UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2012
or
¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to________
Commission File Number 1-2256
EXXON MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
5959 Las Colinas Boulevard, Irving, Texas 75039-2298
(Address of principal executive offices) (Zip Code)
(972) 444-1000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Class Outstanding as of September 30, 2012
Common stock, without par value 4,559,342,639
EXXON MOBIL CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2012
TABLE OF CONTENTS
-2-
PART I. FINANCIAL INFORMATION |
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Item 1. Financial Statements |
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EXXON MOBIL CORPORATION |
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CONDENSED CONSOLIDATED STATEMENT OF INCOME |
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(millions of dollars) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2012 |
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2011 |
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2012 |
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2011 |
REVENUES AND OTHER INCOME |
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Sales and other operating revenue (1) |
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$ |
111,554 |
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$ |
120,475 |
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$ |
343,488 |
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$ |
351,120 |
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Income from equity affiliates |
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3,386 |
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3,915 |
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11,247 |
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11,462 |
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Other income |
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766 |
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940 |
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12,387 |
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2,238 |
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Total revenues and other income |
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115,706 |
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125,330 |
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367,122 |
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364,820 |
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COSTS AND OTHER DEDUCTIONS |
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Crude oil and product purchases |
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65,180 |
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69,289 |
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201,349 |
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199,233 |
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Production and manufacturing expenses |
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9,128 |
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10,199 |
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28,765 |
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30,041 |
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Selling, general and administrative expenses |
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3,468 |
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3,764 |
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10,555 |
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11,072 |
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Depreciation and depletion |
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4,037 |
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3,866 |
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11,778 |
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11,508 |
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Exploration expenses, including dry holes |
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494 |
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728 |
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1,388 |
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1,654 |
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Interest expense |
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59 |
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98 |
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216 |
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172 |
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Sales-based taxes (1) |
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8,137 |
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8,484 |
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24,657 |
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25,013 |
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Other taxes and duties |
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7,883 |
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10,222 |
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27,388 |
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29,911 |
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Total costs and other deductions |
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98,386 |
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106,650 |
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306,096 |
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308,604 |
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Income before income taxes |
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17,320 |
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18,680 |
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61,026 |
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56,216 |
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Income taxes |
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7,394 |
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8,009 |
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23,647 |
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23,734 |
Net income including noncontrolling interests |
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9,926 |
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10,671 |
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37,379 |
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32,482 |
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Net income attributable to noncontrolling interests |
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356 |
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341 |
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2,449 |
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822 |
Net income attributable to ExxonMobil |
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$ |
9,570 |
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$ |
10,330 |
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$ |
34,930 |
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$ |
31,660 |
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Earnings per common share (dollars) |
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$ |
2.09 |
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$ |
2.13 |
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$ |
7.50 |
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$ |
6.46 |
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Earnings per common share - assuming dilution (dollars) |
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$ |
2.09 |
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$ |
2.13 |
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$ |
7.50 |
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$ |
6.45 |
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Dividends per common share (dollars) |
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$ |
0.57 |
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$ |
0.47 |
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$ |
1.61 |
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$ |
1.38 |
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(1) Sales-based taxes included in sales and other |
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operating revenue |
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$ |
8,137 |
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$ |
8,484 |
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$ |
24,657 |
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$ |
25,013 |
The information in the Notes to Condensed Consolidated Financial Statements
is an integral part of these statements.
-3-
EXXON MOBIL CORPORATION |
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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
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(millions of dollars) |
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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2012 |
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2011 |
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2012 |
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2011 |
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Net income including noncontrolling interests |
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$ |
9,926 |
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$ |
10,671 |
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$ |
37,379 |
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$ |
32,482 |
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Other comprehensive income (net of income taxes) |
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Foreign exchange translation adjustment |
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1,620 |
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(3,336) |
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1,298 |
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(1,224) |
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Adjustment for foreign exchange translation (gain)/loss |
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included in net income |
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(119) |
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- |
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(4,354) |
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- |
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Postretirement benefits reserves adjustment |
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(excluding amortization) |
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(224) |
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272 |
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(404) |
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(293) |
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Amortization and settlement of postretirement benefits reserves |
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adjustment included in net periodic benefit costs |
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454 |
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298 |
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2,083 |
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929 |
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Change in fair value of cash flow hedges |
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- |
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14 |
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- |
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24 |
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Realized (gain)/loss from settled cash flow hedges |
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included in net income |
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- |
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(17) |
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- |
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(50) |
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Total other comprehensive income |
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1,731 |
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(2,769) |
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(1,377) |
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(614) |
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Comprehensive income including noncontrolling interests |
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11,657 |
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7,902 |
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36,002 |
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31,868 |
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Comprehensive income attributable to |
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noncontrolling interests |
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541 |
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101 |
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1,062 |
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713 |
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Comprehensive income attributable to ExxonMobil |
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$ |
11,116 |
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$ |
7,801 |
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$ |
34,940 |
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$ |
31,155 |
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The information in the Notes to Condensed Consolidated Financial Statements
is an integral part of these statements.
-4-
EXXON MOBIL CORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(millions of dollars) |
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Sept. 30, |
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Dec. 31, |
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2012 |
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2011 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
13,055 |
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$ |
12,664 |
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Cash and cash equivalents – restricted |
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206 |
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404 |
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Notes and accounts receivable – net |
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36,635 |
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38,642 |
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Inventories |
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Crude oil, products and merchandise |
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13,010 |
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11,665 |
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Materials and supplies |
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3,565 |
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3,359 |
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Other current assets |
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5,667 |
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6,229 |
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Total current assets |
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72,138 |
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72,963 |
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Investments, advances and long-term receivables |
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35,105 |
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34,333 |
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Property, plant and equipment – net |
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220,330 |
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214,664 |
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Other assets, including intangibles – net |
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7,618 |
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9,092 |
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Total assets |
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$ |
335,191 |
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$ |
331,052 |
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LIABILITIES |
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Current liabilities |
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Notes and loans payable |
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$ |
3,496 |
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$ |
7,711 |
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Accounts payable and accrued liabilities |
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53,516 |
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57,067 |
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Income taxes payable |
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13,049 |
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12,727 |
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Total current liabilities |
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70,061 |
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77,505 |
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Long-term debt |
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8,928 |
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9,322 |
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Postretirement benefits reserves |
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21,652 |
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24,994 |
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Deferred income tax liabilities |
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37,642 |
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36,618 |
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Other long-term obligations |
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24,553 |
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21,869 |
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Total liabilities |
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162,836 |
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170,308 |
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Commitments and contingencies (Note 2) |
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EQUITY |
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Common stock, without par value: |
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Authorized: 9,000 million shares |
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Issued: 8,019 million shares |
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9,645 |
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9,512 |
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Earnings reinvested |
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358,369 |
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330,939 |
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Accumulated other comprehensive income |
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(9,113) |
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(9,123) |
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Common stock held in treasury: |
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3,460 million shares at September 30, 2012 |
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(192,188) |
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3,285 million shares at December 31, 2011 |
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(176,932) |
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ExxonMobil share of equity |
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166,713 |
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154,396 |
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Noncontrolling interests |
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5,642 |
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6,348 |
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Total equity |
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172,355 |
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160,744 |
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Total liabilities and equity |
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$ |
335,191 |
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$ |
331,052 |
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The number of shares of common stock issued and outstanding at September 30, 2012 and December 31, 2011 were 4,559,342,639 and 4,733,948,268, respectively.
The information in the Notes to Condensed Consolidated Financial Statements
is an integral part of these statements.
-5-
EXXON MOBIL CORPORATION |
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
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(millions of dollars) |
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Nine Months Ended |
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September 30, |
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2012 |
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2011 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net income including noncontrolling interests |
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$ |
37,379 |
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$ |
32,482 |
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Depreciation and depletion |
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11,778 |
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11,508 |
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Changes in operational working capital, excluding cash and debt |
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3,119 |
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2,154 |
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Net (gain) on asset sales |
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(11,693) |
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(1,269) |
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All other items – net |
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2,363 |
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(281) |
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Net cash provided by operating activities |
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42,946 |
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44,594 |
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CASH FLOWS FROM INVESTING ACTIVITIES |
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Additions to property, plant and equipment |
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(24,214) |
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(22,341) |
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Proceeds associated with sales of subsidiaries, property, plant and |
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equipment, and sales and returns of investments |
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6,850 |
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4,246 |
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Additional investments and advances |
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(768) |
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(3,122) |
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Additions to marketable securities |
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- |
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(1,754) |
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Sales of marketable securities |
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- |
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1,674 |
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Other investing activities – net |
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1,533 |
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|
1,144 |
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Net cash used in investing activities |
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(16,599) |
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(20,153) |
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CASH FLOWS FROM FINANCING ACTIVITIES |
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Additions to long-term debt |
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597 |
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|
457 |
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Reductions in long-term debt |
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(15) |
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(236) |
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Additions/(reductions) in short-term debt – net |
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(3,506) |
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1,414 |
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Cash dividends to ExxonMobil shareholders |
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(7,500) |
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(6,773) |
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Cash dividends to noncontrolling interests |
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(287) |
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(264) |
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Changes in noncontrolling interests |
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198 |
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(12) |
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Tax benefits related to stock-based awards |
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- |
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|
220 |
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Common stock acquired |
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(15,814) |
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(16,633) |
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Common stock sold |
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|
184 |
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|
616 |
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Net cash used in financing activities |
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|
(26,143) |
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|
(21,211) |
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Effects of exchange rate changes on cash |
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|
187 |
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|
(33) |
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Increase/(decrease) in cash and cash equivalents |
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|
391 |
|
|
3,197 |
|
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Cash and cash equivalents at beginning of period |
|
|
12,664 |
|
|
7,825 |
|
|||
Cash and cash equivalents at end of period |
|
$ |
13,055 |
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$ |
11,022 |
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SUPPLEMENTAL DISCLOSURES |
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Income taxes paid |
|
$ |
17,895 |
|
$ |
20,349 |
|
||
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Cash interest paid |
|
$ |
387 |
