
|
|
|
$
|
2.24
|
|
|
$
|
1.74
|
|
|
$
|
2.28
|
|
|
Latin America
|
|
$
|
3.48
|
|
|
$
|
5.67
|
|
|
$
|
3.66
|
|
|
$
|
5.18
|
|
|
Total Worldwide
|
|
$
|
1.84
|
|
|
$
|
1.51
|
|
|
$
|
1.43
|
|
|
$
|
1.55
|
|
|
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||||||
Average Index Prices
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
||||||||
WTI oil ($/BBL)
|
|
$
|
44.94
|
|
|
$
|
46.43
|
|
|
$
|
41.33
|
|
|
$
|
51.00
|
|
|
Brent oil ($/BBL)
|
|
$
|
46.98
|
|
|
$
|
51.17
|
|
|
$
|
43.01
|
|
|
$
|
56.61
|
|
|
NYMEX gas ($/MCF)
|
|
$
|
2.70
|
|
|
$
|
2.78
|
|
|
$
|
2.24
|
|
|
$
|
2.86
|
|
|
Average Realized Prices as Percentage of Average Index Prices
|
|
Three months ended September 30
|
|
Nine months ended September 30
|
|
||||||||
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|||||
Worldwide oil as a percentage of average WTI
|
|
92
|
%
|
|
103
|
%
|
|
89
|
%
|
|
99
|
%
|
|
Worldwide oil as a percentage of average Brent
|
|
88
|
%
|
|
93
|
%
|
|
85
|
%
|
|
89
|
%
|
|
Worldwide NGLs as a percentage of average WTI
|
|
33
|
%
|
|
32
|
%
|
|
33
|
%
|
|
33
|
%
|
|
Domestic natural gas as a percentage of average NYMEX
|
|
85
|
%
|
|
81
|
%
|
|
78
|
%
|
|
80
|
%
|
|
Period
|
|
Total Number
of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs
(a)
|
|||||
|
|
|
|
|
|
|
|
|
|||||
First Quarter 2016
|
|
103,371
|
|
(b)
|
$
|
70.63
|
|
|
—
|
|
|
|
|
Second Quarter 2016
|
|
96,449
|
|
|
$
|
76.06
|
|
|
|
|
|
||
July 1- 31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
August 1 - 31, 2016
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
|
|
September 1 - 30, 2016
|
|
96,151
|
|
|
$
|
70.50
|
|
|
—
|
|
|
|
|
Third Quarter 2016
|
|
96,151
|
|
|
$
|
70.50
|
|
|
—
|
|
|
|
|
Total
|
|
295,971
|
|
|
$
|
72.36
|
|
|
—
|
|
|
63,756,544
|
|
(a)
|
Represents the total number of shares remaining at September 30, 2016, under Occidental's share repurchase program of 185 million shares. The program was initially announced in 2005. The program does not obligate Occidental to acquire any specific number of shares and may be discontinued at any time.
|
(b)
|
Includes purchases from the trustee of Occidental's defined contribution savings plan that are not part of publicly announced plans or programs.
|
10.1
|
First Amendment to the Occidental Petroleum Corporation 2015 Long-Term Incentive Plan.
|
|
|
10.2
|
Form of Occidental Petroleum Corporation Supplemental Retirement Plan II (Effective as of January 1, 2005, Amended and Restated as of November 1, 2008 and Restated as of October 31, 2016 solely to incorporate all interim amendments).
|
|
|
10.3
|
Form of Occidental Petroleum Corporation Modified Deferred Compensation Plan (Effective as of December 31, 2006, Amended and Restated effective as of November 1, 2008 and Restated as of October 31, 2016 solely to incorporate all interim amendments).
|
|
|
12
|
Statement regarding the computation of total enterprise ratios of earnings to fixed charges for the nine months ended September 30, 2016 and 2015, and for each of the five years in the period ended December 31, 2015.
|
|
|
31.1
|
Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.1
|
Certifications of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101.INS
|
XBRL Instance Document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
OCCIDENTAL PETROLEUM CORPORATION
|
|
DATE:
|
November 1, 2016
|
/s/ Jennifer M. Kirk
|
|
|
|
Jennifer M. Kirk
|
|
|
|
Vice President, Controller and
|
|
|
|
Principal Accounting Officer
|
|
10.1
|
First Amendment to the Occidental Petroleum Corporation 2015 Long-Term Incentive Plan.
|
|
|
10.2
|
Form of Occidental Petroleum Corporation Supplemental Retirement Plan II (Effective as of January 1, 2005, Amended and Restated as of November 1, 2008 and Restated as of October 31, 2016 solely to incorporate all interim amendments).
|
|
|
10.3
|
Form of Occidental Petroleum Corporation Modified Deferred Compensation Plan (Effective as of December 31, 2006, Amended and Restated effective as of November 1, 2008 and Restated as of October 31, 2016 solely to incorporate all interim amendments).
|
|
|
12
|
Statement regarding the computation of total enterprise ratios of earnings to fixed charges for the nine months ended September 30, 2016 and 2015, and for each of the five years in the period ended December 31, 2015.
|
|
|
31.1
|
Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.1
|
Certifications of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101.INS
|
XBRL Instance Document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
Article 1. Introduction
|
1
|
1.1 Adoption of the Plan
|
1
|
1.2 Purpose of the Plan
|
1
|
1.3 Status of the Plan
|
1
|
1.4 Application of the Plan
|
2
|
Article 2. Definitions
|
3
|
2.1 Definitions
|
3
|
Article 3. Participation
|
11
|
3.1 Effective Date of Participation
|
11
|
3.2 Reemployment; Resumption of Participation
|
11
|
3.3 Allocations to New Participants
|
12
|
Article 4. Benefits
|
13
|
4.1 Allocations Relating to the Retirement Plan
|
13
|
4.2 Allocations Relating to the Savings Plan
|
15
|
4.3 Allocations Relating to the Deferred Compensation Plan
|
15
|
4.4 Maintenance of Accounts
|
16
|
4.5 Vesting and Forfeiture
|
17
|
Article 5. Payments
|
18
|
5.1 Timing and Form of Payments
|
18
|
5.2 Payment Elections and Changes
|
19
|
5.3 Special Rules for LTD Participants
|
21
|
5.4 Death
|
21
|
5.5 Small Benefits
|
22
|
5.6 Qualified Divorce Orders
|
22
|
5.7 Tax Withholding
|
22
|
5.8 Reemployment
|
22
|
5.9 Special Transition Rule Elections
|
23
|
5.10 Compliance with Code Section 409A
|
26
|
Article 6. Administration
|
27
|
6.1 The Administrative Committee
|
27
|
6.2 Compensation and Expenses
|
27
|
6.3 Manner of Action
|
27
|
6.4 Chairman, Secretary, and Employment of Specialists
|
27
|
6.5 Subcommittees
|
27
|
6.6 Other Agents
|
27
|
6.7 Records
|
28
|
6.8 Rules
|
28
|
6.9 Powers and Duties
|
28
|
6.10 Decisions Conclusive
|
28
|
6.11 Fiduciaries
|
29
|
6.12 Notice of Address
|
29
|
6.13 Data
|
29
|
6.14 Adjustments
|
29
|
6.15 Member’s Own Participation
|
29
|
6.16 Indemnification
|
30
|
Article 7. Amendment and Termination
|
32
|
7.1 Amendment and Termination
|
32
|
7.2 Reorganization of Employer
|
32
|
7.3 Protected Benefits
|
32
|
Article 8. Claims and Appeals Procedures
|
33
|
8.1 Application for Benefits
|
33
|
8.2 Claims Procedure for Benefits
|
33
|
8.3 Limitations on Actions
|
35
|
Article 9. General Provisions
|
36
|
9.1 Unsecured General Creditor
|
36
|
9.2 Trust Fund
|
36
|
9.3 Nonassignability
|
36
|
9.4 Release from Liability to Participant
|
36
|
9.5 Employment Not Guaranteed
|
37
|
9.6 Gender, Singular & Plural
|
37
|
9.7 Captions
|
37
|
9.8 Validity
|
37
|
9.9 Notice
|
37
|
9.10 Applicable Law
|
37
|
(a)
|
Nonqualified Plan.
