Item 1. Financial Statements (unaudited)

Consolidated Condensed Balance Sheets			Occidental Petroleum Corporation and Subsidiaries

millions						June 30, 2022						December 31, 2021
ASSETS
CURRENT ASSETS
Cash and cash equivalents						$	1,362					$	2,764
Trade receivables, net						6,350						4,208
Inventories						1,564						1,846
Assets held for sale						—						72
Other current assets						1,132						1,321
Total current assets						10,408						10,211
INVESTMENTS IN UNCONSOLIDATED ENTITIES						3,328						2,938
PROPERTY, PLANT AND EQUIPMENT
Oil and gas						102,122						101,251
Chemical						7,629						7,571
Midstream and marketing						7,577						8,371
Corporate						973						964
Gross property, plant and equipment						118,301						118,157
Accumulated depreciation, depletion and amortization						(59,728)						(58,227)
Net property, plant and equipment						58,573						59,930
OPERATING LEASE ASSETS						721						726
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET						1,191						1,231
TOTAL ASSETS						$	74,221					$	75,036
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

Consolidated Condensed Balance Sheets			Occidental Petroleum Corporation and Subsidiaries

millions, except share and per-share amounts						June 30, 2022						December 31, 2021
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt (a)						$	459					$	186
Current operating lease liabilities						178						186
Accounts payable						5,197						3,899
Accrued liabilities						3,896						4,046
Liabilities of assets held for sale						—						7
Total current liabilities						9,730						8,324
LONG-TERM DEBT, NET
Long-term debt, net (b)						21,743						29,431
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes, net						5,020						7,039
Asset retirement obligations						3,600						3,687
Pension and postretirement obligations						1,513						1,540
Environmental remediation liabilities						918						944
Operating lease liabilities						589						585
Other						3,278						3,159
Total deferred credits and other liabilities						14,918						16,954
STOCKHOLDERS' EQUITY
Preferred stock, at $1.00 per share par value (100,000 shares as of June 30, 2022 and December 31, 2021)						9,762						9,762
Common stock, at $0.20 per share par value, authorized shares: 1.5 billion, issued shares: 2022 — 1,090,722,384 shares and 2021 — 1,083,423,094 shares						218						217
Treasury stock: 2022 — 161,758,872 shares and 2021 — 149,348,394 shares						(11,391)						(10,673)
Additional paid-in capital						16,914						16,749
Retained earnings						12,462						4,480
Accumulated other comprehensive loss						(135)						(208)
Total stockholders' equity						27,830						20,327
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY						$	74,221					$	75,036

(a) Included $97 million and $85 million of current finance lease liabilities as of June 30, 2022 and December 31, 2021, respectively.

(b) Included $543 million and $504 million of finance lease liabilities as of June 30, 2022 and December 31, 2021, respectively.

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

Consolidated Condensed Statements of Operations			Occidental Petroleum Corporation and Subsidiaries

						Three months ended June 30,												Six months ended June 30,
millions, except per-share amounts						2022						2021						2022						2021
REVENUES AND OTHER INCOME
Net sales						$	10,676					$	5,958					$	19,025					$	11,251
Interest, dividends and other income						36						49						85						124
Gains on sales of assets and equity investments, net						23						3						158						114
Total						10,735						6,010						19,268						11,489
COSTS AND OTHER DEDUCTIONS
Oil and gas operating expense						1,005						712						1,869						1,488
Transportation and gathering expense						364						364						711						693
Chemical and midstream cost of sales						835						676						1,653						1,270
Purchased commodities						1,031						487						1,842						1,045
Selling, general and administrative expenses						244						177						440						343
Other operating and non-operating expense						291						248						590						506
Taxes other than on income						426						244						761						454
Depreciation, depletion and amortization						1,728						2,371						3,371						4,565
Asset impairments and other charges						—						21						—						156
Anadarko acquisition-related costs						13						52						78						93
Exploration expense						26						86						51						114
Interest and debt expense, net						114						385						485						780
Total						6,077						5,823						11,851						11,507
Income (loss) before income taxes and other items						4,658						187						7,417						(18)
OTHER ITEMS
Gains (losses) on interest rate swaps, net						127						(223)						262						176
Income from equity investments						201						179						390						300
Total						328						(44)						652						476
Income from continuing operations before income taxes						4,986						143						8,069						458
Income tax benefit (expense)						(1,231)						(43)						562						(59)
Income from continuing operations						3,755						100						8,631						399
Income (loss) from discontinued operations, net of tax						—						3						—						(442)
NET INCOME (LOSS)						3,755						103						8,631						(43)
Less: Preferred stock dividends						(200)						(200)						(400)						(400)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS						$	3,555					$	(97)					$	8,231					$	(443)
PER COMMON SHARE
Income (loss) from continuing operations—basic						$	3.76					$	(0.11)					$	8.71					$	—
Income (loss) from discontinued operations—basic						$	—					$	0.01					$	—					$	(0.47)
Net income (loss) attributable to common stockholders—basic						$	3.76					$	(0.10)					$	8.71					$	(0.47)
Income (loss) from continuing operations—diluted						$	3.47					$	(0.11)					$	8.11					$	—
Income (loss) from discontinued operations—diluted						$	—					$	0.01					$	—					$	(0.47)
Net income (loss) attributable to common stockholders—diluted						$	3.47					$	(0.10)					$	8.11					$	(0.47)
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

Consolidated Condensed Statements of Comprehensive Income (Loss)			Occidental Petroleum Corporation and Subsidiaries

						Three months ended June 30,												Six months ended June 30,
millions						2022						2021						2022						2021
Net income (loss)						$	3,755					$	103					$	8,631					$	(43)
Other comprehensive income (loss) items:
Gains on derivatives (a)						37						—						64						1
Pension and postretirement gains (losses) (b)						8						(3)						9						49
Other comprehensive income (loss), net of tax						45						(3)						73						50
Comprehensive income attributable to preferred and common stockholders						$	3,800					$	100					$	8,704					$	7

(a) Net of tax expense of $(10) million and zero for the three months ended June 30, 2022 and 2021, respectively, and $(18) million and zero for the six months ended June 30, 2022 and 2021, respectively.

