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 June 30, 2021

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	13-5409005
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

5959 Las Colinas Boulevard, Irving, Texas 75039-2298

(Address of principal executive offices) (Zip Code)

(972) 940-6000

(Registrant's telephone number, including area code)

 _______________________

Securities registered pursuant to Section 12(b) of the Act: 

Title of Each Class	Trading Symbol	Name of Each Exchange  on Which Registered
Common Stock, without par value	XOM	New York Stock Exchange
0.142% Notes due 2024	XOM24B	New York Stock Exchange
0.524% Notes due 2028	XOM28	New York Stock Exchange
0.835% Notes due 2032	XOM32	New York Stock Exchange
1.408% Notes due 2039	XOM39A	New York Stock Exchange

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 every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) 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, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) 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 ☑ 

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 June 30, 2021
Common stock, without par value	4,233,562,917

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2021

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Statement of Income         Three and six months ended June 30, 2021 and 2020	3
Condensed Consolidated Statement of Comprehensive Income         Three and six months ended June 30, 2021 and 2020	4
Condensed Consolidated Balance Sheet         As of June 30, 2021 and December 31, 2020	5
Condensed Consolidated Statement of Cash Flows         Six months ended June 30, 2021 and 2020	6
Condensed Consolidated Statement of Changes in Equity         Three months ended June 30, 2021 and 2020	7
Condensed Consolidated Statement of Changes in Equity         Six months ended June 30, 2021 and 2020	8
Notes to Condensed Consolidated Financial Statements	9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3. Quantitative and Qualitative Disclosures About Market Risk	28
Item 4. Controls and Procedures	28
PART II. OTHER INFORMATION
Item 1. Legal Proceedings	29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 6. Exhibits	29
Index to Exhibits	30
Signature	31

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PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)
	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Revenues and other income
Sales and other operating revenue	65,943	32,277	123,495	87,411
Income from equity affiliates	1,436	103	2,909	878
Other income	363	225	485	474
Total revenues and other income	67,742	32,605	126,889	88,763
Costs and other deductions
Crude oil and product purchases	37,329	14,069	69,930	46,152
Production and manufacturing expenses	8,471	6,895	16,533	15,192
Selling, general and administrative expenses	2,345	2,409	4,773	4,988
Depreciation and depletion	4,952	4,916	9,956	10,735
Exploration expenses, including dry holes	176	214	340	502
Non-service pension and postretirement benefit expense	162	271	540	540
Interest expense	254	317	512	566
Other taxes and duties	7,746	5,154	14,406	11,986
Total costs and other deductions	61,435	34,245	116,990	90,661
Income (Loss) before income taxes	6,307	(1,640)	9,899	(1,898)
Income taxes	1,526	(471)	2,322	41
Net income (loss) including noncontrolling interests	4,781	(1,169)	7,577	(1,939)
Net income (loss) attributable to noncontrolling interests	91	(89)	157	(249)
Net income (loss) attributable to ExxonMobil	4,690	(1,080)	7,420	(1,690)
Earnings (Loss) per common share (dollars)	1.10	(0.26)	1.74	(0.40)
Earnings (Loss) per common share - assuming dilution (dollars)	1.10	(0.26)	1.74	(0.40)

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

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EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(millions of dollars)
	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Net income (loss) including noncontrolling interests	4,781	(1,169)	7,577	(1,939)
Other comprehensive income (loss) (net of income taxes)
Foreign exchange translation adjustment	423	2,875	572	(2,774)
Postretirement benefits reserves adjustment (excluding amortization)	(47)	(136)	121	(49)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	215	203	593	407
Total other comprehensive income (loss)	591	2,942	1,286	(2,416)
Comprehensive income (loss) including noncontrolling interests	5,372	1,773	8,863	(4,355)
Comprehensive income (loss) attributable to noncontrolling interests	178	131	324	(541)
Comprehensive income (loss) attributable to ExxonMobil	5,194	1,642	8,539	(3,814)

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

4

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)
	June 30, 2021	December 31, 2020
Assets
Current assets
Cash and cash equivalents	3,465	4,364
Notes and accounts receivable – net	28,540	20,581
Inventories
Crude oil, products and merchandise	14,711	14,169
Materials and supplies	4,564	4,681
Other current assets	1,562	1,098
Total current assets	52,842	44,893
Investments, advances and long-term receivables	44,774	43,515
Property, plant and equipment – net	223,012	227,553
Other assets, including intangibles – net	16,661	16,789
Total assets	337,289	332,750
Liabilities
Current liabilities
Notes and loans payable	15,293	20,458
Accounts payable and accrued liabilities	45,780	35,221
Income taxes payable	1,165	684
Total current liabilities	62,238	56,363
Long-term debt	45,319	47,182
Postretirement benefits reserves	22,082	22,415
Deferred income tax liabilities	18,511	18,165
Long-term obligations to equity companies	3,038	3,253
Other long-term obligations	20,545	21,242
Total liabilities	171,733	168,620
Commitments and contingencies (Note 3)
Equity
Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued)	16,006	15,688
Earnings reinvested	383,922	383,943
Accumulated other comprehensive income	(15,586)	(16,705)
Common stock held in treasury
(3,785 million shares at June 30, 2021 and 3,786 million shares at December 31, 2020)	(225,771)	(225,776)
ExxonMobil share of equity	158,571	157,150
Noncontrolling interests	6,985	6,980
Total equity	165,556	164,130
Total liabilities and equity	337,289	332,750

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

5

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
	Six Months Ended June 30,
	2021	2020
Cash flows from operating activities
Net income (loss) including noncontrolling interests	7,577	(1,939)
Depreciation and depletion	9,956	10,735
Changes in operational working capital, excluding cash and debt	1,573	(2,247)
All other items – net	(192)	(275)
Net cash provided by operating activities	18,914	6,274
Cash flows from investing activities
Additions to property, plant and equipment	(5,147)	(10,362)
Proceeds from asset sales and returns of investments	557	129
Additional investments and advances	(613)	(1,524)
Other investing activities including collection of advances	132	309
Net cash used in investing activities	(5,071)	(11,448)
Cash flows from financing activities
Additions to long-term debt	—	23,186
Reductions in long-term debt	—	(3)
Additions to short-term debt (1)	9,662	20,491
Reductions in short-term debt (1)	(18,000)	(15,078)
Additions/(reductions) in debt with three months or less maturity	1,320	(5,998)
Contingent consideration payments	(28)	(21)
Cash dividends to ExxonMobil shareholders	(7,441)	(7,434)
Cash dividends to noncontrolling interests	(112)	(93)
Changes in noncontrolling interests	(207)	317
Common stock acquired	(1)	(305)
Net cash used in financing activities	(14,807)	15,062
Effects of exchange rate changes on cash	65	(401)
Increase/(decrease) in cash and cash equivalents	(899)	9,487
Cash and cash equivalents at beginning of period	4,364	3,089
Cash and cash equivalents at end of period	3,465	12,576
Supplemental Disclosures
Income taxes paid	2,079	1,768
Cash interest paid
Included in cash flows from operating activities	466	290
Capitalized, included in cash flows from investing activities	313	335
Total cash interest paid	779	625

(1) Includes commercial paper with a maturity greater than three months.