The Plan is not qualified within the meaning of Code section 401(a). The Plan is intended to provide an unfunded and unsecured promise to pay money in the future and thus not to involve, pursuant to Treas. Reg. § 1.83-3(e), the transfer of “property” for purposes of Code section 83. Likewise, allocations under this Plan to the account maintained for a Participant, and earnings credited thereon, are not intended to confer an economic benefit upon the Participant nor is the right to the receipt of future benefits under the Plan intended to result in any Participant, Beneficiary or Alternate Payee being in constructive receipt of any amount so as to result in any benefit due under the Plan being includible in the gross income of any Participant, Beneficiary or Alternate Payee in advance of the date on which payment of any benefit due under the Plan is actually made.
|
(b)
|
Compliance with Code Section 409A.
This Plan generally is intended to comply with the requirements of Code section 409A and related regulatory guidance, so that the taxation of Participants and Beneficiaries on any compensation deferred under this Plan is deferred. Notwithstanding the foregoing, any amounts that are credited and paid annually from a Participant’s account following the Participant’s attainment of a specified age, as described in Sections 5.1(b)(1) and 5.8(b)(1), are intended to qualify as short-term deferrals under Treas. Reg. § 1.409A-1(b)(4) (or any successor provision) and accordingly to be exempt from such requirements.
|
(c)
|
No Guarantees of Intended Tax Treatment.
The Plan shall be administered and interpreted so as to satisfy the requirements for the intended tax treatment under the Code described in this section. However, the treatment of benefits earned under and benefits received from this Plan, for purposes of the Code and other applicable tax laws (such as state income and employment tax laws), shall be determined under the Code and other applicable tax laws and no guarantee or commitment is made to any Participant, Beneficiary or Alternate Payee with respect to the treatment of accruals under or benefits payable from the Plan for purposes of the Code and other applicable tax laws.
|
(a)
|
“Administrative Committee”
means the committee with authority to administer the Plan as provided under section 6.1.
|
(b)
|
“Affiliate”
means:
|
(1)
|
Any corporation or other business organization while it is controlled by or under common control with the Company within the meaning of Code sections 414 and 1563;
|
(2)
|
Any member of an affiliated service group within the meaning of Code section 414(m) of which the Company or any Affiliate is a member;
|
(3)
|
Any entity which, pursuant to Code section 414(o) and related Treasury regulations, must be aggregated with the Company or any Affiliate for plan qualification purposes; or
|
(4)
|
Any corporation, trade or business which is more than 50 percent owned, directly or indirectly, by the Company and which is designated by the Board or, if authorized by the Board, the Administrative Committee as an Affiliate.
|
(c)
|
“Alternate Payee”
means a former spouse of a Participant who is recognized by a Divorce Order as having a right to receive all, or a portion of, the benefits payable under this Plan with respect to the Participant.
|
(d)
|
“Annual Bonus”
means the bonus awarded by an Employer to an Active Participant during the Plan Year under a regular annual incentive compensation plan such as the Company’s Variable Compensation Program, Incentive Compensation Program or Executive Incentive Compensation Plan (but excluding, without limitation, a special individual or group bonus, a project bonus, any other special bonus). For avoidance
|
(e)
|
“Annual Bonus Paid”
means up to the first $100,000 of bonus paid to a Participant, who is not a “named executive officer”, as that term is defined in Regulations S-K under the Securities Exchange Act of 1934 (17 CFR §229.402(a)(3)), during the Plan Year under a regular annual incentive compensation plan, such as the Company's Variable Compensation Program or Incentive Compensation Program (but excluding without limitation a special individual or group bonus, a project bonus, and any other special bonus). For avoidance of doubt, “Annual Bonus Paid” means no more than $100,000 of bonus paid to a Participant, who is not a “named executive officer”, as that term is defined in Regulations S-K under the Securities Exchange Act of 1934 (17 CFR §229.402(a)(3)), during the Plan Year under any one or more regular annual incentive compensation plan.
|
(f)
|
“Base Pay of Record”
means the base salary and wages earned while a Participant from an Employer for services rendered, including pretax deferrals under the Savings Plan, and amounts contributed pursuant to the Occidental Petroleum Flexible Spending Accounts Plan, as amended from time to time.
|
(1)
|
Base Pay of Record does not include:
|
(A)
|
Bonuses, incentives, overtime, shift differential, and overseas differentials;
|
(B)
|
Reimbursement for expenses or allowances, including automobile allowances and moving allowances;
|
(C)
|
Any amount contributed by the Employer (other than pretax deferrals under the Savings Plan and any amounts contributed pursuant to the Occidental Petroleum Flexible Spending Accounts Plan, as amended from time to time) to any qualified plan or plan of deferred compensation;
|
(D)
|
Any amount paid by an Employer for other fringe benefits, such as health and hospitalization, and group life insurance benefits, or perquisites; and
|
(E)
|
Allowances paid during furlough and, for purposes of subsection (2)(F), such furloughs shall not be treated as paid leaves of absence.
|
(2)
|
Base Pay of Record is determined in accordance with the following rules:
|
(A)
|
For Participants compensated by salary, Base Pay of Record means the actual base salary of record for the Participant (subject to the exclusions listed above).
|
(B)
|
For Participants compensated based on mileage driven (primarily truck drivers), Base Pay of Record means the number of miles driven multiplied by the applicable mileage pay rate (subject to the exclusions listed above), plus the Participant’s scheduled number of hours worked in the pay period multiplied by the Participant’s base hourly rate (subject to the exclusions listed above).
|
(C)
|
For Participants compensated at an hourly rate, Base Pay of Record means the base hourly rate (subject to the exclusions listed above) multiplied by the number of regularly scheduled hours worked in a pay period. If the Active Participant’s regularly scheduled work week is more than 40 hours, Base Pay of Record shall include an additional amount equal to the base hourly rate (subject to the exclusions listed above) times one half the number of regularly scheduled hours worked in excess of 40 in the work week.
|
(D)
|
For Participants compensated on an eight, ten, twelve, or some other assigned hour Shift Basis and whose annual compensation is pre-determined under the Company’s payroll recordkeeping system, Base Pay of Record for each pay period shall be the Participant’s pre-determined annual compensation (subject to the exclusions listed above) divided by the number of pay periods applicable to the Participant during the Plan Year. For the purpose of this subsection, the term “Shift Basis” means any arrangement whereby Participants work the assigned hour daily shifts which may result in alternating work weeks of more and less than 40 hours per week.
|
(E)
|
Base Pay of Record includes vacation pay received in periodic payments and annual vacation payments made to Employees paid by commission, but does not include single sum vacation payments to active or terminating Employees.
|
(F)
|
Base Pay of Record includes base salary or wages received during paid leaves of absence and periodic notice pay, but, effective July 1, 2006, Base Pay of Record does not include single sum notice pay payments or any severance pay payments.