(b) Net of tax benefit (expense) of $(3) million and $1 million for the three months ended June 30, 2022 and 2021, respectively, and $(3) million and $(14) million for the six months ended June 30, 2022 and 2021, respectively.

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

Consolidated Condensed Statements of Cash Flows			Occidental Petroleum Corporation and Subsidiaries

						Six months ended June 30,
millions						2022						2021
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)						$	8,631					$	(43)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Discontinued operations, net						—						442
Depreciation, depletion and amortization of assets						3,371						4,565
Deferred income tax benefit						(2,037)						(212)
Asset impairments and other charges						—						156
Gain on sales of assets, net						(158)						(114)
Other noncash reconciling items						(481)						51
Changes in operating assets and liabilities:
Increase in receivables						(2,155)						(1,179)
Decrease in inventories						287						58
(Increase) decrease in other current assets						12						(105)
Increase in accounts payable and accrued liabilities						771						475
Increase in current domestic and foreign income taxes						327						18
Operating cash flow from continuing operations						8,568						4,112
Operating cash flow from discontinued operations, net of taxes						—						112
Net cash provided by operating activities						8,568						4,224
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures						(1,830)						(1,277)
Change in capital accrual						(68)						(94)
Purchases of businesses and assets, net						(309)						(113)
Proceeds from sales of assets, net						324						503
Equity investments and other, net						(72)						(27)
Investing cash flow from continuing operations						(1,955)						(1,008)
Investing cash flow from discontinued operations						—						(28)
Net cash used by investing activities						(1,955)						(1,036)
CASH FLOW FROM FINANCING ACTIVITIES
Draws on receivables securitization facility						400						—
Payment of receivables securitization facility						(400)						—
Payments of long-term debt						(7,108)						(174)
Proceeds from issuance of common stock						117						11
Purchases of treasury stock						(568)						(3)
Cash dividends paid on common and preferred stock						(539)						(420)
Financing portion of net cash received for derivative instruments						140						2
Other financing, net						(57)						(27)
Financing cash flow from continuing operations						(8,015)						(611)
Financing cash flow from discontinued operations						—						(5)
Net cash used by financing activities						(8,015)						(616)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents						(1,402)						2,572
Cash, cash equivalents, restricted cash and restricted cash equivalents — beginning of period						2,803						2,194
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period						$	1,401					$	4,766
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

Consolidated Condensed Statements of Equity			Occidental Petroleum Corporation and Subsidiaries

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Equity
Balance as of March 31, 2021						$	9,762					$	217					$	(10,668)					$	16,585					$	2,639					$	(235)					$	18,300
Net income						—						—						—						—						103						—						103
Other comprehensive loss, net of tax						—						—						—						—						—						(3)						(3)
Dividends on common stock, $0.01 per share						—						—						—						—						(9)						—						(9)
Dividends on preferred stock, $2,000 per share						—						—						—						—						(200)						—						(200)
Shareholder warrants exercised						—						—						—						1						—						—						1
Issuance of common stock and other, net						—						—						—						52						—						—						52
Balance as of June 30, 2021						$	9,762					$	217					$	(10,668)					$	16,638					$	2,533					$	(238)					$	18,244

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Equity
Balance as of March 31, 2022						$	9,762					$	217					$	(10,709)					$	16,785					$	9,032					$	(180)					$	24,907
Net income						—						—						—						—						3,755						—						3,755
Other comprehensive income, net of tax						—						—						—						—						—						45						45
Dividends on common stock, $0.13 per share						—						—						—						—						(125)						—						(125)
Dividends on preferred stock, $2,000 per share						—						—						—						—						(200)						—						(200)
Shareholder warrants exercised						—						1						—						69						—						—						70
Options exercised						—						—						—						10						—						—						10
Issuance of common stock and other, net						—						—						—						50						—						—						50
Purchases of treasury stock						—						—						(682)						—						—						—						(682)
Balance as of June 30, 2022						$	9,762					$	218					$	(11,391)					$	16,914					$	12,462					$	(135)					$	27,830

Consolidated Condensed Statements of Equity			Occidental Petroleum Corporation and Subsidiaries

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Equity
Balance as of December 31, 2020						$	9,762					$	216					$	(10,665)					$	16,552					$	2,996					$	(288)					$	18,573
Net loss						—						—						—						—						(43)						—						(43)
Other comprehensive income, net of tax						—						—						—						—						—						50						50
Dividends on common stock, $0.02 per share						—						—						—						—						(20)						—						(20)
Dividends on preferred stock, $4,000 per share						—						—						—						—						(400)						—						(400)
Shareholder warrants exercised						—						—						—						4						—						—						4
Issuance of common stock and other, net						—						1						—						82						—						—						83
Purchases of Treasury Stock						—						—						(3)						—						—						—						(3)
Balance as of June 30, 2021						$	9,762					$	217					$	(10,668)					$	16,638					$	2,533					$	(238)					$	18,244

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Income (Loss)						Total Equity
Balance as of December 31, 2021						$	9,762					$	217					$	(10,673)					$	16,749					$	4,480					$	(208)					$	20,327
Net income						—						—						—						—						8,631						—						8,631
Other comprehensive income, net of tax						—						—						—						—						—						73						73
Dividends on common stock, $0.26 per share						—						—						—						—						(249)						—						(249)
Dividends on preferred stock, $4,000 per share						—						—						—						—						(400)						—						(400)
Shareholder warrants exercised						—						1						—						89						—						—						90
Options exercised						—						—						—						17						—						—						17
Issuance of common stock and other, net						—						—						—						59						—						—						59
Purchases of treasury stock						—						—						(718)						—						—						—						(718)
Balance as of June 30, 2022						$	9,762					$	218					$	(11,391)					$	16,914					$	12,462					$	(135)					$	27,830

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.

