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
2021
2020
2021
2020
Revenues and other income
Revenues (a)
10,214
5,937
25,213
16,267
Investment and other income (note 3)
19
18
65
88
Total revenues and other income
10,233
5,955
25,278
16,355
Expenses
Exploration
2
2
6
6
Purchases of crude oil and products (b)
6,298
3,634
15,052
9,975
Production and manufacturing (c) (note 11)
1,525
1,246
4,579
4,098
Selling and general (c)
180
150
569
499
Federal excise tax and fuel charge
535
470
1,404
1,290
Depreciation and depletion (note 11)
488
409
1,432
1,295
Non-service pension and postretirement benefit
11
31
32
91
Financing (d) (note 5)
5
10
32
46
Total expenses
9,044
5,952
23,106
17,300
Income (loss) before income taxes
1,189
3
2,172
( 945
)
Income taxes
281
-
506
( 234
)
Net income (loss)
908
3
1,666
( 711
)
Per share information
(Canadian dollars)
Net income (loss) per common share - basic (note 9)
1.30
-
2.32
( 0.97
)
Net income (loss) per common share - diluted (note 9)
1.29
-
2.31
( 0.97
)
(a) Amounts from related parties included in revenues.
2,731
1,216
5,644
3,699
(b) Amounts to related parties included in purchases of crude oil and products.
828
627
2,009
1,762
(c) Amounts to related parties included in production and manufacturing, and selling and general expenses.
95
107
317
428
(d) Amounts to related parties included in financing, (note 5).
4
12
25
50
The information in the notes to consolidated financi a
l 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
2021
2020
2021
2020
Net income (loss)
908
3
1,666
( 711
)
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
99
102
Total other comprehensive income (loss)
33
34
153
( 12
)
Comprehensive income (loss)
941
37
1,819
( 723
)
The information in the notes to cons o
lidated 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
2021
2020
Assets
Current assets
Cash
1,875
771
Accounts receivable - net (a)
3,871
1,919
Inventories of crude oil and products
1,405
1,161
Materials, supplies and prepaid expenses
729
673
Total current assets
7,880
4,524
Investments and long-term receivables (b)
753
781
Property, plant and equipment,
56,512
55,771
less accumulated depreciation and depletion
( 25,134
)
( 23,737
)
Property, plant and equipment, net
31,378
32,034
Goodwill (note 11)
166
166
Other assets, including intangibles - net
698
526
Total assets
40,875
38,031
Liabilities
Current liabilities
Notes and loans payable (c)
122
227
Accounts payable and accrued liabilities (a) (note 7)
5,558
3,153
Income taxes payable
269
-
Total current liabilities
5,949
3,380
Long-term debt (d) (note 6)
5,060
4,957
Other long-term obligations (note 7)
4,352
4,100
Deferred income tax liabilities
4,305
4,176
Total liabilities
19,666
16,613
Shareholders’ equity
Common shares at stated value (e) (note 9)
1,286
1,357
Earnings reinvested
21,759
22,050
Accumulated other comprehensive income (loss) (note 10)
( 1,836
)
( 1,989
)
Total shareholders’ equity
21,209
21,418
Total liabilities and shareholders’ equity
40,875
38,031
(a)
Accounts receivable - net included net amounts receivable from related parties of $ 1,064 million (2020 - $ 384 million).
(b)
Investments and long-term receivables included amounts from related parties of $ 299 million (2020 - $ 313 million).
(c)
Notes and loans payable included amounts to related parties of $ 0 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 696
million, respectively (2020 - 1,100 million and 734 million, respectively).
The information in the notes to consolidated financial statements is an int e
gral part of these statements.
