SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED]
For the fiscal year ended December 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [NO FEE REQUIRED]
For the transition period from _____________to_____________
Commission file number: 1-9210
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Oxy Vinyls, LP Savings Plan
B. Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Occidental Petroleum Corporation
10889 Wilshire Boulevard
Los Angeles, California 90024
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustees (or other persons who administer the Plan) have duly caused this annual
report to be signed on its behalf by the undersigned hereunto duly authorized.
OXY VINYLS, LP SAVINGS PLAN
By: /s/ Peter G. Vincent
------------------------------------------
Peter G. Vincent - Member of the
Occidental Petroleum Corporation Pension and
Retirement Plan Administrative Committee
Dated: June 27, 2002
OXY VINYLS, LP
SAVINGS PLAN
Financial Statements and Supplemental Schedule
December 31, 2001 and 2000
(With Independent Auditors' Report Thereon)
OXY VINYLS, LP
SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
PAGE
Independent Auditors' Report 1
Statements of Net Assets Available for Benefits - December 31, 2001 and 2000 2
Statement of Changes in Net Assets Available for Benefits - Year ended December 31, 2001 3
Notes to Financial Statements 4 - 12
SCHEDULE
Schedule H, Line 4i - Schedule of Assets (Held at End of Year) - December 31, 2001 13
All schedules omitted are not required based on disclosure requirements of the
Employee Retirement Income Security Act of 1974 and regulations issued by the
Department of Labor.
INDEPENDENT AUDITORS' REPORT
The Occidental Petroleum Corporation
Pension and Retirement Plan Administrative Committee:
We have audited the accompanying statement of net assets available for benefits
of the Oxy Vinyls, LP Savings Plan as of December 31, 2001, and the related
statement of changes in net assets available for benefits for the year ended
December 31, 2001. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The accompanying financial statements
of the Oxy Vinyls, LP Savings Plan as of December 31, 2000 were audited by other
auditors whose report thereon dated June 22, 2001, expressed an unqualified
opinion on those statements.
We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, the 2001 financial statements referred to above present fairly,
in all material respects, the net assets available for benefits of the Oxy
Vinyls, LP Savings Plan as of December 31, 2001 and the changes in net assets
available for benefits for the year ended December 31, 2001 in conformity with
accounting principles generally accepted in the United States of America.
Our audit was performed for the purpose of forming an opinion on the 2001 basic
financial statements taken as a whole. The supplemental schedule, Schedule H,
Line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2001 is
presented for the purpose of additional analysis and is not a required part of
the 2001 basic financial statements but is supplementary information required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974. This supplemental
schedule is the responsibility of the Plan's management. The supplemental
schedule has been subjected to the auditing procedures applied in the audit of
the 2001 basic financial statements and, in our opinion, is fairly stated, in
all material respects, in relation to the 2001 basic financial statements taken
as a whole.
/s/ KPMG LLP
Los Angeles, California
June 20, 2002
OXY VINYLS, LP
SAVINGS PLAN
Statements of Net Assets Available for Benefits
DECEMBER 31, DECEMBER 31,
ASSETS 2001 2000
-------------- --------------
Cash and cash equivalent $ -- 3,081
Investments at fair value:
Short-term investment fund 564,805 622,241
Mutual funds 40,508,877 45,349,538
Common collective funds 18,584,383 15,234,823
Common stock 36,915,357 31,299,306
Interest in represented Master Trust 165,845 --
Participant loans 3,502,233 3,114,152
-------------- --------------
Total investments at fair value 100,241,500 95,620,060
-------------- --------------
Receivables:
Participant contributions 439,506 435,660
Employer contributions 276,879 286,156
Interest and dividends 437,192 1,430,016
Securities due from broker 16,685 --
-------------- --------------
Total receivables 1,170,262 2,151,832
-------------- --------------
Total assets 101,411,762 97,774,973
-------------- --------------
LIABILITIES
Accrued liabilities 41,010 48,320
-------------- --------------
Total liabilities 41,010 48,320
-------------- --------------
Net assets available for benefits $ 101,370,752 97,726,653
============== ==============
See accompanying notes to financial statements.
