Derivatives (Tables)

9 Months Ended

Sep. 30, 2013

Derivatives

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

	Periods ended September 30
	Three Months						Nine Months
	2013			2012			2013			2012
Beginning Balance — AOCI	$	(9	)	$	(11	)	$	(7	)	$	1
Unrealized (losses) gains recognized in AOCI	—			(2		)	1			10
Gains reclassified to income	(1		)	—			(4		)	(24		)
Ending Balance — AOCI	$	(10	)	$	(13	)	$	(10	)	$	(13	)

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

	Asset Derivatives				Liability Derivatives
September 30, 2013	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	4		Accrued liabilities	$	1
	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	—
		4				1
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	841			Accrued liabilities	850
	Long-term receivables and other assets, net	20			Deferred credits and other liabilities	17
		861				867
Total gross fair value		865				868
Less: counterparty netting and cash collateral (b) (d)		(750		)		(784		)
Total net fair value of derivatives		$	115			$	84

	Asset Derivatives				Liability Derivatives
December 31, 2012	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Other current assets	$	11		Accrued liabilities	$	1
	Long-term receivables and other assets, net	—			Deferred credits and other liabilities	1
		11				2
Derivatives not designated as hedging instruments (a)
Commodity contracts	Other current assets	386			Accrued liabilities	479
	Long-term receivables and other assets, net	22			Deferred credits and other liabilities	16
		408				495
Total gross fair value		419				497
Less: counterparty netting and cash collateral (c) (d)		(301		)		(371		)
Total net fair value of derivatives		$	118			$	126

(a)   Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and qualify for net presentation in the consolidated balance sheet.

(b)   As of September 30, 2013, collateral received of $13 million has been netted against derivative assets and collateral paid of $47 million has been netted against derivative liabilities.

(c)   As of December 31, 2012, collateral received of $25 million has been netted against derivative assets and collateral paid of $95 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 $85 million and $116 million deposited by Occidental has not been reflected in these derivative fair value tables, but is included in the other current assets balance as of September 30, 2013 and December 31, 2012, respectively.

Derivatives Not Designated as Hedging Instruments | Commodity Contracts

Derivatives

Schedule of outstanding derivative instruments

	Net Outstanding Position
	Long / (Short)
Commodity	2013		2012
Oil (million barrels)	(15	)	(4	)
Natural gas (billion cubic feet)	(47	)	(170	)
Precious metals (million troy ounces)	1		1