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IMPERIAL OIL LIMITED
Consolidated statement of shareholders’ equity (U.S. GAAP, unaudited)
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2021
2020
2021
2020
Common shares at stated value
(note 9)
At beginning of p e
riod
1,302
1,357
1,357
1,375
Share purchases at stated value
( 16
)
-
( 71
)
( 18
)
At end of period
1,286
1,357
1,286
1,357
Earnings reinvested
At beginning of period
21,336
23,516
22,050
24,812
Net income (loss) for the period
908
3
1,666
( 711
)
Share purchases in excess of stated value
( 297
)
-
( 1,413
)
( 256
)
Dividends declared
( 188
)
( 161
)
( 544
)
( 485
)
Cumulative effect of accounting change
-
-
-
( 2
)
At end of period
21,759
23,358
21,759
23,358
Accumulated other comprehensive income (loss)
(note 10)
At beginning of period
( 1,869
)
( 1,957
)
( 1,989
)
( 1,911
)
Other comprehensive income (loss)
33
34
153
( 12
)
At end of period
( 1,836
)
( 1,923
)
( 1,836
)
( 1,923
)
Shareholders’ equity at end of period
21,209
22,792
21,209
22,792
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 (outflow)
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2021
2020
2021
2020
Operating activities
Net income (loss)
908
3
1,666
( 711
)
Adjustments for non-cash items:
Depreciation and depletion
488
409
1,432
1,275
Impairment of int a
ngible assets (note 11)
-
-
-
20
(Gain) loss on asset sales (note 3)
( 12
)
( 11
)
( 39
)
( 28
)
Deferred income taxes and other
( 120
)
( 11
)
16
( 210
)
Changes in operating assets and liabilities:
Accounts receivable
( 708
)
134
( 1,952
)
967
Inventories, materials, supplies and prepaid expenses
( 199
)
142
( 300
)
60
Income taxes payable
227
-
269
( 106
)
Accounts payable and accrued liabilities
1,123
66
2,362
( 1,008
)
All other items - net (b)
240
143
390
223
Cash flows from (used in) operating activities
1,947
875
3,844
482
Investing activities
Additions to property, plant and equipment
( 276
)
( 142
)
( 684
)
( 657
)
Proceeds from asset sales (note 3)
15
19
57
68
Loans to equity companies - net
2
( 2
)
14
( 16
)
Cash flows from (used in) investing activities
( 259
)
( 125
)
( 613
)
( 605
)
Financing activities
Short-term debt - net
( 75
)
-
( 111
)
-
Reduction in finance lease obligations (note 6)
( 6
)
( 4
)
( 14
)
( 16
)
Dividends paid
( 195
)
( 162
)
( 518
)
( 488
)
Common shares purchased (note 9)
( 313
)
-
( 1,484
)
( 274
)
Cash flows from (used in) financing activities
( 589
)
( 166
)
( 2,127
)
( 778
)
Increase (decrease) in cash
1,099
584
1,104
( 901
)
Cash at beginning of period
776
233
771
1,718
Cash at end of period
(a)
1,875
817
1,875
817
(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.
( 43
)
( 59
)
( 113
)
( 159
)
Income taxes (paid) refunded.
32
107
60
( 45
)
Interest (paid), net of capitalization.
( 5
)
( 10
)
( 32
)
( 46
)
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 o
pinion 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, 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
Third Quarter
Upstream
Downstream
Chemical
millions of Canadian dollars
2021
2020
2021
2020
2021
2020
Revenues and other income
Revenues (a)
1,015
1,651
8,813
4,061
386
225
Intersegment sales (b)
3,137
658
366
321
91
43
Investment and other income (note 3)
-
( 6 )
18
24
-
-
4,152
2,303
9,197
4,406
477
268
Expenses
Exploration
2
2
-
-
-
-
Purchases of crude oil and products (b)
1,902
1,176
7,745
3,322
244
157
Production and manufacturing (note 11)
1,120
863
356
335
49
48
Selling and general
-
-
141
140
21
23
Federal excise tax and fuel charge
-
-
535
470
-
-
Depreciation and depletion (note 11)
439
361
39
37
4
5
Non-service pension and postretirement benefit
-
-
-
-
-
-
Financing (note 5)
-
-
-
-
-
-
Total expenses
3,463
2,402
8,816
4,304
318
233
Income (loss) before income taxes
689
( 99 )
381
102
159
35
Income taxes
165
( 25 )
88
25
38
8
Net income (loss)
(b)
524
( 74 )
293
77
121
27
Cash flows from (used in) operating activities
(b)
2,508
526
( 733 )
333
157
32
Capital and exploration expenditures
(c)
151
78
120
50
2
4
Third Quarter
Corporate and other
Eliminations
Consolidated
millions of Canadian dollars
2021
2020
2021
2020
2021
2020
Revenues and other income
Revenues (a)
-
-
-
-
10,214
5,937
Intersegment sales (b)
-
-
( 3,594 )
( 1,022 )
-
-
Investment and other income (note 3)
1
-
-
-
19
18
1
-
( 3,594 )
( 1,022 )
10,233
5,955
Expenses
Exploration
-
-
-
-
2
2
Purchases of crude oil and products (b)
-
-
( 3,593 )
( 1,021 )
6,298
3,634
Production and manufacturing (note 11)
-
-
-
-
1,525
1,246
Selling and general
19
( 12 )
( 1 )
( 1 )
180
150
Federal excise tax and fuel charge
-
-
-
-
535
470
Depreciation and depletion (note 11)
6
6
-
-
488
409
Non-service pension and postretirement benefit
11
31
-
-
11
31
Financing (note 5)
5
10
-
-
5
10
Total expenses
41
35
( 3,594 )
( 1,022 )
9,044
5,952
Income (loss) before income taxes
( 40 )
( 35 )
-
-
1,189
3
Income taxes
( 10 )
( 8 )
-
-
281
-
Net income (loss)
(b)
( 30 )
( 27 )
-
-
908
3
Cash flows from (used in) operating activities
(b)
15
( 16 )
-
-
1,947
875
Capital and exploration expenditures
(c)
4
9
-
-
277
141
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IMPERIAL OIL LIMITED
(a)
Included export sales to the United States of $ 1,803 million (2020 - $ 1,227 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.
(b)
In the third quarter of 2021, the Downstream segment acquired
a
portion of Upstream crude inventory for
$ 444 million.
There
was no
earnings impact and t
he effects of this transaction have been eliminated for consolidation purp o
ses.
(c)
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
2021
2020
2021
2020
2021
2020
Revenues and other inco m
e
Revenues (a)
5,773
4,211
18,355
11,444
1,085
612
Intersegment sales (b)
5,800
1,642
1,927
1,013
223
114
Investment and other income (note 3)
6
4
51
66
1
1
11,579
5,857
20,333
12,523
1,309
727
Expenses
Exploration
6
6
-
-
-
-
Purchases of crude oil and products (b)
5,780
3,338
16,525
8,987
693
416
Production and manufacturing (note 11)
3,395
2,855
1,039
1,086
145
157
Selling and general
-
-
416
456
68
69
Federal excise tax and fuel charge
-
-
1,404
1,290
-
-
Depreciation and depletion (note 11)
1,283
1,141
117
123
13
13
Non-service pension and postretirement benefit
-
-
-
-
-
-
Financing (note 5)
1
-
-
-
-
-
Total expenses
10,465
7,340
19,501
11,942
919
655
Income (loss) before income taxes
1,114
( 1,483 )
832
581
390
72
Income tax expense (benefit)
264
( 357 )
187
134
93
17
Net income (loss)
(b)
850
( 1,126 )
645
447
297
55
Cash flows from (used in) operating activities
(b)
3,634
22
( 135 )
443
330
75
Capital and exploration expenditures
(c)
366
454
308
177
6
15
Total assets as at September 30
(b)
(note 11)
29,540
32,941
8,239
4,590
488
417
Nine Months to September 30
Corporate and other
Eliminations
Consolidated
millions of Canadian dollars
2021
2020
2021
2020
2021
2020
Revenues and other income
Revenues (a)
-
-
-
-
25,213
16,267
Intersegment sales (b)
-
-
( 7,950 )
( 2,769 )
-
-
Investment and other income (note 3)
7
17
-
-
65
88
7
17
( 7,950 )
( 2,769 )
25,278
16,355
Expenses
Exploration
-
-
-
-
6
6
Purchases of crude oil and products (b)
-
-
( 7,946 )
( 2,766 )
15 ,
052
9,975
Production and manufacturing (note 11)
-
-
-
-
4,579
4,098
Selling and general
89
( 23 )
( 4 )
( 3 )
569
499
Federal excise tax and fuel charge
-
-
-
-
1,404
1,290
Depreciation and depletion (note 11)
19
18
-
-
1,432
1,295
Non-service pension and postretirement benefit
32
91
-
-
32
91
Financing (note 5)
31
46
-
-
32
46
Total expenses
171
132
( 7,950 )
( 2,769 )
23,106
17,300
Income (loss) before income taxes
( 164 )
( 115 )
-
-
2,172
( 945 )
Income tax expense (benefit)
( 38 )
( 28 )
-
-
506
( 234 )
Net income (loss)
(b)
( 126 )
( 87 )
-
-
1,666
( 711 )
Cash flows from (used in) operating activities
(b)
15
( 58 )
-
-
3,844
482
Capital and exploration expenditures
(c)
19
33
-
-
699
679
Total assets as at September 30
(b) (note 11)
2,778
1,679
( 170 )
( 245 )
40,875
39,382
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IMPERIAL OIL LIMITED
(a)
Included export sales to the United States of $ 4,916 million (2020 - $ 3,339 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment.
(b)
In the third quarter of 2021, the Downstream segment acquired
a portion of Upstream crude inventory for
$ 444 million.
There
was no
earnings impact and t
he effects of this transaction have been eliminated for consolidation purposes.
(c)
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:
Nine Months
Third Quarter
to September 30
millions of Canadian dollars
2021
2020
2021
2020
Proceeds from asset sales
15
19
57
68
Book value of asset sales
3
8
18
40
Gain (loss) on asset sales, before tax
12
11
39
28
Gain (loss) on asset sales, after tax
10
10
34
25
4. Employee retirement benefits
The components of net benefit cost were as follows:
Nine Months
Third Quarter
to September 30
millions of Canadian dollars
2021
2020
2021
2020
Pension benefits:
Current service cost
81
76
243
229
Interest cost
68
77
204
231
Expected return on plan assets
( 107
)
( 97
)
( 321
)
( 293
)
Amortization of prior service cost
4
4
12
11
Amortization of actuarial loss (gain)
36
38
108
115
Net periodic benefit cost
82
98
246
293
Other postretirement benefits:
Current service cost
7
6
21
18
Interest cost
6
6
17
18
Amortization of actuarial loss (gain)
4
3
12
9
Net periodic benefit cost
17
15
50
45
5. Financing costs
Nine Months
Third Quarter
to September 30
millions of Canadian dollars
2021
2020
2021
2020
Debt-related interest
9
19
50
79
Capitalized interest
( 4
)
( 9
)
( 19
)
( 33
)
Net interest expense
5
10
31
46
Other interest
-
-
1
-
Total financing
5
10
32
46
During the second quarter of 2021, the company extended the maturity dates of two of its short-term lines of credit, totalling $ 750 million, to May 2023 and extended its $ 300 million committed short-term line of credit to June 2022 . The company has not drawn on any of its $ 1,300 million of available credit facilities.
During the third quarter of 2021, the c o
mpany repaid the $ 75 million, non-interest bearing, revolving demand loan originally issued in 2016 under an arrangement with an affiliate company of ExxonMobil.
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IMPERIAL OIL LIMITED
6. Long-term debt
As at
Sept 30
As at
Dec 31
millions of Canadian dollars
2021
2020
Long-term debt
4,447
4,447
Finance leases
613
510
Total long-term debt
5,060
4,957
7. Other long-term obligations
As at
Sept 30
As at
Dec 31
millions of Canadian dollars
2021
2020
Employee retirement benefits (a)
2,013
2,105
Asset retirement obligations and other environmental liabilities (b)
1,711
1,676
Share-based incentive compensation liabilities
94
45
Operating lease liability (c)
164
95
Other obligations
370
179
Total other long-term obligations
4,352
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 $ 114 million in current liabilities (2020 - $ 97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $ 1 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 September 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 and for trading purposes. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line “Revenues”. 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 l i
mits 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
Sept 30
2021
As at
Dec 31
2020
Crude
( 6,410
)
( 800
)
Products
( 1,070
)
( 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:
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2021
2020
2021
2020
Revenues
( 21
)
1
( 30
)
( 7
)
Purchases of crude oil and products
-
-
( 33
)
( 18
)
Total
( 21
)
1
( 63
)
( 25
)
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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 a s
follows:
millions of Canadian dollars
At September 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)
8
16
-
24
( 14
)
-
10
Liabilities
Derivative liabilities (b)
29
7
-
36
( 14
)
( 21
)
1
(a)
Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses” and “Accounts receivable - net”.
(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” and “Accounts receivable - net”.
(b)
Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.
At September 30, 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 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
Sept 30
2021
As of
Dec 31
2020
Authorized
1,100,000
1,100,000
Common shares outstanding
695,611
734,077
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
( 38,466
)
( 71
)
Balance as at September 30, 2021
695,611
1,286
The following table provides the calculation of b a
sic 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
2021
2020
2021
2020
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars)
908
3
1,666
( 711
)
Weighted average number of common shares outstanding (millions of shares)
700.0
734.1
719.4
735.7
Net income (loss) per common share (dollars)
1.30
-
2.32
( 0.97
)
Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars)
908
3
1,666
( 711
)
Weighted average number of common shares outstanding (millions of shares)
700.0
734.1
719.4
735.7
Effect of employee share-based awards (millions of shares) (a)
1.9
2.2
1.7
-
Weighted average number of common shares outstanding, assuming dilution (millions of shares)
701.9
736.3
721.1
735.7
Net income (loss) per common share (dollars)
1.29
-
2.31
( 0.97
)
Dividends per common share - declared
(dollars)
0.27
0.22
0.76
0.66
(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
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
99
102
Balance at September 30
( 1,836
)
( 1,923
)
Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):
Third Quarter
Nine Months
to September 30
millions of Canadian dollars
2021
2020
2021
2020
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a)
( 44 )
( 45 )
( 132 )
( 135
)
(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):
Third Quarter
Nine Months
to September 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
33
33
Total
11
11
50
( 4
)
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 “Oth e
r 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.
The company has received subsidies as part of the Government of Canada’s COVID-19 Economic Response Plan. It was recognized as a reduction to expense and was included in the Consolidated statement of income, primarily as part of “Production and manufacturing” (2020 –
$
120
million before tax, year-to-date).
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 recogniz e
d 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.