2
OXY VINYLS, LP
SAVINGS PLAN
Statement of Changes in Net Assets Available for Benefits
YEAR ENDED
DECEMBER 31,
2001
--------------
Additions to net assets attributable to:
Investment income:
Interest $ 1,366,532
Dividends 285,630
Net (depreciation) in fair value of investments (669,901)
Plan interest in Master Trust investment loss (18,013)
--------------
Total investment income 964,248
--------------
Contributions:
Participant 5,796,144
Employer 3,627,297
Participant rollover 218,840
--------------
Total contributions 9,642,281
--------------
Total additions 10,606,529
Deductions from net assets attributable to:
Benefits paid to participants 6,790,152
Administrative expenses 172,278
--------------
Total deductions 6,962,430
--------------
Net increase 3,644,099
Net assets available for benefits:
Beginning of year 97,726,653
--------------
End of year $ 101,370,752
==============
See accompanying notes to financial statements.
3
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(1) DESCRIPTION OF THE PLAN
The following description of the Oxy Vinyls, LP Savings Plan (Plan)
provides only general information. Participants should refer to the Plan
document for a more complete description of the Plan's provisions.
(a) GENERAL
Occidental Chemical Corporation, (OxyChem), a wholly owned subsidiary
of Occidental Petroleum Corporation (OPC or Oxy), a Delaware
corporation, and The Geon Company (Geon) caused a partnership to be
formed, Oxy Vinyls, LP, a Delaware limited partnership, and selected
affiliates (collectively, the Company or the Employer), in which
OxyChem and Geon have indirect interests of 76% and 24%, respectively.
The Plan is a defined contribution plan generally available to certain
employees of the Company. The Plan was established by the Company
effective May 1, 1999. The Plan is subject to the provisions of the
Employee Retirement Income Security Act of 1974, as amended (ERISA).
(b) PLAN ADMINISTRATION
The Plan is administered by the OPC Pension and Retirement Trust and
Investment Committee as to investment decisions and by the Oxy Vinyls,
LP Pension and Retirement Plan Administrative Committee as to all
matters except investment decisions (these two committees are herein
referred to collectively as the Committees). The Committees have been
given all powers necessary to carry out their respective duties,
including as applicable, but not limited to, the power to administer
and interpret the Plan and to answer all questions affecting
eligibility of participants. The Northern Trust Company (the Trustee)
is the trustee and custodian of a trust fund which holds all of the
assets of the Plan.
(c) CONTRIBUTIONS
PARTICIPANT CONTRIBUTIONS - Prior to June 30, 2000, participants were
allowed to contribute from 1% to 12% of compensation (as defined) to
the Plan on a before- or after-tax basis, or in any combination
thereof, subject to certain Internal Revenue Code (IRC) limitations.
Effective July 1, 2000, the upper limit on participant contributions
increased from 12% to 15%.
EMPLOYER CONTRIBUTIONS - Prior to June 30, 2000, the Employer
contributed 75% of a participant's contribution up to the first 6% of
compensation. Effective July 1, 2000, Employer contributions increased
to 100% of a participant's contribution up to the first 6% of
compensation. All Employer contributions are invested in the
Occidental Petroleum Corporation Common Stock Fund (the Oxy Stock
Fund).
(d) INVESTMENT OPTIONS
The Plan offers 11 investment options. Upon enrollment in the Plan,
participants can direct their contributions, in 5% increments, in any
of the investment options offered at the time. Participants can change
their investment options daily. Participants should refer to the Plan
fund description pamphlet for a complete description of the investment
options and for the detailed composition of each investment fund.
4 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(e) PARTICIPANT ACCOUNTS
Participant accounts are credited with the participant's contribution
and allocations of the Employer's contribution and investment income,
and charged with an allocation of administrative expenses and
investment losses, if any. Allocations are based on account balances,
as defined. The benefit to which a participant is entitled is the
benefit that can be provided from the participant's vested account.
(f) VESTING
Participants immediately vest in their contributions plus investment
income thereon, if any. Vesting in the Employer's contribution portion
of the account plus earnings thereon, is based on years of service.
Generally, a participant receives 20% vesting for each year of service
and is fully vested after five years of service. Participants who were
eligible to participate in the Plan on May 1, 1999 were fully vested.
(g) PARTICIPANT LOANS
Participants can borrow from their account a minimum of $1,000 up to a
maximum equal to the lesser of: (i) $50,000, reduced by the highest
outstanding loan balance in the past 12 months, (ii) 50% of their
vested account balance, or (iii) a loan amount which would require
payroll deductions for repayment equal to 25% of the participant's
base compensation. Loan transactions are treated as a transfer between
the investment fund and the participant loan fund. Loan terms range
from one to five years for general purpose loans and six to ten years
for primary residence loans. The loans bear interest at a fixed rate
equal to the Western Federal Credit Union's loan rate for a loan
secured by a member's deposit account at the time the loan is
approved. During 2001 and 2000, the interest rate charged on new loans
was 5%. Loan repayments are made ratably through payroll deductions.
(h) PAYMENT OF BENEFITS
Generally, upon termination of service for any reason other than
death, participants with an account balance greater than $5,000 can
elect to receive the vested portion of their account in the following
distribution options: (i) one lump-sum payment, (ii) straight life
annuity, (iii) ten-year term certain annuity, (iv) joint and survivor
annuity, (v) partial cash distributions, or (vi) deferral of payment
with certain restrictions. Upon termination of service due to death,
the participant's beneficiary can elect to receive the vested
interests in the form of (i), (ii), (iii), or (vi) only. A participant
whose vested account balance is $5,000 or less can receive
distributions only under options (i), (v), or
5 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(vi). Participants can elect to receive distributions from their
account balance in the Oxy Stock Fund, the PolyOne Stock Fund
(formerly the Geon Stock Fund), or the BFGoodrich Stock Fund in cash
or in shares of common stock of such company.
(i) FORFEITED ACCOUNTS
Forfeited nonvested accounts are used to reduce Employer
contributions.
(j) ADMINISTRATIVE EXPENSES
The Company pays certain costs and expenses incurred in administering
the Plan and other costs and expenses are paid by the Plan.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) BASIS OF ACCOUNTING
The financial statements of the Plan are prepared under the accrual
method of accounting.
Certain reclassifications have been made to the 2000 financial
statements to be consistent with the presentation of the 2001
financial statements.
(b) USE OF ESTIMATES
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets, liabilities, and changes therein, and disclosure of
contingent assets and liabilities. Actual results could differ from
those estimates.
(c) RISKS AND UNCERTAINTIES
The Plan provides for various investment options in mutual funds,
actively managed funds, the Oxy Stock Fund, the PolyOne Stock Fund,
and the BFGoodrich Stock Fund. Investment securities are exposed to
various risks such as interest rate, market, and credit. Due to the
level of uncertainty related to changes in the value of investment
securities, it is at least reasonably possible that changes in the
various risk factors, in the near term, could materially affect
participants' account balances and the amounts reported in the
financial statements.
Additionally, many mutual funds invest in the securities of foreign
companies, which involve special risks and considerations not
typically associated with investing in U.S. companies. These risks
include devaluation of currencies, less reliable information about
issuers, different securities transaction clearance and settlement
practices, and possible adverse political and economic developments.
Moreover, securities of many foreign companies and their markets may
be less liquid and their prices more volatile than similar types of
securities of comparable U.S. companies.
Derivative financial instruments are used by the Plan's equity and
fixed income investment managers to remain fully invested in the asset
class and to hedge currency risk. Leveraging of the Plan assets and
speculation are prohibited.
6 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(d) INVESTMENT VALUATION AND INCOME RECOGNITION
The Plan's investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices, which
represent the net asset value of shares held by the Plan at year-end.
The OPC common stock, PolyOne common stock, and BFGoodrich common
stock (see note 3) are valued at their quoted market prices. The unit
price of common or commingled trust funds is based on the current
market value of the underlying assets of the fund. Participant loans
are valued at cost, which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date.
Realized gains and losses on investments are based on the market value
of the asset at the beginning of the Plan year or at the time of
purchase for assets purchased during the Plan year and the related
fair value on the day the investments were sold during the Plan year.
Unrealized gains and losses on investments are based on the market
value of the assets at the beginning of the Plan year or at the time
of purchase for assets purchased during the Plan year and the related
fair value at the end of the Plan year. Net realized and unrealized
appreciation/(depreciation) in fair value of investments is reflected
in the accompanying Statement of Changes in Net Assets Available for
Benefits as "Net (depreciation) in fair value of investments."
(e) PAYMENT OF BENEFITS
Benefits are recorded when paid.
7 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(3) INVESTMENTS
The following presents investments, with those that represent 5% or more of
the Plan's net assets separately identified:
DECEMBER 31, DECEMBER 31,
2001 2000
-------------- --------------
Common stock:
Oxy Stock Fund $ 35,770,049* 31,070,310*
Registered investment companies:
Employee Benefit Index Fund 14,275,476 16,888,032
Magellan Fund 8,716,147 10,366,403
Contrafund 7,843,019 9,295,311
Balanced Fund 5,352,957 5,798,888
Common/collective trust:
Stable Value Fund 18,584,383 15,234,823
All other investments less than 5% 9,699,469 6,966,293
-------------- --------------
$ 100,241,500 95,620,060
============== ==============
* Participant and nonparticipant-directed
During 2001, the Plan's investments (including investments bought, sold,
and held during the year) depreciated in value by $669,901, as follows:
YEAR ENDED
DECEMBER 31,
2001
--------------
Common stock $ 3,416,779
Registered investment companies (4,086,680)
--------------
$ (669,901)
==============
8 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(4) OXY STOCK FUND
Information about the net assets and the significant components of the
changes in net assets relating to the Oxy Stock Fund which included both
participant and nonparticipant-directed investments were as follows:
DECEMBER 31, DECEMBER 31,
2001 2000
-------------- --------------
Net assets:
Oxy Stock Fund $ 36,802,277 31,605,162
YEAR ENDED
DECEMBER 31,
2001
--------------
Changes in net assets:
Contributions $ 3,963,622
Investment income 1,351,039
Net appreciation in fair value 2,911,027
Transfers between funds (493,351)
Plan expenses (54,301)
Benefits paid to participants (2,480,921)
--------------
$ 5,197,115
==============
(5) INTEREST IN MASTER RETIREMENT TRUST
During 2001, an investment option was added to the Plan. This investment is
part of a master trust. The Plan's interest in the master trust investment
loss as reflected in the Statement of Changes in Net Assets Available for
Benefits for the year ended December 31, 2001 represents the period for
which the Plan participated in the master trust.
At December 31, 2001, the Plan's investment in the assets of the Master
Trust represented an undivided interest of approximately 1%.
9 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
The following table presents the aggregate fair value of investments held
by, and investment income earned by, the Trust in which the Plan owns an
undivided interest, as stated above:
DECEMBER 31,
2001
--------------
Investment at fair value:
Common stock $ 330,330
Preferred stock 6,798,887
Corporate bonds 11,608,322
--------------
$ 18,737,539
===============
YEAR ENDED
DECEMBER 31,
2001
--------------
Investment income:
Net depreciation in fair value of investments:
Common stock $ (26,423)
Preferred stock (342,000)
Corporate bonds (2,023,554)
--------------
(2,391,977)
Interest and dividends 742,890
Less investment expenses (93,661)
--------------
$ (1,742,748)
==============
(6) RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per
the financial statements to the Form 5500 as of December 31, 2001 and 2000:
DECEMBER 31, DECEMBER 31,
2001 2000
-------------- --------------
Net assets available for benefits per the financial statements $ 101,370,752 97,726,653
Amounts allocated to withdrawing participants (58,405) (45,292)
-------------- --------------
Net assets available for benefits per the Form 5500 $ 101,312,347 97,681,361
============== ==============
10 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
YEAR ENDED
DECEMBER 31,
2001
--------------
Benefits paid to participants per the financial statements $ 6,790,152
Add amounts allocated to withdrawing participants at December 31, 2001 58,405
Less amounts allocated to withdrawing participants at December 31, 2000 (45,292)
--------------
Benefits paid to participants per the Form 5500 $ 6,803,265
==============
Amounts allocated to withdrawing participants are recorded on the Form 5500
for benefit payments that have been processed and approved for payment
prior to December 31, but not yet paid as of that date.
The following is a reconciliation of investments per the financial
statements to the Form 5500 as of December 31, 2001:
DECEMBER 31,
2001
--------------
Total investments per the financial statements $ 100,241,500
Less interest in represented Master Trust (165,845)
--------------
Total investments per the Form 5500 $ 100,075,655
==============
The Plan's interest in the Master Trust is not included in the Form 5500
since it is not required based on the disclosure requirements of the
Employee Retirement Income Security Act of 1974 and applicable regulations
issued by the Department of Labor.
(7) PARTY-IN-INTEREST TRANSACTIONS
The Trustee, Oxy Vinyls, LP and OPC are parties-in-interest as defined by
ERISA. The Trustee invests certain Plan assets in its collective short-term
investment fund, the Oxy Stock Fund, the PolyOne Stock Fund, and the
BFGoodrich Stock Fund. Such transactions qualify as party-in-interest
transactions permitted by Department of Labor regulations.
For the year ended December 31, 2001, the Plan paid the Trustee $114,464
for services provided under the trust agreement.
11 (Continued)
OXY VINYLS, LP
SAVINGS PLAN
Notes to Financial Statements
December 31, 2001 and 2000
(8) PLAN TERMINATION
The Company has the right under the Plan to discontinue its contributions
at any time and to terminate the Plan subject to the provisions of ERISA.
In the event of Plan termination, participants would become 100% vested in
their accounts.
(9) TAX STATUS
The Internal Revenue Service has determined and informed the Company by
letters dated January 30, 2002 and August 3, 2000, that the Plan and
related trust are designed in accordance with applicable sections of the
IRC. Although the Plan has been amended since receiving the determination
letter, the Committees believe that the Plan is designed and currently
being operated in compliance with the applicable requirements of the IRC.
(10) SUBSEQUENT EVENT
The Plan was merged into the Occidental Petroleum Corporation Savings Plan
(PSA) with an effective date of February 28, 2002. Plan participants became
participants in the PSA plan and their participant accounts and the Plan
assets were transferred into the PSA plan effective as of February 28,
2002.
12
SCHEDULE
OXY VINYLS, LP
SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2001
IDENTITY OF ISSUER, DESCRIPTION OF INVESTMENT INCLUDING
BORROWER, LESSOR, MATURITY DATE, RATE OF INTEREST, CURRENT
OR SIMILAR PARTY COLLATERAL PAR, OR MATURITY VALUE COST VALUE
- --------------------------------- --------------------------------------------------- -------------- --------------
Cash and cash equivalents:
Northern Trust Company* Short-Term Investment Funds $ 564,805
Common stocks:
BFGoodrich Corporation* Common stock, 3,105 shares, $26.62 par value 82,655
PolyOne Corporation* Common stock, 108,434 shares, $9.80 par value 1,062,653
Occidental Petroleum Corporation* Common stock, 1,348,287 shares, $26.53 par value $ 31,107,469 35,770,049
Invesco Common Collective Funds:
Stable Value Fund 18,584,383
Mutual Funds:
Capital Guardian Balanced Fund 5,352,957
Fidelity Institutional Retirement Contrafund 7,843,019
Fidelity Institutional Retirement Magellan Fund 8,716,147
Harbor Funds Capital Appreciation Fund 734,028
Morgan Stanley Institutional High Yield 167,629
Pimco Funds Intermediate Bond Fund 1,833,929
Putnam International Growth Fund 1,585,692
Vanguard Employee Benefit Index Fund 14,275,476
Participant loans:
Participants loans* Various maturities; balance collateralized by
participant account, interest rates range
from 5% to 7% 3,502,233
--------------
Total $ 100,075,655
==============
* Party-in-interest investment.
See accompanying independent auditors' report.
13
EXHIBIT INDEX
Exhibit
No. Exhibit
- --------------------------------------------------------------------------------
23.1 KPMG LLP Independent Auditors' Consent
23.2 Copy of Arthur Andersen LLP Consent of Independent Public
Accountants for the year ended December 31, 2000
99 Copy of Arthur Andersen LLP Report of Independent Public
Accountants as of and for the year ended December 31, 2000
EXHIBIT 23.1
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
Occidental Petroleum Corporation:
We consent to the incorporation by reference in the registration statement (No.
333-79613) on Form S-8 of Occidental Petroleum Corporation and the Oxy Vinyls,
LP Savings Plan of our report dated June 20, 2002, with respect to the statement
of net assets available for benefits as of December 31, 2001, and the related
statement of changes in net assets available for benefits for the year ended
December 31, 2001 and supplementary schedule, which report appears in the
December 31, 2001 annual report on Form 11-K of the Oxy Vinyls, LP Savings Plan.
/s/ KPMG LLP
Los Angeles, California
June 27, 2002
EXHIBIT 23.2 - -------------------------------------------------------------------------------- THIS REPORT IS A COPY OF A PREVIOUSLY ISSUED ANDERSEN REPORT AND THAT THE REPORT HAS NOT BEEN REISSUED BY ANDERSEN. - -------------------------------------------------------------------------------- CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation of our report dated June 22, 2001, included in this Form 11-K for the year ended of December 31, 2000, into Occidental Petroleum Corporation's previously filed Registration Statement No. 333-72719. /s/ ARTHUR ANDERSEN LLPs ARTHUR ANDERSEN LLP Los Angeles, California June 28, 2001 - -------------------------------------------------------------------------------- Arthur Andersen LLP has not issued a new consent to the incorporation of its report, dated June 22, 2001,a copy of which is included in this Form 11-K for the year ended December 31, 2001, into Registration Statement 333-79613. As a result, Andersen may not be among the persons having civil liability under Section 11 of the Securities Act of 1933, as amended, if such Registration Statement is found to be false and misleading. - --------------------------------------------------------------------------------
EXHIBIT 99 - -------------------------------------------------------------------------------- THIS REPORT IS A COPY OF A PREVIOUSLY ISSUED ANDERSEN REPORT AND THAT THE REPORT HAS NOT BEEN REISSUED BY ANDERSEN. - -------------------------------------------------------------------------------- REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Oxy Vinyls, LP Pension and Retirement Plan Administrative Committee: We have audited the accompanying statements of net assets available for plan benefits of the OXY VINYLS, LP SAVINGS PLAN (the "Plan") as of December 31, 2000 and 1999, and the related statement of changes in net assets available for plan benefits for the year ended December 31, 2000. These financial statements and the supplemental schedules referred to below are the responsibility of the Plan administrator. Our responsibility is to express an opinion on these financial statements and supplemental schedules based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2000 and 1999, and the changes in its net assets available for plan benefits for the year ended December 31, 2000, in conformity with accounting principles generally accepted in the United States.- -------------------------------------------------------------------------------- THIS REPORT IS A COPY OF A PREVIOUSLY ISSUED ANDERSEN REPORT AND THAT THE REPORT HAS NOT BEEN REISSUED BY ANDERSEN. - -------------------------------------------------------------------------------- Our audit was made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules included in appendices I and II, as listed in the accompanying index, are presented for purposes of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /s/ ARTHUR ANDERSEN LLP ARTHUR ANDERSEN LLP Los Angeles, California June 22, 2001 - -------------------------------------------------------------------------------- Arthur Andersen LLP has not issued a new consent to the incorporation of its report, dated June 22, 2001,a copy of which is included in this Form 11-K for the year ended December 31, 2001, into Registration Statement 333-79613. As a result, Andersen may not be among the persons having civil liability under Section 11 of the Securities Act of 1933, as amended, if such Registration Statement is found to be false and misleading. - --------------------------------------------------------------------------------