 The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

6

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)
	ExxonMobil Share of Equity
	Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
Balance as of March 31, 2020	15,636	416,919	(24,339)	(226,137)	182,079	6,664	188,743
Amortization of stock-based awards	177	—	—	—	177	—	177
Other	(1)	—	—	—	(1)	223	222
Net income (loss) for the period	—	(1,080)	—	—	(1,080)	(89)	(1,169)
Dividends - common shares	—	(3,715)	—	—	(3,715)	(48)	(3,763)
Other comprehensive income (loss)	—	—	2,722	—	2,722	220	2,942
Dispositions	—	—	—	1	1	—	1
Balance as of June 30, 2020	15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153
Balance as of March 31, 2021	15,884	382,953	(16,090)	(225,773)	156,974	7,127	164,101
Amortization of stock-based awards	126	—	—	—	126	—	126
Other	(4)	—	—	—	(4)	33	29
Net income (loss) for the period	—	4,690	—	—	4,690	91	4,781
Dividends - common shares	—	(3,721)	—	—	(3,721)	(60)	(3,781)
Other comprehensive income (loss)	—	—	504	—	504	87	591
Acquisitions, at cost	—	—	—	—	—	(293)	(293)
Dispositions	—	—	—	2	2	—	2
Balance as of June 30, 2021	16,006	383,922	(15,586)	(225,771)	158,571	6,985	165,556

	Three Months Ended June 30, 2021			Three Months Ended June 30, 2020
Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
	(millions of shares)			(millions of shares)
Balance as of March 31	8,019	(3,785)	4,234	8,019	(3,791)	4,228
Acquisitions	—	—	—	—	—	—
Dispositions	—	—	—	—	—	—
Balance as of June 30	8,019	(3,785)	4,234	8,019	(3,791)	4,228

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

7

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)
	ExxonMobil Share of Equity
	Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
Balance as of December 31, 2019	15,637	421,341	(19,493)	(225,835)	191,650	7,288	198,938
Amortization of stock-based awards	358	—	—	—	358	—	358
Other	(183)	—	—	—	(183)	380	197
Net income (loss) for the period	—	(1,690)	—	—	(1,690)	(249)	(1,939)
Dividends - common shares	—	(7,434)	—	—	(7,434)	(93)	(7,527)
Cumulative effect of accounting change	—	(93)	—	—	(93)	(1)	(94)
Other comprehensive income (loss)	—	—	(2,124)	—	(2,124)	(292)	(2,416)
Acquisitions, at cost	—	—	—	(305)	(305)	(63)	(368)
Dispositions	—	—	—	4	4	—	4
Balance as of June 30, 2020	15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153
Balance as of December 31, 2020	15,688	383,943	(16,705)	(225,776)	157,150	6,980	164,130
Amortization of stock-based awards	328	—	—	—	328	—	328
Other	(10)	—	—	—	(10)	86	76
Net income (loss) for the period	—	7,420	—	—	7,420	157	7,577
Dividends - common shares	—	(7,441)	—	—	(7,441)	(112)	(7,553)
Other comprehensive income (loss)	—	—	1,119	—	1,119	167	1,286
Acquisitions, at cost	—	—	—	(1)	(1)	(293)	(294)
Dispositions	—	—	—	6	6	—	6
Balance as of June 30, 2021	16,006	383,922	(15,586)	(225,771)	158,571	6,985	165,556

	Six Months Ended June 30, 2021			Six Months Ended June 30, 2020
Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
	(millions of shares)			(millions of shares)
Balance as of December 31	8,019	(3,786)	4,233	8,019	(3,785)	4,234
Acquisitions	—	—	—	—	(6)	(6)
Dispositions	—	1	1	—	—	—
Balance as of June 30	8,019	(3,785)	4,234	8,019	(3,791)	4,228

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

8

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 2020 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. Miscellaneous Financial Information

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The Corporation's results for the second quarter of 2020 included a before-tax credit of $2,624 million, as rising prices reduced the charge against the book value of inventories from $2,777 million in the first quarter 2020 to $153 million for the first half of 2020. This adjustment, which is included in "Crude oil and product purchases", together with a market adjustment to inventory for equity companies included in "Income from equity affiliates", resulted in a $1,922 million after-tax credit to earnings (excluding noncontrolling interests) in the second quarter of 2020.