|
$ |
390 |
|
The information in the Notes to Condensed Consolidated Financial Statements
is an integral part of these statements.
-6-
EXXON MOBIL CORPORATION |
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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
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(millions of dollars) |
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ExxonMobil Share of Equity |
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Accumulated |
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Other |
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Common |
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|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
Compre- |
|
Stock |
|
ExxonMobil |
|
Non- |
|
|
|
||||
|
|
|
Common |
|
Earnings |
|
hensive |
|
Held in |
|
Share of |
|
controlling |
|
Total |
|||||||
|
|
|
Stock |
|
Reinvested |
|
Income |
|
Treasury |
|
Equity |
|
Interests |
|
Equity |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2010 |
|
$ |
9,371 |
|
$ |
298,899 |
|
$ |
(4,823) |
|
$ |
(156,608) |
|
$ |
146,839 |
|
$ |
5,840 |
|
$ |
152,679 |
|
Amortization of stock-based awards |
|
|
572 |
|
|
- |
|
|
- |
|
|
- |
|
|
572 |
|
|
- |
|
|
572 |
|
Tax benefits related to stock-based awards |
159 |
|
|
- |
|
|
- |
|
|
- |
|
|
159 |
|
|
- |
|
|
159 |
|||
Other |
|
|
(596) |
|
|
- |
|
|
- |
|
|
- |
|
|
(596) |
|
|
(4) |
|
|
(600) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
|
|
- |
|
|
31,660 |
|
|
- |
|
|
- |
|
|
31,660 |
|
|
822 |
|
|
32,482 |
|
Dividends – common shares |
|
|
- |
|
|
(6,773) |
|
|
- |
|
|
- |
|
|
(6,773) |
|
|
(264) |
|
|
(7,037) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
- |
|
|
- |
|
|
(505) |
|
|
- |
|
|
(505) |
|
|
(109) |
|
|
(614) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions, at cost |
|
|
- |
|
|
- |
|
|
- |
|
|
(16,633) |
|
|
(16,633) |
|
|
(12) |
|
|
(16,645) |
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
1,216 |
|
|
1,216 |
|
|
- |
|
|
1,216 |
|
Balance as of September 30, 2011 |
|
$ |
9,506 |
|
$ |
323,786 |
|
$ |
(5,328) |
|
$ |
(172,025) |
|
$ |
155,939 |
|
$ |
6,273 |
|
$ |
162,212 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2011 |
|
$ |
9,512 |
|
$ |
330,939 |
|
$ |
(9,123) |
|
$ |
(176,932) |
|
$ |
154,396 |
|
$ |
6,348 |
|
$ |
160,744 |
|
Amortization of stock-based awards |
|
|
618 |
|
|
- |
|
|
- |
|
|
- |
|
|
618 |
|
|
- |
|
|
618 |
|
Tax benefits related to stock-based awards |
|
|
252 |
|
|
- |
|
|
- |
|
|
- |
|
|
252 |
|
|
- |
|
|
252 |
|
Other |
|
|
(737) |
|
|
- |
|
|
- |
|
|
- |
|
|
(737) |
|
|
(1,450) |
|
|
(2,187) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income for the period |
|
|
- |
|
|
34,930 |
|
|
- |
|
|
- |
|
|
34,930 |
|
|
2,449 |
|
|
37,379 |
|
Dividends – common shares |
|
|
- |
|
|
(7,500) |
|
|
- |
|
|
- |
|
|
(7,500) |
|
|
(287) |
|
|
(7,787) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
- |
|
|
- |
|
|
10 |
|
|
- |
|
|
10 |
|
|
(1,387) |
|
|
(1,377) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions, at cost |
|
|
- |
|
|
- |
|
|
- |
|
|
(15,814) |
|
|
(15,814) |
|
|
(31) |
|
|
(15,845) |
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
558 |
|
|
558 |
|
|
- |
|
|
558 |
|
Balance as of September 30, 2012 |
|
$ |
9,645 |
|
$ |
358,369 |
|
$ |
(9,113) |
|
$ |
(192,188) |
|
$ |
166,713 |
|
$ |
5,642 |
|
$ |
172,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2012 |
|
|
|
|
Nine Months Ended September 30, 2011 |
||||||||||||||
|
|
|
|
|
|
Held in |
|
|
|
|
|
|
|
|
|
|
Held in |
|
|
|
||
Common Stock Share Activity |
|
Issued |
|
Treasury |
|
Outstanding |
|
|
|
|
Issued |
|
Treasury |
|
Outstanding |
|||||||
|
|
(millions of shares) |
|
|
|
|
(millions of shares) |
|||||||||||||||
Balance as of December 31 |
|
|
8,019 |
|
|
(3,285) |
|
|
4,734 |
|
|
|
|
|
8,019 |
|
|
(3,040) |
|
|
4,979 |
|
|
Acquisitions |
|
|
- |
|
|
(185) |
|
|
(185) |
|
|
|
|
|
- |
|
|
(209) |
|
|
(209) |
|
Dispositions |
|
|
- |
|
|
10 |
|
|
10 |
|
|
|
|
|
- |
|
|
23 |
|
|
23 |
Balance as of September 30 |
|
|
8,019 |
|
|
(3,460) |
|
|
4,559 |
|
|
|
|
|
8,019 |
|
|
(3,226) |
|
|
4,793 |
The information in the Notes to Condensed Consolidated Financial Statements
is an integral part of these statements.
-7-
EXXON MOBIL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Financial Statement Preparation
These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2011 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. The Corporation's exploration and production activities are accounted for under the "successful efforts" method.
2. Litigation and Other Contingencies
Litigation
A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.
On June 30, 2011, a state district court jury in Baltimore County, Maryland returned a verdict against Exxon Mobil Corporation in Allison, et al v. Exxon Mobil Corporation, a case involving an accidental 26,000 gallon gasoline leak at a suburban Baltimore service station. The verdict included approximately $497 million in compensatory damages and approximately $1.0 billion in punitive damages in a finding that ExxonMobil fraudulently misled the plaintiff-residents about the events leading up to the leak, the leak's discovery, and the nature and extent of any groundwater contamination. ExxonMobil believes the verdict is not justified by the evidence and that the amount of the compensatory award is grossly excessive and the imposition of punitive damages is improper and unconstitutional. The trial court denied a post-trial motion that ExxonMobil filed to overturn the punitive damages verdict and entered a final judgment in the amount of $1,488 million. ExxonMobil has appealed the verdict and judgment. The appeal is pending before the Maryland Court of Appeals. In an earlier trial involving the same leak and different plaintiffs, the jury awarded compensatory damages but rejected the plaintiffs' punitive damages claims. Those plaintiffs did not appeal the jury's denial of punitive damages. On February 9, 2012, the Maryland Court of Special Appeals reversed in part and affirmed in part the trial court's decision on compensatory damages in that case. The Maryland Court of Appeals granted writs of certiorari to both parties in response to their separate petitions seeking reversals of portions of the Court of Special Appeals' decision. The appeals in both of these cases were consolidated before the Maryland Court of Appeals and arguments were held on November 5, 2012. The ultimate outcome of all of this litigation is not expected to have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.
Other Contingencies
The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2012, for guarantees relating to notes, loans and performance under contracts. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
-8-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, 2012 |
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity |
|
Other |
|
|
|
|
|
||
|
|
|
|
|
Company |
|
Third Party |
|
|
|
|
|
||
|
|
|
|
|
Obligations (1) |
|
Obligations |
|
Total |
|
|
|||
|
|
|
|
|
(millions of dollars) |
|
|
|||||||
|
Guarantees |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Debt-related |
|
$ |
2,224 |
|
$ |
56 |
|
$ |
2,280 |
|
|
|
|
|
Other |
|
|
3,243 |
|
|
4,211 |
|
|
7,454 |
|
|
|
|
|
|
Total |
|
$ |
5,467 |
|
$ |
4,267 |
|
$ |
9,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) ExxonMobil share |
|
|
|
|
|
|
|
|
|
|
|
Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition. The Corporation's outstanding unconditional purchase obligations at September 30, 2012, were similar to those at the prior year-end period. Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.
The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.
In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007 a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture. ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project. ExxonMobil’s remaining net book investment in Cerro Negro producing assets is about $750 million.
On September 6, 2007, affiliates of ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID) invoking ICSID jurisdiction under Venezuela’s Investment Law and the Netherlands-Venezuela Bilateral Investment Treaty. The ICSID Tribunal issued a decision on June 10, 2010, finding that it had jurisdiction to proceed on the basis of the Netherlands-Venezuela Bilateral Investment Treaty. The ICSID arbitration proceeding is continuing and a hearing on the merits was held in February 2012. At this time, the net impact of these matters on the Corporation’s consolidated financial results cannot be reasonably estimated. Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.
An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award. The Contractors have appealed that judgment. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition.
-9-
3. Other Comprehensive Income Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ExxonMobil Share of Accumulated |
|||||||||||
|
|
|
|
|
Other Comprehensive Income |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative |
|
Post- |
|
Unrealized |
|
|
|
|||
|
|
|
|
|
Foreign |
|
retirement |
|
Change in |
|
|
|
|||
|
|
|
|
|
Exchange |
|
Benefits |
|
Fair Value |
|
|
|
|||
|
|
|
|
|
Translation |
|
Reserves |
|
on Cash |
|
|
|
|||
|
|
|
|
|
Adjustment |
|
Adjustment |
|
Flow Hedges |
|
Total |
||||
|
|
|
|
(millions of dollars) |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2010 |
|
$ |
5,011 |
|
$ |
(9,889) |
|
$ |
55 |
|
$ |
(4,823) |
||
|
Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
from accumulated other comprehensive income |
|
|
(1,110) |
|
|
(252) |
|
|
24 |
|
|
(1,338) |
|
|
Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
comprehensive income |
|
|
- |
|
|
883 |
|
|
(50) |
|
|
833 |
|
|
Total change in accumulated other comprehensive |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
income |
|
|
(1,110) |
|
|
631 |
|
|
(26) |
|
|
(505) |
|
|
Balance as of September 30, 2011 |
|
$ |
3,901 |
|
$ |
(9,258) |
|
$ |
29 |
|
$ |
(5,328) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2011 |
|
$ |
4,168 |
|
$ |
(13,291) |
|
$ |
- |
|
$ |
(9,123) |
||
|
Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
from accumulated other comprehensive income |
|
|
1,159 |
|
|
(351) |
|
|
- |
|
|
808 |
|
|
Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
comprehensive income |
|
|
(2,603) |
|
|
1,805 |
|
|
- |
|
|
(798) |
|
|
Total change in accumulated other comprehensive |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
income |
|
|
(1,444) |
|
|
1,454 |
|
|
- |
|
|
10 |
|
|
Balance as of September 30, 2012 |
|
$ |
2,724 |
|
$ |
(11,837) |
|
$ |
- |
|
$ |
(9,113) |
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
September 30, |
