What changed in this filing

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Item 1. Financial Statements

2021-08-04 compared with 2021-05-05 · 95 added, 55 removed, 302 unchanged (33% of the section changed)

2 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars

24 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars

36 unchanged sentences

Total liabilities and shareholders’ equity

Accounts receivable - net included net amounts receivable from related parties of $ 361

million (2020 - $ 384

Investments and long-term receivables included amounts from related parties of $ 300

million (2020 - $ 313

Notes and loans payable included amounts to related parties of $ 75

million (2020 - $ 111

Long-term debt included amounts to related parties of $ 4,447

million (2020 - $ 4,447

Number of common shares authorized and outstanding were 1,100

million and 734

million, respectively (2020 - 1,100

million and 734

million, respectively).

Accounts receivable - net included net amounts receivable from related parties of $ 582 million (2020 - $ 384 million).

Investments and long-term receivables included amounts from related parties of $ 301 million (2020 - $ 313 million).

Notes and loans payable included amounts to related parties of $ 75 million (2020 - $ 111 million).

Long-term debt included amounts to related parties of $ 4,447 million (2020 - $ 4,447 million).

Number of common shares authorized and outstanding were 1,100 million and 705 million, respectively (2020 - 1,100 million and 734 million, respectively).

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

2 unchanged sentences

GAAP, unaudited)

Second Quarter

millions of Canadian dollars

17 unchanged sentences

IMPERIAL OIL LIMITED

ed statement of cash flows (U.S.

Consolidated statement of cash flows (U.S.

GAAP, unaudited)

Inflow (outflow)

Second Quarter

millions of Canadian dollars

42 unchanged sentences

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

The results for the three months ended March 31, 2021, are not necessarily indicative of the operations to be expected for the full year.

The results for the six months ended June 30, 2021, are not necessarily indicative of the operations to be expected for the full year.

All amounts are in Canadian dollars unless otherwise indicated.

1 unchanged sentence

Business segments

Three Months to March 31

Second Quarter

millions of Canadian dollars

11 unchanged sentences

Income (loss) before income taxes

Net income (loss)

Cash flows from (used in) operating activities

Capital and exploration expenditures

Second Quarter

Corporate and other

millions of Canadian dollars

Revenues and other income

Intersegment sales

Investment and other income (note 3)

Purchases of crude oil and products (note 11)

Production and manufacturing

Selling and general

Federal excise tax and fuel charge

Depreciation and depletion (note 11)

pension and postretirement benefit

Financing (note 5)

Total expenses

Income (loss) before income taxes

Net income (loss)

Cash flows from (used in) operating activities

Capital and exploration expenditures

IMPERIAL OIL LIMITED

Included export sales to the United States of $ 1,544 million (2020 - $ 739 million).

Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.

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.

IMPERIAL OIL LIMITED

Six Months to June 30

millions of Canadian dollars

Revenues and other income

Intersegment sales

Investment and other income (note 3)

Purchases of crude oil and products (note 11)

Production and manufacturing

Selling and general

Federal excise tax and fuel charge

Depreciation and depletion (note 11)

pension and postretirement benefit

Financing (note 5)

Total expenses

Income (loss) before income taxes

Income tax expense (benefit)

2 unchanged sentences

Capital and exploration expenditures

Total assets as at March

Three Months to March 31

Total assets as at June

Six Months to June 30

Corporate and other

16 unchanged sentences

Capital and exploration expenditures

Total assets as at March

Total assets as at June

IMPERIAL OIL LIMITED

Included export sales to the United States of $ 1,569

million (2020 - $ 1,373

Included export sales to the United States of $ 3,113 million (2020 - $ 2,112 million).

Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.

4 unchanged sentences

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

Second Quarter

millions of Canadian dollars

1 unchanged sentence

Book value of asset sales

Gain (loss) on asset sales, before

Gain (loss) on asset sales, after

Gain (loss) on asset sales, before tax

Gain (loss) on asset sales, after tax

Employee retirement benefits

The components of net benefit cost were as follows:

Second Quarter

millions of Canadian dollars

12 unchanged sentences

Financing costs

Second Quarter

millions of Canadian dollars

4 unchanged sentences

Total financing

In May 2021, the company extended the maturity date of two of its existing committed short-term lines of credit to May 2023 , totalling $ 750 million.

In June 2021, the company extended the maturity date of one of its existing $ 300 million committed short-term lines of credit to June 2022 .

The company has not drawn on any of its $ 1,300 million of available credit facilities.

IMPERIAL OIL LIMITED

Long-term debt

3 unchanged sentences

Total long-term debt

IMPERIAL OIL LIMITED

Other long-term obligations

6 unchanged sentences

Total other long-term obligations

Total recorded employee retirement benefits obligations also included $ 58

million in current liabilities (2020 - $ 58

Total asset retirement obligations and other environmental liabilities also included $ 100

million in current liabilities (2020 - $ 100

Total operating lease liability also included $ 82

million in current liabilities (2020 - $ 97

In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $ 30

million (2020 - $ 27

Total recorded employee retirement benefits obligations also included $ 58 million in current liabilities (2020 - $ 58 million).

Total asset retirement obligations and other environmental liabilities also included $ 100 million in current liabilities (2020 - $ 100 million).

Total operating lease liability also included $ 82 million in current liabilities (2020 - $ 97 million).

In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $ 4 million (2020 - $ 27 million).

IMPERIAL OIL LIMITED

3 unchanged sentences

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

At March 31, 2021 and December 31, 2020, the fair value of long-term debt ($ 4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

At June 30, 2021 and December 31, 2020, the fair value of long-term debt ($ 4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

Derivative instruments

7 unchanged sentences

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

Second Quarter

millions of Canadian dollars

3 unchanged sentences

millions of Canadian dollars

At March 31, 2021

At June 30, 2021

Derivative assets (a)

Derivative liabilities (b)

(a) Included in the Consolidated balance sheet line:

Included in the Consolidated balance sheet line:

“Materials, supplies and prepaid expenses”.

(b) Included in the Consolidated balance sheet line:

Included in the Consolidated balance sheet line:

“Accounts payable and accrued liabilities”.

3 unchanged sentences

Derivative liabilities (b)

(a) Included in the Consolidated balance sheet line:

Included in the Consolidated balance sheet line:

“Materials, supplies and prepaid expenses”.

(b) Included in the Consolidated balance sheet line:

Included in the Consolidated balance sheet line:

“Accounts payable and accrued liabilities”.

At March 31, 2021 and December 31, 2020, respectively, the company had $ 14 million and $ 5 million of collateral under a master netting arrangement not offset against the

on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.

At June 30, 2021 and December 31, 2020, respectively, the company had $ 8 million and $ 5 million of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.

IMPERIAL OIL LIMITED

3 unchanged sentences

The 12 -month

limited normal course issuer bid program that was in place throughout the first quarter of 2021 came into effect on June 29, 2020 and was established primarily to eliminate dilution from shares issued in conjunction with Imperial’s restricted stock unit plan.

The program enabled 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.

limited normal course issuer bid program that was in place throughout the second quarter of 2021 came into effect on June 29, 2020 and was amended on April 30, 2021.

The program enabled the company to purchase up to a maximum of 29,363,070 common shares ( 4 percent of the total shares on June 15, 2020), 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 current 12 -month

normal course issuer bid program came into effect June 29, 2021, under which Imperial will continue its existing share purchase program.

The program enables the company to purchase up to a maximum of 35,583,671 common shares ( 5 percent of the total shares on June 15, 2021) 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.

On April 30, 2021, the company announced an amendment to its normal course issuer bid to increase the number of common shares that it may purchase.

Under the amendment, the number of common shares that may be purchased will increase to a maximum of 29,363,070

common shares ( 4

percent of the total shares on June 15, 2020) during the period June 29, 2020 to June 28, 2021, 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.

No other provisions of the normal course issuer bid have changed.

The company’s common share activities are summarized below:

5 unchanged sentences

Purchases at stated value

Balance as at March 31, 2021

Balance as at June 30, 2021

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

Net income (loss) per common share - basic

9 unchanged sentences

Dividends per common share - declared

For three months to March 31, 2020, the Net income (loss) per common share – diluted e

xcludes the effect of 2.0

million employee share-based awards.

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.

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

IMPERIAL OIL LIMITED

Other comprehensive income (loss) in f

Other comprehensive income (loss) information

Changes in accumulated other comprehensive income (loss):

4 unchanged sentences

Amounts reclassified from accumulated other comprehensive income

Balance at March 31

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

Balance at June 30

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

income (expense):

Second Quarter

millions of Canadian dollars

2 unchanged sentences

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

Second Quarter

millions of Canadian dollars

10 unchanged sentences

Downstream - $ 52 million) 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.

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

4 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