What changed in this filing

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Item 1. Financial Statements

2020-11-04 compared with 2020-08-05 · 81 added, 83 removed, 339 unchanged (33% of the section changed)

2 unchanged sentences

GAAP, unaudited)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

2 unchanged sentences

Total revenues and other income

Purchases of crude oil and products (b) (note 13)

Purchases of crude oil and products (b)

Production and manufacturing (c)

7 unchanged sentences

Net income (loss)

Per share information (Canadian dollars)

Per share information

(Canadian dollars)

Net income (loss) per common share - basic (note 11)

8 unchanged sentences

GAAP, unaudited)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

12 unchanged sentences

Accounts receivable, less estimated doubtful accounts (a) (note 5)

Inventories of crude oil and products (note 13)

Inventories of crude oil and products

Materials, supplies and prepaid expenses

30 unchanged sentences

GAAP, unaudited)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

20 unchanged sentences

Inflow (outflow)

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

5 unchanged sentences

(Gain) loss on asset sales (note 4)

Inventory write-down to current market value (note 13)

Deferred income taxes and other

19 unchanged sentences

Cash at end of period

(a) Cash is composed of cash in bank and cash equivalents at cost.

Cash is composed of cash in bank and cash equivalents at cost.

Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.

(b) Included contributions to registered pension plans.

Included contributions to registered pension plans.

Income taxes (paid) refunded.

Interest (paid), net of capitalization.*

restated 2019

The information in the notes to consolidated financial statements is an integral part of these statements.

7 unchanged sentences

The company’s exploration and production activities are accounted for under the “successful efforts” method.

The results for the six months ended June 30, 2020, are not necessarily indicative of the operations to be expected for the full year.

The results for the nine months ended September 30, 2020, are not necessarily indicative of the operations to be expected for the full year.

All amounts are in Canadian dollars unless otherwise indicated.

7 unchanged sentences

Business segments

Second Quarter

Third Quarter

millions of Canadian dollars

2 unchanged sentences

Investment and other income (note 4)

Purchases of crude oil and products (note 13)

Production and manufacturing

Purchases of crude oil and products

Production and manufacturing (note 13)

Selling and general

1 unchanged sentence

Depreciation and depletion (note 13)

pension and postretirement benefit

Non-service pension and postretirement benefit

Financing (note 7)

4 unchanged sentences

Capital and exploration expenditures

Second Quarter

Third Quarter

Corporate and other

3 unchanged sentences

Investment and other income (note 4)

Purchases of crude oil and products (note 13)

Production and manufacturing

Purchases of crude oil and products

Production and manufacturing (note 13)

Selling and general

1 unchanged sentence

Depreciation and depletion (note 13)

pension and postretirement

Non-service pension and postretirement benefit

Financing (note 7)

9 unchanged sentences

CAPEX excludes the purchase of carbon emission credits.

Table of Content s

IMPERIAL OIL LIMITED

Six Months to June 30

Nine Months to September 30

millions of Canadian dollars

2 unchanged sentences

Investment and other income (note 4)

Purchases of crude oil and products (note 13)

Production and manufacturing

Purchases of crude oil and products

Production and manufacturing (note 13)

Selling and general

1 unchanged sentence

Depreciation and depletion (note 13)

pension and postretirement

pension and postretirement benefit

Financing (note 7)

5 unchanged sentences

Capital and exploration expenditures

Total assets as at June 30 (note 13)

Six Months to June 30

Total assets as at September

Nine Months to September 30

Corporate and other

3 unchanged sentences

Investment and other income (note 4)

Purchases of crude oil and products (note 13)

Production and manufacturing

Purchases of crude oil and products

Production and manufacturing (note 13)

Selling and general

9 unchanged sentences

Capital and exploration expenditures

Total assets as at June 30

Total assets as at September

IMPERIAL OIL LIMITED

6 unchanged sentences

Investment and other income included gains and losses on asset sales as follows:

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

22 unchanged sentences

These exposures could include unfunded loans to equity companies and financial guarantees that cannot be cancelled unilaterally by the company.

During the first half of 2020, the COVID-19 pandemic spread rapidly through most areas of the world resulting in economic uncertainty, global financial market volatility, and negative effects in the credit markets.

In 2020, the COVID-19

pandemic spread rapidly through most areas of the world resulting in economic uncertainty, global financial market volatility, and negative effects in the credit markets.

The company has considered these effects, along with the significantly lower balances of trade receivables at the end of the quarter, in its estimate of credit losses and concluded no material adjustment to credit allowances in the quarter was required.

At June 30, 2020, the company’s evaluation of financial assets under Financial Instruments – Credit Losses (Topic 326)

At September 30, 2020, the company’s evaluation of financial assets under Financial Instruments – Credit Losses (Topic 326)

, as amended included $ 1,400 million of accounts receivable, net of allowances of $ 4 million, and investments and long-term receivables of $ 327 million.

The company has determined that, at this time, no credit allowance is required for investments and long-term receivables.

There is currently no off-balance-sheet

credit exposure.

The company has determined that, at this time, no credit allowance is required for investments and long-term receivables, and for off-balance-sheet

credit exposures.

IMPERIAL OIL LIMITED

1 unchanged sentence

The components of net benefit cost were as follows:

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

12 unchanged sentences

Financing costs

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

4 unchanged sentences

Total financing

During the second

quarter of 2020, in addition to existing credit facilities of $ 500 million, the company entered into a $ 500 million committed short-term line of credit to May 2021, and a $ 300 million committed short-term line of credit to June 2021.

During the second quarter of 2020, in addition to existing credit facilities of $ 500 million, the company entered into a $ 500 million committed short-term line of credit to May 2021, and a $ 300 million committed short-term line of credit to June 2021.

The company has not drawn on any of its credit facilities.

5 unchanged sentences

IMPERIAL OIL LIMITED

Other long-term obligations

Other long-term obligation s

millions of Canadian dollars

13 unchanged sentences

There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value.

At June 30, 2020 and December 31, 2019 the fair value of long-term debt ($ 4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

At September 30, 2020 and December 31, 2019 the fair value of long-term debt ($ 4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

Derivative instruments

4 unchanged sentences

The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

At June 30, 2020, the carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $ 27 million, gross liabilities of $ 74 million and collateral receivable of $ 70 million, with the net effects reflected in “Accounts receivable, less estimated doubtful accounts” on the Consolidated balance sheet.

At September 30, 2020, the carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $ 2 million, gross liabilities of $ 3 million and collateral receivable of $ 6 million, with the net effects reflected in “Accounts receivable, less estimated doubtful accounts” on the Consolidated balance sheet.

At December 31, 2019 the carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $ 0 million, gross liabilities of $ 2 million and collateral receivable of $ 6 million.

At June 30, 2020, the net notional forward long / (short) position of derivative instruments was ( 1,920,000 ) barrels for crude and ( 240,000 ) barrels for products.

At December 31, 2019, the net notional forward long / (short) position of derivative instruments was ( 590,000 ) barrels for crude and 0 barrels for products.

Realized and unrealized gain or (loss) on derivative instruments recognized on the Consolidated statement of income is included in the following lines on a before-tax

Second Quarter

At September 30, 2020, the net notional forward long / (short) position of derivative instruments was 200,000 barrels for crude and (

barrels for products.

At December 31, 2019, the net notional forward long / (short) position of derivative instruments was (

barrels for crude and 0 barrels for products.

Realized and unrealized gain or (loss) on derivative

recognized on the Consolidated statement of income is included in the following lines on a before-tax

Third Quarter

to September 30

millions of Canadian dollars

4 unchanged sentences

Common shares outstanding

The 12 -month

normal course issuer bid program that was in place during the second quarter of 2020, came into effect on June 27, 2019.

The program enabled the company to purchase up to a maximum of 38,211,086 common shares ( 5 percent of the total shares on June 13, 2019), which included shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid.

Exxon Mobil Corporation participated to maintain its ownership percentage at approximately 69.6 percent.

The program ended on June 26, 2020, and purchases under this program were suspended on April 1, 2020.

Upon expiration, the company had purchased 28,697,514 shares under the program.

The current 12 -month

3 unchanged sentences

The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.

The company’s common share activities are summarized below:

The company’s common share activities are summarized

Balance as at December 31, 2018

4 unchanged sentences

Purchases at stated value

Balance as at June 30, 2020

The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:

Second Quarter

Balance as at September 30, 2020

The following table provides the calculation of basic and diluted earnings

per common share and the dividends declared by the company on its outstanding common shares:

Third Quarter

to September 30

Net income (loss) per common share - basic

Net income (loss)

(millions of Canadian dollars)

Weighted average number of common shares outstanding

(millions of shares)

Net income (loss) per common share

Net income (loss) (millions of Canadian dollars)

Weighted average number of common shares outstanding (millions of shares)

Net income (loss) per common share (dollars)

Net income (loss) per common share - diluted

Net income (loss)

(millions of Canadian dollars)

Weighted average number of common shares outstanding

(millions of shares)

Effect of employee share-based awards

(millions of shares) (a)

Weighted average number of common shares outstanding, assuming dilution

(millions of shares)

Net income (loss) per common share

Net income (loss) (millions of Canadian dollars)

Weighted average number of common shares outstanding (millions of shares)

Effect of employee share-based awards (millions of shares) (a)

Weighted average number of common shares outstanding, assuming dilution (millions of shares)

Net income (loss) per common share (dollars)

Dividends per common share - declared

For Second Quarter 2020 and Six Months to June 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 million employee share-based awards.

For Nine Months to September 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.1 million employee share-based awards.

Share-based awards have the potential to dilute basic earnings per share in the future.

7 unchanged sentences

Amounts reclassified from accumulated other comprehensive income

Balance at June 30

Balance at September 30

Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax

income (expense):

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

2 unchanged sentences

Income tax expense (credit) for components of other comprehensive income (loss):

Second Quarter

Third Quarter

to September 30

millions of Canadian dollars

3 unchanged sentences

Miscellaneous financial information

Crude oil and product inventories are carried at the lower of current market value or cost, determined under the last-in,

method (LIFO).

In the first quarter of 2020, a non-cash

charge of $ 281 million after-tax

was recorded associated with the carrying value of crude oil inventory exceeding the current market value.

In the second quarter of 2020, the first quarter’s temporary non-cash

inventory charge was reversed.

The inventory balance will continue to be re-evaluated

at the end of each quarter.

any adjustment to the carrying value is considered a permanent adjustment.

In the second quarter of 2020, the Government of Canada implemented the Canada Emergency Wage Subsidy (CEWS) as part of its COVID-19 Economic Response Plan.

The program’s intent is to help sustain employment levels by providing expense relief to companies during the pandemic.

The company qualified for these wage subsidies which are recognized throughout the year when received.

The relief provided under this program, about $ 120 million (before tax) year-to-date, including the company’s proportionate share of a joint venture, is recognized as a reduction to expense and is included in the Consolidated statement of income, primarily as part of “Production and manufacturing”.

As disclosed in Imperial’s 2019 Form 10-K,

6 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements