Asset Acquisitions, Dispositions and Other

3 Months Ended

Mar. 31, 2015

Asset Acquisitions, Dispositions and Other

Asset Acquisitions, Dispositions and Other

3. Asset Acquisitions, Dispositions and Other

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 to holders of Occidental common stock, creating an independent, publicly traded company.  In connection with the spin-off, California Resources distributed to Occidental $4.95 billion in restricted cash and $1.15 billion in unrestricted cash.  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 March 31, 2015, the remaining balance of the restricted cash distribution was $3.3 billion and was included in the “Restricted cash” line on the consolidated balance sheet.  Occidental retained 71.5 million shares of California Resources, see Note 9, Fair Value Measurements for additional information.

Sales and other operating revenues and income from discontinued operations related to California Resources for the three month period ending March 31, 2014, were as follows (in millions):

Sales and other operating revenue from discontinued operations	$	1,120
Income from discontinued operations before-tax	$	390
Income tax expense	(138		)
Income from discontinued operations	$	252