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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Dec. 31, 2014	Jan. 31, 2015	Jun. 30, 2014
Document and Entity Information
Entity Registrant Name	OCCIDENTAL PETROLEUM CORP /DE/
Entity Central Index Key	0000797468
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 79.8
Entity Common Stock, Shares Outstanding		770,550,364
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 3,789	$ 3,393
Restricted cash	4,019
Trade receivables, net of reserves of $17 in 2014 and $17 in 2013	4,206	5,674
Inventories	1,052	1,200
Other current assets	807	1,056
Total current assets	13,873	11,323
Investments
Investments in unconsolidated entities	1,171	1,459
Available for sale investment	394
Total investments	1,565	1,459
PROPERTY, PLANT AND EQUIPMENT
Oil and gas segment	59,061	72,367
Chemical segment	6,574	6,446
Midstream, marketing and other segment	8,304	8,684
Corporate	576	1,555
GROSS PROPERTY, PLANT AND EQUIPMENT	74,515	89,052
Accumulated depreciation, depletion and amortization	(34,785)	(33,231)
TOTAL PROPERTY, PLANT AND EQUIPMENT	39,730	55,821
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET	1,091	840
TOTAL ASSETS	56,259	69,443
CURRENT LIABILITIES
Accounts payable	5,229	5,520
Accrued liabilities	2,601	2,556
Domestic and foreign income taxes	414	358
Total current liabilities	8,244	8,434
LONG-TERM DEBT, NET	6,838	6,939
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred domestic and foreign income taxes	3,015	7,197
Other	3,203	3,501
Total deferred credits and other liabilities	6,218	10,698
CONTINGENT LIABILITIES AND COMMITMENTS
STOCKHOLDERS' EQUITY
Common stock, $0.20 per share par value, authorized shares: 1.1 billion, outstanding shares: 2014 - 890,557,537 and 2013 - 889,919,058	178	178
Treasury stock: 2014 - 119,951,199 shares and 2013 - 93,928,179 shares	(8,528)	(6,095)
Additional paid-in capital	7,599	7,515
Retained earnings	36,067	41,831
Accumulated other comprehensive loss	(357)	(303)
Total equity attributable to common stock	34,959	43,126
Noncontrolling interest		246
Total stockholders' equity	34,959	43,372
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 56,259	$ 69,443

CONSOLIDATED CONDENSED STATEMENTS OF INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
REVENUES AND OTHER INCOME
Net sales	$ 19,312	$ 20,170	$ 20,100
Interest, dividends and other income	130	107	80
Gain on sale of assets and equity investments	2,505	1,175
TOTAL REVENUES AND OTHER INCOME	21,947	21,452	20,180
COSTS AND OTHER DEDUCTIONS
Cost of sales (excludes depreciation, depletion and amortization of $4,261 in 2014, $4,204 in 2013 and $3,586 in 2012)	6,803	6,497	6,530
Selling, general and administrative and other operating expenses	1,503	1,544	1,366
Depreciation, Depletion and Amortization	4,261	4,203	3,585
Asset impairments and related items	7,379	621	1,710
Taxes other than on income	550	564	513
Exploration expense	150	140	197
Interest and debt expense, net	77	132	154
TOTAL COSTS AND OTHER DEDUCTIONS	20,723	13,701	14,055
Income before income taxes and other items	1,224	7,751	6,125
Provision for domestic and foreign income taxes	(1,685)	(3,214)	(2,659)
Income from equity investments	331	395	363
(LOSS) / INCOME FROM CONTINUING OPERATIONS	(130)	4,932	3,829
Discontinued operations, net	760	971	769
NET INCOME	630	5,903	4,598
Less: Net income attributable to noncontrolling interest	(14)
NET INCOME ATTRIBUTABLE TO COMMON STOCK	$ 616	$ 5,903	$ 4,598
BASIC EARNINGS PER COMMON SHARE (attributable to common stock)
(Loss)/Income from continuing operations (in dollars per share)	$ (0.18)	$ 6.12	$ 4.72
Discontinued operations, net (in dollars per share)	0.97	1.21	0.95
BASIC EARNINGS PER COMMON SHARE (in dollars per share)	0.79	7.33	5.67
DILUTED EARNINGS PER COMMON SHARE (attributable to common stock)
(Loss)/Income from continuing operations (in dollars per share)	(0.18)	6.12	4.72
Discontinued operations, net (in dollars per share)	0.97	1.20	0.95
DILUTED EARNINGS PER COMMON SHARE (in dollars per share)	0.79	7.32	5.67
DIVIDENDS PER COMMON SHARE (in dollars per share)	$ 2.88	$ 2.56	$ 2.16

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CASH FLOW FROM OPERATING ACTIVITIES
Net income	$ 630	$ 5,903	$ 4,598
Adjustments to reconcile net income to net cash provided by operating activities:
Discontinued operations, net	(760)	(971)	(769)
Depreciation, depletion and amortization of assets	4,261	4,203	3,585
Deferred income tax provision	(1,178)	914	580
Other noncash charges to income	115	271	167
Asset impairments and related items	7,379	621	1,710
Gain on sale of equity investments	(2,505)	(1,175)
Undistributed earnings from equity investments	38	(3)	(30)
Dry hole expenses	99	70	151
Changes in operating assets and liabilities:
Decrease (increase) in receivables	1,413	(747)	452
(Increase) decrease in inventories	(112)	79	(242)
Decrease in other current assets	89	58	176
(Decrease) increase in accounts payable and accrued liabilities	(544)	255	(959)
(Decrease) increase in current domestic and foreign income taxes	(54)	369	1
Other operating, net		382	(370)
Operating cash flow from continuing operations	8,871	10,229	9,050
Operating cash flow from discontinued operations, net of taxes	2,197	2,549	2,249
Net cash provided by operating activities	11,068	12,778	11,299
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures	(8,930)	(7,357)	(7,874)
Change in capital accrual	542	149	13
Payments for purchases of assets and businesses	(1,687)	(606)	(2,084)
Sales of equity investments and assets, net	4,177	1,619	4
Other, net	(346)	(122)	78
Investing cash flow from continuing operations	(6,244)	(6,317)	(9,863)
Investing cash flow from discontinued operations	(2,226)	(1,727)	(2,779)
Net cash used by investing activities	(8,470)	(8,044)	(12,642)
CASH FLOW FROM FINANCING ACTIVITIES
Change in restricted cash	4,019
Special cash distributions from California Resources Corporation	6,100
Purchases of long-term debt	(107)	(690)
Proceeds from long-term debt			1,736
Proceeds from issuance of common stock	33	30	85
Purchases of treasury stock	(2,500)	(943)	(583)
Contributions from noncontrolling interest	375	214	32
Cash dividends paid	(2,210)	(1,553)	(2,128)
Other, net	2	9	12
Financing cash flow from continuing operations	(2,326)	(2,933)	(846)
Financing cash flow from discontinued operations	124
Net cash (used) provided by financing activities	(2,202)	(2,933)	(846)
(Decrease) increase in cash and cash equivalents	396	1,801	(2,189)
Cash and cash equivalents-beginning of period	3,393	1,592	3,781
Cash and cash equivalents-end of period	$ 3,789	$ 3,393	$ 1,592

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS

In this report, “Occidental” means Occidental Petroleum Corporation, a Delaware corporation (OPC), or OPC and one or more entities in which it owns a controlling interest (subsidiaries). Occidental conducts its operations through various subsidiaries and affiliates. Occidental’s principal businesses consist of three segments. The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGLs) and natural gas. The chemical segment (OxyChem) mainly manufactures and markets basic chemicals and vinyls. The midstream and marketing and other segment (midstream and marketing) gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide (CO2) and power. It also trades around its assets, including transportation and storage capacity, and trades oil, NGLs, gas and power. Additionally, the midstream and marketing segment invests in entities that conduct similar activities.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (GAAP) and include the accounts of OPC, its subsidiaries and its undivided interests in oil and gas exploration and production ventures. Occidental accounts for its share of oil and gas exploration and production ventures, in which it has a direct working interest, by reporting its proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets, income statements and cash flow statements.

Certain financial statements, notes and supplementary data for prior years have been reclassified to conform to the 2014 presentation.

As a result of the spin-off of California Resources Corporation (California Resources) the statements of income and cash flows related to California Resources have been treated as discontinued operations for the years ended December 31, 2014, 2013 and 2012. The assets and liabilities of California Resources were removed from Occidental’s consolidated balance sheet as of November 30, 2014. See Note 17 Spin-off of California Resources for additional information.

INVESTMENTS IN UNCONSOLIDATED ENTITIES

Occidental’s percentage interest in the underlying net assets of affiliates as to which it exercises significant influence without having a controlling interest (excluding oil and gas ventures in which Occidental holds an undivided interest) are accounted for under the equity method. Occidental reviews equity-method investments for impairment whenever events or changes in circumstances indicate that an other-than-temporary decline in value may have occurred. The amount of impairment, if any, is based on quoted market prices, when available, or other valuation techniques, including discounted cash flows.

REVENUE RECOGNITION

Revenue is recognized from oil and gas production when title has passed to the customer, which occurs when the product is shipped. In international locations where oil is shipped by tanker, title passes when the tanker is loaded or product is received by the customer, depending on the shipping terms. This process occasionally causes a difference between actual production in a reporting period and sales volumes that have been recognized as revenue. Revenues from the production of oil and gas properties in which Occidental has an interest with other producers are recognized on the basis of Occidental’s net revenue interest.

Revenue from chemical product sales is recognized when the product is shipped and title has passed to the customer. Certain incentive programs may provide for payments or credits to be made to customers based on the volume of product purchased over a defined period. Total customer incentive payments over a given period are estimated and recorded as a reduction to revenue ratably over the contract period. Such estimates are evaluated and revised as warranted.

Revenue from marketing and trading activities is recognized on net settled transactions upon completion of contract terms and, for physical deliveries, upon title transfer. For unsettled transactions, contracts are recorded at fair value and changes in fair value are reflected in net sales. Revenue from all marketing and trading activities is reported on a net basis.

Occidental records revenue net of any taxes, such as sales taxes, that are assessed by governmental authorities on Occidental’s customers.

RISKS AND UNCERTAINTIES

The process of preparing consolidated financial statements in conformity with GAAP requires Occidental’s management to make informed estimates and judgments regarding certain types of financial statement balances and disclosures. Such estimates primarily relate to unsettled transactions and events as of the date of the consolidated financial statements and judgments on expected outcomes as well as the materiality of transactions and balances. Changes in facts and circumstances or discovery of new information relating to such transactions and events may result in revised estimates and judgments and actual results may differ from estimates upon settlement. Management believes that these estimates and judgments provide a reasonable basis for the fair presentation of Occidental’s financial statements. Occidental establishes a valuation allowance against net operating losses and other deferred tax assets to the extent it believes the future benefit from these assets will not be realized in the statutory carryforward periods. Realization of deferred tax assets, including any net operating loss carryforwards, is dependent upon Occidental generating sufficient future taxable income and reversal of temporary differences in jurisdictions where such assets originate.

The accompanying consolidated financial statements include assets of approximately $15 billion as of December 31, 2014, and net sales of approximately $7.3 billion for the year ended December 31, 2014, relating to Occidental’s operations in countries outside North America. Occidental operates some of its oil and gas business in countries that have experienced political instability, nationalizations, corruption, armed conflict, terrorism, insurgency, civil unrest, security problems, labor unrest, OPEC production restrictions, equipment import restrictions and sanctions, all of which increase Occidental’s risk of loss or delayed or restricted production or may result in other adverse consequences. Occidental attempts to conduct its affairs so as to mitigate its exposure to such risks and would seek compensation in the event of nationalization.

Because Occidental’s major products are commodities, significant changes in the prices of oil and gas and chemical products may have a significant impact on Occidental’s results of operations.

Also, see “Property, Plant and Equipment” below.

CASH AND CASH EQUIVALENTS

Cash equivalents are short-term, highly liquid investments that are readily convertible to cash. Cash equivalents were approximately $3.4 billion and $2.9 billion at December 31, 2014 and 2013, respectively.

RESTRICTED CASH

Restricted cash is the result of the separation of California Resources. As of December 31, 2014, there was $4.0 billion of cash restricted for the payment of dividends, payment of debt or share repurchases. Restricted cash must be used within 18 months of the date of distribution.

INVESTMENTS

Available-for-sale securities are recorded at fair value with any unrealized gains or losses included in accumulated other comprehensive income/loss (AOCI). Trading securities are recorded at fair value with unrealized and realized gains or losses included in net sales.

A decline in market value of any available-for-sale securities below cost that is deemed to be other-than-temporary results in an impairment to reduce the carrying amount to fair value. To determine whether an impairment is other-than-temporary, Occidental considers all available information relevant to the investment, including past events and current conditions. Evidence considered in this assessment includes the reasons for the impairment, the severity and duration of the impairment, changes in value subsequent to year-end, and the general market condition in the geographic area or industry the investee operates in.

INVENTORIES

Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Oil, NGLs and natural gas inventories are valued at the lower of cost or market.

For the chemical segment, Occidental’s finished goods inventories are valued at the lower of cost or market. For most of its domestic inventories, other than materials and supplies, the chemical segment uses the last-in, first-out (LIFO) method as it better matches current costs and current revenue. For other countries, Occidental uses the first-in, first-out method (if the costs of goods are specifically identifiable) or the average-cost method (if the costs of goods are not specifically identifiable).

PROPERTY, PLANT AND EQUIPMENT

Oil and Gas

The carrying value of Occidental’s property, plant and equipment (PP&E) represents the cost incurred to acquire or develop the asset, including any asset retirement obligations and capitalized interest, net of accumulated depreciation, depletion and amortization (DD&A) and any impairment charges. For assets acquired, PP&E cost is based on fair values at the acquisition date. Asset retirement obligations and interest costs incurred in connection with qualifying capital expenditures are capitalized and amortized over the lives of the related assets.

Occidental uses the successful efforts method to account for its oil and gas properties. Under this method, Occidental capitalizes costs of acquiring properties, costs of drilling successful exploration wells and development costs. The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found. If proved reserves have been found, the costs of exploratory wells remain capitalized. Otherwise, Occidental charges the costs of the related wells to expense. In some cases, a determination of proved reserves cannot be made at the completion of drilling, requiring additional testing and evaluation of the wells. Occidental generally expenses the costs of such exploratory wells if a determination of proved reserves has not been made within a 12-month period after drilling is complete.

The following table summarizes the activity of capitalized exploratory well costs for continuing operations for the years ended December 31:

in millions	2014			2013			2012
Balance — Beginning of Year	$	140		$	124		$	189
Additions to capitalized exploratory well costs pending the determination of proved reserves	462			337			400
Reclassifications to property, plant and equipment based on the determination of proved reserves	(423		)	(271		)	(389		)
Spin-off of California Resources	(17		)	—			—
Capitalized exploratory well costs charged to expense	(21		)	(50		)	(76		)
Balance — End of Year	$	141		$	140		$	124

Occidental expenses annual lease rentals, the costs of injectants used in production and geological, geophysical and seismic costs as incurred.

Occidental determines depreciation and depletion of oil and gas producing properties by the unit-of-production method. It amortizes acquisition costs over total proved reserves, and capitalized development and successful exploration costs over proved developed reserves.

Proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. Occidental has no proved oil and gas reserves for which the determination of economic producibility is subject to the completion of major additional capital expenditures.

Occidental performs impairment tests with respect to its proved properties whenever events or circumstances indicate that the carrying value of property may not be recoverable. If there is an indication the carrying amount of the asset may not be recovered due to declines in current and forward prices, significant changes in reserve estimates, changes in management’s plans, or other significant events, management will evaluate the property for impairment. Under the successful efforts method, if the sum of the undiscounted cash flows is less than the carrying value of the proved property, the carrying value is reduced to estimated fair value and reported as an impairment charge in the period. Individual proved properties are grouped for impairment purposes at the lowest level for which there are identifiable cash flows, which is generally on a field by field basis. The fair value of impaired assets is typically determined based on the present value of expected future cash flows using discount rates believed to be consistent with those used by market participants. The impairment test incorporates a number of assumptions involving expectations of future cash flows which can change significantly over time. These assumptions include estimates of future product prices, contractual prices, estimates of risk-adjusted proved oil and gas reserves and estimates of future operating and development costs. See Note 15 for further discussion of asset impairments.

A portion of the carrying value of Occidental’s oil and gas properties is attributable to unproved properties. At December 31, 2014, the net capitalized costs attributable to unproved properties were $2.0 billion. The unproved amounts are not subject to DD&A until they are classified as proved properties. Capitalized costs attributable to the properties become subject to DD&A when proved reserves are assigned to the property. If the exploration efforts are unsuccessful, or management decides not to pursue development of these properties as a result of lower commodity prices, higher development and operating costs, contractual conditions or other factors, the capitalized costs of the related properties would be expensed. The timing of any writedowns of these unproved properties, if warranted, depends upon management’s plans, the nature, timing and extent of future exploration and development activities and their results.

Chemical

Occidental’s chemical assets are depreciated using either the unit-of-production or the straight-line method, based upon the estimated useful lives of the facilities. The estimated useful lives of Occidental’s chemical assets, which range from three years to 50 years, are also used for impairment tests. The estimated useful lives for the chemical facilities are based on the assumption that Occidental will provide an appropriate level of annual expenditures to ensure productive capacity is sustained. Such expenditures consist of ongoing routine repairs and maintenance, as well as planned major maintenance activities (PMMA). Ongoing routine repairs and maintenance expenditures are expensed as incurred. PMMA costs are capitalized and amortized over the period until the next planned overhaul. Additionally, Occidental incurs capital expenditures that extend the remaining useful lives of existing assets, increase their capacity or operating efficiency beyond the original specification or add value through modification for a different use. These capital expenditures are not considered in the initial determination of the useful lives of these assets at the time they are placed into service. The resulting revision, if any, of the asset’s estimated useful life is measured and accounted for prospectively.

Without these continued expenditures, the useful lives of these assets could decrease significantly. Other factors that could change the estimated useful lives of Occidental’s chemical assets include sustained higher or lower product prices, which are particularly affected by both domestic and foreign competition, demand, feedstock costs, energy prices, environmental regulations and technological changes.

Occidental performs impairment tests on its chemical assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets. Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value.

Midstream and Marketing

Occidental’s midstream and marketing PP&E is depreciated over the estimated useful lives of the assets, using either the unit-of-production or straight-line method.

Occidental performs impairment tests on its midstream and marketing assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets. Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value.

FAIR VALUE MEASUREMENTS

Occidental has categorized its assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1 – using quoted prices in active markets for the assets or liabilities; Level 2 – using observable inputs other than quoted prices for the assets or liabilities; and Level 3 – using unobservable inputs. Transfers between levels, if any, are reported at the end of each reporting period.

Fair Values - Recurring

Occidental primarily applies the market approach for recurring fair value measurements, maximizes its use of observable inputs and minimizes its use of unobservable inputs. Occidental utilizes the mid-point between bid and ask prices for valuing the majority of its assets and liabilities measured and reported at fair value. In addition to using market data, Occidental makes assumptions in valuing its assets and liabilities, including assumptions about the risks inherent in the inputs to the valuation technique. For assets and liabilities carried at fair value, Occidental measures fair value using the following methods:

Occidental values exchange-cleared commodity derivatives using closing prices provided by the exchange as of the balance sheet date. These derivatives are classified as Level 1. 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.

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.

Occidental generally uses an income approach to measure fair value when there is not a market-observable price for an identical or similar asset or liability. This approach utilizes management’s judgments regarding expectations of projected cash flows, and discounts those cash flows using a risk-adjusted discount rate.

ACCRUED LIABILITIES—CURRENT

Accrued liabilities include accrued payroll, commissions and related expenses of $361 million and $459 million at December 31, 2014 and 2013, respectively.

ENVIRONMENTAL LIABILITIES AND EXPENDITURES

Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Occidental records environmental reserves and related charges and expenses for estimated remediation costs that relate to existing conditions from past operations when environmental remediation efforts are probable and the costs can be reasonably estimated. In determining the reserves and the range of reasonably possible additional losses, Occidental refers to currently available information, including relevant past experience, remedial objectives, available technologies, applicable laws and regulations and cost-sharing arrangements. Occidental bases environmental reserves on management’s estimate of the most likely cost to be incurred, using the most cost-effective technology reasonably expected to achieve the remedial objective. Occidental periodically reviews reserves and adjusts them as new information becomes available. Occidental records environmental reserves on a discounted basis when it deems the aggregate amount and timing of cash payments to be reliably determinable at the time the reserves are established. The reserve methodology with respect to discounting for a specific site is not modified once it is established. The amount of discounted environmental reserves is insignificant. Occidental generally records reimbursements or recoveries of environmental remediation costs in income when received, or when receipt of recovery is highly probable. As of December 31, 2014, 2013 and 2012, Occidental did not have any accruals for reimbursements or recoveries.

Many factors could affect Occidental’s future remediation costs and result in adjustments to its environmental reserves and range of reasonably possible additional losses. The most significant are: (1) cost estimates for remedial activities may be inaccurate; (2) the length of time, type or amount of remediation necessary to achieve the remedial objective may change due to factors such as site conditions, the ability to identify and control contaminant sources or the discovery of additional contamination; (3) a regulatory agency may ultimately reject or modify Occidental’s proposed remedial plan; (4) improved or alternative remediation technologies may change remediation costs; (5) laws and regulations may change remediation requirements or affect cost sharing or allocation of liability; and (6) changes in allocation or cost-sharing arrangements may occur.

