Company: OXY-WT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0000797468-25-000029
Chunk: 46

Company: OCCIDENTAL PETROLEUM CORP /DE/
Filing Date: 2025-02-18
Form: 10-K
Item: Item 8
Chunk 46
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Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. Occidental assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. Occidental uses its incremental borrowing rate at commencement date to determine the present value of lease payments. For assets except drilling rigs, Occidental does not separate lease and non-lease components as the non-lease portions are not significant.Occidental has operating leases for office space of $309 million, drilling rigs of $252 million, compressors of $214 million, railcars of $101 million, and $112 million of other assets. Occidental’s finance leases include compressors of $467 million, office space of $231 million, and $95 million of other assets. Property, plant and equipment included $777 million of finance lease assets as of December 31, 2024.The following summarizes maturities of lease liabilities as of December 31, 2024:millionsOperating Leases (a)Finance Leases (b)Total2025$410 $172 $582 2026264 161 425 2027136 145 281 202876 115 191 202958 82 140 Thereafter137 265 402 Total lease payments1,081 940 2,021 Less: Discount(93)(147)(240)Total lease liabilities$988 $793 $1,781 (a)The weighted-average remaining lease term is 4.0 years and the weighted-average discount rate is 4.77%.(b)The weighted-average remaining lease term is 5.7 years and the weighted-average discount rate is 4.80%.

 OXY 2024 FORM 10-K89

table of contentsFINANCIAL STATEMENTSFOOTNOTES

The following tables present Occidental’s total lease cost and other information for operating and finance lease liabilities for the years ended December 31:millions20242023Lease CostFinance lease cost:Amortization of right-of-use assets$152 $126 Interest on lease liabilities36 27 Operating lease cost518 398 Short-term lease cost367 460 Total lease cost$1,073 $1,011 mill