|
(G)
|
Base Pay of Record does not include long-term disability payments or payments made to any Participant pursuant to the Occidental Chemical Corporation Weekly Sickness and Accident Plan unless:
|
(i)
|
Such payments are made to the Participant through the payroll accounting department of the Company or an Affiliate, and
|
(ii)
|
The Participant is ineligible for participation in the Retirement Plan.
|
(g)
|
“Base Pay Paid”
means the Employee Base Pay of Record, reduced for any deferral of base salary under the Deferred Compensation Plan.
|
(h)
|
“Beneficiary”
means the person or persons designated by the Participant to receive payment under this Plan in the event of the Participant’s death prior to the complete distribution to the Participant of the benefits due under the Plan. A beneficiary designation shall become effective only when filed in writing with the Administrative Committee during the Participant’s lifetime on a paper form prescribed by the Administrative Committee. The filing of any new Beneficiary designation form will cancel any inconsistent Beneficiary designation previously filed.
|
(k)
|
“Company”
means Occidental Petroleum Corporation and any successor thereto.
|
(l)
|
“Deferred Compensation Plan”
means the Occidental Petroleum Corporation Modified Deferred Compensation Plan, as amended from time to time. Prior to October 12, 2006,
“Deferred Compensation Plan”
meant the Occidental Petroleum Corporation 2005 Deferred Compensation Plan, as amended from time to time.
|
(m)
|
“Divorce Order”
means any judgment, decree, or order (including judicial approval of a property settlement agreement) that relates to the settlement of marital property rights between a Participant and his former spouse pursuant to a state domestic relations law (including, without limitation and if applicable, community property law), as described in Treas. Reg. § 1.409A-3(j)(4)(ii) (or any successor provision).
|
(n)
|
“Employee”
means any person who is an Eligible Employee, as defined in the Retirement Plan.
|
(1)
|
Individuals who participate or are eligible to participate in the THUMS Long Beach Company Savings and Investment Plan or the THUMS Long Beach Company Pension Plan in 2008; and
|
(2)
|
Individuals who are employed by Tidelands Oil Production Company on December 31, 2010.
|
(o)
|
“Employer”
means the Company and any Affiliate which is designated by the Board or the Administrative Committee and which adopts the Plan.
|
(A)
|
It is bound by such terms and conditions relating to the Plan as the Company or the Administrative Committee may reasonably require;
|
(B)
|
The Company and the Administrative Committee have the authority to review the Affiliate’s compliance procedures and to require changes in such procedures to protect the Plan;
|
(C)
|
It has authorized the Company and the Administrative Committee to act on its behalf with respect to Employer matters pertaining to the Plan;
|
(D)
|
It shall cooperate fully with Plan officials and their agents by providing such information and taking such other actions as they deem appropriate for the efficient administration of the Plan; and
|
(E)
|
Its status as an Employer under the Plan is expressly conditioned on its being and continuing to be an Affiliate of the Company.
|
(p)
|
“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.
|
(q)
|
“LTD Participant”
means an Employee:
|
(1)
|
Who became disabled under the terms of the Long-Term Disability Plan prior to October 1, 1995; and
|
(2)
|
Who, during the Plan Year, is receiving benefits under the Long-Term Disability Plan and who was a highly-compensated employee (as defined in Code section 414(q)) in the year of his commencement of benefits under the Long-Term Disability Plan; and
|
(3)
|
Who has not commenced payment of his benefit under this Plan on November 1, 2008.
|
(r)
|
“Long-Term Disability Plan”
means the Occidental Petroleum Corporation Long-Term Disability Plan or, as appropriate to the LTD Participant or context, the Oxy Vinyls, LP Long-Term Disability Plan.
|
(s)
|
“Participant”
means (i) a person meeting the requirements to participate in the Plan set forth in Article 3 and (ii) any other person who has an account under the Plan because he previously met such requirements.
|
(t)
|
“Plan Year”
means the calendar year.
|
(u)
|
“Qualified Divorce Order”
means a Divorce Order that:
|
(1)
|
Creates or recognizes the existence of an Alternate Payee’s right to, or assigns to an Alternate Payee the right to, receive all or a portion of the benefits payable to a Participant under this Plan;
|
(2)
|
Clearly specifies:
|
(A)
|
The name and the last known mailing address of the Participant and the name and mailing address of the Alternate Payee covered by the order;
|
(B)
|
The amount or percentage of the Participant’s benefits to be paid by this Plan to the Alternate Payee, or the manner in which such amount or percentage is to be determined;
|
(C)
|
The number of payments or period to which such order applies; and
|
(D)
|
That it applies to this Plan; and
|
(3)
|
Does not:
|
(A)
|
Require this Plan to provide any type or form of benefit, or any option, not otherwise provided under the Plan;
|
(B)
|
Require this Plan to provide increased benefits;
|
(C)
|
Require the payment of benefits to an Alternate Payee that are required to be paid to another Alternate Payee under another Divorce Order previously determined to be a Qualified Divorce Order; or
|
(D)
|
Require the payment of benefits under this Plan at a time or in a manner that would cause the Plan to fail to satisfy the requirements of Code section 409A (or other applicable section) and any regulations promulgated thereunder or otherwise jeopardize the deferred taxation of any amounts under this Plan.
|
(v)
|
“Retirement Plan”
means the Occidental Petroleum Corporation Retirement Plan, as amended from time to time.
|
(w)
|
“Savings Plan”
means the Occidental Petroleum Corporation Savings Plan, as amended from time to time.
|
(x)
|
“
Secondary Threshold Amount
” means the amount determined by the Company and communicated to Employees in advance of the Plan Year as the level of annualized Base Pay of Record plus Annual Bonus awarded in the Plan Year, less any
|
(y)
|
“Separation from Service”
means a Participant’s “separation from service” as defined under Code section 409A and Treas. Reg. § 1.409A-1(h) (or successor provisions). For this purpose, a Participant shall have a Separation from Service if the Participant ceases to be an employee of both:
|
(2)
|
All Affiliates with whom the Participant’s Employer would be considered a single employer under Code section 414(b) or 414(c).
|
(z)
|
“Specified Employee”
means an Employee who is a “specified employee” within the meaning of Section 409A and Treas. Reg. § 1.409A-1(i) (or successor provisions) and as determined pursuant to any rules adopted for such purposes by the Company.
|
(aa)
|
“Supplemental Retirement Plan”
means the Occidental Petroleum Corporation Supplemental Retirement Plan in effect on December 31, 2004 and as amended from time to time, prior to its merger into this Plan effective November 1, 2008.
|
(bb)
|
“Threshold Amount”
means the amount determined by the Company and communicated to Employees in advance of the Plan Year as the level of annualized
|
(cc)
|
“Wage Base”
means the dollar amount of wages, within the meaning set forth in Code section 3121(a), upon which the Employer must pay Social Security Old Age, Survivors and Disability taxes for a Plan Year.
|
(a)
|
The first day on which the Employee’s annualized Base Pay of Record exceeds the Threshold Amount or, with respect to an Employee whose annualized Base Pay of Record does not exceed the Threshold Amount, May 1st of a Plan Year if the sum of the Employee’s annualized Base Pay of Record as of May 1 of the Plan Year and Annual Bonus awarded during the Plan Year, less any portion of such Annual Bonus deferred under the Deferred Compensation Plan, exceeds the Secondary Threshold Amount.
|
(b)
|
The first day on which the Employee’s annualized Base Pay of Record exceeds the amount specified in Code section 401(a)(17), as adjusted and in effect for the Plan Year.
|
(c)
|
The Employee (1) is eligible to participate in both the Retirement Plan and the Deferred Compensation Plan, and (2) is eligible to receive a bonus granted under any management incentive compensation plan of an Employer.
|
(d)
|
The Employee (1) is eligible to participate in the Savings Plan and (2) makes a deferral election under the Deferred Compensation Plan for the Plan Year.
|
(a)
|
Eligibility.
