What changed in this filing

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Item 1. Financial Statements

2021-11-03 compared with 2021-08-04 · 76 added, 47 removed, 469 unchanged (21% of the section changed)

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

28 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

2 unchanged sentences

Foreign exchange translation adjustment ( 1,625 ) 1,469 ( 1,053 ) ( 1,305 )

Adjustment for foreign exchange translation (gain)/loss

included in net income — 14 — 14

Postretirement benefits reserves adjustment (excluding amortization) 184 ( 140 ) 305 ( 189 )

8 unchanged sentences

(millions of dollars)

September 30,

2021 December 31,

28 unchanged sentences

Common stock held in treasury

( 3,785 million shares at June 30, 2021 and

( 3,785 million shares at September 30, 2021 and

3,786 million shares at December 31, 2020)

8 unchanged sentences

(millions of dollars)

Six Months Ended

Nine Months Ended

September 30,

Cash flows from operating activities

14 unchanged sentences

Additions to short-term debt (1)

12,197 28,839

Reductions in short-term debt (1)

17 unchanged sentences

Total cash interest paid 1,296 1,242

Noncash right of use assets recorded in exchange for lease liabilities

Operating leases 804 45

Finance leases 168 29

(1) Includes commercial paper with a maturity greater than three months.

5 unchanged sentences

Common Stock Earnings Reinvested Accumulated Other Comprehensive Income Common Stock Held in Treasury ExxonMobil Share of Equity Non-controlling Interests Total Equity

Balance as of March 31, 2020 15,636 416,919 ( 24,339 ) ( 226,137 ) 182,079 6,664 188,743

Balance as of June 30, 2020 15,812 412,124 ( 21,617 ) ( 226,136 ) 180,183 6,970 187,153

Amortization of stock-based awards 187 — — — 187 — 187

3 unchanged sentences

Other comprehensive income (loss) — — 1,428 — 1,428 121 1,549

Dispositions — — — 1 1 — 1

Balance as of September 30, 2020 15,997 407,728 ( 20,189 ) ( 226,136 ) 177,400 7,212 184,612

Balance as of June 30, 2021 16,006 383,922 ( 15,586 ) ( 225,771 ) 158,571 6,985 165,556

Balance as of March 31, 2021 15,884 382,953 ( 16,090 ) ( 225,773 ) 156,974 7,127 164,101

Amortization of stock-based awards 99 — — — 99 — 99

4 unchanged sentences

Acquisitions, at cost — — — — — ( 75 ) ( 75 )

Dispositions — — — 2 2 — 2

Balance as of June 30, 2021 16,006 383,922 ( 15,586 ) ( 225,771 ) 158,571 6,985 165,556

Three Months Ended June 30, 2021 Three Months Ended June 30, 2020

Balance as of September 30, 2021 16,104 386,952 ( 16,696 ) ( 225,771 ) 160,589 6,917 167,506

Three Months Ended September 30, 2021 Three Months Ended September 30, 2020

Common Stock Share Activity Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

(millions of shares) (millions of shares)

Balance as of March 31 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

Balance as of June 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

Acquisitions — — — — — —

Dispositions — — — — — —

Balance as of June 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

Balance as of September 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

14 unchanged sentences

Dispositions — — — 4 4 — 4

Balance as of June 30, 2020 15,812 412,124 ( 21,617 ) ( 226,136 ) 180,183 6,970 187,153

Balance as of September 30, 2020 15,997 407,728 ( 20,189 ) ( 226,136 ) 177,400 7,212 184,612

Balance as of December 31, 2020 15,688 383,943 ( 16,705 ) ( 225,776 ) 157,150 6,980 164,130

6 unchanged sentences

Dispositions — — — 6 6 — 6

Balance as of June 30, 2021 16,006 383,922 ( 15,586 ) ( 225,771 ) 158,571 6,985 165,556

Six Months Ended June 30, 2021 Six Months Ended June 30, 2020

Balance as of September 30, 2021 16,104 386,952 ( 16,696 ) ( 225,771 ) 160,589 6,917 167,506

Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020

Common Stock Share Activity Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

3 unchanged sentences

Dispositions — 1 1 — — —

Balance as of June 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

Balance as of September 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

9 unchanged sentences

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO).

The Corporation's results for the second quarter of 2020 included a before-tax credit of $ 2,624 million, as rising prices reduced the charge against the book value of inventories from $ 2,777 million in the first quarter 2020 to $ 153 million for the first half of 2020.

This adjustment, which is included in "Crude oil and product purchases", together with a market adjustment to inventory for equity companies included in "Income from equity affiliates", resulted in a $ 1,922 million after-tax credit to earnings (excluding noncontrolling interests) in the second quarter of 2020.

In the first half of 2020, mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in the Corporation's market capitalization at the end of the first quarter, before-tax goodwill impairment charges of $ 611 million and other impairment charges of $ 363 million were recognized.

The charges related to goodwill impairments were included in “Depreciation and depletion” on the Statement of Income while the charges related to other impairments were largely included in “Income from equity affiliates.”

The Corporation's results for the third quarter of 2020 included a before-tax credit of $ 153 million, as rising prices reduced the charge against the book value of inventories.

This adjustment, which is included in "Crude oil and product purchases", together with a market adjustment to inventory for equity companies included in "Income from equity affiliates", resulted in a $ 113 million after-tax credit to earnings (excluding noncontrolling interests) in the third quarter of 2020.

The Corporation recognized impairment charges of $ 262 million and $ 1,036 million in the nine months ended, September 30, 2021 and 2020, respectively.

The 2021 impairments included $ 20 million for exploratory well costs that had been suspended more than one year.

The 2020 impairments included goodwill impairments of $ 611 million and other impairments of $ 425 million, mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in the Corporation's market capitalization at the end of the first quarter.

Impairment charges generally are included in “Depreciation and depletion” or "Other income".

Litigation and Other Contingencies

9 unchanged sentences

Other Contingencies.

The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 2021, for guarantees relating to notes, loans and performance under contracts.

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2021, for guarantees relating to notes, loans and performance under contracts.

Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure.

These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

As of June 30, 2021

As of September 30, 2021

Equity Company

53 unchanged sentences

Total change in accumulated other comprehensive income ( 1,111 ) 415 ( 696 )

Balance as of June 30, 2020 ( 14,915 ) ( 6,702 ) ( 21,617 )

Balance as of September 30, 2020 ( 13,557 ) ( 6,632 ) ( 20,189 )

Balance as of December 31, 2020 ( 10,614 ) ( 6,091 ) ( 16,705 )

1 unchanged sentence

from accumulated other comprehensive income (1)

( 1,041 ) 289 ( 752 )

Amounts reclassified from accumulated other

1 unchanged sentence

Total change in accumulated other comprehensive income ( 1,041 ) 1,050 9

Balance as of June 30, 2021 ( 10,189 ) ( 5,397 ) ( 15,586 )

Balance as of September 30, 2021 ( 11,655 ) ( 5,041 ) ( 16,696 )

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $ 240 million and $( 159 ) million in 2021 and 2020, respectively.

Amounts Reclassified Out of Accumulated Other Three Months Ended

June 30, Six Months Ended

Amounts Reclassified Out of Accumulated Other

Comprehensive Income - Before-tax Income/(Expense)

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

(millions of dollars) (millions of dollars)

Foreign exchange translation gain/(loss) included in net income

(Statement of Income line:

Other income) — ( 14 ) — ( 14 )

Amortization and settlement of postretirement benefits reserves

2 unchanged sentences

Non-service pension and postretirement benefit expense) ( 256 ) ( 268 ) ( 1,020 ) ( 790 )

Income Tax (Expense)/Credit For Three Months Ended

June 30, Six Months Ended

Income Tax (Expense)/Credit For

Components of Other Comprehensive Income

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

(millions of dollars) (millions of dollars)

9 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

11 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

23 unchanged sentences

Financial Instruments.

The estimated fair value of financial instruments at June 30, 2021, and December 31, 2020, and the related hierarchy level for the fair value measurement was as follows:

At June 30, 2021

The estimated fair value of financial instruments at September 30, 2021, and December 31, 2020, and the related hierarchy level for the fair value measurement was as follows:

At September 30, 2021

(millions of dollars)

61 unchanged sentences

Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

At June 30, 2021, and December 31, 2020, respectively, the Corporation had $ 495 million and $ 504 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

At September 30, 2021, and December 31, 2020, respectively, the Corporation had $ 511 million and $ 504 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries.

Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income.

As of June 30, 2021, the Corporation has designated $ 5.3 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business.

As of September 30, 2021, the Corporation has designated $ 5.2 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business.

The net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $ 10.7 billion and undrawn long-term committed lines of credit of $ 0.6 billion as of second quarter 2021.

The Corporation had undrawn short-term committed lines of credit of $ 10.6 billion and undrawn long-term committed lines of credit of $ 0.6 billion as of third quarter 2021.

Derivative Instruments.

2 unchanged sentences

Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue.” The Corporation’s commodity derivatives are not accounted for under hedge accounting.

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of June 30, 2021, and December 31, 2020, or results of operations for the periods ended June 30, 2021, and 2020.

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of September 30, 2021, and December 31, 2020, or results of operations for the periods ended September 30, 2021, and 2020.

Credit risk associated with the Corporation’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 Corporation maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

The net notional long/(short) position of derivative instruments at June 30, 2021, and December 31, 2020, was as follows:

June 30, December 31,

The net notional long/(short) position of derivative instruments at September 30, 2021, and December 31, 2020, was as follows:

September 30, December 31,

Crude oil (barrels) 37 40

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

26 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

Sales and Other Operating Revenue 2021 2020 2021 2020

6 unchanged sentences

Canada 5,837 3,566 15,378 9,537

United Kingdom 3,815 1,906 6,758 5,597

Singapore 3,678 2,400 10,628 6,883

France 3,513 2,273 9,541 6,446

United Kingdom 3,379 2,827 10,137 8,424

Italy 2,808 2,055 7,139 5,241

15 unchanged sentences

Estimated gain and net cash flow could change due to market factors, working capital adjustments, tax impacts, and closing dates.

Following the end of the third quarter, the Corporation executed an agreement to divest certain assets in the U.S.

Unconventional portfolio.

The book value of the assets subject to disposal is approximately $ 0.5 billion and closing is expected by year-end 2021, with proceeds in the range of $ 0.2 billion.

Restructuring Activities

1 unchanged sentence

The programs, which are expected to be substantially completed by the end of 2021, include both voluntary and involuntary employee separations and reductions in contractors.

During the second quarter of 2021, the Corporation recorded before-tax charges of $ 10 million, consisting primarily of employee separation costs, from workforce reductions in Singapore and Europe associated with the global review of staffing levels.

During the third quarter of 2021, the Corporation recorded before-tax charges of $ 4 million, consisting primarily of employee separation costs, from workforce reductions in Europe associated with the global review of staffing levels.

These costs are captured in “Selling, general and administrative expenses” on the Statement of Income.

For the first six months of the year, the recorded before-tax charges associated with the global review of staffing levels were $ 49 million.

For the full year, the Corporation estimates charges of less than $ 100 million related to planned workforce reduction programs associated with the global review of staffing levels.

This does not include charges related to employee reductions associated with any portfolio changes or other projects.

For the first nine months of the year, the recorded before-tax charges associated with the global review of staffing levels were $ 53 million.

The Corporation does not expect any further significant charges related to the previously disclosed workforce reduction programs.

Th is does not include charges related to employee reductions associated with any portfolio changes or other projects.

The following tables summarize the reserves and charges related to the workforce reduction programs associated with the global review of staffing levels, which are recorded in “Accounts payable and accrued liabilities.”

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

(millions of dollars) (millions of dollars)

5 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