UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2014
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)
NEW JERSEY |
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13-5409005 |
(State or other jurisdiction of |
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(I.R.S. Employer |
incorporation or organization) |
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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 ☑ 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 ☑ 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.
Large accelerated filer |
☑ |
Accelerated filer |
☐
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Non-accelerated filer |
☐
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Smaller reporting company |
☐ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Class |
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Outstanding as of September 30, 2014 |
Common stock, without par value |
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4,234,528,643 |
EXXON MOBIL CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2014
TABLE OF CONTENTS
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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2014 |
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2013 |
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2014 |
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2013 |
Revenues and other income |
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Sales and other operating revenue (1) |
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103,566 |
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108,390 |
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311,484 |
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314,818 |
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Income from equity affiliates |
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3,211 |
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3,444 |
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10,631 |
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10,960 |
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Other income |
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713 |
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538 |
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3,795 |
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1,617 |
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Total revenues and other income |
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107,490 |
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112,372 |
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325,910 |
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327,395 |
Costs and other deductions |
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Crude oil and product purchases |
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60,428 |
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63,961 |
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181,391 |
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183,088 |
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Production and manufacturing expenses |
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9,951 |
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9,842 |
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30,517 |
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29,856 |
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Selling, general and administrative expenses |
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3,169 |
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3,150 |
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9,470 |
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9,536 |
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Depreciation and depletion |
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4,362 |
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4,287 |
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12,839 |
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12,802 |
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Exploration expenses, including dry holes |
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319 |
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486 |
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1,132 |
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1,385 |
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Interest expense |
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88 |
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52 |
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218 |
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161 |
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Sales-based taxes (1) |
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7,519 |
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7,882 |
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22,806 |
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22,926 |
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Other taxes and duties |
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8,244 |
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8,523 |
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24,749 |
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24,646 |
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Total costs and other deductions |
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94,080 |
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98,183 |
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283,122 |
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284,400 |
Income before income taxes |
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13,410 |
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14,189 |
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42,788 |
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42,995 |
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Income taxes |
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5,064 |
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6,120 |
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15,955 |
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18,190 |
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Net income including noncontrolling interests |
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8,346 |
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8,069 |
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26,833 |
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24,805 |
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Net income attributable to noncontrolling interests |
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276 |
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199 |
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883 |
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575 |
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Net income attributable to ExxonMobil |
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8,070 |
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7,870 |
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25,950 |
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24,230 |
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Earnings per common share (dollars) |
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1.89 |
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1.79 |
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6.04 |
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5.46 |
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Earnings per common share - assuming dilution (dollars) |
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1.89 |
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1.79 |
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6.04 |
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5.46 |
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Dividends per common share (dollars) |
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0.69 |
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0.63 |
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2.01 |
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1.83 |
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(1) Sales-based taxes included in sales and other |
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operating revenue |
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7,519 |
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7,882 |
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22,806 |
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22,926 |
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
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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2014 |
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2013 |
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2014 |
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2013 |
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Net income including noncontrolling interests |
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8,346 |
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8,069 |
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26,833 |
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24,805 |
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Other comprehensive income (net of income taxes) |
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Foreign exchange translation adjustment |
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(3,828) |
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1,229 |
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(2,986) |
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(2,317) |
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Adjustment for foreign exchange translation (gain)/loss |
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included in net income |
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- |
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- |
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163 |
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- |
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Postretirement benefits reserves adjustment |
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(excluding amortization) |
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372 |
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(222) |
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196 |
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(58) |
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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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289 |
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455 |
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918 |
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1,353 |
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Unrealized change in fair value of stock investments |
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(21) |
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- |
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(57) |
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- |
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Total other comprehensive income |
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(3,188) |
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1,462 |
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(1,766) |
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(1,022) |
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Comprehensive income including noncontrolling interests |
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5,158 |
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9,531 |
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25,067 |
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23,783 |
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Comprehensive income attributable to |
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noncontrolling interests |
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(27) |
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331 |
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588 |
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420 |
Comprehensive income attributable to ExxonMobil |
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5,185 |
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9,200 |
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24,479 |
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23,363 |
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
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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2014 |
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2013 |
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Assets |
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Current assets |
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Cash and cash equivalents |
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4,962 |
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4,644 |
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Cash and cash equivalents – restricted |
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52 |
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269 |
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Notes and accounts receivable – net |
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30,963 |
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33,152 |
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Inventories |
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Crude oil, products and merchandise |
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13,441 |
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12,117 |
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Materials and supplies |
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4,320 |
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4,018 |
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Other current assets |
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4,857 |
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5,108 |
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Total current assets |
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58,595 |
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59,308 |
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Investments, advances and long-term receivables |
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35,012 |
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36,328 |
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Property, plant and equipment – net |
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251,406 |
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243,650 |
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Other assets, including intangibles – net |
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7,751 |
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7,522 |
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Total assets |
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352,764 |
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346,808 |
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Liabilities |
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Current liabilities |
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Notes and loans payable |
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10,243 |
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15,808 |
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Accounts payable and accrued liabilities |
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49,272 |
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48,085 |
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Income taxes payable |
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6,469 |
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7,831 |
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Total current liabilities |
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65,984 |
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71,724 |
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Long-term debt |
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11,591 |
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6,891 |
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Postretirement benefits reserves |
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19,268 |
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20,646 |
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Deferred income tax liabilities |
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41,132 |
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40,530 |
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Long-term obligations to equity companies |
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5,132 |
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4,742 |
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Other long-term obligations |
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22,162 |
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21,780 |
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Total liabilities |
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165,269 |
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166,313 |
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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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(9,000 million shares authorized, 8,019 million shares issued) |
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10,681 |
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10,077 |
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Earnings reinvested |
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404,738 |
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387,432 |
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Accumulated other comprehensive income |
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(12,196) |
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(10,725) |
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Common stock held in treasury |
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(3,784 million shares at Sept. 30, 2014 and |
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3,684 million shares at Dec. 31, 2013) |
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(222,636) |
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(212,781) |
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ExxonMobil share of equity |
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180,587 |
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174,003 |
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Noncontrolling interests |
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6,908 |
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6,492 |
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Total equity |
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187,495 |
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180,495 |
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Total liabilities and equity |
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352,764 |
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346,808 |
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The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
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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2014 |
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2013 |
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Cash flows from operating activities |
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Net income including noncontrolling interests |
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26,833 |
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24,805 |
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Depreciation and depletion |
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12,839 |
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12,802 |
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Changes in operational working capital, excluding cash and debt |
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(460) |
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(2,676) |
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All other items – net |
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(1,511) |
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(225) |
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Net cash provided by operating activities |
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37,701 |
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34,706 |
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Cash flows from investing activities |
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Additions to property, plant and equipment |
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(24,068) |
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(25,243) |
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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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3,794 |
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871 |
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Additional investments and advances |
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(1,269) |
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(3,644) |
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Other investing activities – net |
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3,415 |
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527 |
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Net cash used in investing activities |
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(18,128) |
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(27,489) |
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Cash flows from financing activities |
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Additions to long-term debt |
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5,503 |
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206 |
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Additions/(reductions) in short-term debt – net |
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(514) |
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(386) |
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Additions/(reductions) in debt with three months or less maturity |
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(5,413) |
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9,869 |
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Cash dividends to ExxonMobil shareholders |
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(8,644) |
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(8,125) |
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Cash dividends to noncontrolling interests |
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(172) |
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(225) |
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Changes in noncontrolling interests |
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- |
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(1) |
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Tax benefits related to stock-based awards |
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10 |
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14 |
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Common stock acquired |
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(9,865) |
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(12,696) |
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Common stock sold |
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10 |
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46 |
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Net cash used in financing activities |
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(19,085) |
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(11,298) |
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Effects of exchange rate changes on cash |
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(170) |
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(191) |
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Increase/(decrease) in cash and cash equivalents |
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318 |
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(4,272) |
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Cash and cash equivalents at beginning of period |
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4,644 |
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9,582 |
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Cash and cash equivalents at end of period |
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4,962 |
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5,310 |
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Supplemental Disclosures |
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Income taxes paid |
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14,338 |
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19,871 |
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Cash interest paid |
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295 |
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|
318 |
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Non-Cash Transaction
In the third quarter of 2014, ExxonMobil completed an asset exchange, primarily a noncash transaction, of approximately $600 million. This amount is not included in the “Proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investments” or the “Additions to property, plant and equipment” lines on the Statement of Cash Flows.