In the first half of 2020, mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in the Corporation's market capitalization at the end of the first quarter, before-tax goodwill impairment charges of $611 million and other impairment charges of $363 million were recognized. The charges related to goodwill impairments were included in “Depreciation and depletion” on the Statement of Income while the charges related to other impairments were largely included in “Income from equity affiliates.”

9

3. 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.

Other Contingencies. The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 2021, 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 June 30, 2021
		Equity Company Obligations (1)	Other Third-Party Obligations	Total
		(millions of dollars)
Guarantees
	Debt-related	1,026	131	1,157
	Other	865	4,933	5,798
	Total	1,891	5,064	6,955

(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 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 Venezuelan nationalization decree issued in February 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil 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. 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 collected awards of $908 million in an arbitration against PdVSA under the rules of the International Chamber of Commerce in respect of an indemnity related to the Cerro Negro Project and $260 million in an arbitration for compensation due for the La Ceiba Project and for export curtailments at the Cerro Negro Project under rules of International Centre for Settlement of Investment Disputes (ICSID). An ICSID arbitration award relating to the Cerro Negro Project’s expropriation ($1.4 billion) was annulled based on a determination that a prior Tribunal failed to adequately explain why the cap on damages in the indemnity owed by PdVSA did not affect or limit the amount owed for the expropriation of the Cerro Negro Project. ExxonMobil filed a new claim seeking to restore the original award of damages for the Cerro Negro Project with ICSID on September 26, 2018.

The net impact of this matter 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.

10

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 appealed that judgment to the Court of Appeal, Abuja Judicial Division. On July 22, 2016, the Court of Appeal upheld the decision of the lower court setting aside the award. On October 21, 2016, the Contractors appealed the decision to the Supreme Court of Nigeria. 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. Following dismissal by this court, the Contractors appealed to the Nigerian Court of Appeal in June 2016. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York (SDNY) to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. NNPC moved to dismiss the lawsuit. On September 4, 2019, the SDNY dismissed the Contractors’ petition to recognize and enforce the Erha arbitration award. The Contractors filed a notice of appeal in the Second Circuit on October 2, 2019. 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.

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4. Other Comprehensive Income Information

ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Postretirement Benefits  Reserves Adjustment	Total
	(millions of dollars)
Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	(2,469)	(45)	(2,514)
Amounts reclassified from accumulated other comprehensive income	—	390	390
Total change in accumulated other comprehensive income	(2,469)	345	(2,124)
Balance as of June 30, 2020	(14,915)	(6,702)	(21,617)
Balance as of December 31, 2020	(10,614)	(6,091)	(16,705)
Current period change excluding amounts reclassified  from accumulated other comprehensive income (1)	425	119	544
Amounts reclassified from accumulated other comprehensive income	—	575	575
Total change in accumulated other comprehensive income	425	694	1,119
Balance as of June 30, 2021	(10,189)	(5,397)	(15,586)

(1)Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $135 million and $5 million in 2021 and 2020, respectively.

Amounts Reclassified Out of Accumulated Other	Three Months Ended June 30,		Six Months Ended June 30,
Comprehensive Income - Before-tax Income/(Expense)	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs
(Statement of Income line: Non-service pension and postretirement benefit expense)	(280)	(260)	(764)	(522)

Income Tax (Expense)/Credit For	Three Months Ended June 30,		Six Months Ended June 30,
Components of Other Comprehensive Income	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Foreign exchange translation adjustment	19	8	(34)	15
Postretirement benefits reserves adjustment (excluding amortization)	25	52	(33)	(10)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(65)	(57)	(171)	(115)
Total	(21)	3	(238)	(110)

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5. Earnings Per Share 

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
Earnings per common share
Net income (loss) attributable to ExxonMobil (millions of dollars)	4,690	(1,080)	7,420	(1,690)
Weighted average number of common shares outstanding (millions of shares)	4,276	4,271	4,274	4,270
Earnings (Loss) per common share (dollars) (1)	1.10	(0.26)	1.74	(0.40)
Dividends paid per common share (dollars)	0.87	0.87	1.74	1.74

(1)The calculation of earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown.

6. Pension and Other Postretirement Benefits 

	Three Months Ended June 30,		Six Months Ended June 30,
	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Components of net benefit cost
Pension Benefits - U.S.
Service cost	208	232	433	467
Interest cost	140	177	279	354
Expected return on plan assets	(181)	(175)	(361)	(350)
Amortization of actuarial loss/(gain) and prior service cost	55	79	110	158
Net pension enhancement and curtailment/settlement cost	95	52	393	104
Net benefit cost	317	365	854	733
Pension Benefits - Non-U.S.
Service cost	198	171	393	346
Interest cost	135	162	265	323
Expected return on plan assets	(263)	(216)	(521)	(438)
Amortization of actuarial loss/(gain) and prior service cost	121	115	244	234
Net pension enhancement and curtailment/settlement cost	—	—	12	—
Net benefit cost	191	232	393	465
Other Postretirement Benefits
Service cost	46	44	95	89
Interest cost	55	68	111	138
Expected return on plan assets	(4)	(5)	(9)	(9)
Amortization of actuarial loss/(gain) and prior service cost	9	14	17	26
Net benefit cost	106	121	214	244

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7. Financial Instruments and Derivatives

Financial Instruments. The estimated fair value of financial instruments at June 30, 2021, and December 31, 2020, and the related hierarchy level for the fair value measurement was as follows:

		At June 30, 2021
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	2,156	594	—	2,750	(2,357)	—	—	393
	Advances to/receivables
	from equity companies (2)(6)	—	3,167	5,727	8,894	—	—	(291)	8,603
	Other long-term
	financial assets (3)	1,104	—	1,303	2,407	—	—	190	2,597
Liabilities
	Derivative liabilities (4)	2,806	759	—	3,565	(2,357)	(650)	—	558
	Long-term debt (5)	46,787	100	4	46,891	—	—	(3,376)	43,515
	Long-term obligations
	to equity companies (6)	—	—	3,337	3,337	—	—	(299)	3,038
	Other long-term
	financial liabilities (7)	—	—	972	972	—	—	57	1,029

		At December 31, 2020
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	1,247	194	—	1,441	(1,282)	(6)	—	153
	Advances to/receivables
	from equity companies (2)(6)	—	3,275	5,904	9,179	—	—	(367)	8,812
	Other long-term
	financial assets (3)	1,235	—	944	2,179	—	—	125	2,304
Liabilities
	Derivative liabilities (4)	1,443	254	—	1,697	(1,282)	(202)	—	213
	Long-term debt (5)	50,263	125	4	50,392	—	—	(4,890)	45,502
	Long-term obligations
	to equity companies (6)	—	—	3,530	3,530	—	—	(277)	3,253
	Other long-term
	financial liabilities (7)	—	—	964	964	—	—	44	1,008

(1)Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net

(2)Included in the Balance Sheet line: Investments, advances and long-term receivables

(3)Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net

(4)Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations

(5)Excluding finance lease obligations

(6)Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.

(7)Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

At June 30, 2021, and December 31, 2020, respectively, the Corporation had $495 million and $504 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

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The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of June 30, 2021, the Corporation has designated $5.3 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business. The net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $10.7 billion and undrawn long-term committed lines of credit of $0.6 billion as of second quarter 2021.

Derivative Instruments. The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and for trading purposes. Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue.” The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of June 30, 2021, and December 31, 2020, or results of operations for the periods ended June 30, 2021, and 2020.

Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

The net notional long/(short) position of derivative instruments at June 30, 2021, and December 31, 2020, was as follows:

	June 30,	December 31,
	2021	2020
	(millions)
Crude oil (barrels)	30	40
Petroleum products (barrels)	(69)	(46)
Natural gas (MMBTUs)	(461)	(500)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are included in the following lines on a before-tax basis: