Item 1. Financial Statements
Item 1.
Financial statements
Consolidated statement of income (U.S. GAAP, unaudited)
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Revenues and other income
Revenues (a)
5,937
8,687
16,267
25,880
Investment and other income (note 4)
18
49
88
99
Total revenues and other income
5,955
8,736
16,355
25,979
Expenses
Exploration
2
4
6
42
Purchases of crude oil and products (b)
3,634
5,399
9,975
15,956
Production and manufacturing (c)
(note 13)
1,246
1,601
4,098
4,911
Selling and general (c)
150
217
499
666
Federal excise tax and fuel charge
470
486
1,290
1,343
Depreciation and depletion (note 13)
409
419
1,295
1,201
Non-service
pension and postretirement benefit
31
36
91
108
Financing (d) (note 7)
10
20
46
71
Total expenses
5,952
8,182
17,300
24,298
Income (loss) before income taxes
3
554
( 945
)
1,681
Income taxes
-
130
( 234
)
( 248
)
Net income (loss)
3
424
( 711
)
1,929
Per share information
(Canadian dollars)
Net income (loss) per common share - basic (note 11)
-
0.56
( 0.97
)
2.51
Net income (loss) per common share - diluted (note 11)
-
0.56
( 0.97
)
2.51
(a) Amounts from related parties included in revenues.
1,216
2,313
3,699
6,269
(b) Amounts to related parties included in purchases of crude oil and products.
627
717
1,762
2,353
(c) Amounts to related parties included in production and manufacturing, and selling and general expenses.
107
157
428
479
(d) Amounts to related parties included in financing, (note 7).
12
23
50
75
The information in the notes to consolidated financial statements is an integral part of these statements.
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IMPERIAL OIL LIMITED
Consolidated statement of comprehensive income (U.S. GAAP, unaudited)
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Net income (loss)
3
424
( 711
)
1,929
Other comprehensive income (loss), net of income taxes
Postretirement benefits liability adjustment (excluding amortization)
-
-
( 114
)
18
Amortization of postretirement benefits liability adjustment included in net periodic benefit costs
34
28
102
83
Total other comprehensive income (loss)
34
28
( 12
)
101
Comprehensive income (loss)
37
452
( 723
)
2,030
The information in the notes to consolidated financial statements is an integral part of these statements.
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IMPERIAL OIL LIMITED
Consolidated balance sheet (U.S. GAAP, unaudited)
As at
Sept 30
As at
Dec 31
millions of Canadian dollars
2020
2019
Assets
Current assets
Cash
817
1,718
Accounts receivable, less estimated doubtful accounts (a) (note 5)
1,732
2,699
Inventories of crude oil and products
1,088
1,296
Materials, supplies and prepaid expenses
764
616
Total current assets
4,401
6,329
Investments and long-term receivables (b) (note 5)
771
891
Property, plant and equipment,
55,463
54,868
less accumulated depreciation and depletion
( 21,881
)
( 20,665
)
Property, plant and equipment, net
33,582
34,203
Goodwill (note 13)
166
186
Other assets, including intangibles, net
462
578
Total assets
39,382
42,187
Liabilities
Current liabilities
Notes and loans payable (c)
227
229
Accounts payable and accrued liabilities (a) (note 9)
3,229
4,260
Income taxes payable
-
106
Total current liabilities
3,456
4,595
Long-term debt (d) (note 8)
4,962
4,961
Other long-term obligations (note 9)
3,713
3,637
Deferred income tax liabilities
4,459
4,718
Total liabilities
16,590
17,911
Shareholders’ equity
Common shares at stated value (e) (note 11)
1,357
1,375
Earnings reinvested
23,358
24,812
Accumulated other comprehensive income (loss) (note 12)
( 1,923
)
( 1,911
)
Total shareholders’ equity
22,792
24,276
Total liabilities and shareholders’ equity
39,382
42,187
(a)
Accounts receivable, less estimated doubtful accounts included net amounts receivable from related parties of $ 240 million (2019 - $ 1,007 million).
(b)
Investments and long-term receivables included amounts from related parties of $ 313 million (2019 - $ 296 million).
(c)
Notes and loans payable included amounts to related parties of $ 111 million (2019 - $ 111 million).
(d)
Long-term debt included amounts to related parties of $ 4,447 million (2019 - $ 4,447 million).
(e)
Number of common shares authorized and outstanding were 1,100 million and 734 million, respectively (2019 - 1,100 million and 744 million, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.
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Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Common shares at stated value
(note 11)
At beginning of period
1,357
1,410
1,375
1,446
Share purchases at stated value
-
( 19
)
( 18
)
( 55
)
At end of period
1,357
1,391
1,357
1,391
Earnings reinvested
At beginning of period
23,516
25,056
24,812
24,560
Net income (loss) for the period
3
424
( 711
)
1,929
Share purchases in excess of stated value
-
( 324
)
( 256
)
( 1,017
)
Dividends declared
( 161
)
( 166
)
( 485
)
( 482
)
Cumulative effect of accounting change (note 5)
-
-
( 2
)
-
At end of period
23,358
24,990
23,358
24,990
Accumulated other comprehensive income (loss)
(note 12)
At beginning of period
( 1,957
)
( 1,444
)
( 1,911
)
( 1,517
)
Other comprehensive income (loss)
34
28
( 12
)
101
At end of period
( 1,923
)
( 1,416
)
( 1,923
)
( 1,416
)
Shareholders’ equity at end of period
22,792
24,965
22,792
24,965
The information in the notes to consolidated financial statements is an integral part of these statements.
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Consolidated statement of cash flows (U.S. GAAP, unaudited)
Inflow (outflow)
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Operating activities
Net income (loss)
3
424
( 711
)
1,929
Adjustments for non-cash
items:
Depreciation and depletion
409
419
1,275
1,201
Impairment of intangible assets (note 13)
-
-
20
-
(Gain) loss on asset sales (note 4)
( 11
)
( 28
)
( 28
)
( 34
)
Deferred income taxes and other
( 11
)
116
( 210
)
( 359
)
Changes in operating assets and liabilities:
Accounts receivable
134
250
967
( 355
)
Inventories, materials, supplies and prepaid expenses
142
264
60
243
Income taxes payable
-
8
( 106
)
( 29
)
Accounts payable and accrued liabilities
66
( 82
)
( 1,008
)
646
All other items - net (b)
143
5
223
163
Cash flows from (used in) operating activities
875
1,376
482
3,405
Investing activities
Additions to property, plant and equipment
( 142
)
( 417
)
( 657
)
( 1,242
)
Proceeds from asset sales (note 4)
19
30
68
66
Loans to equity companies - net
( 2
)
( 26
)
( 16
)
( 129
)
Cash flows from (used in) investing activities
( 125
)
( 413
)
( 605
)
( 1,305
)
Financing activities
Reduction in finance lease obligations (note 8)
( 4
)
( 7
)
( 16
)
( 20
)
Dividends paid
( 162
)
( 169
)
( 488
)
( 465
)
Common shares purchased (note 11)
-
( 343
)
( 274
)
( 1,072
)
Cash flows from (used in) financing activities
( 166
)
( 519
)
( 778
)
( 1,557
)
Increase (decrease) in cash
584
444
( 901
)
543
Cash at beginning of period
233
1,087
1,718
988
Cash at end of period
(a)
817
1,531
817
1,531
(a)
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.
( 59
)
( 57
)
( 159
)
( 155
)
Income taxes (paid) refunded.
107
35
( 45
)
84
Interest (paid), net of capitalization.*
( 10
)
( 20
)
( 46
)
( 71
)
*Note: restated 2019
The information in the notes to consolidated financial statements is an integral part of these statements.
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IMPERIAL OIL LIMITED
Notes to consolidated financial statements (unaudited)
1. Basis of financial statement preparation
These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company’s 2019 annual report on Form 10-K.
In the opinion of the company, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature.
The company’s exploration and production activities are accounted for under the “successful efforts” method.
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.
2. Accounting changes
Effective January 1, 2020, Imperial adopted 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 standard did not have a material impact on the company’s financial statements.