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
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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, 2012 |
|
|
9,653 |
|
|
365,727 |
|
|
(12,184) |
|
|
(197,333) |
|
|
165,863 |
|
|
5,797 |
|
|
171,660 |
|||
|
Amortization of stock-based awards |
|
|
593 |
|
|
- |
|
|
- |
|
|
- |
|
|
593 |
|
|
- |
|
|
593 |
||
|
Tax benefits related to stock-based |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
awards |
|
|
200 |
|
|
- |
|
|
- |
|
|
- |
|
|
200 |
|
|
- |
|
|
200 |
|
Other |
|
|
(384) |
|
|
- |
|
|
- |
|
|
- |
|
|
(384) |
|
|
242 |
|
|
(142) |
||
|
Net income for the period |
|
|
- |
|
|
24,230 |
|
|
- |
|
|
- |
|
|
24,230 |
|
|
575 |
|
|
24,805 |
||
|
Dividends – common shares |
|
|
- |
|
|
(8,125) |
|
|
- |
|
|
- |
|
|
(8,125) |
|
|
(225) |
|
|
(8,350) |
||
|
Other comprehensive income |
|
|
- |
|
|
- |
|
|
(867) |
|
|
- |
|
|
(867) |
|
|
(155) |
|
|
(1,022) |
||
|
Acquisitions, at cost |
|
|
- |
|
|
- |
|
|
- |
|
|
(12,696) |
|
|
(12,696) |
|
|
(1) |
|
|
(12,697) |
||
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
431 |
|
|
431 |
|
|
- |
|
|
431 |
||
Balance as of September 30, 2013 |
|
|
10,062 |
|
|
381,832 |
|
|
(13,051) |
|
|
(209,598) |
|
|
169,245 |
|
|
6,233 |
|
|
175,478 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013 |
|
|
10,077 |
|
|
387,432 |
|
|
(10,725) |
|
|
(212,781) |
|
|
174,003 |
|
|
6,492 |
|
|
180,495 |
|||
|
Amortization of stock-based awards |
|
|
588 |
|
|
- |
|
|
- |
|
|
- |
|
|
588 |
|
|
- |
|
|
588 |
||
|
Tax benefits related to stock-based |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
awards |
|
|
10 |
|
|
- |
|
|
- |
|
|
- |
|
|
10 |
|
|
- |
|
|
10 |
|
Other |
|
|
6 |
|
|
- |
|
|
- |
|
|
- |
|
|
6 |
|
|
- |
|
|
6 |
||
|
Net income for the period |
|
|
- |
|
|
25,950 |
|
|
- |
|
|
- |
|
|
25,950 |
|
|
883 |
|
|
26,833 |
||
|
Dividends – common shares |
|
|
- |
|
|
(8,644) |
|
|
- |
|
|
- |
|
|
(8,644) |
|
|
(172) |
|
|
(8,816) |
||
|
Other comprehensive income |
|
|
- |
|
|
- |
|
|
(1,471) |
|
|
- |
|
|
(1,471) |
|
|
(295) |
|
|
(1,766) |
||
|
Acquisitions, at cost |
|
|
- |
|
|
- |
|
|
- |
|
|
(9,865) |
|
|
(9,865) |
|
|
- |
|
|
(9,865) |
||
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
10 |
|
|
10 |
|
|
- |
|
|
10 |
||
Balance as of September 30, 2014 |
|
|
10,681 |
|
|
404,738 |
|
|
(12,196) |
|
|
(222,636) |
|
|
180,587 |
|
|
6,908 |
|
|
187,495 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2014 |
|
|
|
|
Nine Months Ended September 30, 2013 |
||||||||||||||
|
|
|
|
|
|
|
|
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 |
|
|
(3,684) |
|
|
4,335 |
|
|
|
|
|
8,019 |
|
|
(3,517) |
|
|
4,502 |
||
|
|
|
Acquisitions |
|
|
- |
|
|
(100) |
|
|
(100) |
|
|
|
|
|
- |
|
|
(141) |
|
|
(141) |
|
|
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
- |
|
|
8 |
|
|
8 |
|
Balance as of September 30 |
|
|
8,019 |
|
|
(3,784) |
|
|
4,235 |
|
|
|
|
|
8,019 |
|
|
(3,650) |
|
|
4,369 |
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
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 2013 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. Prior data has been reclassified in certain cases to conform to the current presentation basis.
The Corporation's exploration and production activities are accounted for under the "successful efforts" method.
2. Litigation and Other Contingencies
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.
The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2014, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. 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.
|
|
|
|
|
|
As of September 30, 2014 |
|
|
||||||
|
|
|
|
|
|
Equity |
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
Company |
|
|
Third Party |
|
|
|
|
|
|
|
|
|
|
|
Obligations (1) |
|
|
Obligations |
|
|
Total |
|
|
|
|
|
|
|
|
(millions of dollars) |
|
|
||||||
|
Guarantees |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Debt-related |
|
|
3,398 |
|
|
44 |
|
|
3,442 |
|
|
|
|
|
Other |
|
|
3,267 |
|
|
4,273 |
|
|
7,540 |
|
|
|
|
|
|
Total |
|
|
6,665 |
|
|
4,317 |
|
|
10,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, 2014, 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. On October 9, 2014, the ICSID Tribunal issued its final award finding in favor of the ExxonMobil affiliates and awarding $1.6 billion as of the date of expropriation, June 27, 2007, and interest from that date at 3.25% compounded annually until the date of payment in full. The Tribunal also noted that one of the Cerro Negro Project agreements provides a mechanism to prevent double recovery between the ICISD award and all or part of an earlier award of $908 million to an ExxonMobil affiliate, Mobil Cerro Negro, Ltd., against PdVSA and a PdVSA affiliate, PdVSA CN, in an arbitration under the rules of the International Chamber of Commerce (ICC). Judgment was entered on the ICSID award by the United States District Court for the Southern District of New York on October 10, 2014. A motion to vacate that judgment on procedural grounds was filed by the Republic of Venezuela on October 14, 2014, and is pending before the court. On October 23, 2014, the Republic of Venezuela filed with ICSID an application to revise the ICSID award such that it requires repayment of the value of the ICC award to PdVSA at the same time as payment is made to the ExxonMobil affiliates for the ICSID award and that provision be made for interest on the amount to be repaid. Thereafter, pursuant to ICSID arbitration rules, the ICSID award was stayed pending further action of the Tribunal. On October 27, 2014, ExxonMobil filed a response with ICSID that contests the application for revision of that award on both factual and jurisdictional grounds. The ICSID award has yet to be satisfied and proceedings concerning the award remain pending and so 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. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. 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.
3. Other Comprehensive Income Information
|
|
|
|
|
|
Cumulative |
|
|
Post- |
|
|
|
|
|
|
|
|
|
|
Foreign |
|
|
retirement |
|
|
Unrealized |
|
|
|
|
|
|
|
Exchange |
|
|
Benefits |
|
|
Change in |
|
|
ExxonMobil Share of Accumulated Other |
|
|
Translation |
|
|
Reserves |
|
|
Stock |
|
||
|
Comprehensive Income |
|
|
Adjustment |
|
|
Adjustment |
|
|
Investments |
Total |
||
|
|
|
|
(millions of dollars) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2012 |
|
|
2,410 |
|
|
(14,594) |
|
|
- |
(12,184) |
||
|
Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
|
|
||
|
|
from accumulated other comprehensive income |
|
|
(2,118) |
|
|
(52) |
|
|
- |
(2,170) |
|
|
Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
|
|
||
|
|
comprehensive income |
|
|
- |
|
|
1,303 |
|
|
- |
1,303 |
|
|
Total change in accumulated other comprehensive income |
|
|
(2,118) |
|
|
1,251 |
|
|
- |
(867) |
||
|
Balance as of September 30, 2013 |
|
|
292 |
|
|
(13,343) |
|
|
- |
(13,051) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013 |
|
|
(846) |
|
|
(9,879) |
|
|
- |
(10,725) |
||
|
Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
|
|
||
|
|
from accumulated other comprehensive income |
|
|
(2,637) |
|
|
176 |
|
|
(57) |
(2,518) |
|
|
Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
|
|
||
|
|
comprehensive income |
|
|
163 |
|
|
884 |
|
|
- |
1,047 |
|
|
Total change in accumulated other comprehensive income |
|
|
(2,474) |
|
|
1,060 |
|
|
(57) |
(1,471) |
||
|
Balance as of September 30, 2014 |
|
|
(3,320) |
|
|
(8,819) |
|
|
(57) |
(12,196) |
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||
|
Amounts Reclassified Out of Accumulated Other |
|
|
September 30, |
|
|
September 30, |
||||||||
|
Comprehensive Income - Before-tax Income/(Expense) |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
||
|
|
|
|
|
(millions of dollars) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation gain/(loss) included in net income |
|
|
|
|
|
|
|
|
|
|
||||
|
|
(Statement of Income line: Other income) |
- |
|
|
- |
|
|
(163) |
|
|
- |
|||
|
Amortization and settlement of postretirement benefits reserves |
|
|
|
|
|
|
|
|
|
|
||||
|
|
adjustment included in net periodic benefit costs (1) |
(430) |
|
|
(648) |
|
|
(1,315) |
|
|
(1,951) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 5 – Pension and Other Postretirement Benefits for additional details.)
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||
|
Income Tax (Expense)/Credit For |
|
|
September 30, |
|
|
September 30, |
||||||||
|
Components of Other Comprehensive Income |
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
||
|
|
|
|
|
(millions of dollars) |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation adjustment |
|
|
70 |
|
|
(16) |
|
|
99 |
|
|
100 |
||
|
Postretirement benefits reserves adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
(excluding amortization) |
|
|
(138) |
|
|
85 |
|
|
(61) |
|
|
28 |
|
|
Amortization and settlement of postretirement benefits reserves |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
adjustment included in net periodic benefit costs |
|
|
(141) |
|
|
(193) |
|
|
(397) |
|
|
(598) |
|
|
Unrealized change in fair value of stock investments |
|
11 |
|
|
- |
|
|
30 |
|
|
- |
|||
|
Total |
|
|
(198) |
|
|
(124) |
|
|
(329) |
|
|
(470) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||
|
|
|
|
|
September 30, |
|
|
September 30, |
||||||
|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
||
|
Net income attributable to ExxonMobil (millions of dollars) |
|
8,070 |
|
|
7,870 |
|
|
25,950 |
|
|
24,230 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
outstanding (millions of shares) |
|
4,267 |
|
|
4,395 |
|
|
4,297 |
|
|
4,438 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (dollars) (1) |
|
1.89 |
|
|
1.79 |
|
|
6.04 |
|
|
5.46 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The calculation of earnings per common share and earnings per common share – assuming dilution are the same in each period shown.
5. Pension and Other Postretirement Benefits
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||
|
|
|
|
|
|
|
September 30, |
|
|
September 30, |
||||||
|
|
|
|
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of dollars) |
||||||||||
|
Components of net benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Pension Benefits - U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
|
156 |
|
|
206 |
|
|
515 |
|
|
581 |
|
|
|
|
Interest cost |
|
|
202 |
|
|
188 |
|
|
605 |
|
|
562 |
|
|
|
|
Expected return on plan assets |
|
|
(200) |
|
|
(209) |
|
|
(600) |
|
|
(626) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost |
|
|
105 |
|
|
165 |
|
|
313 |
|
|
493 |
|
|
|
Net pension enhancement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost |
|
|
113 |
|
|
182 |
|
|
338 |
|
|
546 |
|
|
|
Net benefit cost |
|
|
376 |
|
|
532 |
|
|
1,171 |
|
|
1,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits - Non-U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
|
144 |
|
|
170 |
|
|
448 |
|
|
521 |
|
|
|
|
Interest cost |
|
|
285 |
|
|
265 |
|
|
859 |
|
|
803 |
|
|
|
|
Expected return on plan assets |
|
|
(300) |
|
|
(278) |
|
|
(899) |
|
|
(841) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost |
|
|
183 |
|
|
239 |
|
|
564 |
|
|
724 |
|
|
|
Net pension enhancement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost |
|
|
- |
|
|
1 |
|
|
- |
|
|
2 |
|
|
|
Net benefit cost |
|
|
312 |
|
|
397 |
|
|
972 |
|
|
1,209 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Postretirement Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
|
32 |
|
|
44 |
|
|
107 |
|
|
123 |
|
|
|
|
Interest cost |
|
|
89 |
|
|
87 |
|
|
293 |
|
|
264 |
|
|
|
|
Expected return on plan assets |
|
|
(9) |
|
|
(10) |
|
|
(29) |
|
|
(30) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost |
|
|
29 |
|
|
61 |
|
|
100 |
|
|
186 |
|
|
|
Net benefit cost |
|
|
141 |
|
|
182 |
|
|
471 |
|
|
543 |
6. Financial Instruments
The fair value of financial instruments is determined by reference to observable market data and other valuation techniques as appropriate. The only category of financial instruments where the differenc