UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2019
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
(Exact name of registrant as specified in its charter)
NEW JERSEY |
|
13-5409005 |
(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) 940-6000
(Registrant's telephone number, including area code)
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Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
|
Trading Symbol |
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Name of Each Exchange on Which Registered |
Common Stock, without par value |
|
XOM |
|
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 March 31, 2019 |
Common stock, without par value |
|
4,231,093,914 |
EXXON MOBIL CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2019
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
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Item 1. Financial Statements
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Condensed Consolidated Statement of Income Three months ended March 31, 2019 and 2018
|
3 |
Condensed Consolidated Statement of Comprehensive Income Three months ended March 31, 2019 and 2018
|
4 |
Condensed Consolidated Balance Sheet As of March 31, 2019 and December 31, 2018 |
5 |
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Condensed Consolidated Statement of Cash Flows Three months ended March 31, 2019 and 2018 |
6 |
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Condensed Consolidated Statement of Changes in Equity Three months ended March 31, 2019 and 2018 |
7 |
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Notes to Condensed Consolidated Financial Statements
|
8 |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|
19 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
26 |
Item 4. Controls and Procedures
|
26 |
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PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
|
27 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
28 |
Item 6. Exhibits
|
28 |
Index to Exhibits
|
29 |
Signature
|
30 |
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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March 31, |
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|||
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2019 |
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2018 |
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Revenues and other income |
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Sales and other operating revenue |
|
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61,646 |
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65,436 |
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|
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Income from equity affiliates |
|
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1,709 |
|
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1,910 |
|
|
|
Other income |
|
|
270 |
|
|
865 |
|
|
|
|
Total revenues and other income |
|
|
63,625 |
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|
68,211 |
|
Costs and other deductions |
|
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|
|
|
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||
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Crude oil and product purchases |
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34,801 |
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36,288 |
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|
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Production and manufacturing expenses |
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8,970 |
|
|
8,491 |
|
|
|
Selling, general and administrative expenses |
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|
2,770 |
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2,747 |
|
|
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Depreciation and depletion |
|
|
4,571 |
|
|
4,470 |
|
|
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Exploration expenses, including dry holes |
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|
280 |
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|
287 |
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Non-service pension and postretirement benefit expense |
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358 |
|
|
337 |
|
|
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Interest expense |
|
|
181 |
|
|
204 |
|
|
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Other taxes and duties |
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7,405 |
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8,147 |
|
|
|
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Total costs and other deductions |
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59,336 |
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|
60,971 |
|
Income before income taxes |
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4,289 |
|
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7,240 |
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||
|
Income taxes |
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1,883 |
|
|
2,457 |
|
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Net income including noncontrolling interests |
|
|
2,406 |
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4,783 |
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||
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Net income attributable to noncontrolling interests |
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|
56 |
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133 |
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Net income attributable to ExxonMobil |
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2,350 |
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4,650 |
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Earnings per common share (dollars) |
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0.55 |
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1.09 |
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||
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|
|
|
|
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Earnings per common share - assuming dilution (dollars) |
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0.55 |
|
|
1.09 |
|
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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March 31, |
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|
|
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2019 |
|
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2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net income including noncontrolling interests |
|
|
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2,406 |
|
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4,783 |
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Other comprehensive income (net of income taxes) |
|
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|
|
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|||
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Foreign exchange translation adjustment |
|
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|
749 |