Certain sites involve multiple parties with various cost-sharing arrangements, which fall into the following three categories: (1) environmental proceedings that result in a negotiated or prescribed allocation of remediation costs among Occidental and other alleged potentially responsible parties; (2) oil and gas ventures in which each participant pays its proportionate share of remediation costs reflecting its working interest; or (3) contractual arrangements, typically relating to purchases and sales of properties, in which the parties to the transaction agree to methods of allocating remediation costs. In these circumstances, Occidental evaluates the financial viability of the other parties with whom it is alleged to be jointly liable, the degree of their commitment to participate and the consequences to Occidental of their failure to participate when estimating Occidental’s ultimate share of liability. Occidental records reserves at its expected net cost of remedial activities and, based on these factors, believes that it will not be required to assume a share of liability of such other potentially responsible parties in an amount materially above amounts reserved.

In addition to the costs of investigations and cleanup measures, which often take in excess of 10 years at Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) National Priorities List (NPL) sites, Occidental’s reserves include management’s estimates of the costs to operate and maintain remedial systems. If remedial systems are modified over time in response to significant changes in site-specific data, laws, regulations, technologies or engineering estimates, Occidental reviews and adjusts its reserves accordingly.

ASSET RETIREMENT OBLIGATIONS

Occidental recognizes the fair value of asset retirement obligations in the period in which a determination is made that a legal obligation exists to dismantle an asset and reclaim or remediate the property at the end of its useful life and the cost of the obligation can be reasonably estimated. The liability amounts are based on future retirement cost estimates and incorporate many assumptions such as time to abandonment, technological changes, future inflation rates and the risk-adjusted discount rate. When the liability is initially recorded, Occidental capitalizes the cost by increasing the related PP&E balances. If the estimated future cost of the asset retirement obligation changes, Occidental records an adjustment to both the asset retirement obligation and PP&E. Over time, the liability is increased and expense is recognized for accretion, and the capitalized cost is depreciated over the useful life of the asset.

At a certain number of its facilities, Occidental has identified conditional asset retirement obligations that are related mainly to plant decommissioning. Occidental does not know or cannot estimate when it may settle these obligations. Therefore, Occidental cannot reasonably estimate the fair value of these liabilities. Occidental will recognize these conditional asset retirement obligations in the periods in which sufficient information becomes available to reasonably estimate their fair values.

The following table summarizes the activity of the asset retirement obligation, of which $1,024 million and $1,283 million is included in deferred credits and other liabilities - other, with the remaining current portion in accrued liabilities at December 31, 2014 and 2013, respectively.

For the years ended December 31, (in millions)	2014			2013
Beginning balance	$	1,332		$	1,266
Liabilities incurred – capitalized to PP&E	57			101
Liabilities settled and paid	(78		)	(72		)
Accretion expense	69			68
Acquisitions, dispositions and other – changes in PP&E	(11		)	(10		)
Spin-off of California Resources	(399		)	—
Revisions to estimated cash flows – changes in PP&E	121			(21		)
Ending balance	$	1,091		$	1,332

DERIVATIVE INSTRUMENTS

Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Occidental applies hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. Otherwise, any fair value gains or losses are recognized in earnings in the current period. For cash-flow hedges, the gain or loss on the effective portion of the derivative is reported as a component of other comprehensive income (OCI) with an offsetting adjustment to the basis of the item being hedged. Realized gains or losses from cash-flow hedges, and any ineffective portion, are recorded as a component of net sales in the consolidated statements of income. Ineffectiveness is primarily created by a lack of correlation between the hedged item and the hedging instrument due to location, quality, grade or changes in the expected quantity of the hedged item. Gains and losses from derivative instruments are reported net in the consolidated statements of income. There were no fair value hedges as of and during the years ended December 31, 2014, 2013 and 2012.

A hedge is regarded as highly effective such that it qualifies for hedge accounting if, at inception and throughout its life, it is expected that changes in the fair value or cash flows of the hedged item will be offset by 80 to 125 percent of the changes in the fair value or cash flows, respectively, of the hedging instrument. In the case of hedging a forecast transaction, the transaction must be probable and must present an exposure to variations in cash flows that could ultimately affect reported net income or loss. Occidental discontinues hedge accounting when it determines that a derivative has ceased to be highly effective as a hedge; when the hedged item matures or is sold or repaid; or when a forecast transaction is no longer deemed probable.

STOCK-BASED INCENTIVE PLANS

Occidental has established several stockholder-approved stock-based incentive plans for certain employees and directors (Plans) that are more fully described in Note 12. A summary of Occidental’s accounting policy for awards issued under the Plans is as follows.

For cash- and stock-settled restricted stock units or incentive award shares (RSUs) and capital employed incentive awards and return on assets (ROCEI/ROAI), compensation value is initially measured on the grant date using the quoted market price of Occidental’s common stock and the estimated payout at the grant date. For total shareholder return incentives (TSRIs), compensation value is initially measured on the grant date using estimated payout levels derived from a Monte Carlo valuation model. Compensation expense for RSUs, ROCEI/ROAI and TSRIs is recognized on a straight-line basis over the requisite service periods, which is generally over the awards’ respective vesting or performance periods. Compensation expense for the dividends accrued on unvested awards is adjusted quarterly for any changes in stock price and the number of share equivalents expected to be paid based on the relevant performance and market criteria, if applicable. All such performance or stock-price-related changes are recognized in periodic compensation expense. The stock-settled portion of these awards is expensed using the initially measured compensation value.

EARNINGS PER SHARE

Occidental’s instruments containing rights to nonforfeitable dividends granted in stock-based awards are considered participating securities prior to vesting and, therefore, have been deducted from earnings in computing basic and diluted EPS under the two-class method.

Basic EPS was computed by dividing net income attributable to common stock, net of income allocated to participating securities, by the weighted-average number of common shares outstanding during each period, net of treasury shares and including vested but unissued shares and share units. The computation of diluted EPS reflects the additional dilutive effect of stock options and unvested stock awards.

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

Occidental recognizes the overfunded or underfunded amounts of its defined benefit pension and postretirement plans, which are more fully described in Note 13, in its financial statements using a December 31 measurement date.

Occidental determines its defined benefit pension and postretirement benefit plan obligations based on various assumptions and discount rates. The discount rate assumptions used are meant to reflect the interest rate at which the obligations could effectively be settled on the measurement date. Occidental estimates the rate of return on assets with regard to current market factors but within the context of historical returns. Occidental funds and expenses negotiated pension increases for domestic union employees over the terms of the applicable collective bargaining agreements.

Pension and any postretirement plan assets are measured at fair value. Common stock, preferred stock, publicly registered mutual funds, U.S. government securities and corporate bonds are valued using quoted market prices in active markets when available. When quoted market prices are not available, these investments are valued using pricing models with observable inputs from both active and non-active markets. Common and collective trusts are valued at the fund units’ net asset value (NAV) provided by the issuer, which represents the quoted price in a non-active market. Short-term investment funds are valued at the fund units’ NAV provided by the issuer.

SUPPLEMENTAL CASH FLOW INFORMATION

Occidental paid United States federal, state and foreign income taxes for continuing operations of approximately $2.9 billion, $1.8 billion and $2.3 billion during the years ended December 31, 2014, 2013 and 2012, respectively. Occidental also paid production, property and other taxes of approximately $610 million, $606 million and $524 million during the years ended December 31, 2014, 2013 and 2012, respectively, substantially all of which was in the United States. Interest paid totaled approximately $219 million, $238 million and $190 million, net of capitalized interest of $180 million, $137 million and $100 million, for the years 2014, 2013 and 2012, respectively.

FOREIGN CURRENCY TRANSACTIONS

The functional currency applicable to all of Occidental’s foreign oil and gas operations is the United States dollar since cash flows are denominated principally in United States dollars. In Occidental’s other operations, Occidental’s use of non-United States dollar functional currencies was not material for all years presented. The effect of exchange rates on transactions in foreign currencies is included in periodic income. Occidental reports the exchange rate differences arising from translating foreign-currency-denominated balance sheet accounts to the United States dollar as of the reporting date in other comprehensive income. Exchange-rate gains and losses for continuing operations were not material for all years presented.

Derivatives

12 Months Ended

Dec. 31, 2014

Derivatives

Derivatives

NOTE 7DERIVATIVES

Objective & Strategy

Occidental uses a variety of derivative instruments, including cash-flow hedges and derivative instruments not designated as hedging instruments, to obtain the average prices for the relevant production month and to improve realized prices for oil and gas. Occidental only occasionally hedges its oil and gas production, and, when it does so, the volumes are usually insignificant.

Refer to Note 1 for Occidental’s accounting policy on derivatives.

Cash-Flow Hedges

Occidental’s marketing and trading operations, from time to time, store natural gas purchased from third parties at Occidental’s North American leased storage facilities. Derivative instruments used to fix margins on the future sales of the stored volumes ended March 31, 2014. As of December 31, 2014, Occidental did not have any cash-flow hedges on stored volumes of natural gas. At December 31, 2013, Occidental had approximately 11 billion cubic feet of natural gas held in storage, and had cash-flow hedges for the forecast sale, to be settled by physical delivery, of approximately 13 billion cubic feet of stored natural gas.

The following table presents the after-tax gains and losses recognized in, and reclassified to income from, AOCI, for derivative instruments classified as cash-flow hedges for the years ended December 31, 2014 and 2013:

	After-tax
As of December 31, (in millions)	2014			2013
Unrealized losses recognized in AOCI	$	(5	)	$	(3	)
Losses (Gains) reclassified to income	$	8		$	(4	)

Occidental reclassified all of the outstanding balances as of 2013 net after-tax derivative losses from AOCI into net sales during 2014. The amount of the ineffective portion of cash-flow hedges was immaterial for the years ended December 31, 2014 and 2013.

Derivatives Not Designated as Hedging Instruments

The following table summarizes Occidental’s net volumes of outstanding commodity derivatives contracts not designated as hedging instruments, including both financial and physical derivative contracts as of December 31, 2014 and 2013:

	Net Outstanding Position Long / (Short)
Commodity	2014		2013
Oil (million barrels)	(9	)	(22	)
Natural gas (billion cubic feet)	(32	)	(10	)
CO2 (million cubic feet)	621		—

The volumes in the table above exclude contracts tied to index prices, for which the fair value, if any, is minimal at any point in time. These contracts do not expose Occidental to price risk because the contract prices fluctuate with index prices.

Occidental fulfills its short positions through its own production or by third-party purchase contracts. Subsequent to December 31, 2014, Occidental entered into purchase contracts for a substantial portion of the outstanding positions at year-end and has sufficient production capacity and the ability to enter into additional purchase contracts to satisfy the remaining positions.

Approximately $71 million net loss and $11 million net gain from derivatives not designated as hedging instruments were recognized in net sales for the years ended December 31, 2014 and 2013, respectively.

Fair Value of Derivatives

The following table presents the gross and net fair values of Occidental’s outstanding derivatives as of December 31, 2014 and 2013:

(in millions)
December 31, 2014	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	—		Accrued liabilities	$	—
Commodity contracts	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	—
		$	—			$	—
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	$	828		Accrued liabilities	$	886
Commodity contracts	Long-term receivables and other assets, net	11			Deferred credits and other liabilities	110
		839				996
Total gross fair value		839				996
Less: counterparty netting and cash collateral (b) (d)		(742		)		(756		)
Total net fair value of derivatives		$	97			$	240

(in millions)

December 31, 2013	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	—		Accrued liabilities	$	4
Commodity contracts	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	—
		$	—			$	4
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	$	367		Accrued liabilities	$	407
Commodity contracts	Long-term receivables and other assets, net	13			Deferred credits and other liabilities	11
		380				418
Total gross fair value		380				422
Less: counterparty netting and cash collateral (c) (d)		(329		)		(364		)
Total net fair value of derivatives		$	51			$	58

(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 December 31, 2014, collateral received of zero has been netted against derivative assets and collateral paid of $8 million has been netted against derivative liabilities.

(c)	As of December 31, 2013, collateral received of $11 million has been netted against derivative assets and collateral paid of $46 million has been netted against derivative liabilities.

(d)	Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $44 million and $103 million as of December 31, 2014 and 2013, respectively, deposited by Occidental, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets.

See Note 15 for fair value measurement disclosures on derivatives.

Credit Risk

A majority of Occidental’s derivative transaction volumes are executed through exchange-traded contracts, which are subject to minimal credit risk as a significant portion of these transactions is settled on a daily margin basis with select clearinghouses and brokers. Occidental executes the rest of its derivative transactions in the OTC market. Occidental is subject to counterparty credit risk to the extent the counterparty to the derivatives is unable to meet its settlement commitments. Occidental manages this credit risk by selecting counterparties that it believes to be financially strong, by spreading the credit risk among many such counterparties, by entering into master netting arrangements with the counterparties and by requiring collateral, as appropriate. Occidental actively monitors the creditworthiness of each counterparty and records valuation adjustments to reflect counterparty risk, if necessary.

Certain of Occidental’s OTC derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each would need to post. As of December 31, 2014 and 2013, Occidental had a net liability of $4 million and $8 million, respectively, which are net of collateral posted of $3 million and $23 million, respectively. Occidental believes that if it had received a one-notch reduction in its credit ratings, it would not have resulted in a material change in its collateral-posting requirements as of December 31, 2014 and 2013.

Foreign Currency Risk

Occidental’s foreign operations have limited currency risk. Occidental manages its exposure primarily by balancing monetary assets and liabilities and limiting cash positions in foreign currencies to levels necessary for operating purposes. A vast majority of international oil sales are denominated in United States dollars. Additionally, all of Occidental’s consolidated foreign oil and gas subsidiaries have the United States dollar as the functional currency. As of December 31, 2014, the fair value of foreign currency derivatives used in the trading operations was immaterial. The effect of exchange rates on transactions in foreign currencies is included in periodic income.

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

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+ Details

Environmental Liabilities and Expenditures

12 Months Ended

Dec. 31, 2014

Environmental Liabilities and Expenditures

Environmental Liabilities and Expenditures

NOTE 8

ENVIRONMENTAL LIABILITIES AND EXPENDITURES

Occidental’s operations are subject to stringent federal, state, local and foreign laws and regulations related to improving or maintaining environmental quality.

ENVIRONMENTAL REMEDIATION

The laws that require or address environmental remediation, including CERCLA and similar federal, state, local and foreign laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. OPC or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs.

As of December 31, 2014, Occidental participated in or monitored remedial activities or proceedings at 145 sites, excluding seven sites transferred to California Resources prior to December 31, 2014. The following table presents Occidental’s environmental remediation reserves as of December 31, 2014, 2013 and 2012, the current portion of which is included in accrued liabilities ($79 million in 2014, $78 million in 2013 and $80 million in 2012) and the remainder in deferred credits and other liabilities — other ($255 million in 2014, $252 million in 2013 and $264 million in 2012). The reserves are grouped as environmental remediation sites listed or proposed for listing by the U.S. Environmental Protection Agency on the CERCLA National Priorities List (NPL sites) and three categories of non-NPL sites — third-party sites, Occidental-operated sites and closed or non-operated Occidental sites.

($ amounts in millions)	2014			2013			2012
	Number of Sites	Reserve Balance		Number of Sites	Reserve Balance		Number of Sites	Reserve Balance
NPL sites	30	$	23	31	$	25	35	$	54
Third-party sites	67	101		74	83		75	84
Occidental-operated sites	17	107		20	118		22	123
Closed or non-operated Occidental sites	31	103		32	104		29	83
Total	145	$	334	157	$	330	161	$	344

As of December 31, 2014, Occidental’s environmental reserves exceeded $10 million each at 11 of the 145 sites described above, and 98 of the sites had reserves from $0 to $1 million each.

As of December 31, 2014, two sites — a landfill in western New York owned by Occidental and a former refinery in Louisiana — accounted for 62 percent of its reserves associated with NPL sites. In connection with a 1986 acquisition, Maxus Energy Corporation has retained the liability and is indemnifying Occidental for 14 of the remaining NPL sites.

As of December 31, 2014, Maxus has also retained the liability and is indemnifying Occidental for 8 of the 67 third-party sites. Four of the remaining 59 third-party sites — a former copper mining and smelting operation in Tennessee, a containment and removal project in Tennessee, a former chemical plant in Ohio and an active refinery in Louisiana where Occidental reimburses the current owner for certain remediation activities — accounted for 56 percent of Occidental’s reserves associated with these sites.

Four sites — chemical plants in Kansas, Louisiana and New York and a group of oil and gas properties in the southwestern United States — accounted for 62 percent of the reserves associated with the Occidental-operated sites.

Four other sites — a landfill in western New York, former chemical plants in Tennessee and Delaware and a closed coal mine in Pennsylvania — accounted for 63 percent of the reserves associated with closed or non-operated Occidental sites.

Environmental reserves vary over time depending on factors such as acquisitions or dispositions, identification of additional sites and remedy selection and implementation. The following table presents environmental reserve activity for the past three years:

(in millions)	2014			2013			2012
Balance — Beginning of Year	$	330		$	344		$	360
Remediation expenses and interest accretion	79			60			56
Spin-off of California Resources	(7		)	—			—
Payments	(68		)	(74		)	(72		)
Balance — End of Year	$	334		$	330		$	344

Based on current estimates, Occidental expects to expend funds corresponding to approximately half of the current environmental reserves at the sites described above over the next three to four years and the balance at these sites over the subsequent 10 or more years. Occidental believes its range of reasonably possible additional losses beyond those liabilities recorded for environmental remediation at these sites could be up to $380 million.

ENVIRONMENTAL COSTS

Occidental’s environmental costs, some of which include estimates, are presented below for each segment for each of the years ended December 31:

(in millions)	2014		2013		2012
Operating Expenses
Oil and Gas	$	103	$	100	$	116
Chemical	80		75		70
Midstream and Marketing	11		13		13
	$	194	$	188	$	199
Capital Expenditures
Oil and Gas	$	143	$	67	$	79
Chemical	35		14		18
Midstream and Marketing	11		5		8
	$	189	$	86	$	105
Remediation Expenses
Corporate	$	79	$	60	$	56

Operating expenses are incurred on a continual basis. Capital expenditures relate to longer-lived improvements in properties currently operated by Occidental. Remediation expenses relate to existing conditions from past operations.

DOMESTIC AND FOREIGN INCOME TAXES

12 Months Ended

Dec. 31, 2014

DOMESTIC AND FOREIGN INCOME TAXES

DOMESTIC AND FOREIGN INCOME TAXES

NOTE 10

DOMESTIC AND FOREIGN INCOME TAXES

The domestic and foreign components of income from continuing operations before domestic and foreign income taxes were as follows:

For the years ended December 31, (in millions)	Domestic			Foreign		Total
2014	$	(732	)	$	2,273	$	1,541
2013	$	3,399		$	4,747	$	8,146
2012	$	852		$	5,636	$	6,488

The provisions (credits) for domestic and foreign income taxes on continuing operations consisted of the following:

For the years ended December 31, (in millions)	United States Federal			State and Local			Foreign			Total
2014
Current	$	870		$	81		$	1,912		$	2,863
Deferred	(1,037		)	(71		)	(70		)	(1,178		)
	$	(167	)	$	10		$	1,842		$	1,685
2013
Current	$	113		$	17		$	2,170		$	2,300
Deferred	883			48			(17		)	914
	$	996		$	65		$	2,153		$	3,214
2012
Current	$	(308	)	$	4		$	2,383		$	2,079
Deferred	519			20			41			580
	$	211		$	24		$	2,424		$	2,659

The following reconciliation of the United States federal statutory income tax rate to Occidental’s worldwide effective tax rate on income from continuing operations is stated as a percentage of pre-tax income:

For the years ended December 31,	2014		2013		2012
United States federal statutory tax rate	35	%	35	%	35	%
Other than temporary loss on available for sale investment in California Resources stock	12		—		—
Operations outside the United States	65		5		6
State income taxes, net of federal benefit	1		1		1
Other	(4	)	(1	)	(1	)
Worldwide effective tax rate	109	%	40	%	41	%

The tax effects of temporary differences resulting in deferred income taxes at December 31, 2014 and 2013 were as follows:

	2014					2013
Tax effects of temporary differences (in millions)	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property, plant and equipment differences	$	—		$	4,081	$	—		$	8,363
Equity investments, partnerships and foreign subsidiaries	—			—		—			225
Environmental reserves	123			—		121			—
Postretirement benefit accruals	379			—		376			—
Deferred compensation and benefits	208			—		222			—
Asset retirement obligations	307			—		407			—
Foreign tax credit carryforwards	1,765			—		1,091			—
Federal benefit of state income taxes	85			—		136			—
All other	274			221		344			82
Subtotal	3,141			4,302		2,697			8,670
Valuation allowance	(1,744		)	—		(1,074		)	—
Total deferred taxes	$	1,397		$	4,302	$	1,623		$	8,670

The current portion of total deferred tax assets was $110 million and $150 million as of December 31, 2014 and 2013, respectively, which was reported in other current assets. Total deferred tax assets were $1.4 billion and $1.6 billion as of December 31, 2014 and 2013, respectively, the noncurrent portion of which is netted against deferred tax liabilities. Occidental expects to realize the recorded deferred tax assets, net of any allowances, through future operating income and reversal of temporary differences. The reduction in net deferred tax liabilities from 2013 to 2014 was primarily due to the spin-off of California Resources. See Note 17 Spin-off of California Resources.

Occidental had, as of December 31, 2014, foreign tax credit carryforwards of $1.8 billion, which expire in varying amounts through 2024, and various state operating loss carryforwards, which have varying carryforward periods through 2025. Occidental’s valuation allowance provides for substantially all of the foreign tax credit and state operating loss carryforwards.

A deferred tax liability has not been recognized for temporary differences related to unremitted earnings of certain consolidated foreign subsidiaries aggregating approximately $9.9 billion, net of foreign taxes, at December 31, 2014, as it is Occidental’s intention, generally, to reinvest such earnings permanently. If the earnings of these foreign subsidiaries were not indefinitely reinvested, an additional deferred tax liability of approximately $140 million would be required, assuming utilization of available foreign tax credits.

Discontinued operations include income tax charges of $454 million, $550 million and $466 million in 2014, 2013 and 2012, respectively.

Additional paid-in capital was credited $4 million in 2014, $6 million in 2013 and $8 million in 2012 for an excess tax benefit from the exercise of certain stock-based compensation awards.

As of December 31, 2014, Occidental had liabilities for unrecognized tax benefits of approximately $61 million included in deferred credits and other liabilities – other, all of which, if subsequently recognized, would favorably affect Occidental’s effective tax rate.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

For the years ended December 31, (in millions)	2014		2013
Balance at January 1,	$	61	$	76
Reductions based on tax positions related to prior years and settlements	—		(15		)
Balance at December 31,	$	61	$	61

Management believes it is unlikely that Occidental’s liabilities for unrecognized tax benefits related to existing matters would increase or decrease within the next 12 months by a material amount. Occidental cannot reasonably estimate a range of potential changes in such benefits due to the unresolved nature of the various audits. Occidental records estimated potential interest and penalties related to liabilities for unrecognized tax benefits in the provisions for domestic and foreign income taxes and these amounts were not material for the years ended December 31, 2014, 2013 and 2012.

Occidental is subject to audit by various tax authorities in varying periods. See Note 9 for a discussion of these matters.

STOCKHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2014

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY

NOTE 11STOCKHOLDERS’ EQUITY

The following is a summary of common stock issuances:

Shares in thousands		Common Stock
Balance, December 31, 2011		886,809
Issued		1,746
Options exercised and other, net		246
Balance, December 31, 2012		888,801
Issued		826
Options exercised and other, net		292
Balance, December 31, 2013		889,919
Issued		584
Options exercised and other, net		55
Balance, December 31, 2014		890,558

TREASURY STOCK

On October 2, 2014, Occidental increased the total number of shares authorized for its share repurchase program by 60 million shares to 185 million shares total; however, the program does not obligate Occidental to acquire any specific number of shares and may be discontinued at any time. In 2014 and 2013, respectively, Occidental purchased 25.8 million and 10.3 million shares under the program at an average cost of $93.40 and $94.42 per share, respectively. Additionally, Occidental purchased shares from the trustee of its defined contribution savings plan during each year. As of December 31, 2014, 2013 and 2012, treasury stock shares numbered 120.0 million, 93.9 million and 83.3 million, respectively.

NONREDEEMABLE PREFERRED STOCK

Occidental has authorized 50,000,000 shares of preferred stock with a par value of $1.00 per share. At December 31, 2014, 2013 and 2012, Occidental had no outstanding shares of preferred stock.

EARNINGS PER SHARE

The following table presents the calculation of basic and diluted EPS for the years ended December 31:

(in millions, except per-share amounts)	2014			2013			2012
Basic EPS
(Loss) / Income from continuing operations	$	(130	)	$	4,932		$	3,829
Less: Income from continuing operations attributable to noncontrolling interest	(14		)	—			—
(Loss) / Income from contributing operations attributable to common stock	(144		)	4,932			3,829
Discontinued operations, net	760			971			769
Net income	616			5,903			4,598
Less: Net income allocated to participating securities	—			(13		)	(8		)
Net income, net of participating securities	$	616		$	5,890		$	4,590
Weighted average number of basic shares	781.1			804.1			809.3
Basic EPS	$	0.79		$	7.33		$	5.67

Diluted EPS
Net income, net of participating securities	$	616		$	5,890		$	4,590
Weighted average number of basic shares	781.1			804.1			809.3
Dilutive securities	—			0.5			0.7
Total diluted weighted average common shares	781.1			804.6			810.0
Diluted EPS	$	0.79		$	7.32		$	5.67

ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated other comprehensive loss consisted of the following after-tax amounts:

Balance at December 31, (in millions)	2014			2013
Foreign currency translation adjustments	$	(7	)	$	(5	)
Unrealized losses on derivatives	(11		)	(14		)
Pension and post-retirement adjustments (a)	(339		)	(284		)
Total	$	(357	)	$	(303	)

(a)

See Note 13 for further information.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 19: http://www.xbrl.org/2003/role/presentationRef
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+ Details

STOCK-BASED INCENTIVE PLANS

12 Months Ended

Dec. 31, 2014

STOCK-BASED INCENTIVE PLANS

STOCK-BASED INCENTIVE PLANS

NOTE 12STOCK-BASED INCENTIVE PLANS

Occidental has established several plans that allow it to issue stock-based awards including in the form of RSUs, stock options (Options), stock appreciation rights (SARs), ROCEI/ROAI and TSRIs. An aggregate of 66 million shares of Occidental common stock were authorized for issuance and approximately 17 million shares had been issued through December 31, 2014. Of the remaining shares, only approximately 20 million shares are available for grants of future awards because a plan provision requires each share covered by an award (other than Options and SARs) to be counted as if three shares were issued in determining the number of shares that are available for future awards. Accordingly, the number of shares available for future awards may be less than 20 million depending on the type of award granted. Additionally, under the plan, the shares available for future awards may increase, depending on the award type, by the number of shares currently unvested or forfeitable, or three times that number as applicable, that (i) fail to vest, (ii) are forfeited or canceled, or (iii) correspond to the portion of any stock-based awards settled in cash.

During 2014, non-employee directors were granted awards for 28,283 shares of common stock. Compensation expense for these awards was measured using the quoted market price of Occidental’s common stock on the grant date and was fully recognized at that time.

California Resources Spin-off Adjustments

In connection with the separation of California Resources, Occidental entered into an Employee Matters Agreement with California Resources, which provided that employees of California Resources no longer participate in incentive programs sponsored or maintained by Occidental. Pursuant to the Employee Matters Agreement, Occidental made certain adjustments, using volumetric weighted-average prices for the 4-day period immediately prior to and immediately following the separation, to the exercise price and number of share-based compensation awards, with the intention of preserving the intrinsic value of the awards immediately prior to the separation for all Occidental employees. These adjustments are summarized as follows:

Any unvested long-term incentive award units or shares, including Total Shareholder Return Incentives (TSRI), Return on Capital Employed Incentives (ROCEI), Return on Asset Incentives (ROAI), Restricted Stock Incentives (RSI), Long-Term Incentives (LTI) and Phantom Share Units (PHSU) were adjusted by multiplying the pre-spin number of units held by the quotient of the simple average of the volume weighted average price per share of Oxy stock for the four trading days immediately prior to and the four trading days immediate after the date of spin-off. Post-spin units were rounded up to the next whole number.

For outstanding option awards, the strike price was adjusted (reduced) by the same quotient as described above.

Performance periods, performance targets and vesting dates of Long-Term Incentive awards were not adjusted.

Pursuant to the terms of all outstanding TSRI awards, the spin-off was treated as a dividend.

The separation-related adjustments did not have a material impact on either compensation expense for the year ended December 31, 2014, or the number of potentially dilutive securities as of December 31, 2014.

The following table summarizes total share-based compensation expense recognized in income related to continuing and discontinued operations and the associated tax benefit for the years ended December 31:

For the years ended December 31, (in millions)	2014		2013		2012
Compensation expense	$	129	$	152	$	78
Income tax benefit recognized in the income statement	46		55		29
Intrinsic value of options and stock-settled SARs exercised	5		24		18
Cash paid (a)	95		96		83
Fair value of RSUs and TSRIs vested during the year (b)	56		83		28

(a)

Includes cash paid under the cash-settled portion of the SARs, RSUs and TSRIs.

(b)

As measured on the vesting date for the stock-settled portion of the RSUs and TSRIs.

As of December 31, 2014, unrecognized compensation expense for all unvested stock-based incentive awards was $160 million. This expense is expected to be recognized over a weighted-average period of 2.0 years.

RSUs

Certain employees are awarded the right to receive RSUs, some of which have performance criteria, and are in the form of, or equivalent in value to, actual shares of Occidental common stock. Depending on their terms, RSUs are settled in cash or stock at the time of vesting. These awards vest ratably over three years, or at the end of two or three years, following the grant date, however, certain of the RSUs are forfeitable if performance objectives are not satisfied by the seventh anniversary of the grant date. For certain three-year RSUs, dividend equivalents are paid during the vesting period. For those awards that cliff vest in two or three years, dividend equivalents are accumulated during the vesting period and are paid when they vest.

The weighted-average, grant-date fair values of cash-settled RSUs granted in 2014, 2013 and 2012 were $100.95, $89.70, and $84.38 per share, respectively. The weighted-average, grant-date fair values of the stock-settled RSUs granted in 2014, 2013, and 2012 were $101.77, $90.35 and $84.81, respectively.

A summary of changes in Occidental’s unvested cash- and stock-settled RSUs during the year ended December 31, 2014 is presented below:

	Cash-Settled					Stock-Settled
	RSUs (000’s)		Weighted-Average Grant-Date Fair Value			RSUs (000’s)		Weighted-Average Grant-Date Fair Value
Unvested at January 1	1,431			$	90.12	1,607			$	90.26
Granted	726			100.95		785			101.77
Vested	(641	)		92.46		(553	)		94.34
Shares issued upon California Resources spin-off	76			—		95			—
Shares forfeited by employees of California Resources	(396	)		90.70		(412	)		93.30
Forfeitures	(79	)		91.00		(97	)		92.13
Unvested at December 31	1,117			89.42		1,425			88.98

TSRIs

Certain executives are awarded TSRIs that vest at the end of a three-year period following the grant date if performance targets are certified as being met. TSRIs granted in July 2014 and 2013 have payouts that range from 0 to 150 percent of the target award; TSRIs granted in 2012 have payouts that range from 0 to 100 percent of the maximum award. All outstanding TSRIs settle fully in stock once certified. Dividend equivalents for TSRIs are accumulated and paid upon vesting for the number of vested shares.

The fair values of TSRIs are initially determined on the grant date using a Monte Carlo simulation model based on Occidental’s assumptions, noted in the following table, and the volatility from corresponding peer group companies. The expected life is based on the vesting period (Term). The risk-free interest rate is the implied yield available on zero coupon T-notes (US Treasury Strip) at the time of grant with a remaining term equal to the Term. The dividend yield is the expected annual dividend yield over the Term, expressed as a percentage of the stock price on the grant date. Estimates of fair value may not accurately predict the value ultimately realized by the employees who receive the awards, and the ultimate value may not be indicative of the reasonableness of the original estimates of fair value made by Occidental.

The grant-date assumptions used in the Monte Carlo simulation models for the estimated payout level of TSRIs were as follows:

	TSRIs
Year Granted	2014			2013			2012
Assumptions used:
Risk-free interest rate	1.0		%	0.6		%	0.4		%
Dividend yield	2.8		%	2.8		%	2.6		%
Volatility factor	27		%	30		%	34		%
Expected life (years)	3			3			3
Grant-date fair value of underlying Occidental common stock	$	101.95		$	91.97		$	84.57

A summary of Occidental’s unvested TSRIs as of December 31, 2014, and changes during the year ended December 31, 2014, is presented below:

	TSRIs
	Awards (000’s)		Weighted-Average Grant-Date Fair Value of Occidental Stock
Unvested at January 1 (a)	832			$	92.49
Granted (a)	106			101.95
Vested (a)	(300	)		102.97
Forfeitures	(16	)		90.65
Shares issued upon California Resources spin-off	33			—
Shares forfeited by employees of California Resources	(82	)		87.28
Unvested at December 31 (a)	573			84.22

(a)

Presented at the target or mid-point payouts.

STOCK OPTIONS AND SARs

Certain employees have been granted Options that are settled in stock and SARs that are settled either only in stock or only in cash. Exercise prices of the Options and SARs were equal to the quoted market value of Occidental’s stock on the grant date. Generally, the Options and SARs vest ratably over three years from the grant date with a maximum term of ten years. These Options and SARs may be forfeited or accelerated under certain circumstances.

The fair value of each Option, stock-settled SAR or cash-settled SAR is initially measured on the grant date using the Black Scholes option valuation model. The expected life is estimated based on the actual weighted-average life of historical exercise activity of the grantee population at the grant date. The volatility factors are based on the historical volatilities of Occidental common stock over the expected lives as estimated on the grant date. The risk-free interest rate is the implied yield available on US Treasury Strips at the grant date with a remaining term equal to the expected life of the measured instrument. The dividend yield is the expected annual dividend yield over the expected life, expressed as a percentage of the stock price on the grant date. Estimates of fair value may not accurately predict the value ultimately realized by employees who receive stock-based incentive awards, and the ultimate value may not be indicative of the reasonableness of the original estimates of fair value made by Occidental.

The following is a summary of Option and SAR transactions during the year ended December 31, 2014:

	Cash-Settled						Stock-Settled
	SARs (000’s)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (yrs)	Aggregate Intrinsic Value (000’s)		SARs & Options (000’s)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (yrs)	Aggregate Intrinsic Value (000’s)
Beginning balance, January 1	352	$	24.66				145	$	42.11
Exercised	(352)	$	24.66				(87)	$	38.00
Shares issued upon California Resources spin-off	—	$	—				3	$	47.87
Ending balance, December 31	—	$	—	—	$	—	61	$	45.78	1.3	$	2,125
Exercisable at December 31	—	$	—	—	$	—	61	$	45.78	1.3	$	2,125

ROCEI / ROAI

During 2014, Occidental also granted approximately 141,000 share-equivalents to certain employees that vest at the end of a three-year period beginning January 1, 2015, if performance targets based on return on assets of the applicable segment or return on capital employed are certified as being met. These awards are settled in stock at the time of vesting, with payouts that range from 0 to 200 percent of the target award. Dividend equivalents are accumulated and paid upon vesting for the number of vested shares.

	ROCEI / ROAI
	Awards (000’s)		Weighted-Average Grant-Date Fair Value of Occidental Stock
Unvested at January 1	158			$	91.90
Granted	141			101.95
Shares issued upon California Resources spin-off	16			—
Shares forfeited by employees of California Resources	(33	)		87.28
Unvested at December 31	282			92.25

Retirement and Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2014

Retirement and Postretirement Benefit Plans

Retirement and Postretirement Benefit Plans

NOTE 13RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

Occidental has various benefit plans for its salaried, domestic union and nonunion hourly, and certain foreign national employees.

DEFINED CONTRIBUTION PLANS

All domestic employees and certain foreign national employees are eligible to participate in one or more of the defined contribution retirement or savings plans that provide for periodic contributions by Occidental based on plan-specific criteria, such as base pay, age, level and employee contributions. Certain salaried employees participate in a supplemental retirement plan that restores benefits lost due to governmental limitations on qualified retirement benefits. The accrued liabilities for the supplemental retirement plan were $163 million and $166 million as of December 31, 2014 and 2013, respectively, and Occidental expensed $146 million in 2014, $140 million in 2013 and $137 million in 2012 under the provisions of these defined contribution and supplemental retirement plans.

DEFINED BENEFIT PLANS

Participation in defined benefit plans is limited and approximately 700 domestic and 1,300 foreign national employees, mainly union, nonunion hourly and certain employees that joined Occidental from acquired operations with grandfathered benefits, are currently accruing benefits under these plans.

Pension costs for Occidental’s defined benefit pension plans, determined by independent actuarial valuations, are generally funded by payments to trust funds, which are administered by independent trustees.

POSTRETIREMENT AND OTHER BENEFIT PLANS

Occidental provides medical and dental benefits and life insurance coverage for certain active, retired and disabled employees and their eligible dependents. Occidental generally funds the benefits as they are paid during the year. These benefit costs, including the postretirement costs, were approximately $215 million in 2014, $229 million in 2013 and $218 million in 2012.

SPIN-OFF OF CALIFORNIA RESOURCES

In connection with the spin-off of California Resources, Occidental entered into an Employee Matters Agreement with California Resources, see Note 17, which provides that employees of California Resources no longer participate in benefit plans sponsored or maintained by Occidental as of the separation date. Upon separation, the Occidental pension and postretirement plans transferred assets and obligations to the California Resources plans resulting in a net decrease in sponsored pension and postretirement plan obligations of $15 million and $72 million, respectively. Additionally, as a result of the transfer of unrecognized losses to California Resources, deferred income taxes and other comprehensive income decreased $14 million and $36 million, respectively.

OBLIGATIONS AND FUNDED STATUS

The following tables show the amounts recognized in the consolidated balance sheets of Occidental related to its pension and postretirement benefit plans and their funding status, obligations and plan asset fair values:

(in millions)	Pension Benefits				Postretirement Benefits
As of December 31,	2014		2013		2014		2013
Amounts recognized in the consolidated balance sheet:
Other assets	$	57	$	104	$	—	$	—
Accrued liabilities	(6)		(6)		(57)		(58)
Deferred credits and other liabilities — other	(68)		(83)		(980)		(958)
	$	(17)	$	15	$	(1,037)	$	(1,016)
AOCI included the following after-tax balances:
Net loss	$	83	$	66	$	255	$	225
Prior service cost	—		1		1		2
	$	83	$	67	$	256	$	227

For the years ended December 31,
Changes in the benefit obligation:
Benefit obligation — beginning of year	$	523	$	615	$	1,016	$	1,127
Service cost — benefits earned during the period	11		13		24		29
Interest cost on projected benefit obligation	23		24		44		43
Actuarial (gain) loss	53		(35)		83		(126)
Foreign currency exchange rate (gain) loss	(9)		(5)		—		—
Spin-off of California Resources	(105)		—		(72)		—
Benefits paid	(43)		(54)		(59)		(57)
Settlements	—		(35)		—		—
Benefit obligation — end of year	$	453	$	523	$	1,036	$	1,016

Changes in plan assets:
Fair value of plan assets — beginning of year	$	538	$	499	$	—	$	—
Actual return on plan assets	24		88		—		—
Employer contributions	7		29		—		—
Spin-off of California Resources	(90)		—		—		—
Benefits paid	(43)		(54)		—		—
Settlements	—		(24)		—		—
Fair value of plan assets — end of year	$	436	$	538	$	—	$	—
Funded/(Unfunded) status:	$	(17)	$	15	$	(1,036)	$	(1,016)

The following table sets forth details of the obligations and assets of Occidental’s defined benefit pension plans:

(in millions)	Accumulated Benefit Obligation in Excess of Plan Assets				Plan Assets in Excess of Accumulated Benefit Obligation
As of December 31,	2014		2013		2014		2013
Projected Benefit Obligation	$	173	$	122	$	280	$	401
Accumulated Benefit Obligation	$	168	$	112	$	280	$	386
Fair Value of Plan Assets	$	100	$	39	$	336	$	499

Occidental does not expect any plan assets to be returned during 2015.

COMPONENTS OF NET PERIODIC BENEFIT COST

The following table sets forth the components of net periodic benefit costs:

	Pension Benefits						Postretirement Benefits
For the years ended December 31, (in millions)	2014		2013		2012		2014		2013		2012
Net periodic benefit costs:
Service cost — benefits earned during the period	$	11	$	13	$	13	$	24	$	29	$	25
Interest cost on projected benefit obligation	23		24		27		44		43		42
Expected return on plan assets	(33)		(31)		(31)		—		—		—
Recognized actuarial loss	6		19		19		20		38		37
Other costs and adjustments	(8)		(13)		17		1		1		1
Net periodic benefit cost	$	(1)	$	12	$	45	$	89	$	111	$	105

The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from AOCI into net periodic benefit cost over the next fiscal year are $10 million and zero, respectively. The estimated net loss and prior service cost for the defined benefit postretirement plans that will be amortized from AOCI into net periodic benefit cost over the next fiscal year are $29 million and $1 million, respectively.

ADDITIONAL INFORMATION

The following table sets forth the weighted-average assumptions used to determine Occidental’s benefit obligation and net periodic benefit cost for domestic plans:

	Pension Benefits			Postretirement Benefits
For the years ended December 31,	2014		2013	2014	2013
Benefit Obligation Assumptions:
Discount rate	3.81%		4.45%	3.99%	4.75%
Rate of compensation increase	—	(a)	4.00%	—	—
Net Periodic Benefit Cost Assumptions:
Discount rate	4.45%		3.59%	4.75%	3.89%
Assumed long term rate of return on assets	6.50%		6.50%	—	—
Rate of compensation increase	4.00%	(a)	4.00%	—	—

(a)

Plans requiring a salary increase assumption were separated with California Resources.

For domestic pension plans and postretirement benefit plans, Occidental based the discount rate on the Aon/Hewitt AA-AAA Universe yield curve in 2014 and 2013. As of December 31, 2014, the use of a weighted average rate of increase in future compensation levels was not necessary as the retirement plans determining benefits using compensation were transferred in connection with the California Resources spin-off. At December 31, 2013, the weighted average rate of increase in future compensation levels was consistent with Occidental’s past and anticipated future compensation increases for employees participating in retirement plans that determine benefits using compensation. The assumed long term rate of return on assets is estimated with regard to current market factors but within the context of historical returns for the asset mix that exists at year end.

In 2014, Occidental adopted the Society of Actuaries 2014 Mortality Tables Report and Mortality Improvement Scale, which updated the mortality assumptions that private defined benefit retirement plans in the United States use in the actuarial valuations that determine a plan sponsor’s pension obligations. The updated mortality data reflects increasing life expectancies in the United States, and affected plans generally expect the value of the actuarial obligations to increase, depending on the specific demographic characteristics of the plan participants and the types of benefits. The changes in the mortality table results in an increase of $27 million and $98 million in the pension and postretirement benefit obligation at December 31, 2014.

For pension plans outside the United States, Occidental based its discount rate on rates indicative of government or investment grade corporate debt in the applicable country, taking into account hyperinflationary environments when necessary. The discount rates used for the foreign pension plans ranged from 1.5 percent to 10 percent at both December 31, 2014 and 2013. The average rate of increase in future compensation levels ranged from 1.5 percent to 10 percent in 2014, depending on local economic conditions.

The postretirement benefit obligation was determined by application of the terms of medical and dental benefits and life insurance coverage, including the effect of established maximums on covered costs, together with relevant actuarial assumptions and healthcare cost trend rates projected at an assumed U.S. Consumer Price Index (CPI) increase of 1.79 percent and 2.36 percent as of December 31, 2014 and 2013, respectively. Since 1993, participants other than certain union employees have paid for all medical cost increases in excess of increases in the CPI. For those union employees, Occidental projected that healthcare cost trend rates would decrease 0.25 percent per year from 7.75 percent in 2014 until they reach 5.0 percent in 2025, and remain at 5.0 percent thereafter. A 1-percent increase or a 1-percent decrease in these assumed healthcare cost trend rates would result in an increase of $55 million or a reduction of $47 million, respectively, in the postretirement benefit obligation as of December 31, 2014. The annual service and interest costs would not be materially affected by these changes.

The actuarial assumptions used could change in the near term as a result of changes in expected future trends and other factors that, depending on the nature of the changes, could cause increases or decreases in the plan assets and liabilities.

FAIR VALUE OF PENSION PLAN ASSETS

Occidental employs a total return investment approach that uses a diversified blend of equity and fixed-income investments to optimize the long-term return of plan assets at a prudent level of risk. The investments are monitored by Occidental’s Pension and Retirement Trust and Investment Committee (Pension Committee) in its role as fiduciary. The Pension Committee, consisting of senior Occidental executives, selects and employs various external professional investment management firms to manage specific investments across the spectrum of asset classes. Equity investments are diversified across United States and non-United States stocks, as well as differing styles and market capitalizations. Other asset classes, such as private equity and real estate, may be used with the goals of enhancing long-term returns and improving portfolio diversification. The target allocation of plan assets is 65 percent equity securities and 35 percent debt securities. Investment performance is measured and monitored on an ongoing basis through quarterly investment portfolio and manager guideline compliance reviews, annual liability measurements and periodic studies.

The fair values of Occidental’s pension plan assets by asset category are as follows:

(in millions)	Fair Value Measurements at December 31, 2014 Using
Description	Level 1		Level 2		Level 3		Total

Asset Class:
U.S. government securities	$	15	$	—	$	—	$	15
Corporate bonds (a)	—		76		—		76
Common/collective trusts (b)	—		13		—		13
Mutual funds:
Bond funds	42		—		—		42
Blend funds	68		—		—		68
Common and preferred stocks (c)	196		—		—		196
Other	—		38		1		39
Total pension plan assets (d)	$	321	$	127	$	1	$	449

(in millions)	Fair Value Measurements at December 31, 2013 Using
Description	Level 1		Level 2		Level 3		Total

Asset Class:
U.S. government securities	$	16	$	—	$	—	$	16
Corporate bonds (a)	—		84		—		84
Common/collective trusts (b)	—		19		—		19
Mutual funds:
Bond funds	64		—		—		64
Blend funds	105		—		—		105
Value and growth funds	6		—		—		6
Common and preferred stocks (c)	201		—		—		201
Other	—		37		11		48
Total pension plan assets (d)	$	392	$	140	$	11	$	543

(a)

This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries.

(b)

This category includes investment funds that primarily invest in U.S. and non-U.S. common stocks and fixed-income securities.

(c)

This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries.

(d)

Amounts exclude net payables of approximately $13 million and $5 million as of December 31, 2014 and 2013, respectively.

The activity during the years ended December 31, 2014 and 2013, for the assets using Level 3 fair value measurements was insignificant. Occidental expects to contribute $6 million in cash to its defined benefit pension plans during 2015.

Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows:

For the years ended December 31, (in millions)	Pension Benefits		Postretirement Benefits

2015	$	38	$	58
2016	$	37	$	59
2017	$	33	$	59
2018	$	32	$	59
2019	$	32	$	60
2020— 2024	$	191	$	304

Fair Value Measurements

12 Months Ended

Dec. 31, 2014

Fair Value Measurements

Fair Value Measurements

NOTE 15FAIR VALUE MEASUREMENTS

FAIR VALUES — RECURRING

The following tables provide fair value measurement information for assets and liabilities that are measured on a recurring basis:

(in millions)	Fair Value Measurements at December 31, 2014 Using
							Netting and		Total
Description	Level 1		Level 2		Level 3		Collateral		Fair Value
Assets:
Commodity derivatives	$	712	$	127	$	—	$	(742)	$	97
Available for sale investment	$	394	$	—	$	—	$	—	$	394
Liabilities:
Commodity derivatives	$	750	$	246	$	—	$	(756)	$	240

(in millions)	Fair Value Measurements at December 31, 2013 Using
							Netting and		Total
Description	Level 1		Level 2		Level 3		Collateral		Fair Value
Assets:
Commodity derivatives	$	185	$	195	$	—	$	(329)	$	51
Liabilities:
Commodity derivatives	$	199	$	223	$	—	$	(364)	$	58

FAIR VALUES — NONRECURRING

As a result of the sharp decline of the forward price curve in the fourth quarter of 2014, Occidental recognized approximately $3.8 billion in pre-tax impairment charges related to proved oil and gas properties. Domestically, Occidental recognized $2.8 billion in pre-tax impairment charges related to domestic oil and gas properties primarily in the Williston Basin and gas and NGLs assets. Internationally, the remaining $1.0 billion related primarily to Bahrain.

The impairment tests, including the fair value estimation, incorporated a number of assumptions involving expectations of future cash flows. These assumptions included estimates of future product prices, which Occidental based on forward price curves and, where applicable, contractual prices, estimates of oil and gas reserves, estimates of future expected operating and development costs and a risk adjusted discount rate of 8 percent. These properties were impacted by persistently low natural gas prices and the recent decline in oil prices in the United States changing management’s development plans. Occidental used the income approach to measure the fair value of these properties, using inputs categorized as Level 3 in the fair value hierarchy.

In 2014, Occidental recognized approximately $111 million pre-tax charges related to the impairments of Chemical assets.

(in millions)	Fair Value Measurements at December 31, 2014 Using								Total Pre-tax
							Net		(Non-cash)
Description	Level 1		Level 2		Level 3		Book Value (a)		Impairment Loss
Assets:
Impaired proved oil and gas assets - domestic	$	—	$	—	$	2,249	$	5,008	$	2,759
Impaired proved oil and gas assets - international	$	—	$	—	$	45	$	1,084	$	1,039
Impaired Chemical property, plant, and equipment	$	—	$	—	$	18	$	129	$	111

(a)

Amount represents net book value at date of assessment.

FINANCIAL INSTRUMENTS FAIR VALUE

The carrying amounts of cash and cash equivalents and other on-balance sheet financial instruments, other than fixed-rate debt, approximate fair value. See Note 5 for the fair value of Long-term Debt.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Industry Segments

12 Months Ended

Dec. 31, 2014

Industry Segments

Industry Segments

NOTE 16INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS

Occidental conducts its continuing operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, NGLs, and natural gas. The chemical segment mainly manufactures and markets basic chemicals and vinyls. The midstream and marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, CO2 and power. It also trades around its assets, including transportation and storage capacity, and trades oil, NGLs, gas and power. Additionally, the midstream and marketing segment invests in entities that conduct similar activities.

Earnings of industry segments and geographic areas exclude income taxes, interest income, interest expense, environmental remediation expenses, unallocated corporate expenses and discontinued operations, but include gains and losses from dispositions of segment and geographic area assets and income from the segments’ equity investments. Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions.

Identifiable assets are those assets used in the operations of the segments. Corporate assets consist of cash and restricted cash, certain corporate receivables and PP&E, and an investment in the Joslyn, Canada oil sands project.

Industry Segments
(in millions)							Midstream			Corporate
							and			and
	Oil and Gas			Chemical			Marketing			Eliminations			Total
YEAR ENDED DECEMBER 31, 2014
Net sales	$	13,887	(a)	$	4,817	(b)	$	1,373	(c)	$	(765)		$	19,312
Pretax operating profit (loss)	$	428	(d)	$	420	(e)	$	2,578	(f)	$	(1,871)	(g)	$	1,555
Net income attributable to noncontrolling interest	—			—			(14)			—			(14)
Income taxes	—			—			—			(1,685)		(g)	(1,685)
Discontinued operations, net	—			—			—			760		(i)	760
Net income (loss) attributable to common stock	$	428		$	420		$	2,564		$	(2,796)		$	616
Investments in unconsolidated entities	$	11		$	202		$	948		$	10		$	1,171
Property, plant and equipment additions, net (k)	$	6,589		$	325		$	2,093		$	103		$	9,110
Depreciation, depletion and amortization	$	3,701		$	367		$	160		$	33		$	4,261
Total assets	$	31,072		$	3,917		$	12,283		$	8,987		$	56,259
YEAR ENDED DECEMBER 31, 2013
Net sales	$	15,008	(a)	$	4,673	(b)	$	1,174	(c)	$	(685)		$	20,170
Pretax operating profit (loss)	$	6,411	(d)	$	743	(e)	$	1,523	(f)	$	(531)	(g)	$	8,146
Income taxes	—			—			—			(3,214)		(h)	(3,214)
Discontinued operations, net	—			—			—			971		(i)	971
Net income (loss) attributable to common stock	$	6,411		$	743		$	1,523		$	(2,774)		$	5,903
Investments in unconsolidated entities	$	108		$	34		$	1,307		$	10		$	1,459
Property, plant and equipment additions, net (k)	$	5,456		$	435		$	1,437		$	166		$	7,494
Depreciation, depletion and amortization	$	3,676		$	346		$	149		$	32		$	4,203
Total assets	$	46,213		$	3,947		$	14,374		$	4,909		$	69,443
YEAR ENDED DECEMBER 31, 2012
Net sales	$	14,953	(a)	$	4,580	(b)	$	1,164	(c)	$	(597)		$	20,100
Pretax operating profit (loss)	$	5,840	(d)	$	720		$	440	(f)	$	(512)	(g)	$	6,488
Income taxes	—			—			—			(2,659)		(h)	(2,659)
Discontinued operations, net	—			—			—			769		(i)	769
Net income (loss) attributable to common stock	$	5,840	(d)	$	720		$	440		$	(2,402)		$	4,598
Investments in unconsolidated entities	$	113		$	108		$	1,662		$	11		$	1,894
Property, plant and equipment additions, net (k)	$	6,067		$	365		$	1,451		$	91		$	7,974
Depreciation, depletion and amortization	$	3,065		$	345		$	148		$	27		$	3,585
Total assets	$	44,004		$	3,854		$	12,762		$	3,590		$	64,210

(See footnotes on next page)

Footnotes:

(a)

Oil sales represented approximately 90 percent, 91 percent and 91 percent of the oil and gas segment net sales for the years ended December 31, 2014, 2013 and 2012, respectively.

(b)

Net sales for the chemical segment comprised the following products:

	Basic Chemicals	Vinyls	Other Chemicals
Year ended December 31, 2014	54%	43%	3%
Year ended December 31, 2013	55%	42%	3%
Year ended December 31, 2012	57%	40%	3%

(c)

Net sales for the midstream and marketing segment comprised the following:

	Gas Processing	Power	Marketing, Trading, Transportation and other
Year ended December 31, 2014	49%	31%	20%
Year ended December 31, 2013	54%	30%	16%
Year ended December 31, 2012	60%	24%	16%

(d)

The 2014 amount includes pre-tax charges of $4.7 billion for the impairment of domestic oil and gas assets, pre-tax charges of $1.1 billion for the impairment of foreign oil and gas assets, and pre-tax gain of $531 million for the sale of the Hugoton field. The 2013 amount includes pre-tax charges of $607 million for the impairment of domestic non-producing acreage. The 2012 amount includes pre-tax charges of $1.7 billion for the impairment of domestic gas assets and related items.

(e)

The 2014 amount includes the pre-tax charge of $149 million. The 2013 amount includes a pre-tax gain of $131 million for the sale of an investment in Carbocloro.

(f)

The 2014 amount includes pre-tax gains of $633 million and $1,351 million for the sales of BridgeTex Pipeline and a portion of an investment in Plains Pipeline, respectively, and other charges of $31 million. The 2013 amount includes a pre-tax gain of $1,044 million for the sale of a portion of an investment in Plains Pipeline and other items of $58 million.

(g)

Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items noted in footnote (j) below.

(h)

Includes all foreign and domestic income taxes from continuing operations.

(i)

Relates to discontinued operations from Ecuador and the spin-off of California Resources.

(j)

Includes the following significant items affecting earnings for the years ended December 31:

Benefit (Charge) (in millions)	2014		2013		2012
CORPORATE
Pre-tax operating profit (loss)
California Resources other than temporary loss	$	(553)	$	—	$	—
Joslyn Impairment	(805)		—		—
Spin-off and other costs	(61)		—		—
Litigation reserves	—		—		(20)
Charge for former executives and consultants	—		(55)		—
	$	(1,419)	$	(55)	$	(20)
Income taxes
Tax effect of pre-tax and other adjustments *	$	927	$	(167)	$	612

* Amounts represent the tax effect of the pre-tax adjustments listed in this note, as well as those in footnotes (d), (e) and (f).

(k)

Includes capital expenditures and capitalized interest, but excludes acquisition and disposition of assets.

GEOGRAPHIC AREAS

(in millions)	Net sales (a)						Property, plant and equipment, net
For the years ended December 31,	2014		2013		2012		2014		2013		2012
United States	$	11,943	$	11,724	$	11,287	$	26,673	$	42,956	$	40,786
Foreign
Qatar	2,803		2,995		3,356		2,605		2,605		2,676
Oman	2,524		2,567		2,578		2,876		2,509		2,353
Colombia	938		1,022		1,027		1,396		1,259		1,041
United Arab Emirates	—		—		—		4,312		3,131		2,104
Other Foreign	1,104		1,862		1,852		1,868		3,361		3,104
Total Foreign	7,369		8,446		8,813		13,057		12,865		11,278
Total	$	19,312	$	20,170	$	20,100	$	39,730	$	55,821	$	52,064

(a)

Sales are shown by individual country based on the location of the entity making the sale.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-Topic 280
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+ Details

Spin-off of California Resources Corporation

12 Months Ended

Dec. 31, 2014

Spin-off and related activities

Spin-off of California Resources Corporation

NOTE 17SPIN-OFF OF CALIFORNIA RESOURCES CORPORATION

On November 30, 2014, the spin-off of Occidental’s California oil and gas operations and related assets was completed through the distribution of 81.3 percent of the outstanding shares of common stock of California Resources, creating an independent, publicly traded company. Occidental shareholders at the close of business on the record date of November 17, 2014 received 0.4 shares of California Resources for every share of Occidental common stock held. Fractional shares of California Resources were not distributed and any fractional shares otherwise issuable to an Occidental shareholder were sold on the open market on such shareholder’s behalf, and such shareholder received a cash payment with respect to the fractional share.

In connection with the spin-off, California Resources distributed to Occidental $4.95 billion in restricted cash and $1.15 billion in unrestricted cash. Occidental retained 71.5 million shares in California Resources, see Note 14. The cash distributions were issued using the proceeds from $5 billion in Senior Notes issued by California Resources in October 2014 and borrowings under California Resources’ $1.0 billion Term Loan Facility and $2.0 billion Revolving Credit Facility. As indicated by a private letter ruling from the Internal Revenue Service (IRS), the $4.95 billion distribution will be used solely to pay dividends, repurchase common stock, repay debt, or a combination of the foregoing, within eighteen months following the distribution. At December 31, 2014, the remaining balance of the restricted cash distribution was $4.0 billion and was included in the “Restricted cash” line on the consolidated balance sheet.

In order to effect the separation and govern the relationship with California Resources after the spin-off, Occidental and California Resources entered into a Separation and Distribution Agreement, a Stockholder’s and Registration Rights Agreement, a Tax Sharing Agreement, an Employee Matters Agreement, a Transition Services Agreement, an Area of Mutual Interest Agreement, a Confidentiality and Trade Secret Protection Agreement, and an Intellectual Property License Agreement.

The Separation and Distribution Agreement and related ancillary agreements govern the transfer of assets and other matters related to the spin-off. The Intellectual Property License Agreement governs the allocation of intellectual property rights and assets between California Resources and Occidental. The Confidentiality and Trade Secret Protection Agreement safeguards confidential and trade information related to Occidental from five years after the spin-off date. The Stockholder’s and Registration Rights Agreement governs, among other things, the registration of shares of California Resources. The Area of Mutual Interest Agreement governs the rights and obligations of both California Resources and Occidental for the exploration and development of oil and natural gas interests located within the United States excluding California.

The Tax Sharing Agreement governs the respective rights, responsibilities and obligations of California Resources and Occidental with respect to taxes, tax attributes, tax returns, tax proceedings and certain other tax matters. In addition, the Tax Sharing Agreement imposed certain restrictions on California Resources and its subsidiaries (including restrictions on share issuances, business combinations, sales of assets and similar transactions) that are designed to preserve the tax-free status of the distribution and certain related transactions. The Tax Sharing Agreement sets forth the obligations of California Resources and Occidental as to the filing of tax returns, the administration of tax proceedings and assistance and cooperation on tax matters.

The Employee Matters Agreement governs the compensation and employee benefit obligations with respect to the current and former employees and non-employee directors of California Resources and Occidental, and generally allocates liabilities and responsibilities relating to employee compensation, benefit plans and programs. The Employee Matters Agreement provides that employees of California Resources will no longer participate in benefit plans sponsored or maintained by Occidental. In addition, the Employee Matters Agreement provides that each of the parties will be responsible for their respective current employees and compensation plans for such current employees, and Occidental will be responsible for liabilities relating to former employees who left prior to the separation (other than in certain instances where a plan or program was sponsored by a company that became part of the California Resources group of companies at the separation). The Employee Matters Agreement sets forth the general principles relating to employee matters and also addresses any special circumstances during the transition period. The Employee Matters Agreement also provides that (i) the distribution does not constitute a change in control under existing plans, programs, agreements or arrangements, and (ii) the distribution and the assignment, transfer or continuation of the employment of employees with another entity will not constitute a severance event under the applicable plans, programs, agreements or arrangements.

The Transition Services Agreement sets forth the terms on which Occidental will provide California Resources, and California Resources will provide to Occidental, certain services or functions California Resources and Occidental historically have shared. Transition services include administrative, payroll, human resources, data processing, environmental health and safety, financial audit support, financial transaction support, information technology systems and various other corporate services. The agreement provides for the provision of specified transition services, generally for a period of up to 24 months on a cost or a cost-plus basis.

The following table presents the carrying value of major categories of assets and liabilities of California Resources immediately preceding the spin-off at November 30, 2014 and at December 31, 2013:

(in millions)	November 30, 2014		December 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$	8	$	—
Accounts receivables, net	591		30
Inventories	73		75
Other current assets	22		125
Total current assets	694		230
Total property, plant, and equipment	23,257		21,065

Accumulated depreciation, depletion, and amortization	(8,079)		(6,974)
	15,178		14,091

LONG-TERM RECEIVABLES AND OTHER ASSETS, NET	112		35

TOTAL ASSETS	$	15,984	$	14,356

CURRENT LIABILITIES
Accounts payable	$	696	$	447
Accrued liabilities	182		253
Total current liabilities	878		700
LONG-TERM DEBT, NET	6,295		—
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred domestic and foreign income taxes	3,227		2,904
Other	531		509
	3,758		3,413

TOTAL LIABILITIES	$	10,931	$	4,113

Sales and other operating revenues and income from discontinued operations related to California Resources were as follows:

For the years ended December 31, (in millions)	2014		2013		2012
Sales and other operating revenue from discontinued operations	$	3,951	$	4,285	$	4,072
Income from discontinued operations before-tax	1,205		1,531		1,265
Income tax expense	440		541		459
Income from discontinued operations	$	765	$	990	$	806

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation policy

PRINCIPLES OF CONSOLIDATION

Certain financial statements, notes and supplementary data for prior years have been reclassified to conform to the 2014 presentation.

Investments in unconsolidated entities policy

INVESTMENTS IN UNCONSOLIDATED ENTITIES

Revenue recognition policy

REVENUE RECOGNITION

Occidental records revenue net of any taxes, such as sales taxes, that are assessed by governmental authorities on Occidental’s customers.

Deferred tax asset valuation allowance policy

RISKS AND UNCERTAINTIES

Because Occidental’s major products are commodities, significant changes in the prices of oil and gas and chemical products may have a significant impact on Occidental’s results of operations.

Also, see “Property, Plant and Equipment” below.

Cash and cash equivalents policy

CASH AND CASH EQUIVALENTS

Restricted cash policy

RESTRICTED CASH

Available-for-sale securities and trading securities policy

INVESTMENTS

Inventory policy

INVENTORIES

Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Oil, NGLs and natural gas inventories are valued at the lower of cost or market.

Property, plant and equipment policy

PROPERTY, PLANT AND EQUIPMENT

Oil and Gas

The following table summarizes the activity of capitalized exploratory well costs for continuing operations for the years ended December 31:

in millions	2014			2013			2012
Balance — Beginning of Year	$	140		$	124		$	189
Additions to capitalized exploratory well costs pending the determination of proved reserves	462			337			400
Reclassifications to property, plant and equipment based on the determination of proved reserves	(423		)	(271		)	(389		)
Spin-off of California Resources	(17		)	—			—
Capitalized exploratory well costs charged to expense	(21		)	(50		)	(76		)
Balance — End of Year	$	141		$	140		$	124

Occidental expenses annual lease rentals, the costs of injectants used in production and geological, geophysical and seismic costs as incurred.

Chemical

Midstream and Marketing

Occidental’s midstream and marketing PP&E is depreciated over the estimated useful lives of the assets, using either the unit-of-production or straight-line method.

Fair value policy

FAIR VALUE MEASUREMENTS

Fair Values - Recurring

Accrued liabilities, current policy

ACCRUED LIABILITIES—CURRENT

Accrued liabilities include accrued payroll, commissions and related expenses of $361 million and $459 million at December 31, 2014 and 2013, respectively.

Environmental liabilities and expenditures policy

ENVIRONMENTAL LIABILITIES AND EXPENDITURES

Asset retirement obligations policy

ASSET RETIREMENT OBLIGATIONS

For the years ended December 31, (in millions)	2014			2013
Beginning balance	$	1,332		$	1,266
Liabilities incurred – capitalized to PP&E	57			101
Liabilities settled and paid	(78		)	(72		)
Accretion expense	69			68
Acquisitions, dispositions and other – changes in PP&E	(11		)	(10		)
Spin-off of California Resources	(399		)	—
Revisions to estimated cash flows – changes in PP&E	121			(21		)
Ending balance	$	1,091		$	1,332

Derivatives Policy

DERIVATIVE INSTRUMENTS

Stock-based incentive plans policy

STOCK-BASED INCENTIVE PLANS

Earnings per share policy

EARNINGS PER SHARE

Retirement and postretirement benefit plans policy

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

Foreign currency transactions policy

FOREIGN CURRENCY TRANSACTIONS

Derivatives (Tables)

12 Months Ended

Dec. 31, 2014

Derivatives - table

Cash-flow hedges - after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (in millions)

	After-tax
As of December 31, (in millions)	2014			2013
Unrealized losses recognized in AOCI	$	(5	)	$	(3	)
Losses (Gains) reclassified to income	$	8		$	(4	)

Gross and net fair values of outstanding derivatives (in millions)

(in millions)
December 31, 2014	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	—		Accrued liabilities	$	—
Commodity contracts	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	—
		$	—			$	—
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	$	828		Accrued liabilities	$	886
Commodity contracts	Long-term receivables and other assets, net	11			Deferred credits and other liabilities	110
		839				996
Total gross fair value		839				996
Less: counterparty netting and cash collateral (b) (d)		(742		)		(756		)
Total net fair value of derivatives		$	97			$	240

(in millions)

December 31, 2013	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	—		Accrued liabilities	$	4
Commodity contracts	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	—
		$	—			$	4
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	$	367		Accrued liabilities	$	407
Commodity contracts	Long-term receivables and other assets, net	13			Deferred credits and other liabilities	11
		380				418
Total gross fair value		380				422
Less: counterparty netting and cash collateral (c) (d)		(329		)		(364		)
Total net fair value of derivatives		$	51			$	58

(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 December 31, 2014, collateral received of zero has been netted against derivative assets and collateral paid of $8 million has been netted against derivative liabilities.

(c)	As of December 31, 2013, collateral received of $11 million has been netted against derivative assets and collateral paid of $46 million has been netted against derivative liabilities.

(d)	Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $44 million and $103 million as of December 31, 2014 and 2013, respectively, deposited by Occidental, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets.

Not designated as hedging instruments | Commodity Contracts

Derivatives - table

Net volumes of outstanding commodity derivatives contracts

	Net Outstanding Position Long / (Short)
Commodity	2014		2013
Oil (million barrels)	(9	)	(22	)
Natural gas (billion cubic feet)	(32	)	(10	)
CO2 (million cubic feet)	621		—

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41641-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41678-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41638-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5580258-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579245-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5624171-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35706170&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35706170&loc=d3e41620-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

DOMESTIC AND FOREIGN INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

DOMESTIC AND FOREIGN INCOME TAXES

Domestic and foreign components of income from continuing operations before domestic and foreign income taxes

For the years ended December 31, (in millions)	Domestic			Foreign		Total
2014	$	(732	)	$	2,273	$	1,541
2013	$	3,399		$	4,747	$	8,146
2012	$	852		$	5,636	$	6,488

Provisions (credits) for domestic and foreign income taxes on continuing operations

For the years ended December 31, (in millions)	United States Federal			State and Local			Foreign			Total
2014
Current	$	870		$	81		$	1,912		$	2,863
Deferred	(1,037		)	(71		)	(70		)	(1,178		)
	$	(167	)	$	10		$	1,842		$	1,685
2013
Current	$	113		$	17		$	2,170		$	2,300
Deferred	883			48			(17		)	914
	$	996		$	65		$	2,153		$	3,214
2012
Current	$	(308	)	$	4		$	2,383		$	2,079
Deferred	519			20			41			580
	$	211		$	24		$	2,424		$	2,659

Reconciliation of the United States federal statutory income tax rate to Occidental's worldwide effective tax rate on income from continuing operations stated as a percentage of pre-tax income

For the years ended December 31,	2014		2013		2012
United States federal statutory tax rate	35	%	35	%	35	%
Other than temporary loss on available for sale investment in California Resources stock	12		—		—
Operations outside the United States	65		5		6
State income taxes, net of federal benefit	1		1		1
Other	(4	)	(1	)	(1	)
Worldwide effective tax rate	109	%	40	%	41	%

Tax effects of temporary differences resulting in deferred income taxes

	2014					2013
Tax effects of temporary differences (in millions)	Deferred Tax Assets			Deferred Tax Liabilities		Deferred Tax Assets			Deferred Tax Liabilities
Property, plant and equipment differences	$	—		$	4,081	$	—		$	8,363
Equity investments, partnerships and foreign subsidiaries	—			—		—			225
Environmental reserves	123			—		121			—
Postretirement benefit accruals	379			—		376			—
Deferred compensation and benefits	208			—		222			—
Asset retirement obligations	307			—		407			—
Foreign tax credit carryforwards	1,765			—		1,091			—
Federal benefit of state income taxes	85			—		136			—
All other	274			221		344			82
Subtotal	3,141			4,302		2,697			8,670
Valuation allowance	(1,744		)	—		(1,074		)	—
Total deferred taxes	$	1,397		$	4,302	$	1,623		$	8,670

Reconciliation of the beginning and ending amount of unrecognized tax benefits

For the years ended December 31, (in millions)	2014		2013
Balance at January 1,	$	61	$	76
Reductions based on tax positions related to prior years and settlements	—		(15		)
Balance at December 31,	$	61	$	61

STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2014

STOCKHOLDERS' EQUITY

Summary of common stock issuances

Shares in thousands		Common Stock
Balance, December 31, 2011		886,809
Issued		1,746
Options exercised and other, net		246
Balance, December 31, 2012		888,801
Issued		826
Options exercised and other, net		292
Balance, December 31, 2013		889,919
Issued		584
Options exercised and other, net		55
Balance, December 31, 2014		890,558

Calculation of basic and diluted EPS

(in millions, except per-share amounts)	2014			2013			2012
Basic EPS
(Loss) / Income from continuing operations	$	(130	)	$	4,932		$	3,829
Less: Income from continuing operations attributable to noncontrolling interest	(14		)	—			—
(Loss) / Income from contributing operations attributable to common stock	(144		)	4,932			3,829
Discontinued operations, net	760			971			769
Net income	616			5,903			4,598
Less: Net income allocated to participating securities	—			(13		)	(8		)
Net income, net of participating securities	$	616		$	5,890		$	4,590
Weighted average number of basic shares	781.1			804.1			809.3
Basic EPS	$	0.79		$	7.33		$	5.67

Diluted EPS
Net income, net of participating securities	$	616		$	5,890		$	4,590
Weighted average number of basic shares	781.1			804.1			809.3
Dilutive securities	—			0.5			0.7
Total diluted weighted average common shares	781.1			804.6			810.0
Diluted EPS	$	0.79		$	7.32		$	5.67

Components of accumulated other comprehensive income (loss)

Balance at December 31, (in millions)	2014			2013
Foreign currency translation adjustments	$	(7	)	$	(5	)
Unrealized losses on derivatives	(11		)	(14		)
Pension and post-retirement adjustments (a)	(339		)	(284		)
Total	$	(357	)	$	(303	)

(a)

See Note 13 for further information.

STOCK-BASED INCENTIVE PLANS (Tables)

12 Months Ended

Dec. 31, 2014

STOCK-BASED INCENTIVE PLANS

Summary of certain stock-based incentive amounts

For the years ended December 31, (in millions)	2014		2013		2012
Compensation expense	$	129	$	152	$	78
Income tax benefit recognized in the income statement	46		55		29
Intrinsic value of options and stock-settled SARs exercised	5		24		18
Cash paid (a)	95		96		83
Fair value of RSUs and TSRIs vested during the year (b)	56		83		28

(a)

Includes cash paid under the cash-settled portion of the SARs, RSUs and TSRIs.

(b)

As measured on the vesting date for the stock-settled portion of the RSUs and TSRIs.

Summary of changes in Occidental's unvested cash- and stock- settled RSUs

	Cash-Settled					Stock-Settled
	RSUs (000’s)		Weighted-Average Grant-Date Fair Value			RSUs (000’s)		Weighted-Average Grant-Date Fair Value
Unvested at January 1	1,431			$	90.12	1,607			$	90.26
Granted	726			100.95		785			101.77
Vested	(641	)		92.46		(553	)		94.34
Shares issued upon California Resources spin-off	76			—		95			—
Shares forfeited by employees of California Resources	(396	)		90.70		(412	)		93.30
Forfeitures	(79	)		91.00		(97	)		92.13
Unvested at December 31	1,117			89.42		1,425			88.98

Grant-date assumptions used in the Monte Carlo simulation models for the estimated payout level of TSRIs

	TSRIs
Year Granted	2014			2013			2012
Assumptions used:
Risk-free interest rate	1.0		%	0.6		%	0.4		%
Dividend yield	2.8		%	2.8		%	2.6		%
Volatility factor	27		%	30		%	34		%
Expected life (years)	3			3			3
Grant-date fair value of underlying Occidental common stock	$	101.95		$	91.97		$	84.57

Summary of Option and SAR transactions

	Cash-Settled						Stock-Settled
	SARs (000’s)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (yrs)	Aggregate Intrinsic Value (000’s)		SARs & Options (000’s)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (yrs)	Aggregate Intrinsic Value (000’s)
Beginning balance, January 1	352	$	24.66				145	$	42.11
Exercised	(352)	$	24.66				(87)	$	38.00
Shares issued upon California Resources spin-off	—	$	—				3	$	47.87
Ending balance, December 31	—	$	—	—	$	—	61	$	45.78	1.3	$	2,125
Exercisable at December 31	—	$	—	—	$	—	61	$	45.78	1.3	$	2,125

TSRIs

STOCK-BASED INCENTIVE PLANS

Summary of Occidental's unvested awards

	TSRIs
	Awards (000’s)		Weighted-Average Grant-Date Fair Value of Occidental Stock
Unvested at January 1 (a)	832			$	92.49
Granted (a)	106			101.95
Vested (a)	(300	)		102.97
Forfeitures	(16	)		90.65
Shares issued upon California Resources spin-off	33			—
Shares forfeited by employees of California Resources	(82	)		87.28
Unvested at December 31 (a)	573			84.22

(a)

Presented at the target or mid-point payouts.

ROCEs

STOCK-BASED INCENTIVE PLANS

Summary of Occidental's unvested awards

Table 6

Retirement and Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Retirement and Postretirement Benefit Plans

Components of amounts recognized in the consolidated balance sheets (in millions)

(in millions)	Pension Benefits				Postretirement Benefits
As of December 31,	2014		2013		2014		2013
Amounts recognized in the consolidated balance sheet:
Other assets	$	57	$	104	$	—	$	—
Accrued liabilities	(6)		(6)		(57)		(58)
Deferred credits and other liabilities — other	(68)		(83)		(980)		(958)

After-tax balances included in AOCI (in millions)

AOCI included the following after-tax balances:
Net loss	$	83	$	66	$	255	$	225
Prior service cost	—		1		1		2
	$	83	$	67	$	256	$	227

Funding status of Occidental's plans (in millions)

For the years ended December 31,
Changes in the benefit obligation:
Benefit obligation — beginning of year	$	523	$	615	$	1,016	$	1,127
Service cost — benefits earned during the period	11		13		24		29
Interest cost on projected benefit obligation	23		24		44		43
Actuarial (gain) loss	53		(35)		83		(126)
Foreign currency exchange rate (gain) loss	(9)		(5)		—		—
Spin-off of California Resources	(105)		—		(72)		—
Benefits paid	(43)		(54)		(59)		(57)
Settlements	—		(35)		—		—
Benefit obligation — end of year	$	453	$	523	$	1,036	$	1,016

Changes in plan assets:
Fair value of plan assets — beginning of year	$	538	$	499	$	—	$	—
Actual return on plan assets	24		88		—		—
Employer contributions	7		29		—		—
Spin-off of California Resources	(90)		—		—		—
Benefits paid	(43)		(54)		—		—
Settlements	—		(24)		—		—
Fair value of plan assets — end of year	$	436	$	538	$	—	$	—
Funded/(Unfunded) status:	$	(17)	$	15	$	(1,036)	$	(1,016)

Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with an accumulated benefit obligation in excess of plan assets and plan assets in excess of the accumulated benefit obligation

(in millions)	Accumulated Benefit Obligation in Excess of Plan Assets				Plan Assets in Excess of Accumulated Benefit Obligation
As of December 31,	2014		2013		2014		2013
Projected Benefit Obligation	$	173	$	122	$	280	$	401
Accumulated Benefit Obligation	$	168	$	112	$	280	$	386
Fair Value of Plan Assets	$	100	$	39	$	336	$	499

Components of the net periodic benefit cost (in millions)

	Pension Benefits						Postretirement Benefits
For the years ended December 31, (in millions)	2014		2013		2012		2014		2013		2012
Net periodic benefit costs:
Service cost — benefits earned during the period	$	11	$	13	$	13	$	24	$	29	$	25
Interest cost on projected benefit obligation	23		24		27		44		43		42
Expected return on plan assets	(33)		(31)		(31)		—		—		—
Recognized actuarial loss	6		19		19		20		38		37
Other costs and adjustments	(8)		(13)		17		1		1		1
Net periodic benefit cost	$	(1)	$	12	$	45	$	89	$	111	$	105

Weighted-average assumptions used to determine Occidental's benefit obligation and net periodic benefit cost for domestic plans

	Pension Benefits			Postretirement Benefits
For the years ended December 31,	2014		2013	2014	2013
Benefit Obligation Assumptions:
Discount rate	3.81%		4.45%	3.99%	4.75%
Rate of compensation increase	—	(a)	4.00%	—	—
Net Periodic Benefit Cost Assumptions:
Discount rate	4.45%		3.59%	4.75%	3.89%
Assumed long term rate of return on assets	6.50%		6.50%	—	—
Rate of compensation increase	4.00%	(a)	4.00%	—	—

(a)

Plans requiring a salary increase assumption were separated with California Resources.

Fair values of Occidental's pension plan assets by asset category (in millions)

(in millions)	Fair Value Measurements at December 31, 2014 Using
Description	Level 1		Level 2		Level 3		Total

Asset Class:
U.S. government securities	$	15	$	—	$	—	$	15
Corporate bonds (a)	—		76		—		76
Common/collective trusts (b)	—		13		—		13
Mutual funds:
Bond funds	42		—		—		42
Blend funds	68		—		—		68
Common and preferred stocks (c)	196		—		—		196
Other	—		38		1		39
Total pension plan assets (d)	$	321	$	127	$	1	$	449

(in millions)	Fair Value Measurements at December 31, 2013 Using
Description	Level 1		Level 2		Level 3		Total

Asset Class:
U.S. government securities	$	16	$	—	$	—	$	16
Corporate bonds (a)	—		84		—		84
Common/collective trusts (b)	—		19		—		19
Mutual funds:
Bond funds	64		—		—		64
Blend funds	105		—		—		105
Value and growth funds	6		—		—		6
Common and preferred stocks (c)	201		—		—		201
Other	—		37		11		48
Total pension plan assets (d)	$	392	$	140	$	11	$	543

(a)

This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries.

(b)

This category includes investment funds that primarily invest in U.S. and non-U.S. common stocks and fixed-income securities.

(c)

This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries.

(d)

Amounts exclude net payables of approximately $13 million and $5 million as of December 31, 2014 and 2013, respectively.

Estimated future benefit payments, which reflect expected future service, as appropriate

For the years ended December 31, (in millions)	Pension Benefits		Postretirement Benefits

2015	$	38	$	58
2016	$	37	$	59
2017	$	33	$	59
2018	$	32	$	59
2019	$	32	$	60
2020— 2024	$	191	$	304

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis (in millions)

(in millions)	Fair Value Measurements at December 31, 2014 Using
							Netting and		Total
Description	Level 1		Level 2		Level 3		Collateral		Fair Value
Assets:
Commodity derivatives	$	712	$	127	$	—	$	(742)	$	97
Available for sale investment	$	394	$	—	$	—	$	—	$	394
Liabilities:
Commodity derivatives	$	750	$	246	$	—	$	(756)	$	240

(in millions)	Fair Value Measurements at December 31, 2013 Using
							Netting and		Total
Description	Level 1		Level 2		Level 3		Collateral		Fair Value
Assets:
Commodity derivatives	$	185	$	195	$	—	$	(329)	$	51
Liabilities:
Commodity derivatives	$	199	$	223	$	—	$	(364)	$	58

Pre-tax charges related to the impairments

(in millions)	Fair Value Measurements at December 31, 2014 Using								Total Pre-tax
							Net		(Non-cash)
Description	Level 1		Level 2		Level 3		Book Value (a)		Impairment Loss
Assets:
Impaired proved oil and gas assets - domestic	$	—	$	—	$	2,249	$	5,008	$	2,759
Impaired proved oil and gas assets - international	$	—	$	—	$	45	$	1,084	$	1,039
Impaired Chemical property, plant, and equipment	$	—	$	—	$	18	$	129	$	111

(a)

Amount represents net book value at date of assessment.

Industry Segments (Tables)

12 Months Ended

Dec. 31, 2014

Industry Segments

Industry segment and corporate disclosures (in millions)

Industry Segments
(in millions)							Midstream			Corporate
							and			and
	Oil and Gas			Chemical			Marketing			Eliminations			Total
YEAR ENDED DECEMBER 31, 2014
Net sales	$	13,887	(a)	$	4,817	(b)	$	1,373	(c)	$	(765)		$	19,312
Pretax operating profit (loss)	$	428	(d)	$	420	(e)	$	2,578	(f)	$	(1,871)	(g)	$	1,555
Net income attributable to noncontrolling interest	—			—			(14)			—			(14)
Income taxes	—			—			—			(1,685)		(g)	(1,685)
Discontinued operations, net	—			—			—			760		(i)	760
Net income (loss) attributable to common stock	$	428		$	420		$	2,564		$	(2,796)		$	616
Investments in unconsolidated entities	$	11		$	202		$	948		$	10		$	1,171
Property, plant and equipment additions, net (k)	$	6,589		$	325		$	2,093		$	103		$	9,110
Depreciation, depletion and amortization	$	3,701		$	367		$	160		$	33		$	4,261
Total assets	$	31,072		$	3,917		$	12,283		$	8,987		$	56,259
YEAR ENDED DECEMBER 31, 2013
Net sales	$	15,008	(a)	$	4,673	(b)	$	1,174	(c)	$	(685)		$	20,170
Pretax operating profit (loss)	$	6,411	(d)	$	743	(e)	$	1,523	(f)	$	(531)	(g)	$	8,146
Income taxes	—			—			—			(3,214)		(h)	(3,214)
Discontinued operations, net	—			—			—			971		(i)	971
Net income (loss) attributable to common stock	$	6,411		$	743		$	1,523		$	(2,774)		$	5,903
Investments in unconsolidated entities	$	108		$	34		$	1,307		$	10		$	1,459
Property, plant and equipment additions, net (k)	$	5,456		$	435		$	1,437		$	166		$	7,494
Depreciation, depletion and amortization	$	3,676		$	346		$	149		$	32		$	4,203
Total assets	$	46,213		$	3,947		$	14,374		$	4,909		$	69,443
YEAR ENDED DECEMBER 31, 2012
Net sales	$	14,953	(a)	$	4,580	(b)	$	1,164	(c)	$	(597)		$	20,100
Pretax operating profit (loss)	$	5,840	(d)	$	720		$	440	(f)	$	(512)	(g)	$	6,488
Income taxes	—			—			—			(2,659)		(h)	(2,659)
Discontinued operations, net	—			—			—			769		(i)	769
Net income (loss) attributable to common stock	$	5,840	(d)	$	720		$	440		$	(2,402)		$	4,598
Investments in unconsolidated entities	$	113		$	108		$	1,662		$	11		$	1,894
Property, plant and equipment additions, net (k)	$	6,067		$	365		$	1,451		$	91		$	7,974
Depreciation, depletion and amortization	$	3,065		$	345		$	148		$	27		$	3,585
Total assets	$	44,004		$	3,854		$	12,762		$	3,590		$	64,210

(See footnotes on next page)

Footnotes:

(a)

Oil sales represented approximately 90 percent, 91 percent and 91 percent of the oil and gas segment net sales for the years ended December 31, 2014, 2013 and 2012, respectively.

(b)

Net sales for the chemical segment comprised the following products:

Net product sales for the chemical segment

	Basic Chemicals	Vinyls	Other Chemicals
Year ended December 31, 2014	54%	43%	3%
Year ended December 31, 2013	55%	42%	3%
Year ended December 31, 2012	57%	40%	3%

(a)

Net sales for the midstream and marketing segment comprised the following:

Net sales for the midstream and marketing segment

	Gas Processing	Power	Marketing, Trading, Transportation and other
Year ended December 31, 2014	49%	31%	20%
Year ended December 31, 2013	54%	30%	16%
Year ended December 31, 2012	60%	24%	16%

(d)

(e)

The 2014 amount includes the pre-tax charge of $149 million. The 2013 amount includes a pre-tax gain of $131 million for the sale of an investment in Carbocloro.

(f)

(g)

Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items noted in footnote (j) below.

(h)

Includes all foreign and domestic income taxes from continuing operations.

(i)

Relates to discontinued operations from Ecuador and the spin-off of California Resources.

(j)

Includes the following significant items affecting earnings for the years ended December 31:

Significant items affecting earnings included in the Corporate segment

Benefit (Charge) (in millions)	2014		2013		2012
CORPORATE
Pre-tax operating profit (loss)
California Resources other than temporary loss	$	(553)	$	—	$	—
Joslyn Impairment	(805)		—		—
Spin-off and other costs	(61)		—		—
Litigation reserves	—		—		(20)
Charge for former executives and consultants	—		(55)		—
	$	(1,419)	$	(55)	$	(20)
Income taxes
Tax effect of pre-tax and other adjustments *	$	927	$	(167)	$	612

* Amounts represent the tax effect of the pre-tax adjustments listed in this note, as well as those in footnotes (d), (e) and (f).

(k)

Includes capital expenditures and capitalized interest, but excludes acquisition and disposition of assets.

Net sales and property, plant and equipment, net by geographic areas

(in millions)	Net sales (a)						Property, plant and equipment, net
For the years ended December 31,	2014		2013		2012		2014		2013		2012
United States	$	11,943	$	11,724	$	11,287	$	26,673	$	42,956	$	40,786
Foreign
Qatar	2,803		2,995		3,356		2,605		2,605		2,676
Oman	2,524		2,567		2,578		2,876		2,509		2,353
Colombia	938		1,022		1,027		1,396		1,259		1,041
United Arab Emirates	—		—		—		4,312		3,131		2,104
Other Foreign	1,104		1,862		1,852		1,868		3,361		3,104
Total Foreign	7,369		8,446		8,813		13,057		12,865		11,278
Total	$	19,312	$	20,170	$	20,100	$	39,730	$	55,821	$	52,064

(a)

Sales are shown by individual country based on the location of the entity making the sale.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
RISKS AND UNCERTAINTIES
Assets, relating to operations in countries outside North America	$ 15,000
Net sales, relating to operations in countries outside North America	7,300
CASH AND CASH EQUIVALENTS
Total cash equivalents	3,400	$ 2,900
RESTRICTED CASH
Restricted cash	$ 4,019
Restricted cash useage term (in months)	18 months
PROPERTY, PLANT AND EQUIPMENT
Maximum time period after which costs of exploratory wells are charged to expense if determination of proved reserves has not been made	12 months	12 months	12 months
Net capitalized costs attributable to unproved properties	$ 2,000
Capitalized exploratory well costs for the years ended December 31:
Balance - Beginning of Year	140	$ 124	$ 189
Additions to capitalized exploratory well costs pending the determination of proved reserves	462	337	400
Reclassifications to property, plant and equipment based on the determination of proved reserves	(423)	(271)	(389)
Spin-off of California Resources	(17)
Capitalized exploratory well costs charged to expense	(21)	(50)	(76)
Balance - End of Year	141	140	$ 124
ACCRUED LIABILITIES-CURRENT
Accrued liabilities for accrued payroll, commissions and related expenses	$ 361	$ 459
ENVIRONMENTAL LIABILITIES AND EXPENDITURES
Minimum period of investigation and cleanup for Comprehensive Environmental Response, Compensation and Liability Act National Priorities List sites	10 years	10 years	10 years
ASSET RETIREMENT OBLIGATIONS
Asset retirement obligation, included in deferred credits and other liabilities-other	$ 1,024	$ 1,283
For the years ended December 31
Beginning balance	1,332	1,266
Liabilities incurred - capitalized to PP&E	57	101
Liabilities settled and paid	(78)	(72)
Accretion expense	69	68
Acquisitions, dispositions and other - changes in PP&E	(11)	(10)
Spin-off of California Resources	(399)
Revisions to estimated cash flows - changes in PP&E	121	(21)
Ending balance	1,091	1,332	$ 1,266
SUPPLEMENTAL CASH FLOW INFORMATION
Interest Paid	219	238	190
Capitalized interest	$ 180	137	100
Low end of range
Summary of significant accounting policies
The estimated useful lives of Occidental's chemical assets	3 years
DERIVATIVE INSTRUMENTS
Range used to determine if derivative instrument is effective	80.00%
High end of range
Summary of significant accounting policies
The estimated useful lives of Occidental's chemical assets	50 years
DERIVATIVE INSTRUMENTS
Range used to determine if derivative instrument is effective	125.00%
Continuing operations
SUPPLEMENTAL CASH FLOW INFORMATION
United States federal, state and foreign income taxes paid for continuing operations	$ 2,900	1,800	2,300
Production, property and other taxes paid	$ 610	$ 606	$ 524

LONG-TERM DEBT (Details) - USD ($) $ in Millions	1 Months Ended		12 Months Ended
LONG-TERM DEBT (Details) - USD ($) $ in Millions	Dec. 31, 2013	Jun. 30, 2012	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Debt instrument
Variable interest rate (as a percent)			0.04%
Long-term debt, gross	$ 6,964		$ 6,857	$ 6,964
Unamortized discount, net	(25)		(19)	(25)
Total long-term debt	6,939		6,838	6,939
Long term debt matured			107	690
Net proceeds from issuance of long-term debt					$ 1,736
Dolphin Energy
Debt instrument
Notional amount of limited recourse guarantees with respect to Dolphin Energy's debt	354		336	354
1.75% senior notes due 2017
Debt instrument
Long-term debt, gross	$ 1,250		$ 1,250	$ 1,250
Debt instrument interest rate stated percentage	1.75%		1.75%	1.75%
4.10% senior notes due 2021
Debt instrument
Long-term debt, gross	$ 1,249		$ 1,249	$ 1,249
Debt instrument interest rate stated percentage	4.10%		4.10%	4.10%
2.70% senior notes due 2023
Debt instrument
Long-term debt, gross	$ 1,224		$ 1,191	$ 1,224
Debt instrument interest rate stated percentage	2.70%	2.70%	2.70%	2.70%
Debt instrument issued		$ 1,250
3.125% senior notes due 2022
Debt instrument
Long-term debt, gross	$ 887		$ 813	$ 887
Debt instrument interest rate stated percentage	3.125%		3.125%	3.125%
4.125% senior notes due 2016
Debt instrument
Long-term debt, gross	$ 750		$ 750	$ 750
Debt instrument interest rate stated percentage	4.125%		4.125%	4.125%
2.5% senior notes due 2016
Debt instrument
Long-term debt, gross	$ 700		$ 700	$ 700
Debt instrument interest rate stated percentage	2.50%		2.50%	2.50%
1.45% senior notes due 2013
Debt instrument
Debt instrument interest rate stated percentage	1.45%			1.45%
Long term debt matured	$ 600
1.50% senior notes due 2018
Debt instrument
Long-term debt, gross	$ 500		$ 500	$ 500
Debt instrument interest rate stated percentage	1.50%	1.50%	1.50%	1.50%
Debt instrument issued		$ 500
8.45% senior notes due 2029
Debt instrument
Long-term debt, gross	$ 116		$ 116	$ 116
Debt instrument interest rate stated percentage	8.45%		8.45%	8.45%
9.25% senior debentures due 2019
Debt instrument
Long-term debt, gross	$ 116		$ 116	$ 116
Debt instrument interest rate stated percentage	9.25%		9.25%	9.25%
7.2% senior debentures due 2028
Debt instrument
Long-term debt, gross	$ 82		$ 82	$ 82
Debt instrument interest rate stated percentage	7.20%		7.20%	7.20%
Variable rate bonds due 2030 (0.04% and 0.13% as of December 31, 2013 and 2012, respectively)
Debt instrument
Long-term debt, gross	$ 68		$ 68	$ 68
8.75% medium-term notes due 2023
Debt instrument
Long-term debt, gross	$ 22		$ 22	$ 22
Debt instrument interest rate stated percentage	8.75%		8.75%	8.75%
Senior notes due in 2021 and later
Debt instrument
Notes repurchased	$ 90			$ 90
2.70% senior notes due 2023, 1.50% senior notes due 2018
Debt instrument
Debt instrument issued		1,750
Net proceeds from issuance of long-term debt		$ 1,740
Various Senior notes due 2022 and later
Debt instrument
Notes repurchased			$ 107
California Resources Corporation
Debt instrument
Third party guarantees related to California Resources Corporation			$ 161

Derivatives (Details 4) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Gross and net fair values of outstanding derivatives (in millions)
Less: counterparty netting and cash collateral, asset	$ (742)	$ (329)
Less: counterparty netting and cash collateral, liability	(756)	(364)
Total net fair value, asset	97	51
Total net fair value, liability	240	58
Collateral received netted against derivative assets	0	11
Collateral paid netted against derivative liabilities	8	46
Collateral deposited with clearinghouses and brokers	44	103
Credit risk contingent features
Net derivative liabilities with credit-risk-contingent features	4	8
Amount of collateral posted	3	23
Commodity Contracts
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	839	380
Commodity contract derivative liability, gross	996	422
Cash-flow hedges \| Commodity Contracts
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross		4
Cash-flow hedges \| Commodity Contracts \| Accrued liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross		4
Not designated as hedging instruments \| Commodity Contracts
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	839	380
Commodity contract derivative liability, gross	996	418
Not designated as hedging instruments \| Commodity Contracts \| Other current assets
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	828	367
Not designated as hedging instruments \| Commodity Contracts \| Long-term receivables and other assets, net
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	11	13
Not designated as hedging instruments \| Commodity Contracts \| Accrued liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross	886	407
Not designated as hedging instruments \| Commodity Contracts \| Deferred credits and other liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross	$ 110	$ 11

Environmental Liabilities and Expenditures (Details) $ in Millions	12 Months Ended
	Dec. 31, 2014 USD ($) site	Dec. 31, 2013 USD ($) site	Dec. 31, 2012 USD ($) site	Dec. 31, 2011 USD ($)
Environmental Liabilities and Expenditures
Environmental remediation reserves, current, included in accrued liabilities	$ 79	$ 78	$ 80
Environmental remediation reserves, noncurrent, included in deferred credits and other liabilities - other	$ 255	$ 252	$ 264
Environmental remediation reserves
Number of Sites \| site	145	157	161
Reserve Balance	$ 334	$ 330	$ 344	$ 360
Environmental reserves, exceeding $ ten million, threshold value	$ 10
Environmental reserves, exceeding $ ten million, number of sites \| site	11
Environmental reserves, range between zero to $ one million site category, number of sites \| site	98
Minimum period of expending second half of environmental reserves	10 years
Environmental remediation additional loss range	$ 380
Environmental costs, including certain estimates by segment
Operating Expenses	194	188	199
Capital Expenditures	189	86	105
Low end of range
Environmental remediation reserves
Environmental reserves, range between zero to $ one million site category	$ 0
Period of expending first half of environmental reserves	3 years
High end of range
Environmental remediation reserves
Environmental reserves, range between zero to $ one million site category	$ 1
Period of expending first half of environmental reserves	4 years
Oil and Gas
Environmental costs, including certain estimates by segment
Operating Expenses	$ 103	100	116
Capital Expenditures	143	67	79
Chemical
Environmental costs, including certain estimates by segment
Operating Expenses	80	75	70
Capital Expenditures	35	14	18
Midstream, Marketing and Other
Environmental costs, including certain estimates by segment
Operating Expenses	11	13	13
Capital Expenditures	11	5	8
Corporate
Environmental costs, including certain estimates by segment
Remediation Expenses	$ 79	$ 60	$ 56
NPL sites
Environmental remediation reserves
Number of Sites \| site	30	31	35
Reserve Balance	$ 23	$ 25	$ 54
Number of sites with significant environmental remediation reserves \| site	2
Percentage of environmental reserves accounted for by associated sites	62.00%
Number of sites indemnified by third party \| site	14
Third-party sites
Environmental remediation reserves
Number of Sites \| site	67	74	75
Reserve Balance	$ 101	$ 83	$ 84
Number of sites with significant environmental remediation reserves \| site	4
Percentage of environmental reserves accounted for by associated sites	56.00%
Number of sites indemnified by third party \| site	8
Number of sites not indemnified by third party \| site	59
Occidental-operated sites
Environmental remediation reserves
Number of Sites \| site	17	20	22
Reserve Balance	$ 107	$ 118	$ 123
Number of sites with significant environmental remediation reserves \| site	4
Percentage of environmental reserves accounted for by associated sites	62.00%
Closed or non-operated Occidental sites
Environmental remediation reserves
Number of Sites \| site	31	32	29
Reserve Balance	$ 103	$ 104	$ 83
Number of sites with significant environmental remediation reserves \| site	4
Percentage of environmental reserves accounted for by associated sites	63.00%

DOMESTIC AND FOREIGN INCOME TAXES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Domestic and foreign components of income from continuing operations before domestic and foreign income taxes
Income from continuing operations before income taxes, Domestic	$ (732)	$ 3,399	$ 852
Income from continuing operations before income taxes, Foreign	2,273	4,747	5,636
Income from continuing operations before income taxes, Total	1,541	8,146	6,488
Provisions (credits) for domestic and foreign income taxes on continuing operations
Current United States Federal tax expense (benefit)	870	113	(308)
Current State and Local tax expense (benefit)	81	17	4
Current Foreign tax expense (benefit)	1,912	2,170	2,383
Current Total tax expense (benefit)	2,863	2,300	2,079
Deferred United States Federal tax expense (benefit)	(1,037)	883	519
Deferred State and Local tax expense (benefit)	(71)	48	20
Deferred Foreign tax expense (benefit)	(70)	(17)	41
Deferred Total tax expense (benefit)	(1,178)	914	580
United States Federal Total tax expense (benefit)	(167)	996	211
State and Local Total tax expense (benefit)	10	65	24
Foreign Total tax expense (benefit)	1,842	2,153	2,424
Total tax expense (benefit)	$ 1,685	$ 3,214	$ 2,659
Reconciliation of the United States federal statutory income tax rate to Occidental's worldwide effective tax rate on income from continuing operations
United States federal statutory tax rate (as a percent)	35.00%	35.00%	35.00%
Effect of spin-off of California Resources	12.00%
Operations outside the United States (as a percent)	65.00%	5.00%	6.00%
State income taxes, net of federal benefit (as a percent)	1.00%	1.00%	1.00%
Other (as a percent)	(4.00%)	(1.00%)	(1.00%)
Worldwide effective tax rate (as a percent)	109.00%	40.00%	41.00%
Deferred Tax Assets and Liabilities
Deferred Tax Assets, environmental reserves	$ 123	$ 121
Deferred Tax Assets, postretirement benefit accruals	379	376
Deferred Tax Assets, deferred compensation and benefits	208	222
Deferred Tax Assets, asset retirement obligations	307	407
Deferred Tax Assets, foreign tax credit carryforwards	1,765	1,091
Deferred tax Assets, federal benefit of state income taxes	85	136
Deferred Tax Assets, all other	274	344
Deferred Tax Assets, subtotal	3,141	2,697
Deferred Tax Assets, valuation allowance	(1,744)	(1,074)
Deferred Tax Assets, total deferred taxes	1,397	1,623
Deferred Tax Liabilities, property, plant and equipment differences	4,081	8,363
Deferred Tax Liabilities, equity investments, partnerships and foreign subsidiaries		225
Deferred Tax Liabilities, all other	221	82
Deferred Tax Liabilities, Gross	4,302	8,670
Deferred Tax Liabilities, total deferred taxes	4,302	8,670
Deferred tax assets, current	110	150
Unremitted earnings of certain consolidated foreign subsidiaries	9,900
Deferred tax liability not recognized, indefinitely reinvested foreign earnings	140
Discontinued operations income tax charges (benefits)	454	550	$ 466
Credit to additional paid-in capital, excess tax benefit from the exercise of certain stock-based compensation awards	4	6	8
Unrecognized tax benefits included in deferred credits and other liabilities - other that would affect effective tax rate	61
Reconciliation of unrecognized tax benefits
Balance, at beginning of period	61	76
Reductions based on tax positions related to prior years and settlements		(15)
Balance, at end of period	$ 61	$ 61	$ 76

STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Oct. 02, 2014
Common stock issuances
Balance at the beginning of the year	889,919,058	888,801,000	886,809,000
Issued	584,000	826,000	1,746,000
Options exercised and other, net	55,000	292,000	246,000
Balance at the end of the year	890,557,537	889,919,058	888,801,000
TREASURY STOCK
Share repurchase program, authorized shares				185,000,000
TREASURY STOCK
Shares purchased under share repurchase program	25,800,000	10,300,000
Share repurchase program, average cost per share of shares repurchased during period	$ 93.40	$ 94.42
Treasury stock, shares	119,951,199	93,928,179	83,300,000
NONREDEEMABLE PREFERRED STOCK
Preferred stock, authorized shares	50,000,000	50,000,000	50,000,000
Preferred stock, par value	$ 1.00	$ 1.00	$ 1.00
Preferred stock, outstanding shares	0	0	0
Basic EPS
(Loss) / Income from continuing operations	$ (130)	$ 4,932	$ 3,829
Less: Income from continuing operations attributable to noncontrolling interest	(14)
(Loss) / Income from continuing operations	(144)	4,932	3,829
Discontinued operations, net	760	971	769
NET INCOME ATTRIBUTABLE TO COMMON STOCK	616	5,903	4,598
Less: Net income allocated to participating securities		(13)	(8)
Net income attributable to common stock, net of participating securities	$ 616	$ 5,890	$ 4,590
Weighted average number of basic shares	781,100,000	804,100,000	809,300,000
Basic EPS (in dollars per share)	$ 0.79	$ 7.33	$ 5.67
Diluted EPS
Net income attributable to common stock, net of participating securities	$ 616	$ 5,890	$ 4,590
Weighted average number of basic shares	781,100,000	804,100,000	809,300,000
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements		500,000	700,000
Total diluted weighted average common shares	781,100,000	804,600,000	810,000,000
Earnings Per Share, Diluted	$ 0.79	$ 7.32	$ 5.67
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustments	$ (7)	$ (5)
Unrealized losses on derivatives	(11)	(14)
Pension and post-retirement adjustments	(339)	(284)
Accumulated other comprehensive income (loss)	$ (357)	$ (303)
Subsequent event
TREASURY STOCK
Share repurchase program, increase in authorized shares				60,000,000

STOCK-BASED INCENTIVE PLANS (Details)	12 Months Ended
STOCK-BASED INCENTIVE PLANS (Details)	Dec. 31, 2014 USD ($) item $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2012 USD ($) $ / shares	Dec. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award
Aggregate number of shares authorized for issuance	66,000,000
Cumulative shares issued since inception of the plan	17,000,000
Maximum shares available for future issuance	20,000,000
Number of shares counted for each share covered by an award in determining the number of shares that are available for future awards	3
Number of times, as applicable, shares available for future awards may increase by shares that fail to vest, or are forfeited or canceled, or correspond to the portion of any stock-based awards settled in cash \| item	3
Restricted stock granted to non-employee directors	28,283
Certain stock-based incentive amounts
Compensation expense (in dollars) \| $	$ 129,000,000	$ 152,000,000	$ 78,000,000
Income tax benefit recognized in the income statement (in dollars) \| $	46,000,000	55,000,000	29,000,000
Intrinsic value of options and stock-settled SARs exercised (in dollars) \| $	5,000,000	24,000,000	18,000,000
Cash paid \| $	95,000,000	96,000,000	83,000,000
Fair value of RSUs and TSRIs vested during the year \| $	56,000,000	$ 83,000,000	$ 28,000,000
Unrecognized compensation expense \| $	$ 160,000,000
Weighted-average period over which unrecognized compensation expense is expected to be recognized	2 years
High end of range
Share-based Compensation Arrangement by Share-based Payment Award
Maximum shares available for future issuance	20,000,000
RSUs
Stock-Based Awards
Number of anniversaries for performance objectives to be satisfied \| item	7
Award vesting period	3 years
RSUs \| Low end of range
Stock-Based Awards
Award vesting period		2 years	2 years	2 years
RSUs \| High end of range
Stock-Based Awards
Award vesting period		3 years	3 years	3 years
Cliff vested RSU's \| Low end of range
Certain stock-based incentive amounts
Weighted-average period over which unrecognized compensation expense is expected to be recognized		2 years	2 years	2 years
Cliff vested RSU's \| High end of range
Certain stock-based incentive amounts
Weighted-average period over which unrecognized compensation expense is expected to be recognized		3 years	3 years	3 years
Cash-Settled RSUs
Roll-forward of stock awards other than options and SARS.
Unvested, beginning of period (in shares)	1,431,000
Granted (in shares)	726,000
Vested (in shares)	(641,000)
Shares issued upon California Resources spin-off	76,000
Shares forfeited by employees of California Resources	(396,000)
Forfeitures (in shares)	(79,000)
Unvested, end of period (in shares)	1,117,000	1,431,000
Stock awards other than options and SARs, weighted-average grant-date fair value (in dollars per share)
Unvested, beginning of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 90.12
Granted, weighted-average grant-date fair value (in dollars per share) \| $ / shares	100.95	$ 89.70	$ 84.38
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value \| $ / shares	92.46
Shares forfeited by employees of California Resources, weighted average grant date fair value (in dollars per share) \| $ / shares	90.70
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value \| $ / shares	91.00
Unvested, end of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 89.42	$ 90.12
Stock-Settled RSUs
Roll-forward of stock awards other than options and SARS.
Unvested, beginning of period (in shares)	1,607,000
Granted (in shares)	785,000
Vested (in shares)	(553,000)
Shares issued upon California Resources spin-off	95,000
Shares forfeited by employees of California Resources	(412,000)
Forfeitures (in shares)	(97,000)
Unvested, end of period (in shares)	1,425,000	1,607,000
Stock awards other than options and SARs, weighted-average grant-date fair value (in dollars per share)
Unvested, beginning of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 90.26
Granted, weighted-average grant-date fair value (in dollars per share) \| $ / shares	101.77	$ 90.35	84.81
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value \| $ / shares	94.34
Shares forfeited by employees of California Resources, weighted average grant date fair value (in dollars per share) \| $ / shares	93.30
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value \| $ / shares	92.13
Unvested, end of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 88.98	$ 90.26
Cash-settled SARs
Option and SAR transactions
Beginning balance (in shares)	352,000
Exercised (in shares)	(352,000)
Ending balance (in shares)		352,000
Option and SAR transactions
Beginning balance, weighted average exercise price (in dollars per share) \| $ / shares	$ 24.66
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	$ 24.66
Ending balance, weighted average exercise price (in dollars per share) \| $ / shares		$ 24.66
TSRIs
Stock-Based Awards
Award vesting period	3 years
Roll-forward of stock awards other than options and SARS.
Unvested, beginning of period (in shares)	832,000
Granted (in shares)	106,000
Vested (in shares)	(300,000)
Shares issued upon California Resources spin-off	33,000
Shares forfeited by employees of California Resources	82,000
Forfeitures (in shares)	(16,000)
Unvested, end of period (in shares)	573,000	832,000
Stock awards other than options and SARs, weighted-average grant-date fair value (in dollars per share)
Unvested, beginning of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 92.49
Granted, weighted-average grant-date fair value (in dollars per share) \| $ / shares	101.95	$ 91.97	$ 84.57
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value \| $ / shares	102.97
Shares forfeited by employees of California Resources, weighted average grant date fair value (in dollars per share) \| $ / shares	87.28
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value \| $ / shares	90.65
Unvested, end of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 84.22	$ 92.49
Grant-date assumptions used in the Monte Carlo simulation models
Risk-free interest rate (as a percent)	1.00%	0.60%	0.40%
Dividend yield (as a percent)	2.80%	2.80%	2.60%
Volatility factor (as a percent)	27.00%	30.00%	34.00%
Expected life	3 years	3 years	3 years
Other disclosures
Performance-based awards settled in stock (as a percent)	100.00%	100.00%	100.00%
TSRIs \| Low end of range
Other disclosures
Payouts for Performance-based awards granted (as a percent)		0.00%
Share based compensation by share based payment award maximum Award (as a percent)	0.00%	0.00%	0.00%
TSRIs \| High end of range
Other disclosures
Payouts for Performance-based awards granted (as a percent)	150.00%
Share based compensation by share based payment award maximum Award (as a percent)	100.00%	100.00%	100.00%
Stock-settled SARs and Options
Roll-forward of stock awards other than options and SARS.
Shares issued upon California Resources spin-off	(3,000)
Option and SAR transactions
Beginning balance (in shares)	145,000
Exercised (in shares)	(87,000)
Ending balance (in shares)	61,000	145,000
Exercisable, end of period (in shares)	61,000
Option and SAR transactions
Beginning balance, weighted average exercise price (in dollars per share) \| $ / shares	$ 42.11
Exercised, weighted average exercise price (in dollars per share) \| $ / shares	38.00
Shares issued upon California Resources spin-off weighted average exercise price (in dollars per share) \| $ / shares	47.87
Ending balance, weighted average exercise price (in dollars per share) \| $ / shares	45.78	$ 42.11
Exercisable, end of period, weighted average exercise price (in dollars per share) \| $ / shares	$ 45.78
Ending balance, weighted average remaining contractual term	1 year 3 months 18 days
Exercisable, end of period, weighted average remaining contractual term	1 year 3 months 18 days
Ending balance, aggregate intrinsic value (in dollars) \| $	$ 2,125,000
Exercisable, end of period, aggregate intrinsic value (in dollars) \| $	$ 2,125,000
Stock-settled SARs and Options \| Low end of range
Stock-Based Awards
Term of award	3 years
Other awards granted in 2013
Stock-Based Awards
Award vesting period	3 years
Roll-forward of stock awards other than options and SARS.
Granted (in shares)	141,000
Other disclosures
Performance-based awards settled in stock (as a percent)	100.00%
Other awards granted in 2013 \| Low end of range
Other disclosures
Payouts for Performance-based awards granted (as a percent)	0.00%
Other awards granted in 2013 \| High end of range
Other disclosures
Payouts for Performance-based awards granted (as a percent)	200.00%
Stock-Settled ROCEs
Roll-forward of stock awards other than options and SARS.
Unvested, beginning of period (in shares)	158,000
Granted (in shares)	141,000
Shares issued upon California Resources spin-off	16,000
Forfeitures (in shares)	(33,000)
Unvested, end of period (in shares)	282,000	158,000
Return on assets and capital employed incentives
Unvested, beginning of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 91.90
Granted, weighted-average grant-date fair value (in dollars per share) \| $	$ 101.95
Forfeitures, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 87.28
Unvested, end of period, weighted-average grant-date fair value (in dollars per share) \| $ / shares	$ 92.25	$ 91.90

Retirement and Postretirement Benefit Plans (Details)	12 Months Ended
Retirement and Postretirement Benefit Plans (Details)	Dec. 31, 2014 USD ($) person	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
DEFINED CONTRIBUTION PLANS
Accrued liabilities for the supplemental retirement plan	$ 163,000,000	$ 166,000,000
Expenses under provisions of defined contribution and supplemental retirement plans	146,000,000	140,000,000	$ 137,000,000
Postretirement and Other Benefit Plans Disclosure
Total benefit costs including postretirement costs	215,000,000	229,000,000	218,000,000
AOCI included the following after-tax balances
AOCI after-tax balances	339,000,000	284,000,000
Spin-off California Resources Corp
Postretirement and Other Benefit Plans Disclosure
Increase (Decrease) in Postretirement Obligations	15,000,000	72,000,000
Increase (Decrease) in Deferred Income Taxes	14,000,000
Increase (decrease) in other comprehensive income	36,000,000
Pension Benefit
Postretirement and Other Benefit Plans Disclosure
Increase (Decrease) in Pension Plan Obligations	27,000,000
Amounts recognized in the consolidated balance sheets
Other assets	57,000,000	104,000,000
Accrued liabilities	(6,000,000)	(6,000,000)
Deferred credits and other liabilities - other	(68,000,000)	(83,000,000)
Amounts recognized in the consolidated balance sheets, total	(17,000,000)	15,000,000
AOCI included the following after-tax balances
Net loss	83,000,000	66,000,000
Prior service cost		1,000,000
AOCI after-tax balances	83,000,000	67,000,000
Changes in the benefit obligation:
Benefit obligation - beginning of year	523,000,000	615,000,000
Service cost	11,000,000	13,000,000	13,000,000
Interest cost	23,000,000	24,000,000	27,000,000
Actuarial (gain) loss	53,000,000	(35,000,000)
Foreign currency exchange rate (gain) loss	(9,000,000)	(5,000,000)
Spin-off of California Resources	(105,000,000)
Benefits paid	(43,000,000)	(54,000,000)
Settlements		(35,000,000)
Benefit obligation - end of year	453,000,000	523,000,000	615,000,000
Changes in plan assets:
Fair value of plan assets - beginning of year	538,000,000	499,000,000
Actual return on plan assets	24,000,000	88,000,000
Employer contributions	7,000,000	29,000,000
Spin-off of California Resources	(90,000,000)
Benefits paid	(43,000,000)	(54,000,000)
Settlements		(24,000,000)
Fair value of plan assets - end of year	436,000,000	538,000,000	499,000,000
Funded/(Unfunded) status:	(17,000,000)	15,000,000
Pension plans with accumulated benefit obligations in excess of plan assets
Pension plans with accumulated benefit obligations in excess of plan assets, projected benefit obligation	173,000,000	122,000,000
Pension plans with accumulated benefit obligations in excess of plan assets, accumulated benefit obligation	168,000,000	112,000,000
Pension plans with accumulated benefit obligations in excess of plan assets, fair value of plan assets	100,000,000	39,000,000
Pension plans with plan assets in excess of accumulated benefit obligations
Pension plans with plan assets in excess of accumulated benefit obligations, projected benefit obligation	280,000,000	401,000,000
Pension plans with plan assets in excess of accumulated benefit obligations, accumulated benefit obligation	280,000,000	386,000,000
Pension plans with plan assets in excess of accumulated benefit obligations, fair value of plan assets	336,000,000	499,000,000
Net periodic benefit costs:
Service cost	11,000,000	13,000,000	13,000,000
Interest cost	23,000,000	24,000,000	27,000,000
Expected return on plan assets	(33,000,000)	(31,000,000)	(31,000,000)
Recognized actuarial loss	6,000,000	19,000,000	19,000,000
Other costs and adjustments	(8,000,000)	(13,000,000)	17,000,000
Net periodic benefit cost	(1,000,000)	$ 12,000,000	$ 45,000,000
Amounts that will be amortized from accumulated other comprehensive income (Loss) in next fiscal year
Estimated net loss that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	10,000,000
Estimated prior service cost that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	$ 0
Benefit Obligation Assumptions:
Discount rate (as a percent)	3.81%	4.45%
Rate of compensation increase (as a percent)		4.00%
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)	4.45%	3.59%
Assumed long tem rate of return on assets in excess of inflation (as a percent)	6.50%	6.50%
Rate of compensation increase (as a percent)	4.00%	4.00%
Domestic Pension Benefits
Postretirement and Other Benefit Plans Disclosure
Number of employees accruing benefits under defined benefit plans \| person	700
Foreign Pension Plans
Postretirement and Other Benefit Plans Disclosure
Number of employees accruing benefits under defined benefit plans \| person	1,300
Foreign Pension Plans \| High end of range
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)		10.00%	10.00%
Rate of compensation increase (as a percent)	10.00%
Foreign Pension Plans \| Low end of range
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)		1.50%	1.50%
Rate of compensation increase (as a percent)	1.50%
Postretirement Benefit
Postretirement and Other Benefit Plans Disclosure
Increase (Decrease) in Postretirement Obligations	$ 98,000,000
Amounts recognized in the consolidated balance sheets
Accrued liabilities	(57,000,000)	$ (58,000,000)
Deferred credits and other liabilities - other	(980,000,000)	(958,000,000)
Amounts recognized in the consolidated balance sheets, total	(1,037,000,000)	(1,016,000,000)
AOCI included the following after-tax balances
Net loss	255,000,000	225,000,000
Prior service cost	1,000,000	2,000,000
AOCI after-tax balances	256,000,000	227,000,000
Changes in the benefit obligation:
Benefit obligation - beginning of year	1,016,000,000	1,127,000,000
Service cost	24,000,000	29,000,000	$ 25,000,000
Interest cost	44,000,000	43,000,000	42,000,000
Actuarial (gain) loss	83,000,000	(126,000,000)
Spin-off of California Resources	(72,000,000)
Benefits paid	(59,000,000)	(57,000,000)
Benefit obligation - end of year	1,036,000,000	1,016,000,000	1,127,000,000
Changes in plan assets:
Funded/(Unfunded) status:	(1,036,000,000)	(1,016,000,000)
Net periodic benefit costs:
Service cost	24,000,000	29,000,000	25,000,000
Interest cost	44,000,000	43,000,000	42,000,000
Recognized actuarial loss	20,000,000	38,000,000	37,000,000
Other costs and adjustments	1,000,000	1,000,000	1,000,000
Net periodic benefit cost	89,000,000	$ 111,000,000	$ 105,000,000
Amounts that will be amortized from accumulated other comprehensive income (Loss) in next fiscal year
Estimated net loss that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	29,000,000
Estimated prior service cost that will be amortized from AOCI into net periodic benefit cost over the next fiscal year	$ 1,000,000
Benefit Obligation Assumptions:
Discount rate (as a percent)	3.99%	4.75%
Net Periodic Benefit Cost Assumptions:
Discount rate (as a percent)	4.75%	3.89%
Assumed health care cost trend rates
Consumer Price Index (CPI) increase (as a percent)	1.79%	2.36%
Projected annual rates of health care cost trend rates (as a percent)	7.75%
Projected ultimate health care cost trend rates (as a percent)	5.00%
Year the projected health care cost trend rate reaches ultimate trend rate	2025
Increase (decrease) in projected annual rates of health care cost trend rates (as a percent)	(0.25%)
Effect of 1-percent increase or a 1-percent decrease in these assumed health care cost trend rates
Effect of 1-percent increase in assumed health care cost trend rates on postretirement benefit obligation	$ 55,000,000
Effect of 1-percent decrease in assumed health care cost trend rates on postretirement benefit obligation	$ 47,000,000

INVESTMENTS AND RELATED-PARTY TRANSACTIONS (Details) shares in Millions, $ in Millions	1 Months Ended		12 Months Ended
	Oct. 31, 2014 USD ($)	Oct. 31, 2013 USD ($)	Dec. 31, 2014 USD ($) item shares	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
EQUITY INVESTMENTS
Pre-tax gain on sale of equity investment			$ 2,505	$ 1,175
RELATED-PARTY TRANSACTIONS
Sales to related parties			835	663	$ 419
Purchases from related parties			6		8
Services to related parties			27	30	17
Advances and amounts due from related parties			26	67	25
Amounts due to related parties			15	3	129
Equity Method Investments
Equity method investment amounts			1,171	1,459	1,894
Equity investments dividends paid			396	447	526
Excess of investments in equity investees over the underlying equity in net assets			632
Excess of investments in equity investees over the underlying equity in net assets, which represents goodwill			546
Equity-method investments financial information summarized by Income Statement line item
Revenues			3,090	3,373	2,667
Costs and expenses			2,774	2,987	2,310
Net income			316	386	$ 357
Equity-method investments financial information summarized by Balance Sheet line item
Current assets			1,127	1,813
Non-current assets			2,925	4,412
Current liabilities			771	1,308
Long-term debt			1,701	2,506
Other non-current liabilities			83	163
Stockholders' equity			$ 1,498	$ 2,248
General Partner of Plains All American Pipeline,L.P
EQUITY INVESTMENTS
Ownership interest (as a percent)			13.00%
Proceeds from sale of investment	$ 1,700	$ 1,400
Pre-tax gain on sale of equity investment	$ 1,400	$ 1,000
RELATED-PARTY TRANSACTIONS
Sales to related party (as a percent)			46.00%	72.00%	80.00%
California Resource Corporation
EQUITY INVESTMENTS
Investment recorded as available for sale asset, shares owned \| shares			71.5
Interest in investment recorded as available for sale asset (as a percent)			18.70%
Value of investment recorded as available for sale asset			$ 394
Other than temperary loss			$ 553
Dolphin Energy
EQUITY INVESTMENTS
Equity method investment ownership percentage			24.50%
Ownership interest (as a percent)			24.50%
Number of separate economic interests comprising investment in unconsolidated affiliate \| item			2

Industry Segments (Details) $ in Millions		1 Months Ended			12 Months Ended
Industry Segments (Details) $ in Millions	Nov. 30, 2014 USD ($)	Apr. 30, 2014 USD ($)	Oct. 31, 2013 USD ($)	May 31, 2013 USD ($)	Dec. 31, 2014 USD ($) segment	Dec. 31, 2013 USD ($) segment	Dec. 31, 2012 USD ($) segment
Industry Segments
Number of operating segments \| segment					3	3	3
Segment Information
Net sales					$ 19,312.0	$ 20,170.0	$ 20,100.0
Pretax operating profit (loss)					1,555.0	8,146.0	6,488.0
Less: Income from continuing operations attributable to noncontrolling interest					(14.0)
Income taxes					(1,685.0)	(3,214.0)	(2,659.0)
Discontinued operations, net					760.0	971.0	769.0
Net income					616.0	5,903.0	4,598.0
Investments in unconsolidated entities					1,171.0	1,459.0	1,894.0
Property, plant and equipment additions, net					9,110.0	7,494.0	7,974.0
Depreciation, Depletion and Amortization					4,261.0	4,203.0	3,585.0
Total assets					56,259.0	69,443.0	64,210.0
Asset impairments and related items					7,379.0	621.0	1,710.0
Pre-tax gain on sale of investment					2,505.0	1,175.0
Foreign oil and gas assets
Segment Information
Net sales					7,369.0	8,446.0	8,813.0
Pre-tax impairment of oil and gas properties					1,100.0
Colombia
Segment Information
Net sales					938.0	1,022.0	1,027.0
Domestic oil and gas assets
Segment Information
Pre-tax impairment of oil and gas properties					4,700.0
BridgeTex
Segment Information
Pre-tax gain on sale of investment	$ 633.0				$ 633.0
Oil and Gas
Segment Information
Asset impairments and related items							$ 1,700.0
Oil and Gas \| Non-producing domestic oil and gas acreage member
Segment Information
Pre-tax impairment of oil and gas properties						$ 607.0
Oil and Gas \| Oil
Segment Information
Product revenue to net sales (as a percent)					90.00%	91.00%	91.00%
Chemical
Segment Information
Impaired property, plant and equipment					$ 149.0
Pre-tax impairment of oil and gas properties					$ 111.0
Chemical \| Basic Chemicals
Segment Information
Product revenue to net sales (as a percent)					54.00%	55.00%	57.00%
Chemical \| Vinyls
Segment Information
Product revenue to net sales (as a percent)					43.00%	42.00%	40.00%
Chemical \| Other Chemicals
Segment Information
Product revenue to net sales (as a percent)					3.00%	3.00%	3.00%
Midstream and Marketing \| Gas Processing
Segment Information
Sales revenues for businesses as a percentage of total sales revenues					49.00%	54.00%	60.00%
Midstream and Marketing \| Power
Segment Information
Sales revenues for businesses as a percentage of total sales revenues					31.00%	30.00%	24.00%
Midstream and Marketing \| Marketing, Trading, Transportation and other
Segment Information
Sales revenues for businesses as a percentage of total sales revenues					20.00%	16.00%	16.00%
Operating segments \| Oil and Gas
Segment Information
Net sales					$ 13,887.0	$ 15,008.0	$ 14,953.0
Pretax operating profit (loss)					428.0	6,411.0	5,840.0
Net income					428.0	6,411.0	5,840.0
Investments in unconsolidated entities					11.0	108.0	113.0
Property, plant and equipment additions, net					6,589.0	5,456.0	6,067.0
Depreciation, Depletion and Amortization					3,701.0	3,676.0	3,065.0
Total assets					31,072.0	46,213.0	44,004.0
Operating segments \| Chemical
Segment Information
Net sales					4,817.0	4,673.0	4,580.0
Pretax operating profit (loss)					420.0	743.0	720.0
Net income					420.0	743.0	720.0
Investments in unconsolidated entities					202.0	34.0	108.0
Property, plant and equipment additions, net					325.0	435.0	365.0
Depreciation, Depletion and Amortization					367.0	346.0	345.0
Total assets					3,917.0	3,947.0	3,854.0
Operating segments \| Midstream and Marketing
Segment Information
Net sales					1,373.0	1,174.0	1,164.0
Pretax operating profit (loss)					2,578.0	1,523.0	440.0
Less: Income from continuing operations attributable to noncontrolling interest					(14.0)
Net income					2,564.0	1,523.0	440.0
Investments in unconsolidated entities					948.0	1,307.0	1,662.0
Property, plant and equipment additions, net					2,093.0	1,437.0	1,451.0
Depreciation, Depletion and Amortization					160.0	149.0	148.0
Total assets					12,283.0	14,374.0	12,762.0
Corporate and Eliminations
Segment Information
Net sales					(765.0)	(685.0)	(597.0)
Pretax operating profit (loss)					(1,871.0)	(531.0)	(512.0)
Income taxes					(1,685.0)	(3,214.0)	(2,659.0)
Discontinued operations, net					760.0	971.0	769.0
Net income					(2,796.0)	(2,774.0)	(2,402.0)
Investments in unconsolidated entities					10.0		11.0
Property, plant and equipment additions, net					103.0	166.0	91.0
Depreciation, Depletion and Amortization					33.0	32.0	27.0
Total assets					8,987.0	4,909.0	$ 3,590.0
Impaired property, plant and equipment						10.0
Other charges					31.0	58.0
General Partner of Plains All American Pipeline,L.P
Segment Information
Pre-tax gain on sale of investment					1,351.0
Gain on sale of investments and other items			$ 1,044.0			1,044.0
Hugoton Field operations
Segment Information
Pre-tax gain on sale		$ 531.0			$ 531.0
Carbocloro member \| Chemical
Segment Information
Pre-tax gain on sale of investment				$ 131.0		$ 131.0

Spin-off of California Resources Corporation (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
PROPERTY, PLANT, AND EQUIPMENT
Accumulated depreciation, depletion and amortization	$ 34,785,000,000	$ 33,231,000,000
Sales and other operating revenues and income from discontinued operations related to California Resources Company
Income tax expense	454,000,000	550,000,000	$ 466,000,000
Income from discontinued operations	760,000,000	971,000,000	769,000,000
California Resources Corporation
CURRENT ASSETS
Cash and cash equivalents	8,000,000
Trade receivables, net	591,000,000	30,000,000
Inventories	73,000,000	75,000,000
Other current assets	22,000,000	125,000,000
Total current assets	694,000,000	230,000,000
PROPERTY, PLANT, AND EQUIPMENT
Total Property, Plant and Equipment	23,257,000,000	21,065,000,000
Accumulated depreciation, depletion and amortization	(8,079,000,000)	(6,974,000,000)
LONG TERM RECEIVABLES AND OTHER ASSETS, NET	112,000,000	35,000,000
TOTAL ASSETS OF DISCOUNTINUED OPERATIONS	15,984,000,000	14,356,000,000
CURRENT LIABILITIES
Accounts payable	696,000,000	447,000,000
Accrued liabilities	182,000,000	253,000,000
Total current liabilities	878,000,000	700,000,000
LONG-TERM DEBT, NET	6,295,000,000
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred domestic and foreign income taxes	3,227,000,000	2,904,000,000
Other	531,000,000	509,000,000
Total deferred credits and other liabilities	3,758,000,000	3,413,000,000
TOTAL LIABILITIES OF DISCONTINUED OPERATIONS	10,931,000,000	4,113,000,000
California Resources Corporation \| Spin-off California Resources Corp
Sales and other operating revenues and income from discontinued operations related to California Resources Company
Sales and other operating revenue from discontinued operations	3,951,000,000	4,285,000,000	4,072,000,000
Income from discontinued operations before-tax	1,205,000,000	1,531,000,000	1,265,000,000
Income tax expense	440,000,000	541,000,000	459,000,000
Income from discontinued operations	$ 765,000,000	$ 990,000,000	$ 806,000,000

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
CONSOLIDATED CONDENSED BALANCE SHEETS
Trade receivables, reserves (in dollars)	$ 17	$ 17
Common stock, per share par value (in dollars per share)	$ 0.20	$ 0.20
Common stock, authorized shares	1,100,000,000	1,100,000,000
Common stock, outstanding shares	890,557,537	889,919,058
Treasury stock, shares	119,951,199	93,928,179

Consolidated Statements of Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
Cost of sales, depreciation, depletion and amortization	$ 4,257	$ 4,197	$ 3,578

Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Total
Balance at Dec. 31, 2011	$ 177	$ (4,502)	$ 7,286	$ 35,142	$ (483)		$ 37,620
Increase (Decrease) in Stockholders' Equity
Net income				4,598			4,598
Other comprehensive income (loss), net of taxes					(19)		(19)
Dividends on common stock				(1,750)			(1,750)
Issuance of common stock and other, net	1		155				156
Noncontrolling interest contributions						$ 32	32
Purchases of treasury stock		(589)					(589)
Balance at Dec. 31, 2012	178	(5,091)	7,441	37,990	(502)	32	40,048
Increase (Decrease) in Stockholders' Equity
Net income				5,903			5,903
Other comprehensive income (loss), net of taxes					199		199
Dividends on common stock				(2,062)			(2,062)
Issuance of common stock and other, net			74				74
Noncontrolling interest contributions						214	214
Purchases of treasury stock		(1,004)					(1,004)
Balance at Dec. 31, 2013	178	(6,095)	7,515	41,831	(303)	246	43,372
Increase (Decrease) in Stockholders' Equity
Net income				616			616
Other comprehensive income (loss), net of taxes					(76)		(76)
Dividends on common stock				(2,252)			(2,252)
Issuance of common stock and other, net			84				84
Noncontrolling interest distributions, net						$ (246)	(246)
Distribution of California Resources stock to shareholders				(4,128)	22		(4,106)
Purchases of treasury stock		(2,433)					(2,433)
Balance at Dec. 31, 2014	$ 178	$ (8,528)	$ 7,599	$ 36,067	$ (357)		$ 34,959

Asset Acquisitions, Dispositions and Other	12 Months Ended
Asset Acquisitions, Dispositions and Other	Dec. 31, 2014
Asset Acquisitions, Dispositions and Other
Asset Acquisitions, Dispositions and Other	NOTE 2ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS 2014 In December 2014, Occidental spent $1.3 billion on an acquisition in the Permian Basin totaling approximately 100,000 net acres. The assets acquired include primarily unproved oil and gas property leases and the related existing lease contracts, permits, licenses, easements, and equipment located on the properties. On November 30, 2014, the spin-off of California Resources was completed through the pro rata distribution of 81.3 percent of the outstanding shares of common stock of California Resources to holders of Occidental common stock. See Note 17 Spin-off of California Resources. In November 2014, Occidental entered into an agreement with Plains All American Pipeline, L.P., Plains GP Holdings, L.P. (Plains Pipeline), and Magellan Midstream Partners, L.P. (Magellan) to sell its interest in the BridgeTex Pipeline Company, LLC (BridgeTex), which owns the BridgeTex Pipeline. The sale of Occidental’s interest in BridgeTex includes two transactions: Plains Pipeline purchased Occidental’s interest in BridgeTex for $1.075 billion, and Magellan acquired Occidental’s interest in the southern leg of the BridgeTex Pipeline for $75 million. Occidental recognized a pre-tax gain of $633 million. Concurrent with the sale of its interest in the BridgeTex Pipeline Company, LLC, Occidental sold a portion of Plains Pipeline for pre-tax proceeds of $1.7 billion, resulting in a pre-tax gain of $1.4 billion. In February 2014, Occidental entered into an agreement to sell its Hugoton Field operations in Kansas, Oklahoma and Colorado for pre-tax proceeds of $1.4 billion. The transaction was completed in April 2014 and, after taking into account purchase price adjustments, it resulted in pre-tax proceeds of $1.3 billion. Occidental recorded a pre-tax gain on sale of $531 million. 2013 During the year ended December 31, 2013, Occidental paid approximately $0.5 billion to acquire certain domestic oil and gas properties. In October 2013, Occidental sold a portion of its equity interest in Plains Pipeline for approximately $1.4 billion, resulting in a pre-tax gain of approximately $1.0 billion. In addition, Occidental and Mexichem, S.A.B. de C.V. (Mexichem) formed Ingleside Ethylene, LLC (Ingleside) to build and operate an ethane steam cracking unit capable of producing 1.2 billion pounds of ethylene per year (Cracker), which is expected to begin operating in 2017. With the ethylene produced from the Cracker, Occidental will produce vinyl chloride monomer (VCM), of which Mexichem has contracted to purchase a substantial majority. As of December 31, 2013, Occidental had invested approximately $23 million in Ingleside for its portion of construction costs. In May 2013, Occidental sold its investment in Carbocloro, a Brazilian chemical facility. Occidental received net proceeds of approximately $270 million and recorded a pre-tax gain of $131 million. Dr. Ray Irani submitted his resignation as a director, effective as of May 15, 2013, and ceased serving as an executive of Occidental. In addition, certain other employees and several consulting arrangements were terminated during the second quarter. As a result of these developments and actions, Occidental recorded a $55 million pre-tax charge in the second quarter for the estimated costs of Dr. Irani’s employment and post-employment benefits, and the termination of other employees and consulting arrangements. Dr. Irani and Occidental have settled all matters relating to his separation. The cost of the settlement was consistent with the estimated charge recorded in the second quarter. Dr. Irani’s employment terminated in December 2013. 2012 During the year ended December 31, 2012, Occidental paid approximately $1.9 billion for domestic oil and gas properties in the Permian Basin, Williston Basin and South Texas. In November 2012, Occidental and Magellan formed BridgeTex Pipeline Company, LLC to construct the BridgeTex Pipeline, which began service in the second half of 2014.

Accounting and Disclosure Changes	12 Months Ended
Accounting and Disclosure Changes	Dec. 31, 2014
Accounting and Disclosure Changes
Accounting and Disclosure Changes	NOTE 3ACCOUNTING AND DISCLOSURE CHANGES RECENTLY ADOPTED ACCOUNTING AND DISCLOSURE CHANGES In January 2015, the Financial Accounting Standards Board (FASB) issued rules which eliminate from GAAP the concept of extraordinary item. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The rules are not expected to have an impact on Occidental’s financial statements upon adoption. In June 2014, the FASB issued rules affecting entities that grant their employees share-based payment awards in which the terms of the awards provide that a performance target can be achieved after the requisite service period. The new rules require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Entities may apply the update either: (a) prospectively to all awards granted or modified after the effective date; or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. These rules are effective for annual periods beginning on or after December 15, 2015. The rules are not expected to have a material impact on Occidental’s financial statements upon adoption but will require assessment on an ongoing basis. In May 2014, the FASB issued rules relating to revenue recognition. Under the new rules, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods or services. The rules also require more detailed disclosures related to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. These rules are effective for the Company for interim and annual periods beginning after December 15, 2016. The rules are not expected to have a material impact on Occidental’s financial statements upon adoption. In April 2014, the FASB issued rules changing the requirements for reporting discontinued operations so that only the disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results will be reported as discontinued operations in the financial statements. These rules are effective for annual periods beginning on or after December 15, 2014. The rules are not expected to have a material impact on Occidental’s financial statements upon adoption. In July 2013, the FASB issued rules requiring net, rather than gross, presentation of a deferred tax asset for a net operating loss or other tax credit and any related liability for unrecognized tax benefits. The rules became effective on January 1, 2014, and did not have a material impact on Occidental’s financial statements.

Asset Acquisitions, Dispositions and Other (Details) $ in Millions, lb in Billions			1 Months Ended						12 Months Ended
	Nov. 30, 2014 USD ($)	May 15, 2013 USD ($)	Dec. 31, 2014 USD ($) a	Nov. 30, 2014 USD ($)	Apr. 30, 2014 USD ($)	Feb. 28, 2014 USD ($)	Oct. 31, 2013 USD ($) lb	May 31, 2013 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Acquistions, dispositions and other transactions
Gain on sale of assets and equity investments									$ 2,505	$ 1,175
Total portion of construction costs										23
Charge for former employees and consultants		$ 55
Spin-off California Resources Corp
Acquistions, dispositions and other transactions
Percentage of common stock distributed	81.30%			81.30%
Permian region
Acquistions, dispositions and other transactions
Cash paid on acquisition			$ 1,300						1,300
Number of acres acquired \| a			100,000
Acquisition of oil and gas properties											$ 1,900
Domestic Oil and Gas Properties
Acquistions, dispositions and other transactions
Acquisition of oil and gas properties										$ 500
Brazilian chemical facility
Acquistions, dispositions and other transactions
Pre-tax proceeds from sale of assets								$ 270
Gain on sale of assets and equity investments								$ 131
General Partner of Plains All American Pipeline,L.P
Acquistions, dispositions and other transactions
Sale of equity investment				$ 1,700			$ 1,400
Gain on sale of assets and equity investments				$ 1,400			$ 1,000
Ingleside
Acquistions, dispositions and other transactions
Ethylene production capacity of ethane steam cracking unit, per year (in pounds) \| lb							1.2
BridgeTex
Acquistions, dispositions and other transactions
Number of transactions involved in sale				2
Sale of equity investment	$ 75			$ 1,075
Gain on sale of assets and equity investments	$ 633								633
Hugoton Field operations
Acquistions, dispositions and other transactions
Pre-tax proceeds from sale of assets					$ 1,300	$ 1,400
Pre-tax gain on sale					$ 531				$ 531

Inventories (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Inventories
Net carrying values of inventories valued under the LIFO method	$ 199	$ 205
Raw materials	71	74
Materials and supplies	585	628
Finished goods	485	589
Inventories, Gross	1,141	1,291
LIFO reserve	(89)	(91)
Total	$ 1,052	$ 1,200

LONG-TERM DEBT (Details 2) - Credit Facility $ in Billions	12 Months Ended
LONG-TERM DEBT (Details 2) - Credit Facility $ in Billions	Dec. 31, 2014 USD ($)
Debt instrument
Credit Facility, maximum borrowing capacity	$ 2.0
Average annual facility fee as percent of the total commitment amounts	0.07%
Maximum amount of credit facility available in the form of letters of credit	$ 1.0

LONG-TERM DEBT (Details 3) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013
Principal payments on long-term debt
Due in 2015	$ 0
Due in 2016	1,500
Due in 2017	1,300
Due in 2018	500
Due in 2019	100
Due in 2020 and thereafter	3,500
Aggregate future principal payments	6,900
Other Fixed-Rate and Variable-Rate Debt Disclosures
Estimated fair values of long-term debt	7,000	$ 7,100
Debt carrying value	$ 6,857	$ 6,964
Variable-rate debt as percent of Occidental's total debt	1.00%	1.00%

LEASE COMMITMENTS (Details) - USD ($) $ in Millions	12 Months Ended
LEASE COMMITMENTS (Details) - USD ($) $ in Millions	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Future net minimum operating lease payments
Operating lease, 2015	$ 192
Operating lease, 2016	169
Operating lease, 2017	161
Operating lease, 2018	168
Operating lease, 2019	104
Operating lease, Thereafter	592
Total minimum lease payments	1,386
Rental expense for operating leases, net of sublease rental income	155	$ 196	$ 165
Sublease income	$ 4	$ 3	$ 4

Derivatives (Details) ft³ in Billions	Dec. 31, 2013 ft³
Derivatives
Natural gas held in storage (in cubic feet)	11
Forecast sale of natural gas from storage designated as cash-flow hedges (in cubic feet)	13

Derivatives (Details 3) item in Millions, $ in Millions	12 Months Ended
Derivatives (Details 3) item in Millions, $ in Millions	Dec. 31, 2014 USD ($) item	Dec. 31, 2013 USD ($) item
Outstanding commodity derivatives contracts not designated as hedging instruments
Net gains from derivatives not designated as hedging instruments recognized in net sales (in dollars) \| $	$ (71)	$ 11
CO2 (in cubic feet)
Outstanding commodity derivatives contracts not designated as hedging instruments
Net Outstanding Position Long/(Short)	621
Oil (in barrels)
Outstanding commodity derivatives contracts not designated as hedging instruments
Net Outstanding Position Long/(Short)	(9)	(22)
Natural Gas (in cubic feet)
Outstanding commodity derivatives contracts not designated as hedging instruments
Net Outstanding Position Long/(Short)	(32,000)	(10,000)

Lawsuits, Claims, Commitments and Contingencies (Details) $ in Millions	12 Months Ended
	Dec. 31, 2014 USD ($)
Purchase obligations
State of New Jersey	State of New Jersey
Litigation Settlement, Amount	$ 190
Long term purchase and contractual obligations
Purchase obligations
Total purchase obligations	10,000
Purchase obligations, due in fiscal year 2015	3,300
Purchase obligations, due in fiscal year 2016	1,700
Purchase obligations, due in fiscal year 2017	1,000
Purchase obligations, due in fiscal year 2018	700
Purchase obligations, due in fiscal year 2019	500
Capital Additions
Purchase obligations
Commitments for major fixed and determinable capital expenditures during 2014 and thereafter	$ 1,400

Fair Value Measurements (Details) $ in Millions	3 Months Ended	12 Months Ended
Fair Value Measurements (Details) $ in Millions	Dec. 31, 2014 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($)
Fair Value - Other Financial Instruments
Debt carrying value	$ 6,857	$ 6,857	$ 6,964
Asset impairments and related items		$ 7,379	621	$ 1,710
Risk adjusted discount rate		8
Chemical
Fair Value - Other Financial Instruments
Pre-tax impairment of oil and gas properties		$ 111
Impaired property, plant and equipment		149
Proved oil and gas assets - domestic
Fair Value - Other Financial Instruments
Pre-tax impairment of oil and gas properties		2,759
Proved oil and gas assets - international
Fair Value - Other Financial Instruments
Pre-tax impairment of oil and gas properties		1,039
Level 3 \| Chemical
Fair Value - Other Financial Instruments
Carrying value of impaired assets	18	18
Level 3 \| Proved oil and gas assets - domestic
Fair Value - Other Financial Instruments
Carrying value of impaired assets	2,249	2,249
Level 3 \| Proved oil and gas assets - international
Fair Value - Other Financial Instruments
Carrying value of impaired assets	45	45
Net Book Value \| Chemical
Fair Value - Other Financial Instruments
Net book value of impaired assets	129	129
Net Book Value \| Proved oil and gas assets - domestic
Fair Value - Other Financial Instruments
Net book value of impaired assets	5,008	5,008
Net Book Value \| Proved oil and gas assets - international
Fair Value - Other Financial Instruments
Net book value of impaired assets	1,084	1,084
Recurring \| Level 1
Assets:
Commodity derivatives	712	712	185
Available for sale investment	394	394
Liabilities:
Commodity derivatives	750	750	199
Recurring \| Level 2
Assets:
Commodity derivatives	127	127	195
Liabilities:
Commodity derivatives	246	246	223
Recurring \| Netting and Collateral
Assets:
Commodity derivatives	(742)	(742)	(329)
Liabilities:
Commodity derivatives	(756)	(756)	(364)
Recurring \| Total Fair Value
Assets:
Commodity derivatives	97	97	51
Available for sale investment	394	394
Liabilities:
Commodity derivatives	240	$ 240	$ 58
Non recurring \| Domestic and international proved and unproved oil and gas properties member
Fair Value - Other Financial Instruments
Pre-tax impairment of oil and gas properties	3,800
Non recurring \| Williston basin and South Texas oil and gas properties member
Fair Value - Other Financial Instruments
Pre-tax impairment of oil and gas properties	2,800
Non recurring \| Bahrain oil and gas properties member
Fair Value - Other Financial Instruments
Pre-tax impairment of oil and gas properties	$ 1,000

Industry Segments (Details 2) - USD ($) $ in Millions		12 Months Ended
Industry Segments (Details 2) - USD ($) $ in Millions	May 15, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Segment Information
Net sales		$ 19,312	$ 20,170	$ 20,100
Property, plant and equipment, net		39,730	55,821	52,064
Corporate significant items affecting earnings/Pre-tax operating profit (loss)
Corporate significant items affecting earnings/spin-off and other cost		(61)
Corporate significant items affecting earnings/charge for former executives and consultants	$ (55)
United States
Segment Information
Net sales		11,943	11,724	11,287
Property, plant and equipment, net		26,673	42,956	40,786
Foreign oil and gas assets
Segment Information
Net sales		7,369	8,446	8,813
Property, plant and equipment, net		13,057	12,865	11,278
Corporate significant items affecting earnings/Pre-tax operating profit (loss)
Corporate significant items affecting earnings/impairment of oil and gas properties		1,100
Qatar
Segment Information
Net sales		2,803	2,995	3,356
Property, plant and equipment, net		2,605	2,605	2,676
Oman
Segment Information
Net sales		2,524	2,567	2,578
Property, plant and equipment, net		2,876	2,509	2,353
Colombia
Segment Information
Net sales		938	1,022	1,027
Property, plant and equipment, net		1,396	1,259	1,041
United Arab Emirates
Segment Information
Property, plant and equipment, net		4,312	3,131	2,104
Other Foreign
Segment Information
Net sales		1,104	1,862	1,852
Property, plant and equipment, net		1,868	3,361	3,104
Joslyn oil sands project member
Corporate significant items affecting earnings/Pre-tax operating profit (loss)
Corporate significant items affecting earnings/other than temperary loss		(805)
Corporate
Corporate significant items affecting earnings/Pre-tax operating profit (loss)
Corporate significant items affecting earnings/Pre-tax operating profit (loss) total		(1,419)	(55)	(20)
Corporate significant items affecting earnings/Income Taxes
Corporate significant items affecting earnings/Income Taxes Total		927	(167)	612
Corporate \| Litigation reserves
Corporate significant items affecting earnings/Pre-tax operating profit (loss)
Corporate significant items affecting earnings/Litigation reserves				$ (20)
Corporate \| Charge for former executives and consultants
Corporate significant items affecting earnings/Pre-tax operating profit (loss)
Corporate significant items affecting earnings/charge for former executives and consultants			$ (55)
Corporate \| Spin-off California Resources Corp \| Premium on debt extinguishments
Corporate significant items affecting earnings/Pre-tax operating profit (loss)
Corporate significant items affecting earnings/other than temperary loss		$ (553)

Spin-off of California Resources Corporation (Details) - Spin-off California Resources Corp shares in Millions, $ in Millions	1 Months Ended
	Nov. 30, 2014 USD ($) shares	Dec. 31, 2014 USD ($)
Acquistions, dispositions and other transactions
Percentage of common stock distributed	81.30%
Common Stock Conversion Ratio	0.4
Distribution of restricted cash to pay obligations of spin-off agreements	$ 4,950
Distribution of cash to pay obligations of spin-off agreements	$ 1,150
Shares owned by Occidental \| shares	71.5
Senior Notes issued	$ 5,000
Borrowings under term loan facility	1,000
Borrowings under revolving credit facility	$ 2,000
Period Following Spin-off within which cash will be distributed to satisfy spin off obligations	P18M
Remaining balance of cash distribution included in restricted cash on balance sheet		$ 4,000
Period for the provision of specified transition services	24 months