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IMPERIAL OIL LIMITED
3. Business segments
Third Quarter
Upstream
Downstream
Chemical
millions of Canadian dollars
2020
2019
2020
2019
2020
2019
Revenues and other income
Revenues (a)
1,651
2,185
4,061
6,266
225
236
Intersegment sales
658
913
321
314
43
61
Investment and other income (note 4)
( 6 )
7
24
32
-
1
2,303
3,105
4,406
6,612
268
298
Expenses
Exploration
2
4
-
-
-
-
Purchases of crude oil and products
1,176
1,376
3,322
5,142
157
167
Production and manufacturing (note 13)
863
1,087
335
460
48
54
Selling and general
-
-
140
191
23
23
Federal excise tax and fuel charge
-
-
470
486
-
-
Depreciation and depletion (note 13)
361
364
37
45
5
4
Non-service pension and postretirement benefit
-
-
-
-
-
-
Financing (note 7)
-
-
-
-
-
-
Total expenses
2,402
2,831
4,304
6,324
233
248
Income (loss) before income taxes
( 99 )
274
102
288
35
50
Income taxes
( 25 )
65
25
67
8
12
Net income (loss)
( 74 )
209
77
221
27
38
Cash flows from (used in) operating activities
526
392
333
900
32
75
Capital and exploration expenditures
(b)
78
302
50
124
4
4
Third Quarter
Corporate and other
Eliminations
Consolidated
millions of Canadian dollars
2020
2019
2020
2019
2020
2019
Revenues and other income
Revenues (a)
-
-
-
-
5,937
8,687
Intersegment sales
-
-
( 1,022 )
( 1,288 )
-
-
Investment and other income (note 4)
-
9
-
-
18
49
-
9
( 1,022 )
( 1,288 )
5,955
8,736
Expenses
Exploration
-
-
-
-
2
4
Purchases of crude oil and products
-
-
( 1,021 )
( 1,286 )
3,634
5,399
Production and manufacturing (note 13)
-
-
-
-
1,246
1,601
Selling and general
( 12 )
5
( 1 )
( 2 )
150
217
Federal excise tax and fuel charge
-
-
-
-
470
486
Depreciation and depletion (note 13)
6
6
-
-
409
419
Non-service pension and postretirement benefit
31
36
-
-
31
36
Financing (note 7)
10
20
-
-
10
20
Total expenses
35
67
( 1,022 )
( 1,288 )
5,952
8,182
Income (loss) before income taxes
( 35 )
( 58 )
-
-
3
554
Income taxes
( 8 )
( 14 )
-
-
-
130
Net income (loss)
( 27 )
( 44 )
-
-
3
424
Cash flows from (used in) operating activities
( 16 )
9
-
-
875
1,376
Capital and exploration expenditures
(b)
9
12
-
-
141
442
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(a)
Included export sales to the United States of $ 1,227 million (2019 - $ 1,807 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.
(b)
Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits.
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IMPERIAL OIL LIMITED
Nine Months to September 30
Upstream
Downstream
Chemical
millions of Canadian dollars
2020
2019
2020
2019
2020
2019
Revenues and other income
Revenues (a)
4,211
7,012
11,444
18,115
612
753
Intersegment sales
1,642
2,977
1,013
1,249
114
181
Investment and other income (note 4)
4
11
66
61
1
1
5,857
10,000
12,523
19,425
727
935
Expenses
Exploration
6
42
-
-
-
-
Purchases of crude oil and products
3,338
4,764
8,987
15,062
416
531
Production and manufacturing (note 13)
2,855
3,414
1,086
1,315
157
182
Selling and general
-
-
456
571
69
67
Federal excise tax and fuel charge
-
-
1,290
1,343
-
-
Depreciation and depletion (note 13)
1,141
1,036
123
137
13
11
Non-service
pension and postretirement benefit
-
-
-
-
-
-
Financing (note 7)
-
-
-
-
-
-
Total expenses
7,340
9,256
11,942
18,428
655
791
Income (loss) before income taxes
( 1,483 )
744
581
997
72
144
Income tax expense (benefit)
( 357 )
( 508 )
134
261
17
34
Net income (loss)
( 1,126 )
1,252
447
736
55
110
Cash flows from (used in) operating activities
22
1,257
443
2,055
75
175
Capital and exploration expenditures
(b)
454
975
177
364
15
27
Total assets as at September
30
(note 13)
32,941
35,066
4,590
4,433
417
423
Nine Months to September 30
Corporate and other
Eliminations
Consolidated
millions of Canadian dollars
2020
2019
2020
2019
2020
2019
Revenues and other income
Revenues (a)
-
-
-
-
16,267
25,880
Intersegment sales
-
-
( 2,769 )
( 4,407 )
-
-
Investment and other income (note 4)
17
26
-
-
88
99
17
26
( 2,769 )
( 4,407 )
16,355
25,979
Expenses
Exploration
-
-
-
-
6
42
Purchases of crude oil and products
-
-
( 2,766 )
( 4,401 )
9,975
15,956
Production and manufacturing (note 13)
-
-
-
-
4,098
4,911
Selling and general
( 23 )
34
( 3 )
( 6 )
499
666
Federal excise tax and fuel charge
-
-
-
-
1,290
1,343
Depreciation and depletion (note 13)
18
17
-
-
1,295
1,201
Non-service
pension and postretirement benefit
91
108
-
-
91
108
Financing (note 7)
46
71
-
-
46
71
Total expenses
132
230
( 2,769 )
( 4,407 )
17,300
24,298
Income (loss) before income taxes
( 115 )
( 204 )
-
-
( 945 )
1,681
Income tax expense (benefit)
( 28 )
( 35 )
-
-
( 234 )
( 248 )
Net income (loss)
( 87 )
( 169 )
-
-
( 711 )
1,929
Cash flows from (used in) operating activities
( 58 )
( 82 )
-
-
482
3,405
Capital and exploration expenditures
(b)
33
34
-
-
679
1,400
Total assets as at September
30
(note 13)
1,679
2,298
( 245 )
( 313 )
39,382
41,907
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(a)
Included export sales to the United States of $ 3,339 million (2019 - $ 5,623 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.
(b)
Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits.
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4. Investment and other income
Investment and other income included gains and losses on asset sales as follows:
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Proceeds from asset sales
19
30
68
66
Book value of asset sales
8
2
40
32
Gain (loss) on asset sales, before tax
11
28
28
34
Gain (loss) on asset sales, after tax
10
25
25
31
5. Allowance for current expected credit loss (CECL)
Effective January 1, 2020, the company adopted 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 reasonable and supportable forecasts. The standard requires this expected loss methodology for trade receivables, certain other financial assets and off-balance-sheet
credit exposures. The cumulative effect adjustment related to the adoption of this standard reduced “Earnings reinvested” in Shareholders’ equity by $ 2 million.
The company is exposed to credit losses primarily through sales of petroleum products, crude oil, natural gas liquids and natural gas, as well as loans to equity companies and joint venture receivables. A counterparty’s ability to pay is assessed through a credit review process that considers payment terms, the counterparty’s established credit rating or the company’s assessment of the counterparty’s credit worthiness, contract terms, and other risks. The company can require prepayment or collateral to mitigate certain credit risks.
The company groups financial assets into portfolios that share similar risk characteristics for purposes of determining the allowance for credit losses. Each reporting period, the company assesses whether a significant change in credit loss or risk has occurred. Among the quantitative and qualitative factors considered are historical financial data, current conditions, industry and country risk, current credit ratings and the quality of third-party guarantees secured from the counterparty. Financial assets are written off in whole, or in part, when practical recovery efforts have been exhausted and no reasonable expectation of recovery exists. Subsequent recoveries of amounts previously written off are recognized in earnings. The company manages receivable portfolios using past due balances as a key credit quality indicator.
The company recognizes a credit allowance for off-balance-sheet
credit exposures as a liability on the balance sheet, separate from the allowance for credit losses related to recognized financial assets. These exposures could include unfunded loans to equity companies and financial guarantees that cannot be cancelled unilaterally by the company.
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 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, and for off-balance-sheet
credit exposures.
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6. Employee retirement benefits
The components of net benefit cost were as follows:
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Pension benefits:
Current service cost
76
57
229
171
Interest cost
77
81
231
243
Expected return on plan assets
( 97
)
( 87
)
( 293
)
( 262
)
Amortization of prior service cost
4
-
11
-
Amortization of actuarial loss (gain)
38
37
115
112
Net periodic benefit cost
98
88
293
264
Other postretirement benefits:
Current service cost
6
4
18
12
Interest cost
6
5
18
16
Amortization of actuarial loss (gain)
3
-
9
( 1
)
Net periodic benefit cost
15
9
45
27
7. Financing costs
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Debt-related interest
19
32
79
105
Capitalized interest
( 9
)
( 12
)
( 33
)
( 34
)
Net interest expense
10
20
46
71
Other interest
-
-
-
-
Total financing
10
20
46
71
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.
8. Long-term debt
As at
Sept 30
As at
Dec 31
millions of Canadian dollars
2020
2019
Long-term debt
4,447
4,447
Finance leases
515
514
Total long-term debt
4,962
4,961
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9. Other long-term obligation s
As at
As at
Sept 30
Dec 31
millions of Canadian dollars
2020
2019
Employee retirement benefits (a)
1,965
1,822
Asset retirement obligations and other environmental liabilities (b)
1,388
1,388
Share-based incentive compensation liabilities
33
65
Operating lease liability (c)
95
143
Other obligations
232
219
Total other long-term obligations
3,713
3,637
(a)
Total recorded employee retirement benefits obligations also included $ 58 million in current liabilities (2019 - $ 58 million).
(b)
Total asset retirement obligations and other environmental liabilities also included $ 124 million in current liabilities (2019 - $ 124 million).
(c)
Total operating lease liability also included $ 95 million in current liabilities (2019 - $ 115 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $ 27 million (2019 - $ 6 million).
10. Financial and derivative instruments
Financial instruments
The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. 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
The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instruments to manage commodity price risk. The company does not designate derivative instruments as a hedge for hedge accounting purposes.
Credit risk associated with the company’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 company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.
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 September 30, 2020, the net notional forward long / (short) position of derivative instruments was 200,000 barrels for crude and (
780,000 )
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
basis:
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Revenues
1
-
( 7
)
( 2
)
Purchases of crude oil and products
-
1
( 18
)
( 5
)
Total
1
1
( 25
)
( 7
)
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IMPERIAL OIL LIMITED
11. Common shares
thousands of shares
As of
Sept 30
2020
As of
Dec 31
2019
Authorized
1,100,000
1,100,000
Common shares outstanding
734,077
743,902
The current 12 -month
limited normal course issuer bid program came into effect on June 29, 2020 and is used primarily to eliminate dilution from shares issued in conjunction with Imperial’s restricted stock unit plan. The program enables the company to purchase up to a maximum of 50,000 common shares, which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent.
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:
Thousands
of shares
Millions
of dollars
Balance as at December 31, 2018
782,565
1,446
Issued under employee share-based awards
1
-
Purchases at stated value
( 38,664
)
( 71
)
Balance as at December 31, 2019
743,902
1,375
Issued under employee share-based awards
-
-
Purchases at stated value
( 9,825
)
( 18
)
Balance as at September 30, 2020
734,077
1,357
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
Nine Months
to September 30
2020
2019
2020
2019
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars)
3
424
( 711
)
1,929
Weighted average number of common shares outstanding (millions of shares)
734.1
757.8
735.7
767.6
Net income (loss) per common share (dollars)
-
0.56
( 0.97
)
2.51
Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars)
3
424
( 711
)
1,929
Weighted average number of common shares outstanding (millions of shares)
734.1
757.8
735.7
767.6
Effect of employee share-based awards (millions of shares) (a)
2.2
2.5
-
2.4
Weighted average number of common shares outstanding, assuming dilution (millions of shares)
736.3
760.3
735.7
770.0
Net income (loss) per common share (dollars)
-
0.56
( 0.97
)
2.51
Dividends per common share - declared
(dollars)
0.22
0.22
0.66
0.63
(a)
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.
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IMPERIAL OIL LIMITED
12. Other comprehensive income (loss) information
Changes in accumulated other comprehensive income (loss):
millions of Canadian dollars
2020
2019
Balance at January 1
( 1,911
)
( 1,517
)
Postretirement benefits liability adjustment:
Current period change excluding amounts reclassified from accumulated other comprehensive income
( 114
)
18
Amounts reclassified from accumulated other comprehensive income
102
83
Balance at September 30
( 1,923
)
( 1,416
)
Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax
income (expense):
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a)
( 45 )
( 37
)
( 135 )
( 111
)
(a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost, (note 6).
Income tax expense (credit) for components of other comprehensive income (loss):
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2020
2019
2020
2019
Postretirement benefits liability adjustments:
Postretirement benefits liability adjustment (excluding amortization)
-
-
( 37
)
7
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost
11
9
33
28
Total
11
9
( 4
)
35
13. Miscellaneous financial information
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,
goodwill is tested for impairment annually or more frequently if events or circumstances indicate it might be impaired. In the first quarter of 2020, with the change in economic conditions and the reduction in the company’s market capitalization, the company assessed its goodwill balances for impairment and recognized a non-cash
goodwill impairment charge of $ 20 million in the company’s Upstream segment. The goodwill impairment is reflected in “Depreciation and depletion” on the Consolidated statement of income and “Goodwill” on the Consolidated balance sheet. The remaining balance of goodwill is associated with the Downstream segment.
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IMPERIAL OIL LIMITED
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.