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(804) |
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||
|
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Adjustment for foreign exchange translation (gain)/loss included in net income |
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- |
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168 |
|
|||
|
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Postretirement benefits reserves adjustment (excluding amortization) |
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(26) |
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(434) |
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Amortization and settlement of postretirement benefits reserves adjustment |
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included in net periodic benefit costs |
|
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185 |
|
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237 |
|
|
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Total other comprehensive income |
|
|
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908 |
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(833) |
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Comprehensive income including noncontrolling interests |
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3,314 |
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3,950 |
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Comprehensive income attributable to noncontrolling interests |
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182 |
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(9) |
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Comprehensive income attributable to ExxonMobil |
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3,132 |
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3,959 |
|
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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Mar. 31, |
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Dec. 31, |
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2019 |
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2018 |
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Assets |
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Current assets |
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Cash and cash equivalents |
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4,586 |
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3,042 |
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Notes and accounts receivable – net |
|
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27,105 |
|
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24,701 |
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Inventories |
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Crude oil, products and merchandise |
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13,979 |
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14,803 |
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Materials and supplies |
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4,353 |
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4,155 |
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Other current assets |
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1,553 |
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1,272 |
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|
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Total current assets |
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51,576 |
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47,973 |
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Investments, advances and long-term receivables |
|
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42,068 |
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40,790 |
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Property, plant and equipment – net |
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248,563 |
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247,101 |
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Other assets, including intangibles – net |
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13,982 |
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10,332 |
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||
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Total assets |
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356,189 |
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346,196 |
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Liabilities |
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Current liabilities |
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Notes and loans payable |
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21,794 |
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17,258 |
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Accounts payable and accrued liabilities |
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42,090 |
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37,268 |
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Income taxes payable |
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2,748 |
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2,612 |
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Total current liabilities |
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66,632 |
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57,138 |
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Long-term debt |
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19,031 |
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20,538 |
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||
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Postretirement benefits reserves |
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|
20,051 |
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20,272 |
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||
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Deferred income tax liabilities |
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27,287 |
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27,244 |
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||
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Long-term obligations to equity companies |
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4,430 |
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4,382 |
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Other long-term obligations |
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20,737 |
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18,094 |
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||
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Total liabilities |
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|
158,168 |
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147,668 |
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Commitments and contingencies (Note 3) |
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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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15,476 |