Notes to Consolidated Condensed Financial Statements			Occidental Petroleum Corporation and Subsidiaries

NOTE 1 - GENERAL

NATURE OF OPERATIONS

Occidental conducts its operations through various subsidiaries and affiliates. Occidental has made its disclosures in accordance with United States generally accepted accounting principles as they apply to interim reporting, and condensed or omitted, as permitted by the U.S. Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in Consolidated Financial Statements and the notes thereto. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto in Occidental's Annual Report on Form 10-K for the year ended December 31, 2021.

In the opinion of Occidental’s management, the accompanying unaudited Consolidated Condensed Financial Statements in this report reflect all adjustments (consisting of normal recurring adjustments) that are necessary to fairly present Occidental’s results of operations and cash flows for the three and six months ended June 30, 2022 and 2021 and Occidental’s financial position as of June 30, 2022 and December 31, 2021. Certain data in the Consolidated Condensed Financial Statements and notes for prior periods have been reclassified to conform to the current presentation. The income and cash flows for the periods ended June 30, 2022 and 2021 are not necessarily indicative of the income or cash flows to be expected for the full year.

CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

Occidental considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents or restricted cash equivalents. The cash equivalents and restricted cash equivalents balances for the periods presented included investments in government money market funds in which the carrying value approximates fair value.

The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Consolidated Condensed Statements of Cash Flows as of June 30, 2022 and 2021:

millions						2022						2021
Cash and cash equivalents						$	1,362					$	4,569
Restricted cash and restricted cash equivalents included in other current assets						23						180
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net						16						17
Cash, cash equivalents, restricted cash and restricted cash equivalents						$	1,401					$	4,766

SUPPLEMENTAL CASH FLOW INFORMATION

The following table represents U.S. federal, domestic, state and international income taxes paid, tax refunds received and interest paid related to continuing operations during the six months ended June 30, 2022 and 2021, respectively:

millions						2022						2021
Income tax payments						$	962					$	302
Income tax refunds received						$	70					$	45
Interest paid (a)						$	846					$	793

(a) Net of capitalized interest of $30 million and $29 million for the six months ended June 30, 2022 and 2021, respectively.

DISCONTINUED OPERATIONS

The six months ended 2021 includes a $407 million after-tax loss contingency in discontinued operations associated with its former operations in Ecuador, which Occidental recorded in the first quarter of 2021. See Note 10 - Lawsuits, Claims, Commitments and Contingencies. In addition, the results of operations for Ghana for the six months ended June 30, 2021, an after-tax loss of $35 million, are presented as discontinued operations. The Ghana assets were sold in October 2021.

NOTE 2 - REVENUE

Revenue from customers is recognized when obligations under the terms of a contract with our customers are satisfied; this generally occurs with the delivery of oil, NGL, gas, chemicals or services, such as transportation. As of June 30, 2022, trade receivables, net, of $6.4 billion represent rights to payment for which Occidental has satisfied its obligations under a contract and its right to payment is conditioned only on the passage of time.

The following table shows a reconciliation of revenue from customers to total net sales for the three and six months ended June 30, 2022 and 2021:

						Three months ended June 30,												Six months ended June 30,
millions						2022						2021						2022						2021
Revenue from customers						$	10,351					$	6,102					$	18,564					$	11,286
All other revenues (a)						325						(144)						461						(35)
Net sales						$	10,676					$	5,958					$	19,025					$	11,251

(a) Includes net marketing derivatives, collars and calls and chemical exchange contracts in 2021 and the same in 2022 with the exception of the collars and calls which expired on or before December 31, 2021.

DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS

The table below presents Occidental's revenue from customers by segment, product and geographical area. The oil and gas segment typically sells its oil, NGL and gas at the lease or concession area. Chemical segment revenues are shown by geographic area based on the location of the sale. Excluding net marketing revenue, midstream and marketing segment revenues are shown by the location of sale:

millions						United States						International						Eliminations						Total
Three months ended June 30, 2022
Oil and gas
Oil						$	4,894					$	1,146					$	—					$	6,040
NGL						783						113						—						896
Gas						675						79						—						754
Other						5						1						—						6
Segment total						$	6,357					$	1,339					$	—					$	7,696
Chemical						$	1,810					$	98					$	—					$	1,908
Midstream and marketing						$	903					$	247					$	—					$	1,150
Eliminations						$	—					$	—					$	(403)					$	(403)
Consolidated						$	9,070					$	1,684					$	(403)					$	10,351
millions						United States						International						Eliminations						Total
Three months ended June 30, 2021
Oil and gas
Oil						$	3,028					$	683					$	—					$	3,711
NGL						472						78						—						550
Gas						311						76						—						387
Other						23						1						—						24
Segment total						$	3,834					$	838					$	—					$	4,672
Chemical						$	1,128					$	59					$	—					$	1,187
Midstream and marketing						$	322					$	152					$	—					$	474
Eliminations						$	—					$	—					$	(231)					$	(231)
Consolidated						$	5,284					$	1,049					$	(231)					$	6,102

millions						United States						International						Eliminations						Total
Six months ended June 30, 2022
Oil and gas
Oil						$	8,942					$	1,897					$	—					$	10,839
NGL						1,481						175						—						1,656
Gas						1,130						137						—						1,267
Other						7						2						—						9
Segment total						$	11,560					$	2,211					$	—					$	13,771
Chemical						$	3,412					$	179					$	—					$	3,591
Midstream and marketing						$	1,551					$	346					$	—					$	1,897
Eliminations						$	—					$	—					$	(695)					$	(695)
Consolidated						$	16,523					$	2,736					$	(695)					$	18,564

millions						United States						International						Eliminations						Total
Six months ended June 30, 2021
Oil and gas
Oil						$	5,492					$	1,232					$	—					$	6,724
NGL						856						130						—						986
Gas						564						140						—						704
Other						(8)						1						—						(7)
Segment total						$	6,904					$	1,503					$	—					$	8,407
Chemical						$	2,165					$	109					$	—					$	2,274
Midstream and marketing						$	819					$	283					$	—					$	1,102
Eliminations						$	—					$	—					$	(497)					$	(497)
Consolidated						$	9,888					$	1,895					$	(497)					$	11,286

NOTE 3 - INVENTORIES

Finished goods primarily represents oil, which is carried at the lower of weighted-average cost or net realizable value, and caustic soda and chlorine, which are valued under the LIFO method. Inventories consisted of the following:

millions						June 30, 2022						December 31, 2021
Raw materials						$	111					$	96
Materials and supplies						837						783
Commodity inventory and finished goods						715						1,066
						1,663						1,945
Revaluation to LIFO						(99)						(99)
Total						$	1,564					$	1,846

NOTE 4 - DIVESTITURES AND OTHER TRANSACTIONS

DIVESTITURES

In November 2021, Occidental entered into an agreement to sell certain non-strategic assets in the Permian Basin. The transaction closed in January 2022 for net cash proceeds of approximately $190 million. The difference in the proved assets' net book value and adjusted purchase price was treated as a normal retirement, which resulted in no gain or loss being recognized. The difference in the unproved assets' net book value and adjusted purchase price resulted in a gain on sale of approximately $123 million. The gain has been presented within gains on sales of assets and equity investments, net in the Consolidated Condensed Statements of Operations.

NOTE 5 - LONG-TERM DEBT

The following table summarizes Occidental's outstanding debt, including finance lease liabilities:

millions						June 30, 2022						December 31, 2021
Total borrowings at face value						$	20,361					$	28,493
Adjustments to book value:
Unamortized premium, net						1,289						670
Debt issuance costs						(88)						(135)
Net book value of debt						$	21,562					$	29,028
Long-term finance leases						543						504
Current finance leases						97						85
Total debt and finance leases						$	22,202					$	29,617
Less current maturities of financing leases						(97)						(85)
Less current maturities of long-term debt						(362)						(101)
Long-term debt, net						$	21,743					$	29,431

DEBT ACTIVITY

In the second quarter of 2022, Occidental repaid debt with maturities ranging from 2024 through 2049 and a face value of $4.8 billion. In the first quarter of 2022, Occidental repaid debt with maturities ranging from 2022 through 2049 and a face value of $3.3 billion.

For the combined six months ended June 30, 2022, Occidental used $7.1 billion of cash to repay debt with a face value of $8.1 billion and a net book value of $7.4 billion, which resulted in a gain of $161 million.

FAIR VALUE OF DEBT

The estimated fair value of Occidental’s debt as of June 30, 2022 and December 31, 2021, substantially all of which was classified as Level 1, was approximately $20.0 billion and $31.1 billion, respectively.

NOTE 6 - DERIVATIVES

OBJECTIVE AND STRATEGY

Occidental uses a variety of derivative financial instruments and physical contracts to manage its exposure to commodity price fluctuations, interest rate risks and transportation commitments and to fix margins on the future sale of stored commodity volumes. Occidental also enters into derivative financial instruments for trading purposes.

Occidental may elect normal purchases and normal sales exclusions when physically delivered commodities are purchased or sold to a customer. Occidental occasionally applies cash flow hedge accounting treatment to derivative financial instruments to lock in margins on the forecasted sales of its natural gas storage volumes, and at times for other strategies, such as to lock in rates on debt issuances. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

As of June 30, 2022, Occidental’s derivatives not designated as hedges consisted of marketing derivatives and interest rate swaps.

Derivative instruments that are not designated as hedging instruments are required to be recorded on the balance sheet at fair value. Changes in fair value will impact Occidental’s earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled.

MARKETING DERIVATIVES

Occidental's marketing derivative instruments not designated as hedges are short-duration physical and financial forward contracts. A substantial majority of Occidental's physically settled derivative contracts are index-based and carry no mark-to-market valuation in earnings. As of June 30, 2022, the weighted-average settlement price of these forward contracts was $110.15 per barrel and $5.91 per Mcf for crude oil and natural gas, respectively. The weighted-average settlement price was $74.85 per barrel and $4.61 per Mcf for crude oil and natural gas, respectively, as of December 31, 2021. Net gains and losses associated with marketing derivative instruments not designated as hedging instruments are recognized currently in net sales.

The following table summarizes net short volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments:

long (short)						June 30, 2022						December 31, 2021
Oil commodity contracts
Volume (MMbbl)						(32)						(28)
Natural gas commodity contracts
Volume (Bcf)						(111)						(136)

INTEREST RATE SWAPS

Occidental's interest rate swap contracts lock in a fixed interest rate in exchange for a floating interest rate indexed to the three-month London InterBank Offered Rate throughout the reference period. Net gains and losses associated with interest rate swaps are recognized currently in gains (losses) on interest rate swaps, net in the Consolidated Condensed Statements of Operations.

Occidental had the following outstanding interest rate swaps as of June 30, 2022:

millions, except percentages															Mandatory						Weighted-Average
Notional Principal Amount									Reference Period						Termination Date						Interest Rate
$	275								September 2016 - 2046						September 2022						6.709		%
$	450								September 2017 - 2047						September 2023						6.445		%

Depending on market conditions, liability management actions or other factors, Occidental may enter into offsetting interest rate swap positions as well as amend or settle certain or all of the currently outstanding interest rate swaps.

Derivative settlements and collateralization are classified as cash flow from operating activities unless the derivatives contain an other-than-insignificant financing element, in which case the settlements and collateralization are classified as cash flows from financing activities. For the six months ended June 30, 2022, net cash payments related to settlements of interest rate swap agreements were $23 million and collateral of $163 million was returned.

FAIR VALUE OF DERIVATIVES

The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts below, including when the derivatives are subject to netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets:

millions			Fair Value Measurements Using																		Netting (a)						Total Fair Value
Balance Sheet Classifications			Level 1						Level 2						Level 3
June 30, 2022
Marketing Derivatives
Other current assets			$	1,602					$	319					$	—					$	(1,766)					$	155
Long-term receivables and other assets, net			90						1						—						(90)						1
Accrued liabilities			(1,577)						(220)						—						1,766						(31)
Deferred credits and other liabilities - other			(90)						—						—						90						—
Interest Rate Swaps
Accrued liabilities			—						(194)						—						—						(194)
Deferred credits and other liabilities - other			—						(274)						—						—						(274)
December 31, 2021
Marketing Derivatives
Other current assets			$	1,516					$	173					$	—					$	(1,645)					$	44
Long-term receivables and other assets, net			4						1						—						(4)						1
Accrued liabilities			(1,608)						(196)						—						1,645						(159)
Deferred credits and other liabilities - other			(4)						—						—						4						—
Interest Rate Swaps
Accrued liabilities			—						(315)						—						—						(315)
Deferred credits and other liabilities - other			—						(436)						—						—						(436)

(a)These amounts do not include collateral. As of June 30, 2022 and December 31, 2021, $160 million and $323 million of collateral related to interest rate swaps had been netted against derivative liabilities, respectively. Occidental netted $11 million of collateral received from brokers against derivative assets related to marketing derivatives as of June 30, 2022 and netted $110 million of collateral deposited with brokers against derivative liabilities related to marketing derivatives as of December 31, 2021.

GAINS AND LOSSES ON DERIVATIVES

The following table presents gains and (losses) related to Occidental's derivative instruments on the Consolidated Condensed Statements of Operations:

millions						Three months ended June 30,												Six months ended June 30,
Income Statement Classification						2022						2021						2022						2021
Interest Rate Swaps
Gains (losses) on interest rate swaps, net						$	127					$	(223)					$	262					$	176
Marketing Derivatives
Net sales (a)						$	324					$	22					$	459					$	202
Collars and Calls
Net sales (b)						$	—					$	(166)					$	—					$	(238)

(a) Includes derivative and non-derivative marketing activity.

(b) All of Occidental's calls and collars expired on or before December 31, 2021.

CREDIT RISK

Certain of Occidental's over-the-counter 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 party would need to post. The aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed as of June 30, 2022 was $47 million (net of $160 million of collateral), which was primarily related to interest rate swaps. The aggregate fair value of derivative instruments with credit-risk-contingent features for which a net liability position existed as of December 31, 2021 was $107 million (net of $323 million of collateral), which was primarily related to interest rate swaps.

NOTE 7 - INCOME TAXES

LEGAL ENTITY REORGANIZATION

To align Occidental’s legal entity structure with the nature of its business activities after completing the acquisition of Anadarko and subsequent large scale post-acquisition divestiture program, management undertook a legal entity reorganization that was completed in the first quarter of 2022.

As a result of this legal entity reorganization, management made an adjustment to the tax basis in a portion of its operating assets, thus reducing Occidental’s deferred tax liabilities. Accordingly, in the first quarter of 2022, Occidental recorded an estimated non-cash tax benefit of $2.6 billion in connection with this reorganization. The timing of any reduction in Occidental’s future cash taxes as a result of this legal entity reorganization will be dependent on a number of factors, including prevailing commodity prices, capital activity level and production mix. Further refinement of the non-cash tax benefit may be necessary as Occidental finalizes its tax basis calculations, its tax returns and other information.

The following summarizes components of income tax benefit (expense) on continuing operations for the three and six months ended June 30, 2022 and 2021:

			Three months ended June 30,												Six months ended June 30,
millions			2022						2021						2022						2021
Income from continuing operations before income taxes			$	4,986					$	143					$	8,069					$	458
Current
Federal			$	(640)					$	(30)					$	(855)					$	—
State and Local			(50)						21						(84)						11
Foreign			(338)						(165)						(536)						(282)
Total current tax expense			$	(1,028)					$	(174)					$	(1,475)					$	(271)
Deferred
Federal			(231)						(62)						1,982						16
State and Local			5						79						78						83
Foreign			23						114						(23)						113
Total deferred tax benefit (expense)			$	(203)					$	131					$	2,037					$	212
Total income tax benefit (expense)			$	(1,231)					$	(43)					$	562					$	(59)
Income from continuing operations			$	3,755					$	100					$	8,631					$	399
Worldwide effective tax rate			25		%				30		%				(7)		%				13		%

The 25% and 30% worldwide effective tax rates for the three months ended June 30, 2022 and June 30, 2021, respectively, are primarily driven by Occidental's jurisdictional mix of income. U.S. income is taxed at a U.S. federal statutory rate of 21%, while international income is subject to tax at statutory rates as high as 55%. These effective rates differ from the negative 7% tax rate for income from continuing operations for the six months ended June 30, 2022, which was impacted by a non-cash tax benefit associated with Occidental's legal entity reorganization as described above. The effective tax rate of 13% for the six months ended June 30, 2021 was impacted by a state margin tax rate reduction and one-time benefits associated with the settlement of federal and state audit matters.

NOTE 8 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

Occidental has various defined benefit pension plans for certain domestic union, non-union hourly and foreign national employees. In addition, Occidental also provides medical and other benefits for certain active, retired and disabled employees and their eligible dependents.

Net periodic benefit costs related to pension benefits were $1 million for the three months ended June 30, 2022 and net periodic benefit gains related to pension benefits were $7 million for the three months ended June 30, 2021. Net periodic benefit costs related to pension benefits were $1 million for the six months ended June 30, 2022 and net periodic benefit gains related to pension benefits were $18 million for the six months ended June 30, 2021.

Net periodic benefit costs related to postretirement benefits were $19 million and $18 million for the three months ended June 30, 2022 and 2021, respectively, and $38 million for the six months ended June 30, 2022 and 2021.

Occidental's contributions to its defined benefit plans were $1 million and $5 million for the three months ended June 30, 2022 and 2021, respectively, and $1 million and $152 million for the six months ended June 30, 2022 and 2021, respectively. The 2021 contributions were primarily due to distributions related to a separation program and freezing of benefit accruals for Anadarko employees in 2020 and for contributions which were previously deferred in 2020 under the Coronavirus Aid, Relief, and Economic Security Act.

NOTE 9 - ENVIRONMENTAL LIABILITIES AND EXPENDITURES

Occidental’s operations are subject to stringent federal, regional, state, provincial, tribal, local and international laws and regulations related to improving or maintaining environmental quality. The laws that require or address environmental remediation, including CERCLA and similar federal, regional, state, provincial, tribal, local and international laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. Occidental 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.

ENVIRONMENTAL REMEDIATION

As of June 30, 2022, Occidental participated in or monitored remedial activities or proceedings at 167 sites. The following table presents Occidental’s current and non-current environmental remediation liabilities as of June 30, 2022. The current portion, $155 million, is included in accrued liabilities and the non-current portion, $918 million, in deferred credits and other liabilities-environmental remediation liabilities.

Occidental’s environmental remediation sites are grouped into four categories: sites listed or proposed for listing by the U.S. EPA on the CERCLA NPL and three categories of non-NPL sites—third-party sites, Occidental-operated sites and closed or non-operated Occidental sites.

millions, except number of sites						Number of Sites						Remediation Balance
NPL sites						30						$	449
Third-party sites						70						242
Occidental-operated sites						14						114
Closed or non-operated Occidental sites						53						268
Total						167						$	1,073

As of June 30, 2022, Occidental’s environmental liabilities exceeded $10 million each at 17 of the 167 sites described above, and 99 of the sites had liabilities from zero to $1 million each. Based on current estimates, Occidental expects to expend funds corresponding to approximately 40% of the period-end remediation balance at the sites described above over the next three to four years and the remaining 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 $1.2 billion. The status of Occidental's involvement with the sites and related significant assumptions, including those sites indemnified by Maxus, has not changed materially since December 31, 2021.

MAXUS ENVIRONMENTAL SITES

When Occidental acquired Diamond Shamrock Chemicals Company in 1986, Maxus, a subsidiary of YPF, agreed to indemnify Occidental for a number of environmental sites, including the Diamond Alkali Superfund Site along a portion of the Passaic River. On June 17, 2016, Maxus and several affiliated companies filed for Chapter 11 bankruptcy in Federal District Court in the State of Delaware. Prior to filing for bankruptcy, Maxus defended and indemnified Occidental in connection with cleanup and other costs associated with the sites subject to the indemnity, including the Diamond Alkali Superfund Site.

In March 2016, the EPA issued a ROD specifying remedial actions required for the lower 8.3 miles of the Lower Passaic River (OU-2 ROD). This ROD did not address any potential remedial action for the upper nine miles of the Lower Passaic River or Newark Bay. During the third quarter of 2016, and following Maxus’s bankruptcy filing, OxyChem and the EPA entered into an AOC to complete the design of the proposed cleanup plan outlined in the ROD at an estimated cost of $165 million. The EPA announced that it would pursue similar agreements with other potentially responsible parties.

Occidental has accrued a reserve relating to its estimated allocable share of the costs to perform the design and remediation called for in the AOC and the OU-2 ROD as well as for certain other Maxus-indemnified sites. Occidental's accrued estimated environmental reserve does not consider any recoveries for indemnified costs. Occidental’s ultimate share of this liability may be higher or lower than the reserved amount, and is subject to final design plans and the resolution of Occidental's allocable share with other potentially responsible parties. Occidental continues to evaluate the costs to be incurred to comply with the AOC and the OU-2 ROD and to perform remediation at other Maxus-indemnified sites in light of

the Maxus bankruptcy and the share of ultimate liability of other potentially responsible parties. In June 2018, OxyChem filed a complaint under CERCLA in Federal District Court in the State of New Jersey against numerous potentially responsible parties for reimbursement of amounts incurred or to be incurred to comply with the AOC and the OU-2 ROD, or to perform other remediation activities at the Diamond Alkali Superfund Site.

In September 2021, the EPA issued a ROD with an estimated cost of $441 million for an interim remedy plan for the upper nine miles of the Lower Passaic River (OU-4 ROD). At this time, Occidental's role or responsibilities under the OU-4 ROD, and those of other potentially responsible parties, have not been determined with the EPA. In January 2022, OxyChem offered to design and implement the interim remedy for OU-4 subject to certain conditions. In March 2022, the EPA sent a notice letter to OxyChem and other parties requesting good faith offers to implement the selected remedies at OU-2 and OU-4. OxyChem responded to the EPA's letter in June 2022, reaffirming the offer to design the remedy for OU-4 and offering to enter into additional sequential agreements to remediate OU-2 and OU-4, subject to certain conditions.