|
September 30, |
||||||||
|
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
||||
|
|
|
|
|
(millions of dollars) |
||||||||||
|
Income Tax (Expense)/Credit For |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Components of Other Comprehensive Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation adjustment |
|
$ |
(55) |
|
$ |
121 |
|
$ |
(92) |
|
$ |
34 |
||
|
Postretirement benefits reserves adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Postretirement benefits reserves adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding amortization) |
|
|
100 |
|
|
(111) |
|
|
190 |
|
|
126 |
|
|
Amortization and settlement of postretirement benefits reserves |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
adjustment included in net periodic benefit costs |
|
|
(200) |
|
|
(132) |
|
|
(1,132) |
|
|
(433) |
|
Unrealized change in fair value on cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Change in fair value of cash flow hedges |
|
|
- |
|
|
(9) |
|
|
- |
|
|
(14) |
|
|
|
Realized (gain)/loss from settled cash flow hedges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in net income |
|
|
- |
|
|
11 |
|
|
- |
|
|
31 |
|
Total |
|
$ |
(155) |
|
$ |
(120) |
|
$ |
(1,034) |
|
$ |
(256) |
-10-
4. Earnings Per Share
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
September 30, |
|
September 30, |
||||||||
|
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income attributable to ExxonMobil (millions of dollars) |
|
$ |
9,570 |
|
$ |
10,330 |
|
$ |
34,930 |
|
$ |
31,660 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
outstanding (millions of shares) |
|
|
4,597 |
|
|
4,839 |
|
|
4,657 |
|
|
4,902 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (dollars) |
|
$ |
2.09 |
|
$ |
2.13 |
|
$ |
7.50 |
|
$ |
6.46 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - assuming dilution |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income attributable to ExxonMobil (millions of dollars) |
|
$ |
9,570 |
|
$ |
10,330 |
|
$ |
34,930 |
|
$ |
31,660 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
outstanding (millions of shares) |
|
|
4,597 |
|
|
4,839 |
|
|
4,657 |
|
|
4,902 |
|
|
|
|
Effect of employee stock-based awards |
|
|
- |
|
|
4 |
|
|
- |
|
|
6 |
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
outstanding - assuming dilution |
|
|
4,597 |
|
|
4,843 |
|
|
4,657 |
|
|
4,908 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
- assuming dilution (dollars) |
|
$ |
2.09 |
|
$ |
2.13 |
|
$ |
7.50 |
|
$ |
6.45 |
-11-
5. Pension and Other Postretirement Benefits
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
|
September 30, |
|
September 30, |
||||||||
|
|
|
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
||||
|
|
|
|
|
|
(millions of dollars) |
||||||||||
|
Pension Benefits - U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Components of net benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
$ |
173 |
|
$ |
148 |
|
$ |
489 |
|
$ |
397 |
|
|
|
|
Interest cost |
|
|
205 |
|
|
198 |
|
|
615 |
|
|
594 |
|
|
|
|
Expected return on plan assets |
|
|
(196) |
|
|
(192) |
|
|
(590) |
|
|
(577) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost |
|
|
146 |
|
|
123 |
|
|
436 |
|
|
370 |
|
|
|
Net pension enhancement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost |
|
|
123 |
|
|
64 |
|
|
369 |
|
|
266 |
|
|
|
Net benefit cost |
|
$ |
451 |
|
$ |
341 |
|
$ |
1,319 |
|
$ |
1,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits - Non-U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Components of net benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
$ |
156 |
|
$ |
147 |
|
$ |
490 |
|
$ |
432 |
|
|
|
|
Interest cost |
|
|
279 |
|
|
317 |
|
|
859 |
|
|
956 |
|
|
|
|
Expected return on plan assets |
|
|
(269) |
|
|
(293) |
|
|
(831) |
|
|
(879) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost |
|
|
228 |
|
|
189 |
|
|
719 |
|
|
566 |
|
|
|
Net pension enhancement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost (1) |
|
|
109 |
|
|
7 |
|
|
1,538 |
|
|
7 |
|
|
|
Net benefit cost |
|
$ |
503 |
|
$ |
367 |
|
$ |
2,775 |
|
$ |
1,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|