Item 1. Financial Statements
Item 1.
Financial statements
Consolidated statement of income (U.S. GAAP, unaudited)
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Revenues and other income
Revenues (a)
8,007
3,666
14,999
10,330
Investment and other income (note 3)
40
44
46
70
Total revenues and other income
8,047
3,710
15,045
10,400
Expenses
Exploration
2
3
4
4
Purchases of crude oil and products (b) (note 11)
4,867
2,115
8,754
6,341
Production and manufacturing (c)
1,569
1,273
3,054
2,852
Selling and general (c)
200
183
389
349
Federal excise tax and fuel charge
465
369
869
820
Depreciation and depletion (note 11)
450
413
944
886
Non-service
pension and postretirement benefit
10
30
21
60
Financing (d) (note 5)
13
17
27
36
Total expenses
7,576
4,403
14,062
11,348
Income (loss) before income taxes
471
( 693
)
983
( 948
)
Income taxes
105
( 167
)
225
( 234
)
Net income (loss)
366
( 526
)
758
( 714
)
Per share information
(Canadian dollars)
Net income (loss) per common share - basic (note 9)
0.51
( 0.72
)
1.04
( 0.97
)
Net income (loss) per common share - diluted (note 9)
0.50
( 0.72
)
1.04
( 0.97
)
(a) Amounts from related parties included in revenues.
1,405
747
2,913
2,483
(b) Amounts to related parties included in purchases of crude oil and products.
666
396
1,181
1,135
(c) Amounts to related parties included in production and manufacturing, and selling and general expenses.
106
138
222
321
(d) Amounts to related parties included in financing, (note 5).
10
14
21
38
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)
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Net income (loss)
366
( 526
)
758
( 714
)
Other comprehensive income (loss), net of income taxes
Postretirement benefits liability adjustment (excluding amortization)
-
-
54
( 114
)
Amortization of postretirement benefits liability adjustment included in net periodic benefit costs
33
34
66
68
Total other comprehensive income (loss)
33
34
120
( 46
)
Comprehensive income (loss)
399
( 492
)
878
( 760
)
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
June 30
As at
Dec 31
millions of Canadian dollars
2021
2020
Assets
Current assets
Cash
776
771
Accounts receivable - net (a)
3,163
1,919
Inventories of crude oil and products
1,213
1,161
Materials, supplies and prepaid expenses
722
673
Total current assets
5,874
4,524
Investments and long-term receivables (b)
748
781
Property, plant and equipment,
56,257
55,771
less accumulated depreciation and depletion
( 24,664
)
( 23,737
)
Property, plant and equipment, net
31,593
32,034
Goodwill (note 11)
166
166
Other assets, including intangibles - net
558
526
Total assets
38,939
38,031
Liabilities
Current liabilities
Notes and loans payable (c)
197
227
Accounts payable and accrued liabilities (a) (note 7)
4,411
3,153
Income taxes payable
42
-
Total current liabilities
4,650
3,380
Long-term debt (d) (note 6)
5,065
4,957
Other long-term obligations (note 7)
4,061
4,100
Deferred income tax liabilities
4,394
4,176
Total liabilities
18,170
16,613
Shareholders’ equity
Common shares at stated value (e) (note 9)
1,302
1,357
Earnings reinvested
21,336
22,050
Accumulated other comprehensive income (loss) (note 10)
( 1,869
)
( 1,989
)
Total shareholders’ equity
20,769
21,418
Total liabilities and shareholders’ equity
38,939
38,031
(a)
Accounts receivable - net included net amounts receivable from related parties of $ 582 million (2020 - $ 384 million).
(b)
Investments and long-term receivables included amounts from related parties of $ 301 million (2020 - $ 313 million).
(c)
Notes and loans payable included amounts to related parties of $ 75 million (2020 - $ 111 million).
(d)
Long-term debt included amounts to related parties of $ 4,447 million (2020 - $ 4,447 million).
(e)
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.