In June 2017, the court overseeing the Maxus bankruptcy approved a Plan of Liquidation to liquidate Maxus and create a trust to pursue claims against current and former parents and each of its respective subsidiaries and affiliates of YPF and Repsol, as well as others to satisfy claims by Occidental and other creditors for past and future cleanup and other costs. In July 2017, the court-approved Plan of Liquidation became final and the trust became effective. The trust is pursuing claims against YPF, Repsol and others and is expected to distribute assets to Maxus' creditors in accordance with the trust agreement and Plan. In June 2018, the trust filed its complaint against YPF and Repsol in Delaware bankruptcy court asserting claims based upon, among other things, fraudulent transfer and alter ego. During 2019, the bankruptcy court denied Repsol's and YPF's motions to dismiss the complaint as well as their motions to move the case away from the bankruptcy court. The trust, YPF, and Repsol each filed motions for summary judgment, which the bankruptcy court denied in the second quarter of 2022.

NOTE 10 - LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

LEGAL MATTERS

Occidental or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. Occidental or certain of its subsidiaries also are involved in proceedings under CERCLA and similar federal, regional, state, provincial, tribal, local and international environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties and injunctive relief. Usually Occidental or such subsidiaries are among many companies in these environmental proceedings and have to date been successful in sharing response costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or Occidental retains liability or indemnifies the other party for conditions that existed prior to the transaction.

In accordance with applicable accounting guidance, Occidental accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserves for matters, other than for environmental remediation and the arbitration award disclosed below, that satisfy this criteria as of June 30, 2022 and 2021 were not material to Occidental’s Consolidated Condensed Balance Sheets.

In 2016, Occidental received payments from the Republic of Ecuador of approximately $1.0 billion pursuant to a November 2015 arbitration award for Ecuador’s 2006 expropriation of Occidental’s Participation Contract for Block 15. The awarded amount represented a recovery of 60% of the value of Block 15. In 2017, Andes filed a demand for arbitration, claiming it is entitled to a 40% share of the judgment amount obtained by Occidental. Occidental contends that Andes is not entitled to any of the amounts paid under the 2015 arbitration award because Occidental’s recovery was limited to Occidental’s own 60% economic interest in the block. On March 26, 2021, the arbitration tribunal issued an award in favor of Andes and against OEPC in the amount of $391 million plus interest. In June 2021, OEPC filed a motion to vacate the award due to concerns regarding the validity of the award. In addition, OEPC has made a demand for significant additional claims not addressed by the arbitration tribunal that OEPC has against Andes relating to Andes' 40% share of costs, liabilities, losses and expenses due under the farmout agreement and joint operating agreement to which Andes and OEPC are parties. In December 2021, the U.S. District Court Southern District of New York confirmed the arbitration award, plus prejudgment interest, in the aggregate amount of $558 million. OEPC has appealed the judgment.

If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Occidental’s estimates are based on information known about the legal matters and its experience in contesting, litigating and settling similar matters. Occidental reassesses the probability and estimability of contingent losses as new information becomes available.

TAX MATTERS

During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and international tax jurisdictions. Tax years through 2019 for U.S. federal income tax purposes have been audited by the IRS pursuant to its Compliance Assurance Program and subsequent taxable years are currently under review. Tax years through 2014 have been audited for state income tax purposes. Significant audit matters in international jurisdictions have been resolved through 2010. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law.

For Anadarko, its taxable years through 2014 and tax year 2016 for U.S. federal tax purposes have been audited by the IRS. Tax years through 2008 have been audited for state income tax purposes. There is one outstanding significant tax matter in an international jurisdiction related to a discontinued operation. As stated above, during the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law.

Other than the matter discussed below, Occidental believes that the resolution of these outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations.

Anadarko received an $881 million tentative refund in 2016 related to its $5.2 billion Tronox Adversary Proceeding settlement payment in 2015. In September 2018, Anadarko received a statutory notice of deficiency from the IRS disallowing the net operating loss carryback and rejecting Anadarko’s refund claim. As a result, Anadarko filed a petition with the U.S. Tax Court to dispute the disallowances in November 2018. The case was in the IRS appeals process until the second quarter of 2020, however it has since been returned to the U.S. Tax Court, where a trial date has been set for May 2023 and Occidental expects to continue pursuing resolution.

In accordance with ASC 740’s guidance on the accounting for uncertain tax positions, Occidental has recorded no tax benefit on the tentative cash tax refund of $881 million. As a result, should Occidental not ultimately prevail on the issue, there would be no additional tax expense recorded relative to this position for financial statement purposes other than future interest. However, in that event, Occidental would be required to repay approximately $1.2 billion in federal taxes, $28 million in state taxes and accrued interest of $347 million. A liability for this amount plus interest is included in deferred credits and other liabilities-other.

INDEMNITIES TO THIRD PARTIES

Occidental, its subsidiaries, or both, have indemnified various parties against specified liabilities those parties might incur in the future in connection with purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the other party incurring liabilities that reach specified thresholds. As of June 30, 2022, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves.

NOTE 11 - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

The following table presents the effects of Occidental's share repurchases as part of the plan announced in February 2022, along with other transactions in Occidental's stock:

Period						Exercise of Warrants and Options			(a)			Other			(b)			Treasury Stock Purchases			(c)			Common Stock Outstanding			(d)
December 31, 2021																								934,074,700
First Quarter 2022						1,082,282						2,764,746						(730,746)						937,190,982
Second Quarter 2022						3,409,920						42,342						(11,679,732)						928,963,512
Total 2022						4,492,202						2,807,088						(12,410,478)						928,963,512

(a) Approximately $106 million of cash was received as a result of the exercise of common stock warrants and options.

(b) Consists of issuances from the 2015 long-term incentive plan, the OPC savings plan, dividend reinvestment plan and Anadarko restricted stock awards.

(c) In addition to the 11.2 million shares that Occidental repurchased under its share repurchase plan during the six months ended June 30, 2022, Occidental subsequently repurchased an additional 6.8 million shares under its share repurchase plan in the period from July 1, 2022, through August 1, 2022.

(d) As of June 30, 2022, Occidental has 111.5 million outstanding warrants with a strike of $22 per share and 83.9 million of warrants with a strike of $59.62 per share.

The following table presents the calculation of basic and diluted EPS attributable to common stockholders:

						Three months ended June 30,												Six months ended June 30,
millions except per-share amounts						2022						2021						2022						2021
Income from continuing operations						$	3,755					$	100					$	8,631					$	399
Income (loss) from discontinued operations						—						3						—						(442)
Net income (loss)						$	3,755					$	103					$	8,631					$	(43)
Less: Preferred stock dividends						(200)						(200)						(400)						(400)
Net income (loss) attributable to common stock						$	3,555					$	(97)					$	8,231					$	(443)
Less: Net income allocated to participating securities						(28)						—						(59)						—
Net income (loss), net of participating securities						$	3,527					$	(97)					$	8,172					$	(443)
Weighted-average number of basic shares						939.2						934.2						938.3						933.8
Basic income (loss) per common share						$	3.76					$	(0.10)					$	8.71					$	(0.47)
Net income (loss) attributable to common stock						3,555						$	(97)					8,231						$	(443)
Less: Net income allocated to participating securities						(26)						0						(56)						—
Net income (loss), net of participating securities						3,529						(97)						8,175						(443)
Weighted-average number of basic shares						939.2						934.2						938.3						933.8
Dilutive securities						79.1						—						69.2						—
Dilutive effect of potentially dilutive securities						1,018.3						934.2						1,007.5						933.8
Diluted income (loss) per common share						$	3.47					$	(0.10)					$	8.11					$	(0.47)

For the three and six months ended 2022, warrants and options covering approximately zero shares of Occidental common stock were excluded from diluted shares. For the three and six months ended 2021, warrants and options covering approximately 200 million shares of Occidental common stock were excluded from diluted shares as their effect would have been anti-dilutive.

NOTE 12 - SEGMENTS

Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko acquisition-related costs and unallocated corporate expenses are included under corporate and eliminations. 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. The following table presents Occidental’s industry segments:

millions						Oil and gas (a)						Chemical						Midstream and marketing (b)						Corporate and eliminations (c)						Total
Three months ended June 30, 2022
Net sales						$	7,696					$	1,909					$	1,474					$	(403)					$	10,676
Income (loss) from continuing operations before income taxes						$	4,094					$	800					$	264					$	(172)					$	4,986
Income tax expense						—						—						—						(1,231)						(1,231)
Income (loss) from continuing operations						$	4,094					$	800					$	264					$	(1,403)					$	3,755
Three months ended June 30, 2021
Net sales						$	4,505					$	1,187					$	497					$	(231)					$	5,958
Income (loss) from continuing operations before income taxes						$	631					$	312					$	(30)					$	(770)					$	143
Income tax expense						—						—						—						(43)						(43)
Income (loss) from continuing operations						$	631					$	312					$	(30)					$	(813)					$	100
millions						Oil and gas (a)						Chemical						Midstream and marketing (b)						Corporate and eliminations (c)						Total
Six months ended June 30, 2022
Net sales						$	13,771					$	3,593					$	2,356					$	(695)					$	19,025
Income (loss) from continuing operations before income taxes						$	6,992					$	1,471					$	214					$	(608)					$	8,069
Income tax benefit						—						—						—						562						562
Income (loss) from continuing operations						$	6,992					$	1,471					$	214					$	(46)					$	8,631
Six months ended June 30, 2021
Net sales						$	8,169					$	2,275					$	1,304					$	(497)					$	11,251
Income (loss) from continuing operations before income taxes						$	569					$	563					$	252					$	(926)					$	458
Income tax expense						—						—						—						(59)						(59)
Income (loss) from continuing operations						$	569					$	563					$	252					$	(985)					$	399

(a) The six months ended June 30, 2022 included $147 million of gains, primarily related to the sale of certain non-strategic assets in the Permian Basin. The three months ended June 30, 2021 included $140 million of net oil, gas and CO2 derivative losses. The six months ended June 30, 2021 included $156 million of asset impairments and $180 million of net oil, gas and CO2 derivative losses.

(b) The three and six months ended June 30, 2022 included $96 million and $102 million of net derivative mark-to-market gains and losses, respectively. The three months ended June 30, 2021 included $180 million of net derivative mark-to-market losses. The six months ended June 30, 2021 included a $124 million of gains on sales, primarily from the sale of 11.5 million limited partner units in WES, and $165 million in derivative mark-to-market losses.

(c) The three months ended June 30, 2022 included a $179 million gain on early debt extinguishment and a $127 million gain on interest rate swaps. The six months ended June 30, 2022 included a non-cash tax benefit of $2.6 billion in connection with Occidental's legal entity reorganization, which is further discussed in the Income Taxes section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2 of this Form 10-Q, as well as a $262 million gain on interest rate swaps and a $161 million gain on debt tenders. The three months ended June 30, 2021 included $223 million of net derivative mark-to-market losses on interest rate swaps. The six months ended June 30, 2021 included $176 million of net derivative mark-to-market gains on interest rate swaps.