The following Employees who become Participants shall be provided the allocation for the Plan Year specified in subsection (b):
|
(A)
|
Who is eligible to participate in the Savings Plan and the Retirement Plan for the Plan Year, and
|
(B)
|
Whose annualized Base Pay of Record exceeds the Threshold Amount applicable to the Employee for the Plan Year.
|
(A)
|
Who is eligible to participate in the Savings Plan and the Retirement Plan for the Plan Year, and
|
(B)
|
The sum of whose annualized Base Pay of Record as of May 1 of the Plan Year and Annual Bonus awarded during the Plan Year, less any portion of such Annual Bonus deferred under the Deferred Compensation Plan, exceeds the Secondary Threshold Amount applicable to the Employee for the Plan Year.
|
(1)
|
Contingent Credit.
A credit shall be made as of the last day of each month to a contingent account maintained for each Participant described in subsection (a). The amount of the credit is set forth below. For avoidance of doubt, references below to the “Annual Bonus paid” refer only to the portion of an Employee’s Annual Bonus that is actually paid to the Employee and not deferred under the Deferred Compensation Plan.
|
(i)
|
7 percent of Base Pay of Record and Annual Bonus paid for the calendar month below the Wage Base; plus
|
(ii)
|
12 percent of Base Pay of Record and Annual Bonus paid for the calendar month above the Wage Base.
|
(2)
|
Reduction Amount.
The amounts contingently credited to the account maintained for the Participant during the Plan Year under paragraph (1) shall be reduced as of the last day of the Plan Year, but not below zero, by the amount determined under this paragraph. The reduction amount is intended to be equal to the Employee’s allocation under the Retirement Plan for the Plan Year assuming that the Employee maximized deferrals under the Savings Plan.
After the reduction described in this paragraph, the remaining amount shall be permanently credited to the account maintained for the Participant.
|
(A)
|
No reduction shall apply to the account maintained for any Participant, including an LTD Participant, who is not an Employee on the last day of the Plan Year.
|
(B)
|
The reduction amount for other Participants shall be equal to the dollar limit in effect for the Plan Year under Code section 415(c)(1)(A) minus any Retirement Plan allocations to date, minus the sum of the following:
|
(i)
|
Effective beginning on or after January 1, 2007,
|
(I)
|
the Contribution Percentage Limit for the Plan Year, determined under Appendix E of the Savings Plan (or any successor provision) times the Participant’s Base Pay Paid and 6 percent of the Annual Bonus Paid for the Plan Year, and
|
(II)
|
6 percent times the sum of the Participant’s Base Pay Paid and Annual Bonus Paid for the Plan Year;
|
(ii)
|
For the period between January 1, 2005 and December 31, 2006:
|
(I)
|
The Plan Limit for the Plan Year, determined under Appendix II of the Savings Plan (or any successor provision), times the Participant’s Base Pay Paid, and
|
(II)
|
6 percent times the Participant’s Base Pay Paid for the Plan Year.
|
(3)
|
Earnings Allocation.
The Employer shall also permanently credit earnings on the monthly allocations under paragraph (1) for the Plan Year as if such allocations shared in earnings at the rate and in the manner described in section 4.4. The earning allocation under this paragraph shall not be subject to reduction under paragraph (2).
|
(a)
|
Eligibility for Allocations Relating to Limits Under Code section 401(a)(17).
An Employee who is eligible to participate in the Savings Plan for the Plan Year and whose Base Pay Paid plus Annual Bonus Paid for the Plan Year exceeds the amount specified in Code section 401(a)(17) as adjusted and in effect for the Plan Year shall be provided the allocation for the Plan Year specified in subsection (b).
|
(b)
|
Allocation Amount.
The amount to be allocated as of the last day of the Plan Year under this Plan with respect to a Participant described in subsection (a) above for the Plan Year shall equal the sum of:
|
(1)
|
7 percent of the Employee’s Base Pay Paid plus Annual Bonus Paid in excess of the amount specified in Code section 401(a)(17) as adjusted and in effect for the Plan Year; and
|
(2)
|
5 percent of the amount allocated under paragraph (1) which shall be allocated to the account maintained for the Participant in lieu of interest on such amount for the Plan Year.
|
(a)
|
Retirement Plan
|
(1)
|
Eligibility.
The following Employees who become Participants shall be provided the allocation for the Plan Year specified in subsection (2): An Employee:
|
(A)
|
Who is a participant in the Retirement Plan and eligible to participate in the Deferred Compensation Plan, and
|
(B)
|
Who makes a deferral election under the Deferred Compensation Plan for the Plan Year.
|
(2)
|
Allocation Amount.
The amount to be allocated in a Plan Year with respect to a Participant described in paragraph (1) shall equal the Participant’s applicable percentage multiplied by the amount of Annual Bonus the Participant has deferred under the Deferred Compensation Plan. Notwithstanding the preceding sentence, no allocation shall be made to the account of a Participant who is not an Employee on the date such bonus is awarded.
|
(1)
|
An Employee who is eligible to participate in the Savings Plan and makes a deferral election under the Deferred Compensation Plan for the Plan Year shall be provided the allocation for the Plan Year specified in paragraph (2). However, notwithstanding anything to the contrary, an Employee of New Eastport Services, LLC and its affiliates is not eligible to receive an allocation for the Plan Year specified in paragraph (2).
|
(2)
|
The amount to be allocated for a Plan Year with respect to a Participant described in paragraph (1) shall equal the amount by which the contribution that would otherwise have been made by the Company or other Employer on behalf of the Participant to the Savings Plan for such Plan Year is reduced by reason of the reduction in the Participant’s Base Pay of Record for such Plan Year and/or the Participant’s Annual Bonus Paid in such Plan Year because of deferrals under the Deferred Compensation Plan, assuming that the Participant’s contribution percentage under the Savings Plan for the Plan Year is 7 percent. The allocation described in this Sections 4.3(a)(2) or 4.3(b)(2) shall be made to the account of a Participant at the same time as the employer contribution for such Plan Year is made to the Savings Plan. No allocations shall be made to Participants’ accounts under this Section 4.3(b)(2) prior to January 1, 2009.
|
(a)
|
Each Employer shall establish and maintain, in the name of each Participant employed by that Employer, an individual account which shall consist of all amounts
|
(b)
|
The individual account of each Participant shall represent a liability, payable when due under this Plan, out of the general assets of the Company, or from the assets of any trust, custodial account or escrow arrangement which the Company may establish for the purpose of assuring availability of funds sufficient to pay benefits under this Plan, provided that no assets shall be transferred to a trust or other account if such transfer would result in the taxation of benefits prior to distribution under Code section 409A(b). The money and any other assets in any such trust or account shall at all times remain the property of the Company, and neither this Plan nor any Participant shall have any beneficial ownership interest in the assets thereof. No property or assets of the Company shall be pledged, encumbered, or otherwise subjected to a lien or security interest for payment of benefits hereunder. Accounting for this Plan shall be based on generally accepted accounting principles.
|
(a)
|
Payment Events.
A Participant’s vested account under this Plan shall be paid on the earliest to occur of the following payment events:
|
(1)
|
The Participant’s attainment of a specified age elected by the Participant that is age 60 or above;
|
(2)
|
The Participant’s Separation from Service; or
|
(3)
|
The Participant’s death.
|
(1)
|
Attainment of Specified Age.
If payment is made on account of a Participant’s attainment of a specified age (60 or above), payment shall be made to the Participant in a single lump sum within the first 90 days of the calendar year following the calendar year in which the Participant reaches the specified age. In addition, within the first 70 days of each subsequent calendar year, the Participant shall be paid any additional amounts credited to the Participant’s account since the prior payment date.
|
(2)
|
Separation from Service.
|
(A)
|
If payment is made on account of the Participant’s Separation from Service, payment shall be made or commence within the first 90 days of the calendar year following the calendar year in which the Participant’s Separation from Service occurs. Notwithstanding the foregoing, in the case of a Participant who is a Specified Employee, payment shall be made or commence in the month next following the date that is six (6) months after the date of the Participant’s Separation from Service, if later than the time provided above.
|
(B)
|
Payment shall be made in a single lump sum or in annual installments over 5, 10, 15, or 20 years, as elected by the Participant. If the Participant elects to have payment made in annual installments, the installments shall be paid within the first 90 days of each calendar year during the installment period (except that the first installment may be delayed in the case of a Specified Employee as provided above). During the installment period, the Participant’s account shall continue to be adjusted as provided in Section 4.4(a) until the installments have been completed. The amount of each annual installment shall equal the amount credited to the Participant’s account as of the last day of the month preceding the date of payment multiplied by a fraction, the numerator of which is one (1), and the denominator of which is the number of installments (including the current installment) which remain to be paid.
|
(C)
|
If a Participant who is receiving installment payments on account of his Separation from Service has also made a specified age election and attains the specified age before the completion of all installments, the remaining installments shall be paid to him at the scheduled time or times without regard to his attainment of such age.
|
(3)
|
Death.
If payment is made on account of the Participant’s death, payment shall be made to the Participant’s Beneficiary in a single lump sum 120 days following the date of the Participant’s death.
|
(c)
|
Valuation of Benefits.
The amount of any payment to a Participant under this Article shall be determined based on the value of the Participant’s vested account as of the last day of the month preceding the date of payment.
|
(a)
|
Payment Elections.
|
(1)
|
An Employee who becomes a Participant on or after November 1, 2008 shall make the elections provided for in Section 5.1 (i.e., an election to have payment made at a specified age (60 or above) prior to Separation from Service and/or an election as to form of payment upon Separation from Service) within 30 days after date the Employee first meets one or more of the requirements for participation set forth in Section 3.1. Notwithstanding the foregoing, an Employee who participates or is eligible to participate in the THUMS Long Beach Company Savings and Investment Plan or the THUMS Long Beach Company Pension Plan at any time in 2008 and becomes a Participant on January 1, 2009 shall make such elections by December 31, 2008. An Employee who is employed by Tidelands Oil Production Company on December 31, 2010 and is scheduled to become a Participant on January 1, 2011 shall make such elections by December 31, 2010.
|
(2)
|
An Employee who became a Participant before November 1, 2008 shall be permitted to make a transition election as set forth in Section 5.9. If the Employee does not make a transition election with respect to form of payment upon Separation from Service and had previously made an election to have payment upon Separation from Service made in a lump sum or in annual installments over 5, 10, 15 or 20 years, payment on account of the Participant’s Separation from Service shall be made in accordance with the rules set forth in Section 5.1(b)(2) in the form previously elected by the Participant. For this purpose, if the Participant had different payment elections in effect for his account under this Plan and his account under the Supplemental Retirement Plan prior to November 1, 2008, or had an election in effect under one plan but not the other, the accounts shall continue to be maintained separately and these provisions shall be applied separately to each account.
|
(3)
|
If a Participant does not elect to have payment made at a specified age, payment shall be made on the earlier of the Participant’s Separation from Service or death in accordance with Section 5.1(b)(2) or (3), as applicable. If a Participant does not elect an installment payment option for payment on account of a Separation from Service, any payment on account of the
|
(b)
|
Changes in Time or Form of Payment.
A Participant may elect to change the time or form of payment of his account in accordance with the rules set forth below. For purposes of these rules, an election to receive distribution in a series of annual installments shall be treated as a single payment.
|
(1)
|
Permitted Changes.
|
(A)
|
A Participant who has elected payment at a specified age may elect another specified age that is age 65 or above, subject to the limitations of paragraph (2).
|
(B)
|
A Participant may elect to change the form of payment upon Separation from Service.
|
(2)
|
Requirements.
Any election by a Participant under this subsection shall meet the following requirements:
|
(A)
|
The election shall not be effective until at least 12 months after the election is filed with the Administrative Committee;
|
(B)
|
The election must defer payment (or payment of the initial installment, if applicable) for a period of at least five years from the date that payment (or payment of the initial installment, if applicable) would otherwise have been made; and
|
(C)
|
The election must be made at least 12 months prior to the beginning of the calendar year in which payment (or payment of the initial installment, if applicable) is otherwise scheduled to be made.
|
(3)
|
A Participant may make only two changes pursuant to this Section 5.2(b). Each such change must satisfy all of the requirements of Section 5.2(b)(2). No further changes may be made following a Participant’s Separation from Service.
|
(c)
|
Procedures.
All payment elections under this Plan shall be made in accordance with the provisions of this Plan and the rules and procedures established by the Administrative Committee for the time and manner of making elections.
|
(a)
|
Payment Events.
An LTD Participant’s vested account shall be paid on the earliest to occur of the following payment events:
|
(1)
|
The Participant’s attainment of age 65 or any earlier age elected by the Participant that is at least age 60; or
|
(2)
|
The Participant’s death.
|
(1)
|
Attainment of Specified Age (60-64).
If payment is made on account of a Participant’s attainment of a specified age elected by the Participant (between 60 and 64), payment shall be made to the Participant in a single lump sum within the first 90 days of the calendar year following the calendar year in which the Participant reaches the specified age. In addition, within the first 70 days of each subsequent calendar year, the Participant shall be paid any additional amounts credited to the Participant’s account since the prior payment date.
|
(2)
|
Attainment of Age 65.
If payment is made on account of the Participant’s attainment of age 65, payment shall be made or commence within the first 90 days of the calendar year following the calendar year in which the Participant reaches age 65. Payment shall be made in a single lump sum or in annual installments over 5, 10, 15, or 20 years, as elected by the LTD Participant. If the Participant elects to have payment made in annual installments, the installments shall be calculated and paid as set forth in Section 5.1(b)(2)(B).
|
(3)
|
Death.
Payment on account of the LTD Participant’s death shall be made as provided in Section 5.1(b)(3).
|
(c)
|
Elections.
|
(1)
|
An LTD Participant shall be permitted to make a transition election as set forth in Section 5.9. If an LTD Participant does not make a transition election and had previously made an election under the prior provisions of the Plan to have payment made in a lump sum or in annual installments over 5, 10, 15 or 20 years, payment on account of the LTD Participant’s attainment of age 65 shall be made in the form previously elected by the Participant. If the LTD Participant had different payment elections in effect for his account under this Plan and his account under the Supplemental Retirement Plan prior to November 1, 2008, or had an election in effect under one plan but not the other, the accounts shall continue to be maintained separately and these provisions shall be applied separately to each account.
|
(2)
|
If an LTD Participant does not elect to have payment made at a specified age between 60 and 64, payment shall be made on the earlier of the LTD Participant’s attainment of age 65 or death in accordance with Section 5.3(b)(2) or (3), as applicable. If an LTD Participant does not elect an installment payment option for payment on account of attainment of age 65, any payment
|
(a)
|
To the extent required by law in effect at the time payments are made, the Participant’s Employer shall withhold from payments made hereunder the taxes required to be withheld by Federal, state and local law.
|
(b)
|
The Participant’s Employer shall have the right at its option (1) to require a Participant to pay or provide for payment of the amount of any taxes that the Employer may be required to withhold with respect to amounts credited to the Participant’s account or (2) deduct from any amount of salary, bonus or other payment otherwise payable in cash to the Participant the amount of any taxes that the Employer may be required to withhold with respect to amounts credited to the Participant’s account. In addition, as permitted by Treas. Reg. § 1.409A-3(j)(4)(vi) (or any successor provision), payments may be made under the Plan to pay any Federal Insurance Contributions Act (FICA) tax imposed under Code sections 3101 and 3121(v)(2) on the Participant’s account, and to pay any income tax imposed under Code section 3401 (
i.e.,
wage withholding) or the corresponding withholding provisions of applicable state or local law as a result of payment of the FICA amount, as well as to pay the additional income tax attributable to the pyramiding wages and taxes. The total payment may not exceed the aggregate FICA tax amount and the income tax withholding related to such FICA tax amount.
|
(a)
|
Continued distribution of account.
If a Participant who is receiving payment on account of his Separation from Service is reemployed by an Employer or Affiliate prior to the complete distribution of his account, the account or remaining account shall be paid to the Participant at the scheduled time or times without regard to the Participant’s reemployment.
|
(b)
|
New account.
If a terminated Participant is reemployed by an Employer and resumes active participation in the Plan pursuant to Section 3.2, a new account shall be established for such Participant to which allocations relating to the period following the Participant’s reemployment (and any unvested amounts forfeited from the Participant’s account at the time of his first termination) shall be credited. Such new account, to the extent vested, shall be paid in accordance with the provisions of this Plan and the Participant’s most recent payment election, if any, prior to his first termination. For this purpose, the following rules shall apply:
|
(1)
|
If the Participant had previously elected (including pursuant to Section 5.9(b)(1)) to have payment made at a specified age (60 or above) prior to Separation from Service or death and has reached such specified age at the time of his reemployment, the Participant shall be paid, within the first 70 days of each calendar year following the calendar year containing his reemployment date, the amount credited to his account as of the last day of the month preceding the date of payment.
|
(2)
|
Any election made as a terminated Participant pursuant to Section 5.9(b)(2) or (3) shall not be taken into account for purposes of this provision. Instead, if the Participant had, prior to such transition election, made an election under this Plan to have payment upon termination made in a lump sum or in annual installments over 5, 10, 15 or 20 years, payment on account of the Participant’s subsequent Separation from Service shall be made in accordance with the rules set forth in Section 5.1(b)(2) in the form previously elected by the Participant.
|
(3)
|
If the Participant has no prior election taken into account under the foregoing provisions, payment shall be made in a single lump sum in accordance with the rules set forth in Section 5.1(b)(2) upon the Participant’s subsequent Separation from Service.
|
(a)
|
2005 Transition Elections.
Any Employee who was a Participant during the 2005 Plan Year was permitted to make an election with respect to the time and form of payment of the account maintained for the Participant upon the earlier of the Participant’s Separation from Service or the 60
th
day after the adoption of the Plan by the Board, but in no event later than December 31, 2005.
|
(b)
|
2008 Transition Elections.
Participants shall be permitted to make the additional transition elections described below in 2008. The period for making such elections (the “transition election period”) shall be determined by the Administrative Committee, provided that all such elections must be made by and shall become irrevocable as of December 31, 2008. All payments to Participants pursuant to this Section 5.9 shall be subject to the rules set forth in Sections 5.4 through 5.7 and Section 5.10.
|
(1)
|
Active Participants.
|
(A)
|
Each Participant who has not separated from service before the end of the transition election period may make any payment election available under Section 5.1 (i.e., an election to have payment made at a specified age (60 or above) prior to Separation from Service and/or an election as to form of payment upon Separation from Service). Payment pursuant to any such election shall be made as provided in Section 5.1.
|
(B)
|
To the extent a Participant does not make the available elections pursuant to this provision, payment of the Participant’s account shall be made as set forth in Sections 5.2(a)(2) and (3).
|
(C)
|
Notwithstanding the foregoing, in the case of any Participant previously covered by Appendix A of the Supplemental Retirement Plan who made the election described in Appendix A to have payment made or commence upon attainment of a specified age between 55 and 70-1/2, if the Participant does not make a transition election under this Section 5.9(b)(1) to have payment made at a new specified age, then payment to the Participant shall be made or commence within the first 90 days of the calendar year following the later of (A) the Participant’s Separation from Service and (B) the Participant’s attainment of the specified age previously elected by the Participant, provided that, if the Participant is a Specified Employee and payment is made on account of the Participant’s Separation from Service, payment shall be made or commence in the month next following the date that is six (6) months after the date of the Participant’s Separation from Service, if later than the time provided above. Payment shall be made in the form (i.e., lump sum or installments over 5, 10, 15 or 20 years) elected by the Participant under this Section 5.9(b)(1) or, if the Participant does not make a transition election, the form previously elected by the Participant under Appendix A of the Supplemental Retirement Plan, or, if none, in a lump sum.
|
(2)
|
Terminated Participants.
|
(A)
|
Each Participant who has a Separation from Service before the end of the transition election period may elect to have his account or remaining account paid in a single lump sum in March 2009, provided, that a Participant who is a Specified Employee shall receive such distribution in the month next following the date that is six (6) months after the date of the Participant’s Separation from Service, if later than the time provided above.
|
(B)
|
If a Participant does not make an election pursuant to this provision:
|
(I)
|
If installment payments to the Participant have already commenced, the Participant’s remaining account shall be paid over the remaining number of installments in accordance with the rules set forth in Section 5.1(b)(2)(B).
|
(II)
|
If payment to the Participant has not commenced, payment shall be made in accordance with the rules set forth in Section 5.1(b)(2). If the Participant has previously made a payment election as to form of payment upon Separation from Service (i.e., a lump sum or installments over 5, 10, 15 or 20 years), payment shall be made in the form previously elected.
|
(3)
|
Exhibit A and B Participants.
|
(A)
|
Any Participant identified in Exhibit A as “Active” may make the payment elections available to other active Participants as described above.
|
(B)
|
Any Participant identified in Exhibit A or B as “Retired with account balance” may make the election available to other terminated Participants as described above.
|
(C)
|
If a Participant listed in Exhibit A or B does not make an election pursuant to this provision:
|
(I)
|
If installment payments to the Participant have already commenced, the Participant’s remaining account shall be paid over the remaining number of installments in accordance with the rules set forth in Section 5.1(b)(2)(B).
|
(II)
|
If payment to the Participant has not commenced, payment of the Participant’s Account shall be made or commence within the first 90 days of the year indicated on Exhibit A or B, as applicable. Payment shall be made in the form previously elected by the Participant (i.e., in a lump sum or installments
|
(4)
|
LTD Participants.
|
(A)
|
Each LTD Participant may make any payment election available under Section 5.3 (i.e., an election to have payment made at a specified age (between 60 and 64) prior to Separation from Service and/or an election as to form of payment upon attainment of age 65). Payment pursuant to any such election shall be made as provided in Section 5.3.
|
(B)
|
To the extent an LTD Participant does not make the available elections pursuant to this provision, payment of the Participant’s account shall be made as set forth in Section 5.3.
|
(5)
|
Maintenance of Separate Accounts.
If a Participant does not make a transition election under the foregoing provisions (so that prior elections continue to apply) and had different payment elections in effect under for his account under this Plan and his account under the Supplemental Retirement Plan prior to November 1, 2008, or had an election in effect under one plan but not the other, the accounts shall continue to be maintained separately and the above provisions shall be applied separately to each account.
|
(a)
|
To construe and interpret the Plan, to supply all omissions from, correct deficiencies in and resolve ambiguities in the language of the Plan;
|
(b)
|
To decide all questions of eligibility, to determine the right of any person to an allocation and the amount thereof, and to determine the manner and time of payment of any benefits hereunder, all in accordance with the Plan;
|
(c)
|
To obtain from the Employees such information as shall be necessary for the proper administration of the Plan and, when appropriate, to furnish such information promptly to other persons entitled thereto;
|
(d)
|
To prepare and distribute, in such manner as the Company determines to be appropriate, information explaining the Plan; and
|
(e)
|
To establish and maintain such accounts in the name of each Participant as are necessary.
|
(a)
|
To the extent permitted by the Company’s bylaws and applicable law, the Company shall indemnify and hold harmless each of the following persons (
“Indemnified Persons”
) under the terms and conditions of this section:
|
(1)
|
The Administrative Committee and each of its members, which, for purposes of this section, includes any Employee to whom the Administrative Committee has delegated fiduciary or other duties.
|
(2)
|
The Board and each member of the Board and any Employer who has responsibility (whether by delegation from another person, an allocation of
|
(b)
|
The Company shall indemnify and hold harmless each Indemnified Person against any and all claims, losses, damages, and expenses, including reasonable attorney’s fees and court costs, incurred by that person on account of his or her good faith actions or failures to act with respect to his or her responsibilities relating to the Plan. The Company’s indemnification shall include payment of any amounts due under a settlement of any lawsuit or investigation, but only if the Company agrees to the settlement.
|
(1)
|
An Indemnified Person shall be indemnified under this section only if he or she notifies an Appropriate Person at the Company of any claim asserted against or any investigation of the Indemnified Person that relates to the Indemnified Person’s responsibilities with respect to the Plan.
|
(A)
|
A person is an
“Appropriate Person”
to receive notice of the claim or investigation if a reasonable person would believe that the person notified would initiate action to protect the interests of the Company in response to the Indemnified Person’s notice.
|
(B)
|
The notice may be provided orally or in writing. The notice must be provided to the Appropriate Person promptly after the Indemnified Person becomes aware of the claim or investigation. No indemnification shall be provided under this section to the extent that the Company is materially prejudiced by the unreasonable delay of the Indemnified Person in notifying an Appropriate Person of the claim or investigation.
|
(2)
|
An Indemnified Person shall be indemnified under this section with respect to attorney’s fees, court costs or other litigation expenses or any settlement of such litigation only if the Indemnified Person agrees to permit the Company to select counsel and to conduct the defense of the lawsuit.
|
(3)
|
No Indemnified Person shall be indemnified under this section with respect to any action or failure to act that is judicially determined to constitute or be attributable to the willful misconduct of the Indemnified Person.
|
(4)
|
Payments of any indemnity under this section shall be made only from insurance or other assets of the Company. The provisions of this section shall not preclude such further indemnities as may be available under insurance purchased by the Company or as may be provided by the Company under any by-law, agreement or otherwise, provided that no expense shall be
|
(5)
|
Payment of any indemnity under this section that is not exempt from Code section 409A shall comply with Code section 409A’s requirements for reimbursement plans, as set forth in Treas. Reg. § 1.409A-3(i)(1)(iv) (or any successor provision). For this purpose, (i) the indemnity under this section shall continue for the Indemnified Person’s lifetime, and, if later, until the complete disposition of all covered claims, (ii) the amount of expenses indemnified during one taxable year of an Indemnified Person shall not affect the amount of expenses indemnified in any other taxable year; (iii) payment of an indemnity shall be made by the last day of the Indemnified Person’s taxable year following the taxable year in which the expense was incurred and (iv) the Indemnified Person’s right to indemnification shall not be subject to liquidation or exchange for any other benefit. If, after payment of any amount to the Indemnified Person pursuant to this provision, it is determined, pursuant to paragraph (3) above or otherwise, that the Indemnified Person is not entitled to indemnification, the Indemnified Person shall promptly repay such amount to the Company.
|
(a)
|
Ensure that this Plan complies with the requirements of Code section 409A for deferral of taxation on compensation deferred hereunder until the time of distribution; and
|
(b)
|
Add provisions for changes to elections as to time and manner of distributions and other changes that comply with the requirements of Code section 409A for the deferral of taxation on deferred compensation until the time of distribution.
|
7.2
|
Payments Upon Termination
|
(a)
|
Accelerated payment is permitted under Treas. Reg. § 1.409A-3(j)(4)(ix) (or any successor provision); or
|
(b)
|
The Plan is terminated because Participants have become subject to tax on their deferrals due to the Plan’s failure to satisfy the requirements of Code section 409A. Payment to a Participant may not exceed the amount required to be included in income as a result of such failure.
|
(a)
|
If a Claimant believes he is entitled to a benefit, or a benefit different from the one received, then the Claimant may file a claim for the benefit by writing a letter to the Administrative Committee or its authorized delegate. Any such claim must be made no later than the time prescribed by Treas. Reg. § 1.409A-3(g) (or any successor provision).
|
(b)
|
Within a reasonable period of time, but not later than 90 days after receipt of a claim for benefits, the Administrative Committee or its delegate shall notify the Claimant of any adverse benefit determination on the claim, unless special circumstances require an extension of time for processing the claim. In no event may the extension period exceed 90 days from the end of the initial 90-day period. If an extension is necessary, the Administrative Committee or its delegate shall provide the Claimant with a
|
(c)
|
In the case of an adverse benefit determination, the Administrative Committee or its delegate shall provide to the Claimant written or electronic notification setting forth in a manner calculated to be understood by the claimant:
|
(1)
|
The specific reason or reasons for the adverse benefit determination;
|
(2)
|
Reference to the specific Plan provisions on which the adverse benefit determination is based;
|
(3)
|
A description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why the material or information is necessary; and
|
(4)
|
A description of the Plan’s claim review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review and in accordance with section 8.3.
|
(d)
|
Within 60 days after receipt by the Claimant of notification of the adverse benefit determination, the Claimant or his duly authorized representative, upon written application to the Administrative Committee, may request that the Administrative Committee fully and fairly review the adverse benefit determination. On review of an adverse benefit determination, upon request and free of charge, the Claimant shall have reasonable access to, and copies of, all documents, records and other information relevant to the claimant’s claim for benefits. The Claimant shall have the opportunity to submit written comments, documents, records, and other information relating to the claim for benefits. The Administrative Committee’s (or delegate’s) review shall take into account all comments, documents, records, and other information submitted regardless of whether the information was previously considered in the initial adverse benefit determination.
|
(e)
|
Within a reasonable period of time, but not later than 60 days after receipt of such request for review, the Administrative Committee or its delegate shall notify the Claimant of any final benefit determination on the claim, unless special circumstances require an extension of time for processing the claim. In no event may the extension period exceed 60 days from the end of the initial 60-day period. If an extension is necessary, the Administrative Committee or its delegate shall provide the Claimant with a written notice to this effect prior to the expiration of the initial 60-day period. The notice shall describe the special circumstances requiring the extension and the date by which the Administrative Committee or its delegate expects to render a final
|
(1)
|
The specific reason or reasons for the adverse final benefit determination;
|
(2)
|
Reference to the specific Plan provisions on which the adverse final benefit determination is based;
|
(3)
|
A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant’s claim for benefits; and
|
(4)
|
A statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse final benefit determination on review and in accordance with section 8.3.
|
(f)
|
If a Claimant’s claim or appeal is approved, any resulting payment of benefits will be made no later than the time prescribed for payment of benefits by Treas. Reg. § 1.409A-3(g) (or any successor provision).
|
(a)
|
180 days after receiving the written response of the Administrative Committee to an appeal; or
|
(b)
|
365 days after an applicant’s original application for benefits.
|
(a)
|
Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, hypothecate or convey in advance of actual receipt the amount, if any, payable hereunder, or any part thereof, or interest therein which are, and all rights to which are, expressly declared to be unassignable and non-transferable. No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, nor be transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.
|
(b)
|
Notwithstanding subsection (a), the right to benefits payable with respect to a Participant pursuant to a Qualified Divorce Order may be created, assigned, or recognized. The Administrative Committee shall establish appropriate policies and procedures to determine whether a Divorce Order presented to the Administrative Committee constitutes a qualified Divorce Order under this Plan, and to administer distributions pursuant to the terms of Qualified Divorce Orders. In the event that a Qualified Divorce Order exists with respect to benefits payable under the Plan, such benefits otherwise payable to the Participant specified in the Qualified Divorce Order shall be payable to the Alternate Payee specified in such Qualified Divorce Order.
|
Participant
|
Status on November 1, 2008
|
Payment Commencement Year
(for Participants with account balances)
|
Axelson, Jr., C.J.
|
Retired; no account balance
|
N/A
|
Doucet, M.J.
|
Retired with account balance
|
2009
|
Freund, M.C.
|
Retired; no account balance
|
N/A
|
Hull Jr., C.W.
|
Retired with account balance
|
2008
|
Hurst III, J.L.
|
Retired with account balance
|
2007
|
Leach, A.R.
|
Active
|
2010
|
Lorraine, R.A.
|
Retired with account balance
|
2008
|
Oenbring, P.R.
|
Retired; no account balance
|
N/A
|
Vincent, P.G.
|
Active
|
2009
|
Watkins, A.A.
|
Deceased; no account balance
|
N/A
|
Participant
|
Status on November 1, 2008
|
Payment Commencement Year
(for Participants with account balances)
|
Allen, J.M.
|
Retired with account balance
|
2008
|
Bullock, B.J.
|
Retired; no account balance
|
N/A
|
LaBelle, D.E.
|
Retired with account balance
|
2009
|
Loving, R.P.
|
Retired; no account balance
|
N/A
|
Schmitt, R.H.
|
Retired; no account balance
|
N/A
|
Tayburn, J.W.
|
Retired; no account balance
|
N/A
|
EXHIBIT 12
|
|
|
Nine Months Ended September 30
|
|
|
Year Ended
December 31
|
|
|
||||||||||||||||||||||
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
2014
|
|
|
2013
|
|
|
2012
|
|
|
2011
|
|
|
|||||||
Income from continuing operations
(a)
|
|
$
|
(734
|
)
|
|
$
|
(2,641
|
)
|
|
$
|
(8,146
|
)
|
|
$
|
(130
|
)
|
|
$
|
4,932
|
|
|
$
|
3,829
|
|
|
$
|
5,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Add/(Subtract):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|||||||
Adjusted income from equity investments
(b)
|
|
3
|
|
|
(10
|
)
|
|
21
|
|
|
64
|
|
|
52
|
|
|
163
|
|
|
(33
|
)
|
|
|||||||
|
|
(731
|
)
|
|
(2,651
|
)
|
|
(8,125
|
)
|
|
(80
|
)
|
|
4,984
|
|
|
3,992
|
|
|
5,494
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Provision for taxes on income (other than foreign oil and gas taxes)
|
|
(648
|
)
|
|
(768
|
)
|
|
(2,070
|
)
|
|
(280
|
)
|
|
1,353
|
|
|
249
|
|
|
1,167
|
|
|
|||||||
Interest and debt expense
|
|
263
|
|
|
86
|
|
|
147
|
|
|
77
|
|
|
132
|
|
|
149
|
|
|
313
|
|
(c)
|
|||||||
Portion of lease rentals representative of the interest factor
|
|
47
|
|
|
52
|
|
|
63
|
|
|
52
|
|
|
60
|
|
|
58
|
|
|
57
|
|
|
|||||||
|
|
(338
|
)
|
|
(630
|
)
|
|
(1,860
|
)
|
|
(151
|
)
|
|
1,545
|
|
|
456
|
|
|
1,537
|
|
|
|||||||
Earnings before fixed charges
|
|
$
|
(1,069
|
)
|
|
$
|
(3,281
|
)
|
|
$
|
(9,985
|
)
|
|
$
|
(231
|
)
|
|
$
|
6,529
|
|
|
$
|
4,448
|
|
|
$
|
7,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest and debt expense including capitalized interest
|
|
$
|
263
|
|
|
$
|
207
|
|
|
$
|
285
|
|
|
$
|
257
|
|
|
$
|
269
|
|
|
$
|
254
|
|
|
$
|
384
|
|
(c)
|
Portion of lease rentals representative of the interest factor
|
|
47
|
|
|
52
|
|
|
63
|
|
|
52
|
|
|
60
|
|
|
58
|
|
|
57
|
|
|
|||||||
Total fixed charges
|
|
$
|
310
|
|
|
$
|
259
|
|
|
$
|
348
|
|
|
$
|
309
|
|
|
$
|
329
|
|
|
$
|
312
|
|
|
$
|
441
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Ratio of earnings to fixed charges
|
|
(3.45
|
)
|
|
(12.65
|
)
|
|
(28.69
|
)
|
|
(0.75
|
)
|
|
19.83
|
|
|
14.26
|
|
|
15.93
|
|
|
|||||||
Insufficient coverage
|
|
(1,379
|
)
|
(d)
|
(3,540
|
)
|
(d)
|
(10,333
|
)
|
|
(540
|
)
|
|
|
|
|
|
|
|
|
Note:
Results of California Resources Corporation have been reflected as discontinued operations for all periods presented.
|
|
|
(a)
|
The 2016 amount includes a $78 million dollar after-tax impairment charge related to the special stock dividend of California Resources shares in the first quarter, a $103 million dollar after-tax charge related to terminated crude oil supply agreements, and a $61 million dollar impairment charge related to the sell of Occidental's Libya operations. The 2015 amounts includes a $1.3 billion dollar after-tax charge for domestic asset impairments and other related items, a $1.5 billion dollar after-tax charge for foreign asset impairments and other related items, a $63 million dollar after-tax gain on sale of an idled chemical site, a $96 million dollar after-tax charge for cost associated with severance, the California Resources Corporation spin-off and other charges.
|
|
(b)
|
Represents adjustments to arrive at distributed income from equity investees.
|
|
(c)
|
Excludes a pre-tax charge of $163 million for the early redemption of debt.
|
|
(d)
|
The 2016 and 2015 third quarter ratio of earnings to fixed charges excluding certain items (a) were (2.67) and (1.94), respectively.
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Occidental Petroleum Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ Vicki A. Hollub
|
|
|
Vicki A. Hollub
|
|
|
President and Chief Executive Officer
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Occidental Petroleum Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
|
/s/ Christopher G. Stavros
|
|
|
Christopher G. Stavros
|
|
|
Senior Vice President and Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Vicki A. Hollub
|
|
|
Name:
|
Vicki A. Hollub
|
|
Title:
|
President and Chief Executive Officer
|
|
Date:
|
November 1, 2016
|
|
/s/ Christopher G. Stavros
|
|
|
Name:
|
Christopher G. Stavros
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
|
Date:
|
November 1, 2016
|
|