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IMPERIAL OIL LIMITED
Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Common shares at stated value
(note 9)
At beginning of period
1,357
1,357
1,357
1,375
Share purchases at stated value
( 55
)
-
( 55
)
( 18
)
At end of period
1,302
1,357
1,302
1,357
Earnings reinvested
At beginning of period
22,281
24,204
22,050
24,812
Net income (loss) for the period
366
( 526
)
758
( 714
)
Share purchases in excess of stated value
( 1,116
)
-
( 1,116
)
( 256
)
Dividends declared
( 195
)
( 162
)
( 356
)
( 324
)
Cumulative effect of accounting change
-
-
-
( 2
)
At end of period
21,336
23,516
21,336
23,516
Accumulated other comprehensive income (loss)
(note 10)
At beginning of period
( 1,902
)
( 1,991
)
( 1,989
)
( 1,911
)
Other comprehensive income (loss)
33
34
120
( 46
)
At end of period
( 1,869
)
( 1,957
)
( 1,869
)
( 1,957
)
Shareholders’ equity at end of period
20,769
22,916
20,769
22,916
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 cash flows (U.S. GAAP, unaudited)
Inflow ( o
utflow)
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Operating activities
Net income (loss)
366
( 526
)
758
( 714
)
Adjustments for non-cash
items:
Depreciation and depletion
450
413
944
866
Impairment of intangible assets (note 11)
-
-
-
20
(Gain) loss on asset sales (note 3)
( 24
)
( 10
)
( 27
)
( 17
)
Inventory write-down to current market value (note 11)
-
( 281
)
-
-
Deferred income taxes and other
76
( 242
)
136
( 199
)
Changes in operating assets and liabilities:
Accounts receivable
( 775
)
( 310
)
( 1,244
)
833
Inventories, materials, supplies and prepaid expenses
58
117
( 101
)
( 82
)
Income taxes payable
21
( 2
)
42
( 106
)
Accounts payable and accrued liabilities
655
( 46
)
1,239
( 1,074
)
All other items - net (b)
25
71
150
80
Cash flows from (used in) operating activities
852
( 816
)
1,897
( 393
)
Investing activities
Additions to property, plant and equipment
( 241
)
( 205
)
( 408
)
( 515
)
Proceeds from asset sales (note 3)
35
40
42
49
Loans to equity companies - net
( 1
)
( 7
)
12
( 14
)
Cash flows from (used in) investing activities
( 207
)
( 172
)
( 354
)
( 480
)
Financing activities
Short-term debt - net
-
-
( 36
)
-
Reduction in finance lease obligations (note 6)
( 4
)
( 5
)
( 8
)
( 12
)
Dividends paid
( 161
)
( 162
)
( 323
)
( 326
)
Common shares purchased (note 9)
( 1,171
)
-
( 1,171
)
( 274
)
Cash flows from (used in) financing activities
( 1,336
)
( 167
)
( 1,538
)
( 612
)
Increase (decrease) in cash
( 691
)
( 1,155
)
5
( 1,485
)
Cash at beginning of period
1,467
1,388
771
1,718
Cash at end of period
(a)
776
233
776
233
(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.
( 42
)
( 41
)
( 70
)
( 100
)
Income taxes (paid) refunded.
27
1
28
( 152
)
Interest (paid), net of capitalization.
( 14
)
( 17
)
( 27
)
( 36
)
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 2020 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 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.
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IMPERIAL OIL LIMITED
2. Business segments
Second Quarter
Upstream
Downstream
Chemical
millions of Canadian dollars
2021
2020
2021
2020
2021
2020
Revenues and other income
Revenues (a)
2,616
908
5,015
2,587
376
171
Intersegment sales
1,312
262
788
124
79
27
Investment and other income (note 3)
6
10
28
27
1
1
3,934
1,180
5,831
2,738
456
199
Expenses
Exploration
2
3
-
-
-
-
Purchases of crude oil and products (note 11)
2,044
512
4,760
1,896
240
119
Production and manufacturing
1,166
884
357
343
46
46
Selling and general
-
-
142
135
22
21
Federal excise tax and fuel charge
-
-
465
369
-
-
Depreciation and depletion (note 11)
399
363
39
40
5
4
Non-service
pension and postretirement benefit
-
-
-
-
-
-
Financing (note 5)
-
-
-
-
-
-
Total expenses
3,611
1,762
5,763
2,783
313
190
Income (loss) before income taxes
323
( 582 )
68
( 45 )
143
9
Income taxes
76
( 138 )
8
( 13 )
34
2
Net income (loss)
247
( 444 )
60
( 32 )
109
7
Cash flows from (used in) operating activities
595
( 968 )
136
88
111
46
Capital and exploration expenditures
(b)
130
145
120
51
2
2
Second Quarter
Corporate and other
Eliminations
Consolidated
millions of Canadian dollars
2021
2020
2021
2020
2021
2020
Revenues and other income
Revenues (a)
-
-
-
-
8,007
3,666
Intersegment sales
-
-
( 2,179 )
( 413 )
-
-
Investment and other income (note 3)
5
6
-
-
40
44
5
6
( 2,179 )
( 413 )
8,047
3,710
Expenses
Exploration
-
-
-
-
2
3
Purchases of crude oil and products (note 11)
-
-
( 2,177 )
( 412 )
4,867
2,115
Production and manufacturing
-
-
-
-
1,569
1,273
Selling and general
38
28
( 2 )
( 1 )
200
183
Federal excise tax and fuel charge
-
-
-
-
465
369
Depreciation and depletion (note 11)
7
6
-
-
450
413
Non-service
pension and postretirement benefit
10
30
-
-
10
30
Financing (note 5)
13
17
-
-
13
17
Total expenses
68
81
( 2,179 )
( 413 )
7,576
4,403
Income (loss) before income taxes
( 63 )
( 75 )
-
-
471
( 693 )
Income taxes
( 13 )
( 18 )
-
-
105
( 167 )
Net income (loss)
( 50 )
( 57 )
-
-
366
( 526 )
Cash flows from (used in) operating activities
10
1
-
17
852
( 816 )
Capital and exploration expenditures
(b)
7
9
-
-
259
207
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IMPERIAL OIL LIMITED
(a)
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.
(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
Six Months to June 30
Upstream
Downstream
Chemical
millions of Canadian dollars
2021
2020
2021
2020
2021
2020
Revenues and other income
Revenues (a)
4,758
2,560
9,542
7,383
699
387
Intersegment sales
2,663
984
1,561
692
132
71
Investment and other income (note 3)
6
10
33
42
1
1
7,427
3,554
11,136
8,117
832
459
Expenses
Exploration
4
4
-
-
-
-
Purchases of crude oil and products (note 11)
3,878
2,162
8,780
5,665
449
259
Production and manufacturing
2,275
1,992
683
751
96
109
Selling and general
-
-
275
316
47
46
Federal excise tax and fuel charge
-
-
869
820
-
-
Depreciation and depletion (note 11)
844
780
78
86
9
8
Non-service
pension and postretirement benefit
-
-
-
-
-
-
Financing (note 5)
1
-
-
-
-
-
Total expenses
7,002
4,938
10,685
7,638
601
422
Income (loss) before income taxes
425
( 1,384 )
451
479
231
37
Income tax expense (benefit)
99
( 332 )
99
109
55
9
Net income (loss)
326
( 1,052 )
352
370
176
28
Cash flows from (used in) operating activities
1,126
( 504 )
598
110
173
43
Capital and exploration expenditures
(b)
215
376
188
127
4
11
Total assets as at June
30
(note 11)
31,931
33,591
5,352
4,683
481
404
Six Months to June 30
Corporate and other
Eliminations
Consolidated
millions of Canadian dollars
2021
2020
2021
2020
2021
2020
Revenues and other income
Revenues (a)
-
-
-
-
14,999
10,330
Intersegment sales
-
-
( 4,356 )
( 1,747 )
-
-
Investment and other income (note 3)
6
17
-
-
46
70
6
17
( 4,356 )
( 1,747 )
15,045
10,400
Expenses
Exploration
-
-
-
-
4
4
Purchases of crude oil and products (note 11)
-
-
( 4,353 )
( 1,745 )
8,754
6,341
Production and manufacturing
-
-
-
-
3,054
2,852
Selling and general
70
( 11 )
( 3 )
( 2 )
389
349
Federal excise tax and fuel charge
-
-
-
-
869
820
Depreciation and depletion (note 11)
13
12
-
-
944
886
Non-service
pension and postretirement benefit
21
60
-
-
21
60
Financing (note 5)
26
36
-
-
27
36
Total expenses
130
97
( 4,356 )
( 1,747 )
14,062
11,348
Income (loss) before income taxes
( 124 )
( 80 )
-
-
983
( 948 )
Income tax expense (benefit)
( 28 )
( 20 )
-
-
225
( 234 )
Net income (loss)
( 96 )
( 60 )
-
-
758
( 714 )
Cash flows from (used in) operating activities
-
( 42 )
-
-
1,897
( 393 )
Capital and exploration expenditures
(b)
15
24
-
-
422
538
Total assets as at June
30
(note 11)
1,606
1,088
( 431 )
( 266 )
38,939
39,500
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IMPERIAL OIL LIMITED
(a)
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.
(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
3. Investment and other income
Investment and other income included gains and losses on asset sales as follows:
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Proceeds from asset sales
35
40
42
49
Book value of asset sales
11
30
15
32
Gain (loss) on asset sales, before tax
24
10
27
17
Gain (loss) on asset sales, after tax
22
9
24
15
4. Employee retirement benefits
The components of net benefit cost were as follows:
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Pension benefits:
Current service cost
81
77
162
153
Interest cost
68
77
136
154
Expected return on plan assets
( 107
)
( 98
)
( 214
)
( 196
)
Amortization of prior service cost
4
3
8
7
Amortization of actuarial loss (gain)
36
39
72
77
Net periodic benefit cost
82
98
164
195
Other postretirement benefits:
Current service cost
7
6
14
12
Interest cost
5
6
11
12
Amortization of actuarial loss (gain)
4
3
8
6
Net periodic benefit cost
16
15
33
30
5. Financing costs
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Debt-related interest
20
26
41
60
Capitalized interest
( 7
)
( 9
)
( 15
)
( 24
)
Net interest expense
13
17
26
36
Other interest
-
-
1
-
Total financing
13
17
27
36
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.
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IMPERIAL OIL LIMITED
6. Long-term debt
millions of Canadian dollars
As at
June 30
2021
As at
Dec 31
2020
Long-term debt
4,447
4,447
Finance leases
618
510
Total long-term debt
5,065
4,957
7. Other long-term obligations
millions of Canadian dollars
As at
June 30
2021
As at
Dec 31
2020
Employee retirement benefits (a)
2,023
2,105
Asset retirement obligations and other environmental liabilities (b)
1,699
1,676
Share-based incentive compensation liabilities
84
45
Operating lease liability (c)
96
95
Other obligations
159
179
Total other long-term obligations
4,061
4,100
(a)
Total recorded employee retirement benefits obligations also included $ 58 million in current liabilities (2020 - $ 58 million).
(b)
Total asset retirement obligations and other environmental liabilities also included $ 100 million in current liabilities (2020 - $ 100 million).
(c)
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).
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IMPERIAL OIL LIMITED
8. 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 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
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.