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15,258 |
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Earnings reinvested |
|
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420,498 |
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421,653 |
|
||
|
Accumulated other comprehensive income |
|
|
(18,782) |
|
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(19,564) |
|
||
|
Common stock held in treasury |
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(3,788 million shares at March 31, 2019 and |
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3,782 million shares at December 31, 2018) |
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(225,970) |
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(225,553) |
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ExxonMobil share of equity |
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191,222 |
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191,794 |
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Noncontrolling interests |
|
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6,799 |
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6,734 |
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Total equity |
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198,021 |
|
|
198,528 |
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|
|
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Total liabilities and equity |
|
|
356,189 |
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346,196 |
|
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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Three Months Ended |
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March 31, |
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|||
|
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2019 |
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2018 |
|
Cash flows from operating activities |
|
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|
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|||
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Net income including noncontrolling interests |
|
|
2,406 |
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4,783 |
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||
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Depreciation and depletion |
|
|
4,571 |
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4,470 |
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||
|
Changes in operational working capital, excluding cash and debt |
|
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2,257 |
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|
351 |
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||
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All other items – net |
|
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(896) |
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(1,085) |
|
||
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Net cash provided by operating activities |
|
|
8,338 |
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8,519 |
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Cash flows from investing activities |
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|
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|||
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Additions to property, plant and equipment |
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(5,199) |
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(3,349) |
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||
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Proceeds associated with sales of subsidiaries, property, plant and |
|
|
|
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equipment, and sales and returns of investments |
|
|
107 |
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1,441 |
|
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Additional investments and advances |
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(910) |
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(138) |
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||
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Other investing activities including collection of advances |
|
|
209 |
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|
187 |
|
||
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Net cash used in investing activities |
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(5,793) |
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(1,859) |
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|
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|
|
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Cash flows from financing activities |
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|||
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Reductions in short-term debt |
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(3,777) |
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(3,872) |
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Additions/(reductions) in commercial paper, and debt with three |
|
|
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|
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||
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months or less maturity (1) |
|
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6,776 |
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1,950 |
|
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Cash dividends to ExxonMobil shareholders |
|
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(3,505) |
|
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(3,291) |
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||
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Cash dividends to noncontrolling interests |
|
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(43) |
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(43) |
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Changes in noncontrolling interests |
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(74) |
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(59) |
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Common stock acquired |
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(421) |
|
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(427) |
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Net cash used in financing activities |
|
|
(1,044) |
|
|
(5,742) |
|
Effects of exchange rate changes on cash |
|
|
43 |
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|
30 |
|
|||
Increase/(decrease) in cash and cash equivalents |
|
|
1,544 |
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|
948 |
|
|||
Cash and cash equivalents at beginning of period |
|
|
3,042 |
|
|
3,177 |
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Cash and cash equivalents at end of period |
|
|
4,586 |
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|
4,125 |
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|||
|
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|
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|
|
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Supplemental Disclosures |
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|
|
|
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Income taxes paid |
|
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1,793 |
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|
2,117 |
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||
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Cash interest paid |
|
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|
|
|
|
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||
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Included in cash flows from operating activities |
|
|
247 |
|
|
206 |
|
|
|
|
Capitalized, included in cash flows from investing activities |
|
|
175 |
|
|
154 |
|
|
|
|
Total cash interest paid |
|
|
422 |
|
|
360 |
|
(1) Includes a net addition of commercial paper with a maturity of over three months of $5.3 billion in 2019 and a net reduction of $0.3 billion in 2018. The gross amount of commercial paper with a maturity of over three months issued was $6.4 billion in 2019 and $0.4 billion in 2018, while the gross amount repaid was $1.1 billion in 2019 and $0.7 billion in 2018.
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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|
|||||||||||||
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Accumulated |
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|
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|||
|
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|
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Other |
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Common |
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|
|
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||
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Compre- |
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Stock |
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ExxonMobil |
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Non- |
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Common |
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Earnings |
|
hensive |
|
Held in |
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Share of |
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controlling |
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Total |
|||||||
|
|
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|
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Stock |
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Reinvested |
|
Income |
|
Treasury |
|
Equity |
|
Interests |
|
Equity |
|||||||
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Balance as of December 31, 2017 |
|
|
14,656 |
|
|
414,540 |
|
|
(16,262) |
|
|
(225,246) |
|
|
187,688 |
|
|
6,812 |
|
|
194,500 |
|||
|
Amortization of stock-based awards |
|
|
237 |
|
|
- |
|
|
- |
|
|
- |
|
|
237 |
|
|
- |
|
|
237 |
||
|
Other |
|
|
(5) |
|
|
- |
|
|
- |
|
|
- |
|
|
(5) |
|
|
- |
|
|
(5) |
||
|
Net income for the period |
|
|
- |
|
|
4,650 |
|
|
- |
|
|
- |
|
|
4,650 |
|
|
133 |
|
|
4,783 |
||
|
Dividends - common shares |
|
|
- |
|
|
(3,291) |
|
|
- |
|
|
- |
|
|
(3,291) |
|
|
(43) |
|
|
(3,334) |
||
|
Cumulative effect of accounting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
change |
|
|
- |
|
|
71 |
|
|
(39) |
|
|
- |
|
|
32 |
|
|
15 |
|
|
47 |
|
Other comprehensive income |
|
|
- |
|
|
- |
|
|
(691) |
|
|
- |
|
|
(691) |
|
|
(142) |
|
|
(833) |
||
|
Acquisitions, at cost |
|
|
- |
|
|
- |
|
|
- |
|
|
(427) |
|
|
(427) |
|
|
(59) |
|
|
(486) |
||
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
2 |
|
|
2 |
|
|
- |
|
|
2 |
||
Balance as of March 31, 2018 |
|
|
14,888 |
|
|
415,970 |
|
|
(16,992) |
|
|
(225,671) |
|
|
188,195 |
|
|
6,716 |
|
|
194,911 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2018 |
|
|
15,258 |
|
|
421,653 |
|
|
(19,564) |
|
|
(225,553) |
|
|
191,794 |
|
|
6,734 |
|
|
198,528 |
|||
|
Amortization of stock-based awards |
|
|
223 |
|
|
- |
|
|
- |
|
|
- |
|
|
223 |
|
|
- |
|
|
223 |
||
|
Other |
|
|
(5) |
|
|
- |
|
|
- |
|
|
- |
|
|
(5) |
|
|
- |
|
|
(5) |
||
|
Net income for the period |
|
|
- |
|
|
2,350 |
|
|
- |
|
|
- |
|
|
2,350 |
|
|
56 |
|
|
2,406 |
||
|
Dividends - common shares |
|
|
- |
|
|
(3,505) |
|
|
- |
|
|
- |
|
|
(3,505) |
|
|
(43) |
|
|
(3,548) |
||
|
Other comprehensive income |
|
|
- |
|
|
- |
|
|
782 |
|
|
- |
|
|
782 |
|
|
126 |
|
|
908 |
||
|
Acquisitions, at cost |
|
|
- |
|
|
- |
|
|
- |
|
|
(421) |
|
|
(421) |
|
|
(83) |
|
|
(504) |
||
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
4 |
|
|
4 |
|
|
9 |
|
|
13 |
||
Balance as of March 31, 2019 |
|
|
15,476 |
|
|
420,498 |
|
|
(18,782) |
|
|
(225,970) |
|
|
191,222 |
|
|
6,799 |
|
|
198,021 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2019 |
|
|
|
|
Three Months Ended March 31, 2018 |
||||||||||||||
|
|
|
|
|
|
|
|
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 |
|
|
(3,782) |
|
|
4,237 |
|
|
|
|
|
8,019 |
|
|
(3,780) |
|
|
4,239 |
||
|
|
|
Acquisitions |
|
|
- |
|
|
(6) |
|
|
(6) |
|
|
|
|
|
- |
|
|
(5) |
|
|
(5) |
|
|
|
Dispositions |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
|
- |
|
|
- |
|
|
- |
|
Balance as of March 31 |
|
|
8,019 |
|
|
(3,788) |
|
|
4,231 |
|
|
|
|
|
8,019 |
|
|
(3,785) |
|
|
4,234 |
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 2018 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.
Effective January 1, 2019, the Corporation adopted the Financial Accounting Standards Board’s Standard, Leases (Topic 842), as amended. The standard requires all leases to be recorded on the balance sheet as a right of use asset and a lease liability. The Corporation used a transition method that applies the new lease standard at January 1, 2019. The Corporation applied a policy election to exclude short-term leases from balance sheet recognition and also elected certain practical expedients at adoption. As permitted, the Corporation did not reassess whether existing contracts are or contain leases, the lease classification for any existing leases, initial direct costs for any existing lease and whether existing land easements and rights of way, which were not previously accounted for as leases, are or contain a lease. At adoption on January 1, 2019, an operating lease liability of $3.3 billion was recorded and the operating lease right of use asset was $4.3 billion, including $1.0 billion of previously recorded prepaid leases. There was no cumulative earnings effect adjustment.
Effective January 1, 2020, ExxonMobil will adopt the Financial Accounting Standards Board’s update, Financial Instruments – Credit Losses (Topic 326), as amended. The standard requires a valuation allowance for credit losses be recognized for certain financial assets that reflects the current expected credit loss over the asset’s contractual life. The valuation allowance considers the risk of loss, even if remote, and considers past events, current conditions and expectations of the future. The Corporation is evaluating the standard and its effect on the Corporation’s financial statements.
3. 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 March 31, 2019, 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.
8
|
|
|
|
|
|
As of March 31, 2019 |
|
|
||||||
|
|
|
|
|
|
Equity |
|
|
Other |
|
|
|
|
|
|
|
|
|
|
|
Company |
|
|
Third Party |
|
|
|
|
|
|
|
|
|
|
|
Obligations (1) |
|
|
Obligations |
|
|
Total |
|
|
|
|
|
|
|
|
(millions of dollars) |
|
|
||||||
|
Guarantees |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Debt-related |
|
|
612 |
|
|
79 |
|
|
691 |
|
|
|
|
|
Other |
|
|
1,081 |
|
|
4,288 |
|
|
5,369 |
|
|
|
|
|
|
Total |
|
|
1,693 |
|
|
4,367 |
|
|
6,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
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 to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. NNPC has moved to dismiss the lawsuit. 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
4. Other Comprehensive Income Information
|
|
|
|
|
|
Cumulative |
|
|
Post- |
|
|
|
|
|
|
|
|
|
Foreign |
|
|
retirement |
|
|
|
|
|
|
|
|
|
Exchange |
|
|
Benefits |
|
|
|
|
ExxonMobil Share of Accumulated Other |
|
|
Translation |
|
|
Reserves |
|
|
|
||
|
Comprehensive Income |
|
|
Adjustment |
|
|
Adjustment |
|
|
Total |
||
|
|
|
|
(millions of dollars) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2017 |
|
|
(9,482) |
|
|
(6,780) |
|
|
(16,262) |
||
|
Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
|
||
|
|
from accumulated other comprehensive income |
|
|
(686) |
|
|
(440) |
|
|
(1,126) |
|
|
Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
|
||
|
|
comprehensive income |
|
|
168 |
|
|
228 |
|
|
396 |
|
|
Total change in accumulated other comprehensive income |
|
|
(518) |
|
|
(212) |
|
|
(730) |
||
|
Balance as of March 31, 2018 |
|
|
(10,000) |
|
|
(6,992) |
|
|
(16,992) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2018 |
|
|
(13,881) |
|
|
(5,683) |
|
|
(19,564) |
||
|
Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
|
||
|
|
from accumulated other comprehensive income |
|
|
627 |
|
|
(23) |
|
|
604 |
|
|
Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
|
||
|
|
comprehensive income |
|
|
- |
|
|
178 |
|
|
178 |
|
|
Total change in accumulated other comprehensive income |
|
|
627 |
|
|
155 |
|
|
782 |
||
|
Balance as of March 31, 2019 |
|
|
(13,254) |
|
|
(5,528) |
|
|
(18,782) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|||
|
Amounts Reclassified Out of Accumulated Other |
|
|
|
|
|
|
March 31, |
|||||
|
Comprehensive Income - Before-tax Income/(Expense) |
|
|
|
2019 |
|
|
2018 |
|||||
|
|
|
|
|
|
|
|
|
|
(millions of dollars) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation gain/(loss) included in net income |
|
|
|
|
|
|||||||
|
|
(Statement of Income line: Other income) |
|
|
|
- |
|
|
(168) |
||||
|
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) |
(237) |
|
|
(320) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|||
|
Income Tax (Expense)/Credit For |
|
|
|
|
|
March 31, |
|||||
|
Components of Other Comprehensive Income |
|
|
|
|
|
2019 |
|
|
2018 |
||
|
|
|
|
|
|
|
|
|
(millions of dollars) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Postretirement benefits reserves adjustment (excluding amortization) |
|
|
|
|
|
10 |
|
|
124 |
||
|
Amortization and settlement of postretirement benefits reserves |
|
|
|
|
|
|
|
|
|
||
|
|
adjustment included in net periodic benefit costs |
|
|
|
|
|
(52) |
|
|
(83) |
|
|
Total |
|
|
|
|
|
(42) |
|
|
41 |
10
|
|
|
|
|
|
|
|
|
Three Months Ended |
|||
|
|
|
|
|
|
|
|
|
March 31, |
|||
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
Net income attributable to ExxonMobil (millions of dollars) |
|
|
2,350 |
|
|
4,650 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Weighted average number of common shares outstanding (millions of shares) |
|
|
4,270 |
|
|
4,270 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Earnings per common share (dollars) (1) |
|
|
0.55 |
|
|
1.09 |
|||||
|
|
|
|
|
|
|
|
|||||
|
Dividends paid per common share (dollars) |
|
|
0.82 |
|
|
0.77 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The calculation of earnings per common share and earnings per common share – assuming dilution are the same in each period shown.
6. Pension and Other Postretirement Benefits
|
|
|
|
|
|
|
|
Three Months Ended |
|||
|
|
|
|
|
|
|
|
March 31, |
|||
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
(millions of dollars) |
|||
|
Components of net benefit cost |
|
|
|
|
|
|
|
|||
|
|
Pension Benefits - U.S. |
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
|
|
175 |
|
|
209 |
|
|
|
|
Interest cost |
|
|
|
193 |
|
|
180 |
|
|
|
|
Expected return on plan assets |
|
|
|
(142) |
|
|
(182) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior service cost |
|
|
77 |
|
|
91 |
||
|
|
|
Net pension enhancement and curtailment/settlement cost |
|
|
54 |
|
|
63 |
||
|
|
|
Net benefit cost |
|
|
|
357 |
|
|
361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits - Non-U.S. |
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
|
|
139 |
|
|
158 |
|
|
|
|
Interest cost |
|
|
|
192 |
|
|
200 |
|
|
|
|
Expected return on plan assets |
|
|
|
(197) |
|
|
(252) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior service cost |
|
|
103 |
|
|
118 |
||
|
|
|
Net pension enhancement and curtailment/settlement cost |
|
|
- |
|
|
33 |
||
|
|
|
Net benefit cost |
|
|
|
237 |
|
|
257 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Postretirement Benefits |
|
|
|
|
|
|
|
||
|
|
|
Service cost |
|
|
|
33 |
|
|
36 |
|
|
|
|
Interest cost |
|
|
|
79 |
|
|
75 |
|
|
|
|
Expected return on plan assets |
|
|
|
(4) |
|
|
(6) |
|
|
|
|
Amortization of actuarial loss/(gain) and prior service cost |
|
|
3 |
|
|
17 |
||
|
|
|
Net benefit cost |
|
|
|
111 |
|
|
122 |
|
|
|
|
|
|
|
|
|
|
|
|
|
11
7. Financial Instruments and Derivatives
Financial Instruments. The estimated fair value of financial instruments at March 31, 2019 and December 31, 2018, and the related hierarchy level for the fair value measurement is as follows:
|
|
|
|
|
At March 31, 2019 |
||||||||||||||
|
|
|
|
|
(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) |
|
145 |
|
24 |
|
- |
|
169 |
|
(145) |
|
- |
|
- |
|
24 |
||
|
Advances to/receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
from equity companies (2)(7) |
|
- |
|
2,157 |
|
6,703 |
|
8,860 |
|
- |
|
- |
|
54 |
|
8,914 |
|
|
Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
financial assets (3) |
|
914 |
|
- |
|
806 |
|
1,720 |
|
- |
|
- |
|
93 |
|
1,813 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Derivative liabilities (4) |
|
213 |
|
13 |
|
- |
|
226 |
|
(145) |
|
(68) |
|
- |
|
13 |
||
|
Long-term debt (5) |
|
18,088 |
|
111 |
|
4 |
|
18,203 |
|
- |
|
- |
|
(473) |
|
17,730 |
||
|
Long-term obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
to equity companies (7) |
|
- |
|
- |
|
4,526 |
|
4,526 |
|
- |
|
- |
|
(96) |
|
4,430 |
|
|
Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
financial liabilities (6) |
|
- |
|
- |
|
1,039 |
|
1,039 |
|
- |
|
- |
|
3 |
|
1,042 |
|
|
|
|
|
At December 31, 2018 |
||||||||||||||
|
|
|
|
|
(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) |
|
297 |
|
- |
|
- |
|
297 |
|
(151) |
|
(146) |
|
- |
|
- |
||
|
Advances to/receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
from equity companies (2)(7) |
|
- |
|
2,100 |
|
6,293 |
|
8,393 |
|
- |
|
- |
|
215 |
|
8,608 |
|
|
Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
financial assets (3) |
|
848 |
|
- |
|
974 |
|
1,822 |
|
- |
|
- |
|
112 |
|
1,934 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
Derivative liabilities (4) |
|
151 |
|
- |
|
- |
|
151 |
|
(151) |
|
- |
|
- |
|
- |
||
|
Long-term debt (5) |
|
19,029 |
|
117 |
|
4 |
|
19,150 |
|
- |
|
- |
|
85 |
|
19,235 |
||
|
Long-term obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
to equity companies (7) |
|
- |
|
- |
|
4,330 |
|
4,330 |
|
- |
|
- |
|
52 |
|
4,382 |
|
|
Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
financial liabilities (6) |
|
- |
|
- |
|
1,046 |