The net notional long/(short) position of derivative instruments was:
(thousands of barrels)
As at
June 30
2021
As at
Dec 31
2020
Crude
( 710
)
( 800
)
Products
( 160
)
( 390
)
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
basis:
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Revenues
( 9
)
( 9
)
( 9
)
( 8
)
Purchases of crude oil and products
( 19
)
( 52
)
( 33
)
( 18
)
Total
( 28
)
( 61
)
( 42
)
( 26
)
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IMPERIAL OIL LIMITED
The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows:
millions of Canadian dollars
At June 30, 2021
Fair value
Effect of
counterparty
netting
Effect of
collateral
netting
Net
carrying
value
Level 1
Level 2
Level 3
Total
Assets
Derivative assets (a)
6
-
-
6
( 6
)
-
-
Liabilities
Derivative liabilities (b)
8
-
-
8
( 6
)
( 2
)
-
(a)
Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b)
Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.
millions of Canadian dollars
At December 31, 2020
Fair value
Effect of
counterparty
netting
Effect of
collateral
netting
Net
carrying
value
Level 1
Level 2
Level 3
Total
Assets
Derivative assets (a)
2
-
-
2
( 2
)
-
-
Liabilities
Derivative liabilities (b)
12
-
-
12
( 2
)
( 10
)
-
(a)
Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b)
Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.
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.
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IMPERIAL OIL LIMITED
9. Common shares
thousands of shares
As of
June 30
2021
As of
Dec 31
2020
Authorized
1,100,000
1,100,000
Common shares outstanding
704,578
734,077
The 12 -month
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.
The company’s common share activities are summarized below:
Thousands of
shares
Millions of
dollars
Balance as at December 31, 2019
743,902
1,375
Issued under employee share-based awards
7
-
Purchases at stated value
( 9,832
)
( 18
)
Balance as at December 31, 2020
734,077
1,357
Issued under employee share-based awards
-
-
Purchases at stated value
( 29,499
)
( 55
)
Balance as at June 30, 2021
704,578
1,302
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
Six Months
to June 30
2021
2020
2021
2020
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars)
366
( 526
)
758
( 714
)
Weighted average number of common shares outstanding (millions of shares)
724.1
734.1
729.1
736.5
Net income (loss) per common share (dollars)
0.51
( 0.72
)
1.04
( 0.97
)
Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars)
366
( 526
)
758
( 714
)
Weighted average number of common shares outstanding (millions of shares)
724.1
734.1
729.1
736.5
Effect of employee share-based awards (millions of shares) (a)
1.7
-
1.7
-
Weighted average number of common shares outstanding, assuming dilution (millions of shares)
725.8
734.1
730.8
736.5
Net income (loss) per common share (dollars)
0.50
( 0.72
)
1.04
( 0.97
)
Dividends per common share - declared
(dollars)
0.27
0.22
0.49
0.44
(a)
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.
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IMPERIAL OIL LIMITED
10. Other comprehensive income (loss) information
Changes in accumulated other comprehensive income (loss):
millions of Canadian dollars
2021
2020
Balance at January 1
( 1,989
)
( 1,911
)
Postretirement benefits liability adjustment:
Current period change excluding amounts reclassified from accumulated other comprehensive income
54
( 114
)
Amounts reclassified from accumulated other comprehensive income
66
68
Balance at June 30
( 1,869
)
( 1,957
)
Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax
income (expense):
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a)
( 44
)
( 45
)
( 88
)
( 90
)
(a)
This accumulated other comprehensive income component is included in the computation of net periodic benefit cost, (note 4).
Income tax expense (credit) for components of other comprehensive income (loss):
Second Quarter
Six Months
to June 30
millions of Canadian dollars
2021
2020
2021
2020
Postretirement benefits liability adjustments:
Postretirement benefits liability adjustment (excluding amortization)
-
-
17
( 37
)
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost
11
11
22
22
Total
11
11
39
( 15
)
11. Miscellaneous financial information
At March 31, 2021, due to the termination of transportation services agreements related to a third-party pipeline project, the company recognized a liability of $ 62 million, previously reported as a contingent liability in Note 10 of Imperial’s Form 10-K.
In connection with the same project, commitments under “Other long-term purchase agreements” as reported in Imperial’s Form 10-K
decreased by approximately $ 2.9 billion. The majority of these commitments related to years 2026 and beyond.
In the first quarter of 2020, a non-cash
charge of $ 281 million after tax (Upstream - $ 229 million; 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
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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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.