UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JuneSeptember 30, 2008
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to________
Commission File Number 1-2256
EXXON MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
NEW JERSEY 13-5409005
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
5959 Las Colinas Boulevard, Irving, Texas 75039-2298
(Address of principal executive offices) (Zip Code)
(972) 444-1000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer X
Accelerated filer
Non-accelerated filer
Smaller reporting company
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No X
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Class Outstanding as of JuneSeptember 30, 2008
Common stock, without par value 5,194,003,0205,086,649,128
EXXON MOBIL CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNESEPTEMBER 30, 2008
TABLE OF CONTENTS
Page
Number
PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
Condensed Consolidated Statement of Income
3
Three and sixnine months ended JuneSeptember 30, 2008 and 2007
Condensed Consolidated Balance Sheet
4
As of JuneSeptember 30, 2008 and December 31, 2007
Condensed Consolidated Statement of Cash Flows
5
SixNine months ended JuneSeptember 30, 2008 and 2007
Notes to Condensed Consolidated Financial Statements
6-156
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
16-2116
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
22
Item 4.
Controls and Procedures
22
PART II. OTHER INFORMATION
Item 1.
Legal Proceedings
22-2322
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
23
Item 4.5.
Submission of Matters to a Vote of Security HoldersOther Information
24-2623
Item 6.
Exhibits
2624
Signature
2725
Index to Exhibits
2826
-2-
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)
| Three Months Ended |
| Six Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||||||||||
| June 30, |
| June 30, |
| September 30, |
| September 30, |
| ||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
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| 2008 |
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| 2007 |
|
| 2008 |
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| 2007 |
|
REVENUES AND OTHER INCOME |
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Sales and other operating revenue(1) | $ | 133,776 |
| $ | 95,059 |
| $ | 246,999 |
| $ | 179,233 |
| $ | 132,085 |
| $ | 99,130 |
| $ | 379,084 |
| $ | 278,363 |
|
Income from equity affiliates |
| 2,983 |
|
| 2,015 |
|
| 5,792 |
|
| 3,930 |
|
| 2,824 |
|
| 2,158 |
|
| 8,616 |
|
| 6,088 |
|
Other income(2) |
| 1,313 |
|
| 1,276 |
|
| 2,135 |
|
| 2,410 |
|
| 2,828 |
|
| 1,049 |
|
| 4,963 |
|
| 3,459 |
|
Total revenues and other income |
| 138,072 |
|
| 98,350 |
|
| 254,926 |
|
| 185,573 |
|
| 137,737 |
|
| 102,337 |
|
| 392,663 |
|
| 287,910 |
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COSTS AND OTHER DEDUCTIONS |
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Crude oil and product purchases |
| 76,695 |
|
| 47,627 |
|
| 137,666 |
|
| 87,669 |
|
| 73,298 |
|
| 51,973 |
|
| 210,964 |
|
| 139,642 |
|
Production and manufacturing expenses |
| 10,066 |
|
| 7,678 |
|
| 18,959 |
|
| 14,961 |
|
| 9,878 |
|
| 7,884 |
|
| 28,837 |
|
| 22,845 |
|
Selling, general and administrative expenses |
| 4,389 |
|
| 3,788 |
|
| 8,191 |
|
| 7,180 |
|
| 3,823 |
|
| 3,656 |
|
| 12,014 |
|
| 10,836 |
|
Depreciation and depletion |
| 3,090 |
|
| 2,994 |
|
| 6,194 |
|
| 5,936 |
|
| 3,008 |
|
| 3,159 |
|
| 9,202 |
|
| 9,095 |
|
Exploration expenses, including dry holes |
| 338 |
|
| 353 |
|
| 680 |
|
| 625 |
|
| 403 |
|
| 349 |
|
| 1,083 |
|
| 974 |
|
Interest expense |
| 107 |
|
| 96 |
|
| 237 |
|
| 199 |
|
| 318 |
|
| 73 |
|
| 555 |
|
| 272 |
|
Sales-based taxes(1) |
| 9,538 |
|
| 7,810 |
|
| 17,970 |
|
| 15,094 |
|
| 9,327 |
|
| 7,970 |
|
| 27,297 |
|
| 23,064 |
|
Other taxes and duties |
| 11,418 |
|
| 9,888 |
|
| 22,124 |
|
| 19,479 |
|
| 10,989 |
|
| 10,229 |
|
| 33,113 |
|
| 29,708 |
|
Income applicable to minority interests |
| 225 |
|
| 188 |
|
| 507 |
|
| 438 |
|
| 536 |
|
| 284 |
|
| 1,043 |
|
| 722 |
|
Total costs and other deductions |
| 115,866 |
|
| 80,422 |
|
| 212,528 |
|
| 151,581 |
|
| 111,580 |
|
| 85,577 |
|
| 324,108 |
|
| 237,158 |
|
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INCOME BEFORE INCOME TAXES |
| 22,206 |
|
| 17,928 |
|
| 42,398 |
|
| 33,992 |
|
| 26,157 |
|
| 16,760 |
|
| 68,555 |
|
| 50,752 |
|
Income taxes |
| 10,526 |
|
| 7,668 |
|
| 19,828 |
|
| 14,452 |
|
| 11,327 |
|
| 7,350 |
|
| 31,155 |
|
| 21,802 |
|
NET INCOME | $ | 11,680 |
| $ | 10,260 |
| $ | 22,570 |
| $ | 19,540 |
| $ | 14,830 |
| $ | 9,410 |
| $ | 37,400 |
| $ | 28,950 |
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NET INCOME PER COMMON SHARE(dollars) | $ | 2.25 |
| $ | 1.85 |
| $ | 4.30 |
| $ | 3.49 |
| $ | 2.89 |
| $ | 1.72 |
| $ | 7.19 |
| $ | 5.21 |
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NET INCOME PER COMMON SHARE |
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- ASSUMING DILUTION(dollars) | $ | 2.22 |
| $ | 1.83 |
| $ | 4.25 |
| $ | 3.45 |
| $ | 2.86 |
| $ | 1.70 |
| $ | 7.11 |
| $ | 5.15 |
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DIVIDENDS PER COMMON SHARE(dollars) | $ | 0.40 |
| $ | 0.35 |
| $ | 0.75 |
| $ | 0.67 |
| $ | 0.40 |
| $ | 0.35 |
| $ | 1.15 |
| $ | 1.02 |
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(1) Sales-based taxes included in sales and other | (1) Sales-based taxes included in sales and other |
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| (1) Sales-based taxes included in sales and other |
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| ||
operating revenue | $ | 9,538 |
| $ | 7,810 |
| $ | 17,970 |
| $ | 15,094 |
| $ | 9,327 |
| $ | 7,970 |
| $ | 27,297 |
| $ | 23,064 |
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(2) Includes $62 million gain from sale of non-U.S. investment, | (2) Includes $62 million gain from sale of non-U.S. investment, |
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| (2) Includes $62 million gain from sale of non-U.S. investment, |
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| ||
net of related $143 million foreign exchange loss | $ | (81 | ) | $ | 0 |
| $ | (81 | ) | $ | 0 |
| $ | 0 |
| $ | 0 |
| $ | (81 | ) | $ | 0 |
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The information in the Notes to Condensed Consolidated Financial Statements | The information in the Notes to Condensed Consolidated Financial Statements | The information in the Notes to Condensed Consolidated Financial Statements | ||||||||||||||||||||||
is an integral part of these statements. | is an integral part of these statements. | is an integral part of these statements. |
-3-
EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)
| June 30, |
| Dec. 31, |
| ||||
| 2008 |
| 2007 |
| ||||
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 38,968 |
|
| $ | 33,981 |
|
Marketable securities |
|
| 732 |
|
|
| 519 |
|
Notes and accounts receivable - net |
|
| 41,820 |
|
|
| 36,450 |
|
Inventories |
|
|
|
|
|
|
|
|
Crude oil, products and merchandise |
|
| 13,513 |
|
|
| 8,863 |
|
Materials and supplies |
|
| 2,348 |
|
|
| 2,226 |
|
Prepaid taxes and expenses |
|
| 6,601 |
|
|
| 3,924 |
|
Total current assets |
|
| 103,982 |
|
|
| 85,963 |
|
Property, plant and equipment - net |
|
| 124,925 |
|
|
| 120,869 |
|
Investments and other assets |
|
| 37,851 |
|
|
| 35,250 |
|
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|
TOTAL ASSETS |
| $ | 266,758 |
|
| $ | 242,082 |
|
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LIABILITIES |
|
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Current liabilities |
|
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Notes and loans payable |
| $ | 2,310 |
|
| $ | 2,383 |
|
Accounts payable and accrued liabilities |
|
| 60,262 |
|
|
| 45,275 |
|
Income taxes payable |
|
| 14,661 |
|
|
| 10,654 |
|
Total current liabilities |
|
| 77,233 |
|
|
| 58,312 |
|
Long-term debt |
|
| 7,327 |
|
|
| 7,183 |
|
Deferred income tax liabilities |
|
| 24,299 |
|
|
| 22,899 |
|
Other long-term liabilities |
|
| 33,073 |
|
|
| 31,926 |
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TOTAL LIABILITIES |
|
| 141,932 |
|
|
| 120,320 |
|
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Commitments and contingencies (note 3) |
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SHAREHOLDERS' EQUITY |
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Common stock, without par value: |
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Authorized: 9,000 million shares |
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Issued: 8,019 million shares |
|
| 4,904 |
|
|
| 4,933 |
|
Earnings reinvested |
|
| 247,111 |
|
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| 228,518 |
|
Accumulated other comprehensive income |
|
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Cumulative foreign exchange translation adjustment |
|
| 9,689 |
|
|
| 7,972 |
|
Postretirement benefits reserves adjustment |
|
| (5,842 | ) |
|
| (5,983 | ) |
Common stock held in treasury: |
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2,825 million shares at June 30, 2008 |
|
| (131,036 | ) |
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2,637 million shares at December 31, 2007 |
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| (113,678 | ) |
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TOTAL SHAREHOLDERS' EQUITY |
|
| 124,826 |
|
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| 121,762 |
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ | 266,758 |
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| $ | 242,082 |
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The number of shares of common stock issued and outstanding at June 30, 2008 and | ||||||||
December 31, 2007 were 5,194,003,020 and 5,381,795,265, respectively. | ||||||||
| ||||||||
| ||||||||
The information in the Notes to Condensed Consolidated Financial Statements | ||||||||
is an integral part of these statements. |
| Sept. 30, |
| Dec. 31, |
| ||||
| 2008 |
| 2007 |
| ||||
ASSETS |
|
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Current assets |
|
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Cash and cash equivalents |
| $ | 36,674 |
|
| $ | 33,981 |
|
Marketable securities |
|
| 1,760 |
|
|
| 519 |
|
Notes and accounts receivable - net |
|
| 35,251 |
|
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| 36,450 |
|
Inventories |
|
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Crude oil, products and merchandise |
|
| 13,510 |
|
|
| 8,863 |
|
Materials and supplies |
|
| 2,430 |
|
|
| 2,226 |
|
Prepaid taxes and expenses |
|
| 6,396 |
|
|
| 3,924 |
|
Total current assets |
|
| 96,021 |
|
|
| 85,963 |
|
Property, plant and equipment - net |
|
| 123,258 |
|
|
| 120,869 |
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Investments and other assets |
|
| 36,939 |
|
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| 35,250 |
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TOTAL ASSETS |
| $ | 256,218 |
|
| $ | 242,082 |
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LIABILITIES |
|
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Current liabilities |
|
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Notes and loans payable |
| $ | 2,881 |
|
| $ | 2,383 |
|
Accounts payable and accrued liabilities |
|
| 49,087 |
|
|
| 45,275 |
|
Income taxes payable |
|
| 15,663 |
|
|
| 10,654 |
|
Total current liabilities |
|
| 67,631 |
|
|
| 58,312 |
|
Long-term debt |
|
| 7,383 |
|
|
| 7,183 |
|
Deferred income tax liabilities |
|
| 23,265 |
|
|
| 22,899 |
|
Other long-term liabilities |
|
| 32,653 |
|
|
| 31,926 |
|
|
|
|
|
|
|
|
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TOTAL LIABILITIES |
|
| 130,932 |
|
|
| 120,320 |
|
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Commitments and contingencies (note 3) |
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SHAREHOLDERS' EQUITY |
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Common stock, without par value: |
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Authorized: 9,000 million shares |
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Issued: 8,019 million shares |
|
| 5,105 |
|
|
| 4,933 |
|
Earnings reinvested |
|
| 259,878 |
|
|
| 228,518 |
|
Accumulated other comprehensive income |
|
|
|
|
|
|
|
|
Cumulative foreign exchange translation adjustment |
|
| 5,407 |
|
|
| 7,972 |
|
Postretirement benefits reserves adjustment |
|
| (5,468 | ) |
|
| (5,983 | ) |
Common stock held in treasury: |
|
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|
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2,932 million shares at September 30, 2008 |
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| (139,636 | ) |
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2,637 million shares at December 31, 2007 |
|
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|
|
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| (113,678 | ) |
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TOTAL SHAREHOLDERS' EQUITY |
|
| 125,286 |
|
|
| 121,762 |
|
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|
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ | 256,218 |
|
| $ | 242,082 |
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The number of shares of common stock issued and outstanding at September 30, 2008 and | ||||||||
December 31, 2007 were 5,086,649,128 and 5,381,795,265, respectively. | ||||||||
| ||||||||
| ||||||||
The information in the Notes to Condensed Consolidated Financial Statements | ||||||||
is an integral part of these statements. |
-4-
EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
|
| Six Months Ended |
| ||||||
|
| June 30, |
| ||||||
|
|
| 2008 |
|
|
| 2007 |
| |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
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|
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| |
Net income |
| $ | 22,570 |
|
| $ | 19,540 |
| |
Depreciation and depletion |
|
| 6,194 |
|
|
| 5,936 |
| |
Changes in operational working capital, excluding cash and debt |
|
| 7,286 |
|
|
| (366 | ) | |
All other items - net |
|
| (1,212 | ) |
|
| 494 |
| |
|
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| |
Net cash provided by operating activities |
|
| 34,838 |
|
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| 25,604 |
| |
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CASH FLOWS FROM INVESTING ACTIVITIES |
|
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| |
Additions to property, plant and equipment |
|
| (8,851 | ) |
|
| (6,892 | ) | |
Sales of subsidiaries, investments, and property, plant and equipment |
|
| 1,572 |
|
|
| 1,673 |
| |
Other investing activities - net |
|
| (1,489 | ) |
|
| (1,104 | ) | |
|
|
|
|
|
|
|
|
| |
Net cash used in investing activities |
|
| (8,768 | ) |
|
| (6,323 | ) | |
|
|
|
|
|
|
|
|
| |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
| |
Additions to long-term debt |
|
| 36 |
|
|
| 99 |
| |
Reductions in long-term debt |
|
| (53 | ) |
|
| (75 | ) | |
Additions/(reductions) in short-term debt - net |
|
| (215 | ) |
|
| 246 |
| |
Cash dividends to ExxonMobil shareholders |
|
| (3,977 | ) |
|
| (3,786 | ) | |
Cash dividends to minority interests |
|
| (215 | ) |
|
| (142 | ) | |
Changes in minority interests and sales/(purchases) |
|
|
|
|
|
|
|
| |
of affiliate stock |
|
| (142 | ) |
|
| (319 | ) | |
Tax benefits related to stock-based awards |
|
| 150 |
|
|
| 237 |
| |
Common stock acquired |
|
| (18,226 | ) |
|
| (16,043 | ) | |
Common stock sold |
|
| 438 |
|
|
| 622 |
| |
|
|
|
|
|
|
|
|
| |
Net cash used in financing activities |
|
| (22,204 | ) |
|
| (19,161 | ) | |
|
|
|
|
|
|
|
|
| |
Effects of exchange rate changes on cash |
|
| 1,121 |
|
|
| 595 |
| |
|
|
|
|
|
|
|
|
| |
Increase/(decrease) in cash and cash equivalents |
|
| 4,987 |
|
|
| 715 |
| |
Cash and cash equivalents at beginning of period |
|
| 33,981 |
|
|
| 28,244 |
| |
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
| $ | 38,968 |
|
| $ | 28,959 |
| |
|
|
|
|
|
|
|
|
| |
SUPPLEMENTAL DISCLOSURES |
|
|
|
|
|
|
|
| |
Income taxes paid |
| $ | 15,927 |
|
| $ | 12,382 |
| |
Cash interest paid |
| $ | 337 |
|
| $ | 246 |
| |
| |||||||||
| |||||||||
The information in the Notes to Condensed Consolidated Financial Statements | |||||||||
is an integral part of these statements. |
|
| Nine Months Ended |
| ||||||
|
| September 30, |
| ||||||
|
|
| 2008 |
|
|
| 2007 |
| |
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
| |
Net income |
| $ | 37,400 |
|
| $ | 28,950 |
| |
Depreciation and depletion |
|
| 9,202 |
|
|
| 9,095 |
| |
Changes in operational working capital, excluding cash and debt |
|
| 4,430 |
|
|
| 1,283 |
| |
All other items - net |
|
| (1,791 | ) |
|
| 1,339 |
| |
|
|
|
|
|
|
|
|
| |
Net cash provided by operating activities |
|
| 49,241 |
|
|
| 40,667 |
| |
|
|
|
|
|
|
|
|
| |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
| |
Additions to property, plant and equipment |
|
| (13,993 | ) |
|
| (10,827 | ) | |
Sales of subsidiaries, investments, and property, plant and equipment |
|
| 4,202 |
|
|
| 2,422 |
| |
Other investing activities - net |
|
| (3,081 | ) |
|
| (1,660 | ) | |
|
|
|
|
|
|
|
|
| |
Net cash used in investing activities |
|
| (12,872 | ) |
|
| (10,065 | ) | |
|
|
|
|
|
|
|
|
| |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
| |
Additions to long-term debt |
|
| 177 |
|
|
| 104 |
| |
Reductions in long-term debt |
|
| (152 | ) |
|
| (111 | ) | |
Additions/(reductions) in short-term debt - net |
|
| 294 |
|
|
| 186 |
| |
Cash dividends to ExxonMobil shareholders |
|
| (6,040 | ) |
|
| (5,718 | ) | |
Cash dividends to minority interests |
|
| (346 | ) |
|
| (252 | ) | |
Changes in minority interests and sales/(purchases) |
|
|
|
|
|
|
|
| |
of affiliate stock |
|
| (319 | ) |
|
| (510 | ) | |
Tax benefits related to stock-based awards |
|
| 162 |
|
|
| 356 |
| |
Common stock acquired |
|
| (26,889 | ) |
|
| (23,884 | ) | |
Common stock sold |
|
| 489 |
|
|
| 891 |
| |
|
|
|
|
|
|
|
|
| |
Net cash used in financing activities |
|
| (32,624 | ) |
|
| (28,938 | ) | |
|
|
|
|
|
|
|
|
| |
Effects of exchange rate changes on cash |
|
| (1,052 | ) |
|
| 1,515 |
| |
|
|
|
|
|
|
|
|
| |
Increase/(decrease) in cash and cash equivalents |
|
| 2,693 |
|
|
| 3,179 |
| |
Cash and cash equivalents at beginning of period |
|
| 33,981 |
|
|
| 28,244 |
| |
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
| $ | 36,674 |
|
| $ | 31,423 |
| |
|
|
|
|
|
|
|
|
| |
SUPPLEMENTAL DISCLOSURES |
|
|
|
|
|
|
|
| |
Income taxes paid |
| $ | 25,194 |
|
| $ | 17,947 |
| |
Cash interest paid |
| $ | 488 |
|
| $ | 376 |
| |
| |||||||||
| |||||||||
The information in the Notes to Condensed Consolidated Financial Statements | |||||||||
is an integral part of these statements. |
-5-
EXXON MOBIL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.
Basis of Financial Statement Preparation
These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2007 Annual Report on Form 10-K. In the opinion of the Corporation, 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 Corporation's exploration and production activities are accounted for under the "successful efforts" method.
2.
Fair Value Measurements
Effective January 1, 2008, the Corporation adopted the Financial Accounting Standards Board's (FASB) Statement No. 157 (FAS 157), “Fair Value Measurements” for financial assets and liabilities that are measured at fair value and nonfinancial assets and liabilities that are measured at fair value on a recurring basis. FAS 157 defines fair value, establishes a framework for measuring fair value when an entity is required to use a fair value measure for recognition or disclosure purposes and expands the disclosures about fair value measurements. The initial application of FAS 157 is limited to the Corporation's investments in derivative instruments and some debt and equity securities. The fair value measurements for these instruments are based on quoted prices or observable market inputs. The value of these instruments is immaterial to the Corporation's financial statements and the related gains or losses from periodic measurement at fair value are de minimis.
On January 1, 2009, the Corporation will adopt FAS 157 for nonfinancial assets and liabilities that are not measured at fair value on a recurring basis. The application of FAS 157 to the Corporation's nonfinancial assets and liabilities will mostly be limited to the recognition and measurement of nonmonetary exchange transactions, asset retirement obligations and asset impairments. The Corporation does not expect the adoption to have a material impact on the Corporation’s financial statements.
3.
Litigation and Other Contingencies
Litigation
A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are sig nificant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a materially adverse effect upon the Corporation’s operations or financial condition.
-6-
A number of lawsuits, including class actions, were brought in various courts against Exxon Mobil Corporation and certain of its subsidiaries relating to the accidental release of crude oil from the tanker Exxon Valdez in 1989. All the compensatory claims have been resolved and paid. All of the punitive damage claims were consolidated in the civil trial that began in 1994. The first judgment from the United States District Court for the District of Alaska in September 1996 was in the amount of $5 billion. Several appeals resulted in a reduction in the award to $2.5 billion by the Ninth Circuit. In October 2007, the U.S. Supreme Court granted ExxonMobil’s petition for a writ of certiorari.
On June 25, 2008, the U. S.U.S. Supreme Court vacated the $2.5 billion punitive damage award previously entered by the Ninth Circuit Court of Appeals and remanded the case to the Circuit Court with an instruction that punitive damages in the case may not exceed a maximum amount of $507.5 million. Exxon Mobil Corporation recorded an after tax charge of $290 million in the second quarter of 2008 reflecting the maximum amount of the punitive damages. In early July,The parties have filed briefs in the plaintiffs filed a brief with the SupremeNinth Circuit Court requesting interestof Appeals on the punitive damage award from September 1996. ExxonMobil filed a brief opposingissue of post judgment interest forand recovery of costs. Exxon Mobi l Corporation recorded an after tax charge of $170 million in the period prior tothird quarter of 2008 reflecting its estimate of the Supreme Court decision in June 2008. While it is reasonably possible that a liability for interest may be ordered by the court, it is not possible to predict the ultimate outcome or to reasonably estimate the potential liability.resolution of those issues.
Other Contingencies
| As of June 30, 2008 | |||||||||||||||||||
|
| Equity |
|
| Other |
|
|
| ||||||||||||
|
| Company |
|
| Third Party |
|
|
| ||||||||||||
|
| Obligations |
|
| Obligations |
| Total |
| ||||||||||||
| (millions of dollars) | |||||||||||||||||||
Total guarantees |
| $ | 5,841 |
| $ | 922 |
| $ | 6,763 |
|
| As of September 30, 2008 | |||||||||||||||||||
|
| Equity |
|
| Other |
|
|
| ||||||||||||
|
| Company |
|
| Third Party |
|
|
| ||||||||||||
|
| Obligations |
|
| Obligations |
| Total |
| ||||||||||||
| (millions of dollars) | |||||||||||||||||||
Total guarantees |
| $ | 5,196 |
| $ | 827 |
| $ | 6,023 |
|
The Corporation and certain of its consolidated subsidiaries were contingently liable at JuneSeptember 30, 2008, for $6,763$6,023 million, primarily relating to guarantees for notes, loans and performance under contracts. Included in this amount were guarantees by consolidated affiliates of $5,841$5,196 million, representing ExxonMobil’s share of obligations of certain equity companies. 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.
Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition. The Corporation's outstanding unconditional purchase obligations at JuneSeptember 30, 2008, were similar to those at the prior year-end period. Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.
The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.
In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture. ExxonMobil refused to accede to the terms proffered by PdVSA, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 pe rcent interest in the Cerro Negro Project.
-7-
To date, discussions with Venezuelan authorities have not resulted in an agreement on the amount of compensation to be paid to ExxonMobil. On September 6, 2007, ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes. ExxonMobil has also filed an arbitration under the rules of the International Chamber of Commerce against PdVSA and a PdVSA affiliate for breach of their contractual obligations under certain Cerro Negro Project agreements. At this time, the net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated. However, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition. ExxonMobil’s remaining net book investment in Cerro Negro producing assets is about $750 million.
-7-
4.
Comprehensive Income
| Three Months Ended |
| Six Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||||||||||||||||||
| June 30, |
| June 30, |
| September 30, |
| September 30, |
| ||||||||||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
| ||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Net income | $ | 11,680 |
| $ | 10,260 |
| $ | 22,570 |
| $ | 19,540 |
| $ | 14,830 |
| $ | 9,410 |
| $ | 37,400 |
| $ | 28,950 |
| ||||||||
Other comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
(net of income taxes) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Foreign exchange translation adjustment |
| 86 |
|
| 1,225 |
|
| 1,563 |
|
| 1,648 |
|
| (4,282 | ) |
| 2,052 |
|
| (2,719 | ) |
| 3,700 |
| ||||||||
Adjustment for foreign exchange translation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
loss included in net income |
| 154 |
|
| 0 |
|
| 154 |
|
| 0 |
|
| 0 |
|
| 0 |
|
| 154 |
|
| 0 |
| ||||||||
Postretirement benefits reserves adjustment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
(excluding amortization) |
| (83 | ) |
| (167 | ) |
| (234 | ) |
| (575 | ) |
| 198 |
|
| (119 | ) |
| (36 | ) |
| (694 | ) | ||||||||
Amortization of postretirement benefits reserves |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
adjustment included in net periodic benefit costs |
| 186 |
|
| 214 |
|
| 375 |
|
| 415 |
|
| 176 |
|
| 190 |
|
| 551 |
|
| 605 |
| ||||||||
Total comprehensive income | $ | 12,023 |
| $ | 11,532 |
| $ | 24,428 |
| $ | 21,028 |
| $ | 10,922 |
| $ | 11,533 |
| $ | 35,350 |
| $ | 32,561 |
|
5.
Earnings Per Share
| Three Months Ended |
| Six Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||||||||||
| June 30, |
| June 30, |
| September 30, |
| September 30, |
| ||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (millions of dollars) | $ | 11,680 |
| $ | 10,260 |
| $ | 22,570 |
| $ | 19,540 |
| $ | 14,830 |
| $ | 9,410 |
| $ | 37,400 |
| $ | 28,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (millions of shares) |
| 5,201 |
|
| 5,555 |
|
| 5,252 |
|
| 5,603 |
|
| 5,102 |
|
| 5,470 |
|
| 5,202 |
|
| 5,559 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share (dollars) | $ | 2.25 |
| $ | 1.85 |
| $ | 4.30 |
| $ | 3.49 |
| $ | 2.89 |
| $ | 1.72 |
| $ | 7.19 |
| $ | 5.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- ASSUMING DILUTION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (millions of dollars) | $ | 11,680 |
| $ | 10,260 |
| $ | 22,570 |
| $ | 19,540 |
| $ | 14,830 |
| $ | 9,410 |
| $ | 37,400 |
| $ | 28,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (millions of shares) |
| 5,201 |
|
| 5,555 |
|
| 5,252 |
|
| 5,603 |
|
| 5,102 |
|
| 5,470 |
|
| 5,202 |
|
| 5,559 |
|
Effect of employee stock-based awards |
| 60 |
|
| 65 |
|
| 59 |
|
| 62 |
|
| 58 |
|
| 66 |
|
| 58 |
|
| 61 |
|
Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding - assuming dilution |
| 5,261 |
|
| 5,620 |
|
| 5,311 |
|
| 5,665 |
|
| 5,160 |
|
| 5,536 |
|
| 5,260 |
|
| 5,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- assuming dilution (dollars) | $ | 2.22 |
| $ | 1.83 |
| $ | 4.25 |
| $ | 3.45 |
| $ | 2.86 |
| $ | 1.70 |
| $ | 7.11 |
| $ | 5.15 |
|
-8-
6.
Pension and Other Postretirement Benefits
| Three Months Ended |
| Six Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||||||||||
| June 30, |
| June 30, |
| September 30, |
| September 30, |
| ||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||
Pension Benefits - U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of net benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost | $ | 96 |
| $ | 93 |
| $ | 191 |
| $ | 190 |
| $ | 96 |
| $ | 89 |
| $ | 287 |
| $ | 279 |
|
Interest cost |
| 182 |
|
| 172 |
|
| 364 |
|
| 344 |
|
| 181 |
|
| 172 |
|
| 545 |
|
| 516 |
|
Expected return on plan assets |
| (229 | ) |
| (212 | ) |
| (458 | ) |
| (422 | ) |
| (228 | ) |
| (212 | ) |
| (686 | ) |
| (634 | ) |
Amortization of actuarial loss/(gain) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and prior service cost |
| 59 |
|
| 67 |
|
| 118 |
|
| 134 |
|
| 60 |
|
| 67 |
|
| 178 |
|
| 201 |
|
Net pension enhancement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost |
| 43 |
|
| 48 |
|
| 87 |
|
| 95 |
|
| 44 |
|
| 48 |
|
| 131 |
|
| 143 |
|
Net benefit cost | $ | 151 |
| $ | 168 |
| $ | 302 |
| $ | 341 |
| $ | 153 |
| $ | 164 |
| $ | 455 |
| $ | 505 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits - Non-U.S. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of net benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost | $ | 114 |
| $ | 112 |
| $ | 227 |
| $ | 221 |
| $ | 107 |
| $ | 109 |
| $ | 334 |
| $ | 330 |
|
Interest cost |
| 305 |
|
| 247 |
|
| 606 |
|
| 484 |
|
| 294 |
|
| 261 |
|
| 900 |
|
| 745 |
|
Expected return on plan assets |
| (317 | ) |
| (270 | ) |
| (635 | ) |
| (533 | ) |
| (308 | ) |
| (283 | ) |
| (943 | ) |
| (816 | ) |
Amortization of actuarial loss/(gain) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and prior service cost |
| 109 |
|
| 111 |
|
| 210 |
|
| 223 |
|
| 103 |
|
| 108 |
|
| 313 |
|
| 331 |
|
Net pension enhancement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost |
| 2 |
|
| 9 |
|
| 2 |
|
| 9 |
|
| 0 |
|
| (13 | ) |
| 2 |
|
| (4 | ) |
Net benefit cost | $ | 213 |
| $ | 209 |
| $ | 410 |
| $ | 404 |
| $ | 196 |
| $ | 182 |
| $ | 606 |
| $ | 586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Postretirement Benefits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Components of net benefit cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost | $ | 28 |
| $ | 30 |
| $ | 57 |
| $ | 57 |
| $ | 23 |
| $ | 26 |
| $ | 80 |
| $ | 83 |
|
Interest cost |
| 129 |
|
| 98 |
|
| 237 |
|
| 210 |
|
| 92 |
|
| 99 |
|
| 329 |
|
| 309 |
|
Expected return on plan assets |
| (22 | ) |
| (8 | ) |
| (34 | ) |
| (23 | ) |
| (13 | ) |
| (11 | ) |
| (47 | ) |
| (34 | ) |
Amortization of actuarial loss/(gain) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and prior service cost |
| 72 |
|
| 80 |
|
| 156 |
|
| 158 |
|
| 61 |
|
| 86 |
|
| 217 |
|
| 244 |
|
Net benefit cost | $ | 207 |
| $ | 200 |
| $ | 416 |
| $ | 402 |
| $ | 163 |
| $ | 200 |
| $ | 579 |
| $ | 602 |
|
The company expects to make contributions of up to $1,050 million to non-U.S. pension funds, an increase of $521 million from the year-end 2007 estimate of $529 million.
-9-
7.
Disclosures about Segments and Related Information
| Three Months Ended |
| Six Months Ended |
| Three Months Ended |
| Nine Months Ended |
| ||||||||||||||||
| June 30, |
| June 30, |
| September 30, |
| September 30, |
| ||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||
EARNINGS AFTER INCOME TAX |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States | $ | 2,034 |
| $ | 1,222 |
| $ | 3,665 |
| $ | 2,399 |
| $ | 1,879 |
| $ | 1,196 |
| $ | 5,544 |
| $ | 3,595 |
|
Non-U.S. |
| 7,978 |
|
| 4,731 |
|
| 15,132 |
|
| 9,595 |
|
| 9,092 |
|
| 5,103 |
|
| 24,224 |
|
| 14,698 |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 293 |
|
| 1,745 |
|
| 691 |
|
| 2,584 |
|
| 978 |
|
| 914 |
|
| 1,669 |
|
| 3,498 |
|
Non-U.S. |
| 1,265 |
|
| 1,648 |
|
| 2,033 |
|
| 2,721 |
|
| 2,035 |
|
| 1,087 |
|
| 4,068 |
|
| 3,808 |
|
Chemical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 102 |
|
| 204 |
|
| 386 |
|
| 550 |
|
| 257 |
|
| 296 |
|
| 643 |
|
| 846 |
|
Non-U.S. |
| 585 |
|
| 809 |
|
| 1,329 |
|
| 1,699 |
|
| 830 |
|
| 906 |
|
| 2,159 |
|
| 2,605 |
|
All other |
| (577 | ) |
| (99 | ) |
| (666 | ) |
| (8 | ) |
| (241 | ) |
| (92 | ) |
| (907 | ) |
| (100 | ) |
Corporate total | $ | 11,680 |
| $ | 10,260 |
| $ | 22,570 |
| $ | 19,540 |
| $ | 14,830 |
| $ | 9,410 |
| $ | 37,400 |
| $ | 28,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES AND OTHER OPERATING REVENUE(1) | SALES AND OTHER OPERATING REVENUE(1) |
|
|
|
|
|
|
|
|
|
| SALES AND OTHER OPERATING REVENUE(1) |
|
|
|
|
|
|
|
|
|
| ||
Upstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States | $ | 2,010 |
| $ | 1,436 |
| $ | 3,774 |
| $ | 2,798 |
| $ | 1,784 |
| $ | 1,311 |
| $ | 5,558 |
| $ | 4,109 |
|
Non-U.S. |
| 8,989 |
|
| 5,303 |
|
| 17,388 |
|
| 10,796 |
|
| 8,230 |
|
| 5,136 |
|
| 25,618 |
|
| 15,932 |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 36,066 |
|
| 25,645 |
|
| 64,524 |
|
| 46,905 |
|
| 33,038 |
|
| 26,243 |
|
| 97,562 |
|
| 73,148 |
|
Non-U.S. |
| 75,667 |
|
| 53,472 |
|
| 140,184 |
|
| 101,113 |
|
| 78,168 |
|
| 57,233 |
|
| 218,352 |
|
| 158,346 |
|
Chemical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 4,170 |
|
| 3,460 |
|
| 7,822 |
|
| 6,649 |
|
| 4,011 |
|
| 3,453 |
|
| 11,833 |
|
| 10,102 |
|
Non-U.S. |
| 6,870 |
|
| 5,740 |
|
| 13,299 |
|
| 10,964 |
|
| 6,851 |
|
| 5,743 |
|
| 20,150 |
|
| 16,707 |
|
All other |
| 4 |
|
| 3 |
|
| 8 |
|
| 8 |
|
| 3 |
|
| 11 |
|
| 11 |
|
| 19 |
|
Corporate total | $ | 133,776 |
| $ | 95,059 |
| $ | 246,999 |
| $ | 179,233 |
| $ | 132,085 |
| $ | 99,130 |
| $ | 379,084 |
| $ | 278,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes sales-based taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERSEGMENT REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States | $ | 3,072 |
| $ | 1,780 |
| $ | 5,633 |
| $ | 3,343 |
| $ | 2,604 |
| $ | 1,868 |
| $ | 8,237 |
| $ | 5,211 |
|
Non-U.S. |
| 17,260 |
|
| 11,670 |
|
| 32,141 |
|
| 22,265 |
|
| 17,160 |
|
| 12,181 |
|
| 49,301 |
|
| 34,446 |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 5,241 |
|
| 3,561 |
|
| 9,102 |
|
| 6,343 |
|
| 4,866 |
|
| 3,819 |
|
| 13,968 |
|
| 10,162 |
|
Non-U.S. |
| 21,406 |
|
| 12,885 |
|
| 37,949 |
|
| 23,826 |
|
| 19,132 |
|
| 13,225 |
|
| 57,081 |
|
| 37,051 |
|
Chemical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 3,177 |
|
| 2,217 |
|
| 5,605 |
|
| 3,914 |
|
| 2,902 |
|
| 2,462 |
|
| 8,507 |
|
| 6,376 |
|
Non-U.S. |
| 2,670 |
|
| 2,166 |
|
| 5,102 |
|
| 3,688 |
|
| 2,959 |
|
| 2,030 |
|
| 8,061 |
|
| 5,718 |
|
All other |
| 71 |
|
| 90 |
|
| 138 |
|
| 169 |
|
| 68 |
|
| 70 |
|
| 206 |
|
| 239 |
|
8.
Unrecognized Tax Benefits
It is reasonably possible that settlements will be reached withUnrecognized tax jurisdictions withinbenefits for prior years' tax positions were reduced by $0.9 billion in the next twelve months on various issues that could result in a 15third quarter of 2008 primarily due to 20 percent reduction of the $5.2 billion year-end 2007 balance of unrecognized tax benefits.settlements. This reduction in unrecognized tax benefits woulddid not have a material effect on the Corporation's earnings or effective income tax rate.
The Corporation does not anticipate that the total amount of unrecognized tax benefits will significantly increase or decrease in the next 12 months.
-10-
9.
Condensed Consolidating Financial Information Related to Guaranteed Securities Issued by Subsidiaries
Exxon Mobil Corporation has fully and unconditionally guaranteed the deferred interest debentures due 2012 ($1,8261,875 million long-term at JuneSeptember 30, 2008) and the debt securities due 2008-2011 ($39 million long-term and $13 million short-term) of SeaRiver Maritime Financial Holdings, Inc., a 100 percent owned subsidiary of Exxon Mobil Corporation.
The following condensed consolidating financial information is provided for Exxon Mobil Corporation, as guarantor, and for SeaRiver Maritime Financial Holdings, Inc., as issuer, as an alternative to providing separate financial statements for the issuer. The accounts of Exxon Mobil Corporation and SeaRiver Maritime Financial Holdings, Inc. are presented utilizing the equity method of accounting for investments in subsidiaries.
|
|
| SeaRiver |
|
|
|
|
|
|
|
|
| SeaRiver |
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| ||||||||||||||||||||||||||||||||||||
| Corporation |
| Financial |
|
|
| and |
|
|
| Corporation |
| Financial |
|
|
| and |
|
|
| ||||||||||||||||||||||||||||||||||||
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| ||||||||||||||||||||||||||||||||||||
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| ||||||||||||||||||||||||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed consolidated statement of income for three months ended June 30, 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed consolidated statement of income for three months ended September 30, 2008 | Condensed consolidated statement of income for three months ended September 30, 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues and other income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and other operating revenue, including sales-based taxes | $ | 5,214 |
| $ | - |
| $ | 128,562 |
| $ | - |
| $ | 133,776 |
| $ | 4,859 |
| $ | - |
| $ | 127,226 |
| $ | - |
| $ | 132,085 |
| ||||||||||||||||||||||||||
Income from equity affiliates |
| 11,765 |
|
| (3 | ) |
| 2,977 |
|
| (11,756 | ) |
| 2,983 |
|
| 14,267 |
|
| 5 |
|
| 2,819 |
|
| (14,267 | ) |
| 2,824 |
| ||||||||||||||||||||||||||
Other income |
| 100 |
|
| - |
|
| 1,213 |
|
| - |
|
| 1,313 |
|
| 81 |
|
| - |
|
| 2,747 |
|
| - |
|
| 2,828 |
| ||||||||||||||||||||||||||
Intercompany revenue |
| 15,052 |
|
| 11 |
|
| 132,434 |
|
| (147,497 | ) |
| - |
|
| 13,636 |
|
| 11 |
|
| 128,749 |
|
| (142,396 | ) |
| - |
| ||||||||||||||||||||||||||
Total revenues and other income |
| 32,131 |
|
| 8 |
|
| 265,186 |
|
| (159,253 | ) |
| 138,072 |
|
| 32,843 |
|
| 16 |
|
| 261,541 |
|
| (156,663 | ) |
| 137,737 |
| ||||||||||||||||||||||||||
Costs and other deductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Crude oil and product purchases |
| 15,519 |
|
| - |
|
| 203,434 |
|
| (142,258 | ) |
| 76,695 |
|
| 13,164 |
|
| - |
|
| 196,879 |
|
| (136,745 | ) |
| 73,298 |
| ||||||||||||||||||||||||||
Production and manufacturing expenses |
| 2,293 |
|
| - |
|
| 9,210 |
|
| (1,437 | ) |
| 10,066 |
|
| 2,067 |
|
| - |
|
| 9,286 |
|
| (1,475 | ) |
| 9,878 |
| ||||||||||||||||||||||||||
Selling, general and administrative expenses |
| 1,194 |
|
| - |
|
| 3,401 |
|
| (206 | ) |
| 4,389 |
|
| 734 |
|
| - |
|
| 3,315 |
|
| (226 | ) |
| 3,823 |
| ||||||||||||||||||||||||||
Depreciation and depletion |
| 379 |
|
| - |
|
| 2,711 |
|
| - |
|
| 3,090 |
|
| 360 |
|
| - |
|
| 2,648 |
|
| - |
|
| 3,008 |
| ||||||||||||||||||||||||||
Exploration expenses, including dry holes |
| 67 |
|
| - |
|
| 271 |
|
| - |
|
| 338 |
|
| 70 |
|
| - |
|
| 333 |
|
| - |
|
| 403 |
| ||||||||||||||||||||||||||
Interest expense |
| 739 |
|
| 52 |
|
| 3,019 |
|
| (3,703 | ) |
| 107 |
|
| 901 |
|
| 52 |
|
| 3,411 |
|
| (4,046 | ) |
| 318 |
| ||||||||||||||||||||||||||
Sales-based taxes |
| - |
|
| - |
|
| 9,538 |
|
| - |
|
| 9,538 |
|
| - |
|
| - |
|
| 9,327 |
|
| - |
|
| 9,327 |
| ||||||||||||||||||||||||||
Other taxes and duties |
| 16 |
|
| - |
|
| 11,402 |
|
| - |
|
| 11,418 |
|
| 18 |
|
| - |
|
| 10,971 |
|
| - |
|
| 10,989 |
| ||||||||||||||||||||||||||
Income applicable to minority interests |
| - |
|
| - |
|
| 225 |
|
| - |
|
| 225 |
|
| - |
|
| - |
|
| 536 |
|
| - |
|
| 536 |
| ||||||||||||||||||||||||||
Total costs and other deductions |
| 20,207 |
|
| 52 |
|
| 243,211 |
|
| (147,604 | ) |
| 115,866 |
|
| 17,314 |
|
| 52 |
|
| 236,706 |
|
| (142,492 | ) |
| 111,580 |
| ||||||||||||||||||||||||||
Income before income taxes |
| 11,924 |
|
| (44 | ) |
| 21,975 |
|
| (11,649 | ) |
| 22,206 |
|
| 15,529 |
|
| (36 | ) |
| 24,835 |
|
| (14,171 | ) |
| 26,157 |
| ||||||||||||||||||||||||||
Income taxes |
| 244 |
|
| (15 | ) |
| 10,297 |
|
| - |
|
| 10,526 |
|
| 699 |
|
| (14 | ) |
| 10,642 |
|
| - |
|
| 11,327 |
| ||||||||||||||||||||||||||
Net income | $ | 11,680 |
| $ | (29 | ) | $ | 11,678 |
| $ | (11,649 | ) | $ | 11,680 |
| $ | 14,830 |
| $ | (22 | ) | $ | 14,193 |
| $ | (14,171 | ) | $ | 14,830 |
|
-11-
|
|
| SeaRiver |
|
|
|
|
|
|
|
|
| SeaRiver |
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| ||||||||||||||||||||||||||||||||||||
| Corporation |
| Financial |
|
|
| and |
|
|
| Corporation |
| Financial |
|
|
| and |
|
|
| ||||||||||||||||||||||||||||||||||||
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| ||||||||||||||||||||||||||||||||||||
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| ||||||||||||||||||||||||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed consolidated statement of income for three months ended June 30, 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed consolidated statement of income for three months ended September 30, 2007 | Condensed consolidated statement of income for three months ended September 30, 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Sales and other operating revenue, including sales-based taxes | $ | 4,142 |
| $ | - |
| $ | 90,917 |
| $ | - |
| $ | 95,059 |
| |||||||||||||||||||||||||||||||||||||||||
Sales and other operating revenue, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
including sales-based taxes | $ | 4,064 |
| $ | - |
| $ | 95,066 |
| $ | - |
| $ | 99,130 |
| |||||||||||||||||||||||||||||||||||||||||
Income from equity affiliates |
| 10,151 |
|
| (1 | ) |
| 1,999 |
|
| (10,134 | ) |
| 2,015 |
|
| 9,588 |
|
| (2 | ) |
| 2,148 |
|
| (9,576 | ) |
| 2,158 |
| ||||||||||||||||||||||||||
Other income |
| 60 |
|
| - |
|
| 1,216 |
|
| - |
|
| 1,276 |
|
| 75 |
|
| - |
|
| 974 |
|
| - |
|
| 1,049 |
| ||||||||||||||||||||||||||
Intercompany revenue |
| 9,467 |
|
| 25 |
|
| 85,939 |
|
| (95,431 | ) |
| - |
|
| 10,424 |
|
| 27 |
|
| 92,089 |
|
| (102,540 | ) |
| - |
| ||||||||||||||||||||||||||
Total revenues and other income |
| 23,820 |
|
| 24 |
|
| 180,071 |
|
| (105,565 | ) |
| 98,350 |
|
| 24,151 |
|
| 25 |
|
| 190,277 |
|
| (112,116 | ) |
| 102,337 |
| ||||||||||||||||||||||||||
Costs and other deductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Crude oil and product purchases |
| 8,619 |
|
| - |
|
| 127,760 |
|
| (88,752 | ) |
| 47,627 |
|
| 10,088 |
|
| - |
|
| 138,100 |
|
| (96,215 | ) |
| 51,973 |
| ||||||||||||||||||||||||||
Production and manufacturing expenses |
| 1,833 |
|
| - |
|
| 7,155 |
|
| (1,310 | ) |
| 7,678 |
| |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses |
| 681 |
|
| - |
|
| 3,311 |
|
| (204 | ) |
| 3,788 |
| |||||||||||||||||||||||||||||||||||||||||
Production and manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
expenses |
| 1,758 |
|
| - |
|
| 7,476 |
|
| (1,350 | ) |
| 7,884 |
| |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
expenses |
| 629 |
|
| - |
|
| 3,201 |
|
| (174 | ) |
| 3,656 |
| |||||||||||||||||||||||||||||||||||||||||
Depreciation and depletion |
| 397 |
|
| - |
|
| 2,597 |
|
| - |
|
| 2,994 |
|
| 455 |
|
| - |
|
| 2,704 |
|
| - |
|
| 3,159 |
| ||||||||||||||||||||||||||
Exploration expenses, including dry holes |
| 42 |
|
| - |
|
| 311 |
|
| - |
|
| 353 |
| |||||||||||||||||||||||||||||||||||||||||
Exploration expenses, including dry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
holes |
| 73 |
|
| - |
|
| 276 |
|
| - |
|
| 349 |
| |||||||||||||||||||||||||||||||||||||||||
Interest expense |
| 1,570 |
|
| 51 |
|
| 3,844 |
|
| (5,369 | ) |
| 96 |
|
| 1,550 |
|
| 50 |
|
| 3,492 |
|
| (5,019 | ) |
| 73 |
| ||||||||||||||||||||||||||
Sales-based taxes |
| - |
|
| - |
|
| 7,810 |
|
| - |
|
| 7,810 |
|
| - |
|
| - |
|
| 7,970 |
|
| - |
|
| 7,970 |
| ||||||||||||||||||||||||||
Other taxes and duties |
| 11 |
|
| - |
|
| 9,877 |
|
| - |
|
| 9,888 |
|
| 11 |
|
| - |
|
| 10,218 |
|
| - |
|
| 10,229 |
| ||||||||||||||||||||||||||
Income applicable to minority interests |
| - |
|
| - |
|
| 188 |
|
| - |
|
| 188 |
|
| - |
|
| - |
|
| 284 |
|
| - |
|
| 284 |
| ||||||||||||||||||||||||||
Total costs and other deductions |
| 13,153 |
|
| 51 |
|
| 162,853 |
|
| (95,635 | ) |
| 80,422 |
|
| 14,564 |
|
| 50 |
|
| 173,721 |
|
| (102,758 | ) |
| 85,577 |
| ||||||||||||||||||||||||||
Income before income taxes |
| 10,667 |
|
| (27 | ) |
| 17,218 |
|
| (9,930 | ) |
| 17,928 |
|
| 9,587 |
|
| (25 | ) |
| 16,556 |
|
| (9,358 | ) |
| 16,760 |
| ||||||||||||||||||||||||||
Income taxes |
| 407 |
|
| (9 | ) |
| 7,270 |
|
| - |
|
| 7,668 |
|
| 177 |
|
| (9 | ) |
| 7,182 |
|
| - |
|
| 7,350 |
| ||||||||||||||||||||||||||
Net income | $ | 10,260 |
| $ | (18 | ) | $ | 9,948 |
| $ | (9,930 | ) | $ | 10,260 |
| $ | 9,410 |
| $ | (16 | ) | $ | 9,374 |
| $ | (9,358 | ) | $ | 9,410 |
|
Condensed consolidated statement of income for six months ended June 30, 2008 | ||||||||||||||||||||||||||||||||
Condensed consolidated statement of income for nine months ended September 30, 2008 | Condensed consolidated statement of income for nine months ended September 30, 2008 | |||||||||||||||||||||||||||||||
Revenues and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Sales and other operating revenue, including sales-based taxes | $ | 9,729 |
| $ | - |
| $ | 237,270 |
| $ | - |
| $ | 246,999 |
| $ | 14,588 |
| $ | - |
| $ | 364,496 |
| $ | - |
| $ | 379,084 |
| ||
Income from equity affiliates |
| 22,833 |
|
| (2 | ) |
| 5,775 |
|
| (22,814 | ) |
| 5,792 |
|
| 37,100 |
|
| 3 |
|
| 8,594 |
|
| (37,081 | ) |
| 8,616 |
| ||
Other income |
| 125 |
|
| - |
|
| 2,010 |
|
| - |
|
| 2,135 |
|
| 206 |
|
| - |
|
| 4,757 |
|
| - |
|
| 4,963 |
| ||
Intercompany revenue |
| 26,652 |
|
| 28 |
|
| 245,034 |
|
| (271,714 | ) |
| - |
|
| 40,288 |
|
| 39 |
|
| 373,783 |
|
| (414,110 | ) |
| - |
| ||
Total revenues and other income |
| 59,339 |
|
| 26 |
|
| 490,089 |
|
| (294,528 | ) |
| 254,926 |
|
| 92,182 |
|
| 42 |
|
| 751,630 |
|
| (451,191 | ) |
| 392,663 |
| ||
Costs and other deductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Crude oil and product purchases |
| 27,369 |
|
| - |
|
| 370,676 |
|
| (260,379 | ) |
| 137,666 |
|
| 40,533 |
|
| - |
|
| 567,555 |
|
| (397,124 | ) |
| 210,964 |
| ||
Production and manufacturing expenses |
| 4,204 |
|
| - |
|
| 17,539 |
|
| (2,784 | ) |
| 18,959 |
|
| 6,271 |
|
| - |
|
| 26,825 |
|
| (4,259 | ) |
| 28,837 |
| ||
Selling, general and administrative expenses |
| 1,896 |
|
| - |
|
| 6,714 |
|
| (419 | ) |
| 8,191 |
|
| 2,630 |
|
| - |
|
| 10,029 |
|
| (645 | ) |
| 12,014 |
| ||
Depreciation and depletion |
| 772 |
|
| - |
|
| 5,422 |
|
| - |
|
| 6,194 |
|
| 1,132 |
|
| - |
|
| 8,070 |
|
| - |
|
| 9,202 |
| ||
Exploration expenses, including dry holes |
| 146 |
|
| - |
|
| 534 |
|
| - |
|
| 680 |
|
| 216 |
|
| - |
|
| 867 |
|
| - |
|
| 1,083 |
| ||
Interest expense |
| 1,933 |
|
| 105 |
|
| 6,529 |
|
| (8,330 | ) |
| 237 |
|
| 2,834 |
|
| 157 |
|
| 9,940 |
|
| (12,376 | ) |
| 555 |
| ||
Sales-based taxes |
| - |
|
| - |
|
| 17,970 |
|
| - |
|
| 17,970 |
|
| - |
|
| - |
|
| 27,297 |
|
| - |
|
| 27,297 |
| ||
Other taxes and duties |
| 31 |
|
| - |
|
| 22,093 |
|
| - |
|
| 22,124 |
|
| 49 |
|
| - |
|
| 33,064 |
|
| - |
|
| 33,113 |
| ||
Income applicable to minority interests |
| - |
|
| - |
|
| 507 |
|
| - |
|
| 507 |
|
| - |
|
| - |
|
| 1,043 |
|
| - |
|
| 1,043 |
| ||
Total costs and other deductions |
| 36,351 |
|
| 105 |
|
| 447,984 |
|
| (271,912 | ) |
| 212,528 |
|
| 53,665 |
|
| 157 |
|
| 684,690 |
|
| (414,404 | ) |
| 324,108 |
| ||
Income before income taxes |
| 22,988 |
|
| (79 | ) |
| 42,105 |
|
| (22,616 | ) |
| 42,398 |
|
| 38,517 |
|
| (115 | ) |
| 66,940 |
|
| (36,787 | ) |
| 68,555 |
| ||
Income taxes |
| 418 |
|
| (27 | ) |
| 19,437 |
|
| - |
|
| 19,828 |
|
| 1,117 |
|
| (41 | ) |
| 30,079 |
|
| - |
|
| 31,155 |
| ||
Net income | $ | 22,570 |
| $ | (52 | ) | $ | 22,668 |
| $ | (22,616 | ) | $ | 22,570 |
| $ | 37,400 |
| $ | (74 | ) | $ | 36,861 |
| $ | (36,787 | ) | $ | 37,400 |
|
-12-
|
|
| SeaRiver |
|
|
|
|
|
|
|
|
| SeaRiver |
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| ||||||||||||||||||||||||||||||||||||
| Corporation |
| Financial |
|
|
| and |
|
|
| Corporation |
| Financial |
|
|
| and |
|
|
| ||||||||||||||||||||||||||||||||||||
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| ||||||||||||||||||||||||||||||||||||
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| ||||||||||||||||||||||||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed consolidated statement of income for six months ended June 30, 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed consolidated statement of income for nine months ended September 30, 2007 | Condensed consolidated statement of income for nine months ended September 30, 2007 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues and other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Sales and other operating revenue, including sales-based taxes | $ | 7,999 |
| $ | - |
| $ | 171,234 |
| $ | - |
| $ | 179,233 |
| |||||||||||||||||||||||||||||||||||||||||
Sales and other operating revenue, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
including sales-based taxes | $ | 12,063 |
| $ | - |
| $ | 266,300 |
| $ | - |
| $ | 278,363 |
| |||||||||||||||||||||||||||||||||||||||||
Income from equity affiliates |
| 19,318 |
|
| 6 |
|
| 3,903 |
|
| (19,297 | ) |
| 3,930 |
|
| 28,906 |
|
| 4 |
|
| 6,051 |
|
| (28,873 | ) |
| 6,088 |
| ||||||||||||||||||||||||||
Other income |
| 282 |
|
| - |
|
| 2,128 |
|
| - |
|
| 2,410 |
|
| 357 |
|
| - |
|
| 3,102 |
|
| - |
|
| 3,459 |
| ||||||||||||||||||||||||||
Intercompany revenue |
| 17,748 |
|
| 51 |
|
| 163,828 |
|
| (181,627 | ) |
| - |
|
| 28,172 |
|
| 78 |
|
| 255,917 |
|
| (284,167 | ) |
| - |
| ||||||||||||||||||||||||||
Total revenues and other income |
| 45,347 |
|
| 57 |
|
| 341,093 |
|
| (200,924 | ) |
| 185,573 |
|
| 69,498 |
|
| 82 |
|
| 531,370 |
|
| (313,040 | ) |
| 287,910 |
| ||||||||||||||||||||||||||
Costs and other deductions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||||
Crude oil and product purchases |
| 16,499 |
|
| - |
|
| 240,006 |
|
| (168,836 | ) |
| 87,669 |
|
| 26,587 |
|
| - |
|
| 378,106 |
|
| (265,051 | ) |
| 139,642 |
| ||||||||||||||||||||||||||
Production and manufacturing expenses |
| 3,547 |
|
| - |
|
| 13,947 |
|
| (2,533 | ) |
| 14,961 |
| |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses |
| 1,272 |
|
| - |
|
| 6,297 |
|
| (389 | ) |
| 7,180 |
| |||||||||||||||||||||||||||||||||||||||||
Production and manufacturing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
expenses |
| 5,305 |
|
| - |
|
| 21,423 |
|
| (3,883 | ) |
| 22,845 |
| |||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
expenses |
| 1,901 |
|
| - |
|
| 9,498 |
|
| (563 | ) |
| 10,836 |
| |||||||||||||||||||||||||||||||||||||||||
Depreciation and depletion |
| 785 |
|
| - |
|
| 5,151 |
|
| - |
|
| 5,936 |
|
| 1,240 |
|
| - |
|
| 7,855 |
|
| - |
|
| 9,095 |
| ||||||||||||||||||||||||||
Exploration expenses, including dry holes |
| 142 |
|
| - |
|
| 483 |
|
| - |
|
| 625 |
| |||||||||||||||||||||||||||||||||||||||||
Exploration expenses, including dry |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||||||||||
holes |
| 215 |
|
| - |
|
| 759 |
|
| - |
|
| 974 |
| |||||||||||||||||||||||||||||||||||||||||
Interest expense |
| 3,016 |
|
| 101 |
|
| 7,332 |
|
| (10,250 | ) |
| 199 |
|
| 4,566 |
|
| 151 |
|
| 10,824 |
|
| (15,269 | ) |
| 272 |
| ||||||||||||||||||||||||||
Sales-based taxes |
| - |
|
| - |
|
| 15,094 |
|
| - |
|
| 15,094 |
|
| - |
|
| - |
| �� | 23,064 |
|
| - |
|
| 23,064 |
| ||||||||||||||||||||||||||
Other taxes and duties |
| 24 |
|
| - |
|
| 19,455 |
|
| - |
|
| 19,479 |
|
| 35 |
|
| - |
|
| 29,673 |
|
| - |
|
| 29,708 |
| ||||||||||||||||||||||||||
Income applicable to minority interests |
| - |
|
| - |
|
| 438 |
|
| - |
|
| 438 |
|
| - |
|
| - |
|
| 722 |
|
| - |
|
| 722 |
| ||||||||||||||||||||||||||
Total costs and other deductions |
| 25,285 |
|
| 101 |
|
| 308,203 |
|
| (182,008 | ) |
| 151,581 |
|
| 39,849 |
|
| 151 |
|
| 481,924 |
|
| (284,766 | ) |
| 237,158 |
| ||||||||||||||||||||||||||
Income before income taxes |
| 20,062 |
|
| (44 | ) |
| 32,890 |
|
| (18,916 | ) |
| 33,992 |
|
| 29,649 |
|
| (69 | ) |
| 49,446 |
|
| (28,274 | ) |
| 50,752 |
| ||||||||||||||||||||||||||
Income taxes |
| 522 |
|
| (17 | ) |
| 13,947 |
|
| - |
|
| 14,452 |
|
| 699 |
|
| (26 | ) |
| 21,129 |
|
| - |
|
| 21,802 |
| ||||||||||||||||||||||||||
Net income | $ | 19,540 |
| $ | (27 | ) | $ | 18,943 |
| $ | (18,916 | ) | $ | 19,540 |
| $ | 28,950 |
| $ | (43 | ) | $ | 28,317 |
| $ | (28,274 | ) | $ | 28,950 |
|
-13-
|
|
| SeaRiver |
|
|
|
|
|
|
|
|
| SeaRiver |
|
|
|
|
|
|
| ||||||||||||||||||||
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| ||||||||||||||||||||
| Corporation |
| Financial |
|
|
| and |
|
|
| Corporation |
| Financial |
|
|
| and |
|
|
| ||||||||||||||||||||
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| ||||||||||||||||||||
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| ||||||||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||||||||||
Condensed consolidated balance sheet as of June 30, 2008 |
| |||||||||||||||||||||||||||||||||||||||
Condensed consolidated balance sheet as of September 30, 2008 | Condensed consolidated balance sheet as of September 30, 2008 |
| ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 115 |
| $ | - |
| $ | 38,853 |
| $ | - |
| $ | 38,968 |
| $ | 2,411 |
| $ | - |
| $ | 34,263 |
| $ | - |
| $ | 36,674 |
| ||||||||||
Marketable securities |
| - |
|
| - |
|
| 732 |
|
| - |
|
| 732 |
|
| - |
|
| - |
|
| 1,760 |
|
| - |
|
| 1,760 |
| ||||||||||
Notes and accounts receivable - net |
| 5,484 |
|
| 16 |
|
| 39,279 |
|
| (2,959 | ) |
| 41,820 |
|
| 4,945 |
|
| 24 |
|
| 33,370 |
|
| (3,088 | ) |
| 35,251 |
| ||||||||||
Inventories |
| 1,429 |
|
| - |
|
| 14,432 |
|
| - |
|
| 15,861 |
|
| 1,562 |
|
| - |
|
| 14,378 |
|
| - |
|
| 15,940 |
| ||||||||||
Prepaid taxes and expenses |
| 506 |
|
| - |
|
| 6,095 |
|
| - |
|
| 6,601 |
|
| 496 |
|
| - |
|
| 5,900 |
|
| - |
|
| 6,396 |
| ||||||||||
Total current assets |
| 7,534 |
|
| 16 |
|
| 99,391 |
|
| (2,959 | ) |
| 103,982 |
|
| 9,414 |
|
| 24 |
|
| 89,671 |
|
| (3,088 | ) |
| 96,021 |
| ||||||||||
Property, plant and equipment - net |
| 16,350 |
|
| - |
|
| 108,575 |
|
| - |
|
| 124,925 |
|
| 16,635 |
|
| - |
|
| 106,623 |
|
| - |
|
| 123,258 |
| ||||||||||
Investments and other assets |
| 210,047 |
|
| 471 |
|
| 430,995 |
|
| (603,662 | ) |
| 37,851 |
|
| 220,383 |
|
| 476 |
|
| 430,432 |
|
| (614,352 | ) |
| 36,939 |
| ||||||||||
Intercompany receivables |
| 16,876 |
|
| 2,023 |
|
| 465,530 |
|
| (484,429 | ) |
| - |
|
| 13,558 |
|
| 2,032 |
|
| 477,607 |
|
| (493,197 | ) |
| - |
| ||||||||||
Total assets | $ | 250,807 |
| $ | 2,510 |
| $ | 1,104,491 |
| $ | (1,091,050 | ) | $ | 266,758 |
| $ | 259,990 |
| $ | 2,532 |
| $ | 1,104,333 |
| $ | (1,110,637 | ) | $ | 256,218 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Notes and loan payables | $ | 150 |
| $ | 13 |
| $ | 2,147 |
| $ | - |
| $ | 2,310 |
| $ | 32 |
| $ | 13 |
| $ | 2,836 |
| $ | - |
| $ | 2,881 |
| ||||||||||
Accounts payable and accrued liabilities |
| 3,939 |
|
| - |
|
| 56,323 |
|
| - |
|
| 60,262 |
|
| 3,775 |
|
| - |
|
| 45,312 |
|
| - |
|
| 49,087 |
| ||||||||||
Income taxes payable |
| - |
|
| - |
|
| 17,620 |
|
| (2,959 | ) |
| 14,661 |
|
| - |
|
| - |
|
| 18,751 |
|
| (3,088 | ) |
| 15,663 |
| ||||||||||
Total current liabilities |
| 4,089 |
|
| 13 |
|
| 76,090 |
|
| (2,959 | ) |
| 77,233 |
|
| 3,807 |
|
| 13 |
|
| 66,899 |
|
| (3,088 | ) |
| 67,631 |
| ||||||||||
Long-term debt |
| 275 |
|
| 1,865 |
|
| 5,187 |
|
| - |
|
| 7,327 |
|
| 283 |
|
| 1,914 |
|
| 5,186 |
|
| - |
|
| 7,383 |
| ||||||||||
Deferred income tax liabilities |
| 1,643 |
|
| 199 |
|
| 22,457 |
|
| - |
|
| 24,299 |
|
| 1,669 |
|
| 193 |
|
| 21,403 |
|
| - |
|
| 23,265 |
| ||||||||||
Other long-term liabilities |
| 11,704 |
|
| - |
|
| 21,369 |
|
| - |
|
| 33,073 |
|
| 11,598 |
|
| - |
|
| 21,055 |
|
| - |
|
| 32,653 |
| ||||||||||
Intercompany payables |
| 108,270 |
|
| 383 |
|
| 375,776 |
|
| (484,429 | ) |
| - |
|
| 117,347 |
|
| 383 |
|
| 375,467 |
|
| (493,197 | ) |
| - |
| ||||||||||
Total liabilities |
| 125,981 |
|
| 2,460 |
|
| 500,879 |
|
| (487,388 | ) |
| 141,932 |
|
| 134,704 |
|
| 2,503 |
|
| 490,010 |
|
| (496,285 | ) |
| 130,932 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Earnings reinvested |
| 247,111 |
|
| (519 | ) |
| 114,253 |
|
| (113,734 | ) |
| 247,111 |
|
| 259,878 |
|
| (541 | ) |
| 128,111 |
|
| (127,570 | ) |
| 259,878 |
| ||||||||||
Other shareholders' equity |
| (122,285 | ) |
| 569 |
|
| 489,359 |
|
| (489,928 | ) |
| (122,285 | ) |
| (134,592 | ) |
| 570 |
|
| 486,212 |
|
| (486,782 | ) |
| (134,592 | ) | ||||||||||
Total shareholders' equity |
| 124,826 |
|
| 50 |
|
| 603,612 |
|
| (603,662 | ) |
| 124,826 |
|
| 125,286 |
|
| 29 |
|
| 614,323 |
|
| (614,352 | ) |
| 125,286 |
| ||||||||||
Total liabilities and shareholders' equity | $ | 250,807 |
| $ | 2,510 |
| $ | 1,104,491 |
| $ | (1,091,050 | ) | $ | 266,758 |
| $ | 259,990 |
| $ | 2,532 |
| $ | 1,104,333 |
| $ | (1,110,637 | ) | $ | 256,218 |
|
Condensed consolidated balance sheet as of December 31, 2007 |
| ||||||||||||||||
Cash and cash equivalents | $ | 1,393 |
| $ | - |
| $ | 32,588 |
| $ | - |
| $ | 33,981 |
| ||
Marketable securities |
| - |
|
| - |
|
| 519 |
|
| - |
|
| 519 |
| ||
Notes and accounts receivable - net |
| 3,733 |
|
| 2 |
|
| 34,338 |
|
| (1,623 | ) |
| 36,450 |
| ||
Inventories |
| 1,198 |
|
| - |
|
| 9,891 |
|
| - |
|
| 11,089 |
| ||
Prepaid taxes and expenses |
| 373 |
|
| - |
|
| 3,551 |
|
| - |
|
| 3,924 |
| ||
Total current assets |
| 6,697 |
|
| 2 |
|
| 80,887 |
|
| (1,623 | ) |
| 85,963 |
| ||
Property, plant and equipment - net |
| 16,291 |
|
| - |
|
| 104,578 |
|
| - |
|
| 120,869 |
| ||
Investments and other assets |
| 208,283 |
|
| 413 |
|
| 427,046 |
|
| (600,492 | ) |
| 35,250 |
| ||
Intercompany receivables |
| 14,577 |
|
| 1,961 |
|
| 437,433 |
|
| (453,971 | ) |
| - |
| ||
Total assets | $ | 245,848 |
| $ | 2,376 |
| $ | 1,049,944 |
| $ | (1,056,086 | ) | $ | 242,082 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Notes and loan payables | $ | 3 |
| $ | 13 |
| $ | 2,367 |
| $ | - |
| $ | 2,383 |
| ||
Accounts payable and accrued liabilities |
| 3,038 |
|
| 1 |
|
| 42,236 |
|
| - |
|
| 45,275 |
| ||
Income taxes payable |
| - |
|
| - |
|
| 12,277 |
|
| (1,623 | ) |
| 10,654 |
| ||
Total current liabilities |
| 3,041 |
|
| 14 |
|
| 56,880 |
|
| (1,623 | ) |
| 58,312 |
| ||
Long-term debt |
| 276 |
|
| 1,766 |
|
| 5,141 |
|
| - |
|
| 7,183 |
| ||
Deferred income tax liabilities |
| 1,829 |
|
| 212 |
|
| 20,858 |
|
| - |
|
| 22,899 |
| ||
Other long-term liabilities |
| 11,308 |
|
| - |
|
| 20,618 |
|
| - |
|
| 31,926 |
| ||
Intercompany payables |
| 107,632 |
|
| 382 |
|
| 345,957 |
|
| (453,971 | ) |
| - |
| ||
Total liabilities |
| 124,086 |
|
| 2,374 |
|
| 449,454 |
|
| (455,594 | ) |
| 120,320 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Earnings reinvested |
| 228,518 |
|
| (467 | ) |
| 114,037 |
|
| (113,570 | ) |
| 228,518 |
| ||
Other shareholders' equity |
| (106,756 | ) |
| 469 |
|
| 486,453 |
|
| (486,922 | ) |
| (106,756 | ) | ||
Total shareholders' equity |
| 121,762 |
|
| 2 |
|
| 600,490 |
|
| (600,492 | ) |
| 121,762 |
| ||
Total liabilities and shareholders' equity | $ | 245,848 |
| $ | 2,376 |
| $ | 1,049,944 |
| $ | (1,056,086 | ) | $ | 242,082 |
|
-14-
|
|
| SeaRiver |
|
|
|
|
|
|
|
|
| SeaRiver |
|
|
|
|
|
|
| ||||||||||||||||||||
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| Exxon Mobil |
| Maritime |
|
|
| Consolidating |
|
|
| ||||||||||||||||||||
| Corporation |
| Financial |
|
|
| and |
|
|
| Corporation |
| Financial |
|
|
| and |
|
|
| ||||||||||||||||||||
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| Parent |
| Holdings |
| All Other |
| Eliminating |
|
|
| ||||||||||||||||||||
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| Guarantor |
| Inc. |
| Subsidiaries |
| Adjustments |
| Consolidated |
| ||||||||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||||||||||
Condensed consolidated statement of cash flows for six months ended June 30, 2008 |
| |||||||||||||||||||||||||||||||||||||||
Cash provided by/(used in) operating activities | $ | 22,935 |
| $ | 21 |
| $ | 34,334 |
| $ | (22,452 | ) | $ | 34,838 |
| |||||||||||||||||||||||||
Condensed consolidated statement of cash flows for nine months ended September 30, 2008 | Condensed consolidated statement of cash flows for nine months ended September 30, 2008 |
| ||||||||||||||||||||||||||||||||||||||
Cash provided by/(used in) operating | Cash provided by/(used in) operating |
| ||||||||||||||||||||||||||||||||||||||
activities | activities | $ | 25,019 |
| $ | 29 |
| $ | 46,979 |
| $ | (22,786 | ) | $ | 49,241 |
| ||||||||||||||||||||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Additions to property, plant and equipment |
| (835 | ) |
| - |
|
| (8,016 | ) |
| - |
|
| (8,851 | ) | |||||||||||||||||||||||||
Additions to property, plant and | Additions to property, plant and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
equipment | equipment |
| (1,489 | ) |
| - |
|
| (12,504 | ) |
| - |
|
| (13,993 | ) | ||||||||||||||||||||||||
Sales of long-term assets |
| 98 |
|
| - |
|
| 1,474 |
|
| - |
|
| 1,572 |
| Sales of long-term assets |
| 138 |
|
| - |
|
| 4,064 |
|
| - |
|
| 4,202 |
| |||||||||
Net intercompany investing |
| (2,008 | ) |
| (122 | ) |
| 1,961 |
|
| 169 |
|
| - |
| Net intercompany investing |
| 9,600 |
|
| (130 | ) |
| (9,647 | ) |
| 177 |
|
| - |
| |||||||||
All other investing, net |
| - |
|
| - |
|
| (1,489 | ) |
| - |
|
| (1,489 | ) | All other investing, net |
| - |
|
| - |
|
| (3,081 | ) |
| - |
|
| (3,081 | ) | |||||||||
Net cash provided by/(used in) investing activities |
| (2,745 | ) |
| (122 | ) |
| (6,070 | ) |
| 169 |
| (8,768 | ) | ||||||||||||||||||||||||||
Net cash provided by/(used in) | Net cash provided by/(used in) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
investing activities | investing activities |
| 8,249 |
|
| (130 | ) |
| (21,168 | ) |
| 177 |
|
| (12,872 | ) | ||||||||||||||||||||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Additions to long-term debt |
| - |
|
| - |
|
| 36 |
|
| - |
|
| 36 |
| Additions to long-term debt |
| - |
|
| - |
|
| 177 |
|
| - |
|
| 177 |
| |||||||||
Reductions in long-term debt |
| - |
|
| - |
|
| (53 | ) |
| - |
|
| (53 | ) | Reductions in long-term debt |
| - |
|
| - |
|
| (152 | ) |
| - |
|
| (152 | ) | |||||||||
Additions/(reductions) in short-term debt - net |
| 147 |
| - |
|
| (362 | ) |
| - |
|
| (215 | ) | ||||||||||||||||||||||||||
Additions/(reductions) in short-term | Additions/(reductions) in short-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
debt - net | debt - net |
| 29 |
|
| - |
|
| 265 |
|
| - |
|
| 294 |
| ||||||||||||||||||||||||
Cash dividends |
| (3,977 | ) |
| - |
|
| (22,452 | ) |
| 22,452 |
|
| (3,977 | ) | Cash dividends |
| (6,040 | ) |
| - |
|
| (22,786 | ) |
| 22,786 |
|
| (6,040 | ) | |||||||||
Net ExxonMobil shares sold/(acquired) |
| (17,788 | ) |
| - |
|
| - |
|
| - |
|
| (17,788 | ) | Net ExxonMobil shares sold/(acquired) |
| (26,400 | ) |
| - |
|
| - |
|
| - |
|
| (26,400 | ) | |||||||||
Net intercompany financing activity |
| - |
|
| 1 |
|
| 68 |
|
| (69 | ) |
| - |
| Net intercompany financing activity |
| - |
|
| 1 |
|
| 76 |
|
| (77 | ) |
| - |
| |||||||||
All other financing, net |
| 150 |
|
| 100 |
|
| (357 | ) |
| (100 | ) |
| (207 | ) | All other financing, net |
| 161 |
|
| 100 |
|
| (664 | ) |
| (100 | ) |
| (503 | ) | |||||||||
Net cash provided by/(used in) financing activities |
| (21,468 | ) |
| 101 |
|
| (23,120 | ) |
| 22,283 |
|
| (22,204 | ) | |||||||||||||||||||||||||
Effects of exchange rate changes on cash |
| - |
|
| - |
|
| 1,121 |
| - |
|
| 1,121 | |||||||||||||||||||||||||||
Increase/(decrease) in cash and cash equivalents | $ | (1,278 | ) | $ | - |
| $ | 6,265 |
| $ | - |
| $ | 4,987 |
| |||||||||||||||||||||||||
Net cash provided by/(used in) | Net cash provided by/(used in) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
financing activities | financing activities |
| (32,250 | ) |
| 101 |
|
| (23,084 | ) |
| 22,609 |
|
| (32,624 | ) | ||||||||||||||||||||||||
Effects of exchange rate changes | Effects of exchange rate changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
on cash | on cash |
| - |
|
| - |
|
| (1,052 | ) |
| - |
|
| (1,052 | ) | ||||||||||||||||||||||||
Increase/(decrease) in cash and cash | Increase/(decrease) in cash and cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
equivalents | equivalents | $ | 1,018 |
| $ | - |
| $ | 1,675 |
| $ | - |
| $ | 2,693 |
|
Condensed consolidated statement of cash flows for six months ended June 30, 2007 |
| |||||||||||||||||||||||||||||||
Cash provided by/(used in) operating activities | $ | 1,135 |
| $ | 39 |
| $ | 24,879 |
| $ | (449 | ) | $ | 25,604 |
| |||||||||||||||||
Condensed consolidated statement of cash flows for nine months ended September 30, 2007 | Condensed consolidated statement of cash flows for nine months ended September 30, 2007 |
| ||||||||||||||||||||||||||||||
Cash provided by/(used in) operating | Cash provided by/(used in) operating |
| ||||||||||||||||||||||||||||||
activities | $ | 21,063 |
| $ | 60 |
| $ | 40,176 |
| $ | (20,632 | ) | $ | 40,667 |
| |||||||||||||||||
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Additions to property, plant and equipment |
| (622 | ) |
| - |
|
| (6,270 | ) |
| - |
|
| (6,892 | ) | |||||||||||||||||
Additions to property, plant and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
equipment |
| (912 | ) |
| - |
|
| (9,915 | ) |
| - |
|
| (10,827 | ) | |||||||||||||||||
Sales of long-term assets |
| 156 |
|
| - |
|
| 1,517 |
|
| - |
|
| 1,673 |
|
| 187 |
|
| - |
|
| 2,235 |
|
| - |
|
| 2,422 |
| ||
Net intercompany investing |
| 18,178 |
|
| (35 | ) |
| (18,189 | ) |
| 46 |
|
| - |
|
| 4,554 |
|
| (56 | ) |
| (4,565 | ) |
| 67 |
|
| - |
| ||
All other investing, net |
| - |
|
| - |
|
| (1,104 | ) |
| - |
|
| (1,104 | ) |
| - |
|
| - |
|
| (1,660 | ) |
| - |
|
| (1,660 | ) | ||
Net cash provided by/(used in) investing activities |
| 17,712 |
|
| (35 | ) |
| (24,046 | ) |
| 46 |
|
| (6,323 | ) | |||||||||||||||||
Net cash provided by/(used in) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
investing activities |
| 3,829 |
|
| (56 | ) |
| (13,905 | ) |
| 67 |
|
| (10,065 | ) | |||||||||||||||||
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Additions to long-term debt |
| - |
|
| - |
|
| 99 |
|
| - |
|
| 99 |
|
| - |
|
| - |
|
| 104 |
|
| - |
|
| 104 |
| ||
Reductions in long-term debt |
| - |
|
| - |
|
| (75 | ) |
| - |
|
| (75 | ) |
| - |
|
| - |
|
| (111 | ) |
| - |
|
| (111 | ) | ||
Additions/(reductions) in short-term debt - net |
| 40 |
| - |
|
| 206 |
| - |
|
| 246 | ||||||||||||||||||||
Additions/(reductions) in short-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
debt - net |
| 163 |
|
| - |
|
| 23 |
|
| - |
|
| 186 |
| |||||||||||||||||
Cash dividends |
| (3,786 | ) |
| - |
|
| (449 | ) |
| 449 |
|
| (3,786 | ) |
| (5,718 | ) |
| - |
|
| (20,632 | ) |
| 20,632 |
|
| (5,718 | ) | ||
Net ExxonMobil shares sold/(acquired) |
| (15,421 | ) |
| - |
|
| - |
|
| - |
|
| (15,421 | ) |
| (22,993 | ) |
| - |
|
| - |
|
| - |
|
| (22,993 | ) | ||
Net intercompany financing activity |
| - |
|
| (4 | ) |
| 50 |
|
| (46 | ) |
| - |
|
| - |
|
| (4 | ) |
| 71 |
|
| (67 | ) |
| - |
| ||
All other financing, net |
| 237 |
|
| - |
|
| (461 | ) |
| - |
|
| (224 | ) |
| 356 |
|
| - |
|
| (762 | ) |
| - |
|
| (406 | ) | ||
Net cash provided by/(used in) financing activities |
| (18,930 | ) |
| (4 | ) |
| (630 | ) |
| 403 |
|
| (19,161 | ) | |||||||||||||||||
Effects of exchange rate changes on cash |
| - |
|
| - |
|
| 595 |
|
| - |
|
| 595 | ||||||||||||||||||
Increase/(decrease) in cash and cash equivalents | $ | (83 | ) | $ | - |
| $ | 798 |
| $ | - |
| $ | 715 |
| |||||||||||||||||
Net cash provided by/(used in) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
financing activities |
| (28,192 | ) |
| (4 | ) |
| (21,307 | ) |
| 20,565 |
|
| (28,938 | ) | |||||||||||||||||
Effects of exchange rate changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
on cash |
| - |
|
| - |
|
| 1,515 |
|
| - |
|
| 1,515 |
| |||||||||||||||||
Increase/(decrease) in cash and cash |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
equivalents | $ | (3,300 | ) | $ | - |
| $ | 6,479 |
| $ | - |
| $ | 3,179 |
|
-15-
EXXON MOBIL CORPORATION
Item 2.
Management's Discussion and Analysis of Financial Condition
and Results of Operations
FUNCTIONAL EARNINGS SUMMARY
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||
Net Income (U.S. GAAP) |
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||
Upstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States | $ | 2,034 |
| $ | 1,222 |
| $ | 3,665 |
| $ | 2,399 |
| $ | 1,879 |
| $ | 1,196 |
| $ | 5,544 |
| $ | 3,595 |
|
Non-U.S. |
| 7,978 |
|
| 4,731 |
|
| 15,132 |
|
| 9,595 |
|
| 9,092 |
|
| 5,103 |
|
| 24,224 |
|
| 14,698 |
|
Downstream |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 293 |
|
| 1,745 |
|
| 691 |
|
| 2,584 |
|
| 978 |
|
| 914 |
|
| 1,669 |
|
| 3,498 |
|
Non-U.S. |
| 1,265 |
|
| 1,648 |
|
| 2,033 |
|
| 2,721 |
|
| 2,035 |
|
| 1,087 |
|
| 4,068 |
|
| 3,808 |
|
Chemical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
| 102 |
|
| 204 |
|
| 386 |
|
| 550 |
|
| 257 |
|
| 296 |
|
| 643 |
|
| 846 |
|
Non-U.S. |
| 585 |
|
| 809 |
|
| 1,329 |
|
| 1,699 |
|
| 830 |
|
| 906 |
|
| 2,159 |
|
| 2,605 |
|
Corporate and financing |
| (577 | ) |
| (99 | ) |
| (666 | ) |
| (8 | ) |
| (241 | ) |
| (92 | ) |
| (907 | ) |
| (100 | ) |
Net Income (U.S. GAAP) | $ | 11,680 |
| $ | 10,260 |
| $ | 22,570 |
| $ | 19,540 |
| $ | 14,830 |
| $ | 9,410 |
| $ | 37,400 |
| $ | 28,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common share (dollars) | $ | 2.25 |
| $ | 1.85 |
| $ | 4.30 |
| $ | 3.49 |
| $ | 2.89 |
| $ | 1.72 |
| $ | 7.19 |
| $ | 5.21 |
|
Net income per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- assuming dilution (dollars) | $ | 2.22 |
| $ | 1.83 |
| $ | 4.25 |
| $ | 3.45 |
| $ | 2.86 |
| $ | 1.70 |
| $ | 7.11 |
| $ | 5.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items included in net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-U.S. Upstream |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Sale of German gas transportation business | $ | 1,620 |
| $ | 0 |
| $ | 1,620 |
| $ | 0 |
| ||||||||||||
Corporate and financing |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valdez litigation | $ | (290 | ) | $ | 0 |
| $ | (290 | ) | $ | 0 |
| $ | (170 | ) | $ | 0 |
| $ | (460 | ) | $ | 0 |
|
REVIEW OF SECONDTHIRD QUARTER AND FIRST SIXNINE MONTHS 2008 RESULTS
ExxonMobil'sExxonMobil reported secondstrong results in the third quarter of 2008, demonstrating the continued success of our disciplined business approach. Record net income for the third quarter of $14,830 million was a record $11,680 million, up 1458 percent from the secondthird quarter of 2007. Net income included an after tax speciala gain of $1,620 million from the sale of the natural gas transportation business in Germany and a charge of $290$170 million reflecting a provision for interest related to the $508 million maximumValdez punitive damages set by the recent Supreme Court ruling in the Valdez litigation. Record crude oil and natural gas realizations were partly offset by lower refining and chemical margins, lower production volumes and higher operating costs.award. Earnings per share of $2.22$2.86 were up 2168 percent reflecting the strong earnings and the impactbenefit of the continuing share purchase program.
Third quarter results include impacts of Hurricanes Gustav and Ike which affected U.S. Gulf Coast operations during the period. We responded quickly and effectively to maximize supplies of gasoline and other products to the marketplace. The majority of our operations are back on-line or are completing the final stages of start-up. At our Beaumont Chemical facilities, we continue to progress repairs and start-up planning after experiencing significant flooding during Hurricane Ike. Quarterly upstream volumes were down 24 thousand oil-equivalent barrels per day and costs were higher by $50 million before tax due to the hurricanes. Damage repairs and lower volumes across all business lines associated with the hurricanes are expected to reduce fourth quarter earnings by about $500 million.
Net income for the first sixnine months of 2008 of $22,570$37,400 million was a record and increased $3,030$8,450 million or 1629 percent from 2007 reflecting higher crude oil and natural gas realizations.2007. Earnings per share of $7.11 increased 2338 percent, to $4.25, reflecting strong business results and the continued reduction in the number of shares outstanding. Net income in 2008 included a gain of $1,620 million from the sale of the natural gas transportation business in Germany and charges totaling $460 million related to the Valdez punitive damages award.
-16-
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||||||||
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||
Upstream earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
United States | $ | 2,034 |
| $ | 1,222 |
| $ | 3,665 |
| $ | 2,399 |
| $ | 1,879 |
| $ | 1,196 |
| $ | 5,544 |
| $ | 3,595 |
| ||||||
Non-U.S. |
| 7,978 |
|
| 4,731 |
|
| 15,132 |
|
| 9,595 |
|
| 9,092 |
|
| 5,103 |
|
| 24,224 |
|
| 14,698 |
| ||||||
Total | $ | 10,012 |
| $ | 5,953 |
| $ | 18,797 |
| $ | 11,994 |
| $ | 10,971 |
| $ | 6,299 |
| $ | 29,768 |
| $ | 18,293 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Special items included in net income |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Non-U.S. Upstream |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||||||||
Sale of German gas transportation business | $ | 1,620 |
| $ | 0 |
| $ | 1,620 |
| $ | 0 |
|
Upstream earnings were $10,971 million in the secondthird quarter of 2008, were $10,012 million, up $4,059$4,672 million from the second quarter of 2007. RecordHigher crude oil and natural gas realizations increased earnings approximately $6.1$4.4 billion and the gain from the sale of the German natural gas transportation business added $1.6 billion. Lower sales volumes decreased earnings about $1.7$1.3 billion. Higher operating costs and increased taxes also reduced earnings.
On an oil-equivalent basis, production decreased 8 percent from the secondthird quarter of 2007. Excluding impacts related to the Venezuela expropriation, the Nigeria labor strike and lower entitlement volumes (including(which include price and spend impacts and PSC net interest reductions), and impacts associated with the hurricanes, production was down about 5 percent. Higher maintenance activity and downtime reduced volumes by just under 3 percent.
-16-
Liquids production totaled 2,3932,291 kbd (thousands of barrels per day), down 275246 kbd from the secondthird quarter of 2007. Excluding the Venezuela expropriation, the Nigeria labor strike and lower entitlement volumes and the impacts of the hurricanes, liquids production was down just over 25 percent, as increased production from projects in west Africa and the North Sea was more than offset by mature field decline and higher maintenance activity.
SecondThird quarter natural gas production was 8,4487,823 mcfd (millions of cubic feet per day), down 285460 mcfd from 2007. Higher European demand and new production volumes from project additions in the North Sea and Malaysia were more than offset by mature field decline, and increased maintenance activity.activity and entitlement effects.
Earnings from U.S. Upstream operations were $2,034$1,879 million, $812$683 million higher than the secondthird quarter of 2007. Non-U.S. Upstream earnings, including the gain from the sale of the German natural gas transportation business, were $7,978$9,092 million, up $3,247$3,989 million from last year.
Upstream earnings forin the first sixnine months of 2008 were a record $18,797at $29,768 million, up $6,803$11,475 million from 2007. Record high crude oil and natural gas realizations increased earnings approximately $10.5$14.8 billion and the gain related to the sale of the German natural gas transportation business added $1.6 billion. Lower sales volumes reduced earnings about $2.5$3.7 billion. Higher taxes and increased operating costs and lower gains on asset sales decreased earnings approximately $1.2$1.5 billion. Favorable foreign exchange effects provided a partial offset.
On an oil-equivalent basis, production decreased 7 percent from last year. Excluding impacts related to the Venezuela expropriation the Nigeria labor strike and lower entitlement volumes, production was down 2about 4 percent.
Liquids production of 2,4312,383 kbd decreased 276267 kbd from 2007. Excluding the Venezuela expropriation the Nigeria labor strike and lower entitlement volumes, liquids production was down 3about 5 percent, as field decline in mature areas more than offset project volume increases.
Natural gas production of 9,3338,843 mcfd decreased 86194 mcfd from 2007. Higher volumes from North Sea, Malaysia and Qatar projects and higher European demand were more than offset by mature field decline.decline and planned maintenance activity.
Earnings from U.S. Upstream operations for 2008 were $3,665$5,544 million, an increase of $1,266$1,949 million. Earnings outside the U.S., including the gain related to the sale of the German natural gas transportation business, were $15,132$24,224 million, $5,537$9,526 million higher than 2007.
-17-
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||||||||||
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||
Downstream earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
United States | $ | 293 |
| $ | 1,745 |
| $ | 691 |
| $ | 2,584 |
| $ | 978 |
| $ | 914 |
| $ | 1,669 |
| $ | 3,498 |
| ||||||||
Non-U.S. |
| 1,265 |
|
| 1,648 |
|
| 2,033 |
|
| 2,721 |
|
| 2,035 |
|
| 1,087 |
|
| 4,068 |
|
| 3,808 |
| ||||||||
Total | $ | 1,558 |
| $ | 3,393 |
| $ | 2,724 |
| $ | 5,305 |
| $ | 3,013 |
| $ | 2,001 |
| $ | 5,737 |
| $ | 7,306 |
|
Downstream earnings of $3,013 million in the secondthird quarter of 2008 of $1,558 million were down $1,835up $1,012 million from the secondthird quarter of 2007 as lower2007. Higher margins reducedincreased earnings by $1.9$1.1 billion drivenwhile favorable mix effects increased earnings by significantly lower worldwide refining margins.$200 million. Unfavorable foreign exchange effects provided a partial offset. Petroleum product sales of 6,7756,688 kbd were 199413 kbd lower than last year's secondthird quarter, mainly reflecting asset sales and lower demand.
U.S. Downstream earnings were $293$978 million, down $1,452up $64 million from the secondthird quarter of 2007. Non-U.S. Downstream earnings of $1,265$2,035 million were $383$948 million lower.higher than last year.
Downstream earnings in the first sixnine months of 2008 of $2,724$5,737 million were $2,581$1,569 million lower than 2007. Lower worldwide refining and marketing margins decreased earnings approximately $2.9$1.9 billion while higher operating costs reduced earnings about $300$400 million. Improved refinery operations increased earnings about $600$800 million. Petroleum product sales of 6,7986,761 kbd decreased from 7,0857,090 kbd in 2007, mainly reflecting asset sales.sales and lower demand.
U.S. Downstream earnings were $691$1,669 million, down $1,893$1,829 million. Non-U.S. Downstream earnings were $2,033$4,068 million, $688$260 million lowerhigher than last year.
-17-
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||||||||||||||
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||||||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||||||||
Chemical earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
United States | $ | 102 |
| $ | 204 |
| $ | 386 |
| $ | 550 |
| $ | 257 |
| $ | 296 |
| $ | 643 |
| $ | 846 |
| ||||||||||||
Non-U.S. |
| 585 |
|
| 809 |
|
| 1,329 |
|
| 1,699 |
|
| 830 |
|
| 906 |
|
| 2,159 |
|
| 2,605 |
| ||||||||||||
Total | $ | 687 |
| $ | 1,013 |
| $ | 1,715 |
| $ | 2,249 |
| $ | 1,087 |
| $ | 1,202 |
| $ | 2,802 |
| $ | 3,451 |
|
Chemical earnings of $1,087 million in the secondthird quarter of 2008 of $687 million were $326$115 million lower than the secondthird quarter of 2007. Lower margins,volumes, which reduced earnings approximately $500$200 million, and lower margins were partly offset by favorable foreign exchange and tax effects. PrimeThird quarter prime product sales of 6,7186,060 kt (thousands of metric tons) in the second quarter of 2008 were 179669 kt lower than the prior year.year due to hurricane effects and lower demand.
Chemical earnings in the first sixnine months of 2008 of $1,715$2,802 million decreased $534$649 million from 2007. Lower margins which decreased earnings approximately $800$900 million, were partly offsetwhile lower volumes decreased earnings by favorableabout $200 million. Favorable foreign exchange and tax effects.effects provided a partial offset. Prime product sales of 13,29619,356 kt were down 4061,075 kt from 2007.
-18-
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||||||||
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Corporate and financing earnings | $ | (577 | ) | $ | (99 | ) | $ | (666 | ) | $ | (8 | ) | $ | (241 | ) | $ | (92 | ) | $ | (907 | ) | $ | (100 | ) | ||||||
|
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| ||||||
Special items included in net income |
|
|
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|
|
|
|
|
|
|
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|
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|
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| ||||||
Corporate and financing |
|
|
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|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Valdez litigation | $ | (290 | ) | $ | 0 |
| $ | (290 | ) | $ | 0 |
| $ | (170 | ) | $ | 0 |
| $ | (460 | ) | $ | 0 |
|
Corporate and financing expenses increased to $241 million in the secondthird quarter of 2008, of $577reflecting the $170 million increased from 2007 by $188 million mainly duecharge for interest related to tax items and lower interest income and included $290 million for the Valdez litigation charge.litigation.
Corporate and financing expenses in the first sixnine months of 2008 of $666$907 million, increased by $368$807 million mainly due to lower interest income,rates on cash balances and higher corporate costs, and tax items and included $290$460 million forof charges related to the Valdez litigation charge.
-18-litigation.
LIQUIDITY AND CAPITAL RESOURCES
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| 2008 |
|
| 2007 |
|
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||
Net cash provided by/(used in) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
| $ | 34,838 |
| $ | 25,604 |
|
|
|
|
|
|
| $ | 49,241 |
| $ | 40,667 |
|
Investing activities |
|
|
|
|
|
|
| (8,768 | ) |
| (6,323 | ) |
|
|
|
|
|
|
| (12,872 | ) |
| (10,065 | ) |
Financing activities |
|
|
|
|
|
|
| (22,204 | ) |
| (19,161 | ) |
|
|
|
|
|
|
| (32,624 | ) |
| (28,938 | ) |
Effect of exchange rate changes |
|
|
|
|
|
|
| 1,121 |
|
| 595 |
|
|
|
|
|
|
|
| (1,052 | ) |
| 1,515 |
|
Increase/(decrease) in cash and cash equivalents |
|
|
|
|
|
| $ | 4,987 |
| $ | 715 |
|
|
|
|
|
|
| $ | 2,693 |
| $ | 3,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
|
|
|
| $ | 38,968 |
| $ | 28,959 |
|
|
|
|
|
|
| $ | 36,674 |
| $ | 31,423 |
|
Cash and cash equivalents - restricted |
|
|
|
|
|
|
| 0 |
|
| 4,604 |
|
|
|
|
|
|
|
| 0 |
|
| 4,604 |
|
Total cash and cash equivalents (at end of period) |
|
|
|
|
|
| $ | 38,968 |
| $ | 33,563 |
|
|
|
|
|
|
| $ | 36,674 |
| $ | 36,027 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations and asset sales |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities (U.S. GAAP) | $ | 13,418 |
| $ | 11,318 |
| $ | 34,838 |
| $ | 25,604 |
| $ | 14,403 |
| $ | 15,063 |
| $ | 49,241 |
| $ | 40,667 |
|
Sales of subsidiaries, investments and property, |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
plant and equipment |
| 1,159 |
|
| 1,135 |
|
| 1,572 |
|
| 1,673 |
|
| 2,630 |
|
| 749 |
|
| 4,202 |
|
| 2,422 |
|
Cash flow from operations and asset sales | $ | 14,577 |
| $ | 12,453 |
| $ | 36,410 |
| $ | 27,277 |
| $ | 17,033 |
| $ | 15,812 |
| $ | 53,443 |
| $ | 43,089 |
|
Because of the ongoing nature of our asset management and divestment program, we believe
it is useful for investors to consider asset sales proceeds together with cash provided by operating
activities when evaluating cash available for investment in the business and financing activities.
Total cash and cash equivalents of $39.0$36.7 billion at the end of the secondthird quarter of 2008 compared to $33.6$36.0 billion, including the $4.6 billion of restricted cash, at the end of the secondthird quarter of 2007.
Cash provided by operating activities totaled $34,838$49,241 million for the first sixnine months of 2008, $9,234$8,574 million higher than 2007. The major source of funds was net income of $22,570$37,400 million, adjusted for the noncash provision of $6,194$9,202 million for depreciation and depletion, both of which increased. The effects of higher prices and the timing of payments of accounts and other payables, of collection of accounts receivable and the timing of income taxes payable added to cash provided by operating activities. For additional details, see the Condensed Consolidated Statement of Cash Flows on page 5.
Investing activities for the first sixnine months of 2008 used net cash of $8,768$12,872 million compared to $6,323$10,065 million in the prior year. Spending for additions to property, plant and equipment increased $1,959$3,166 million to $8,851$13,993 million. Proceeds from asset divestments of $1,572$4,202 million in 2008, were similarincreased from $2,422 million in the prior year, with the increase mainly attributable to the prior year.sale of the German natural gas transportation business in the third quarter.
-19-
Cash flow from operations and asset sales in the secondthird quarter of 2008 of $14.6$17.0 billion, including asset sales of $1.2$2.6 billion, was $2.1$1.2 billion higher than in the secondthird quarter of 2007. Cash flow from operations and asset sales for the first sixnine months of 2008 of $36.4$53.4 billion, including $1.6$4.2 billion from asset sales, was $9.1$10.3 billion higher than in the comparable 2007 period.
Net cash used in financing activities of $22,204$32,624 million in the first sixnine months of 2008 increased $3,043$3,686 million, reflecting a higher level of purchases of shares of ExxonMobil stock.
During the secondthird quarter of 2008, Exxon Mobil Corporation purchased 98109 million shares of its common stock for the treasury at a gross cost of $8.8$8.7 billion. These purchases included $8.0 billion to reduce the number of shares outstanding, with the balance used to offset shares issued in conjunction with the company's benefit plans and programs. Shares outstanding were reduced 1.72.1 percent from 5,284 million at the end of the first quarter to 5,194 million at the end of the second quarter to 5,087 million at the end of the third quarter.
Gross share purchases in the first sixnine months of 2008 were $18.2$26.9 billion, reducing shares outstanding by 3.55.5 percent. Purchases may be made in both the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.
-19-
The Corporation distributedreturned significant cash to shareholders, distributing a total of $10.1 billion to shareholders in the secondthird quarter of 2008 through dividends of $2.1 billion and share purchases of $8.0 billion to reduce shares outstanding of $8.0 billion, an increase of 12 percent or $1.1 billion versus the second quarter of 2007.outstanding. The Corporation distributed a total of $20.0$30.0 billion to shareholders in the first sixnine months of 2008 through dividends and share purchases to reduce shares outstanding, an increase of $2.2$3.3 billion versus 2007. Year to date dividendsDividends in the first nine months of 2008 of $1.15 per share of $0.75 increased 1213 percent.
Total debt of $9.6$10.3 billion at JuneSeptember 30, 2008, was the same asincreased from $9.6 billion at year-end 2007. The Corporation's debt to total capital ratio was 6.97.3 percent at the end of the secondthird quarter of 2008 compared to 7.1 percent at year-end 2007.
Although the Corporation issues long-term debt from time to time and maintains a revolving commercial paper program, internally generated funds cover the majority of its financial requirements.
In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture. ExxonMobil refused to accede to the terms proffered by PdVSA, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project .
To date, discussions with Venezuelan authorities have not resulted in an agreement on the amount of compensation to be paid to ExxonMobil. On September 6, 2007, ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes. ExxonMobil has also filed an arbitration under the rules of the International Chamber of Commerce against PdVSA and a PdVSA affiliate for breach of their contractual obligations under certain Cerro Negro Project agreements. At this time, the net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated. However, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition. ExxonMobil’s remaining net book investment in Cerro Negro producing assets is about $750 million.
The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade. Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses.
On July 1, 2008, affiliates of Exxon Mobil Corporation completed the sale of their interests in the natural gas transporttransportation business in northern Germany. This transaction does not affect the exploration, production and natural gas sale and storage activities conducted by ExxonMobil affiliates in Germany. The positive after-tax earnings of this transaction of approximately $1.6 billion will be$1,620 million was reported in third quarter 2008 results.
-20-
TAXES
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||||||
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Income taxes | $ | 10,526 |
| $ | 7,668 |
| $ | 19,828 |
| $ | 14,452 |
| $ | 11,327 |
| $ | 7,350 |
| $ | 31,155 |
| $ | 21,802 |
| ||||
Sales-based taxes |
| 9,538 |
|
| 7,810 |
|
| 17,970 |
|
| 15,094 |
|
| 9,327 |
|
| 7,970 |
|
| 27,297 |
|
| 23,064 |
| ||||
All other taxes and duties |
| 12,297 |
|
| 10,665 |
|
| 23,904 |
|
| 21,073 |
|
| 11,856 |
|
| 10,953 |
|
| 35,760 |
|
| 32,026 |
| ||||
Total | $ | 32,361 |
| $ | 26,143 |
| $ | 61,702 |
| $ | 50,619 |
| $ | 32,510 |
| $ | 26,273 |
| $ | 94,212 |
| $ | 76,892 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Effective income tax rate |
| 49 | % |
| 44 | % |
| 49 | % |
| 44 | % |
| 45 | % |
| 46 | % |
| 48 | % |
| 45 | % |
Income, sales-based and all other taxes and duties for the secondthird quarter of 2008 of $32,361$32,510 million were higher than 2007. In the secondthird quarter of 2008 income tax expense increased to $10,526$11,327 million reflecting the higher level of earnings and the effective income tax rate was 4945 percent, compared to $7,668$7,350 million and 4446 percent, respectively, in the prior year period. The change in the effective income tax rate reflects an increased share of total income from the non-U.S. Upstream segment. Sales-based taxes and all other taxes and duties increased in 2008 reflecting higher prices and foreign exchange.
-20-
Income, sales-based and all other taxes and duties for the first sixnine months of 2008 of $61,702$94,212 million were higher than 2007. In the first sixnine months of 2008, income tax expense increased to $19,828$31,155 million reflecting the higher level of earnings and the effective income tax rate was 4948 percent, compared to $14,452$21,802 million and 4445 percent, respectively, in the prior year period. The change in the effective income tax rate reflects an increased share of total income from the non-U.S. Upstream segment. Sales-based taxes and all other taxes and duties increased in 2008 reflecting higher prices and foreign exchange.
CAPITAL AND EXPLORATION EXPENDITURES
| Second Quarter |
| First Six Months |
| Third Quarter |
| First Nine Months |
| ||||||||||||||||||||
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| 2008 |
| 2007 |
| ||||||||||||
| (millions of dollars) |
| (millions of dollars) |
| ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Upstream (including exploration expenses) | $ | 5,257 |
| $ | 3,866 |
| $ | 9,352 |
| $ | 7,335 |
| $ | 5,277 |
| $ | 3,851 |
| $ | 14,629 |
| $ | 11,186 |
| ||||
Downstream |
| 904 |
|
| 874 |
|
| 1,731 |
|
| 1,405 |
|
| 844 |
|
| 984 |
|
| 2,575 |
|
| 2,389 |
| ||||
Chemical |
| 797 |
|
| 276 |
|
| 1,363 |
|
| 495 |
|
| 721 |
|
| 601 |
|
| 2,084 |
|
| 1,096 |
| ||||
Other |
| 12 |
|
| 23 |
|
| 15 |
|
| 26 |
|
| 11 |
|
| 5 |
|
| 26 |
|
| 31 |
| ||||
Total | $ | 6,970 |
| $ | 5,039 |
| $ | 12,461 |
| $ | 9,261 |
| $ | 6,853 |
| $ | 5,441 |
| $ | 19,314 |
| $ | 14,702 |
|
Despite the continuing uncertainty in world financial markets, ExxonMobil has maintained a strong financial position. In the secondthird quarter of 2008, ExxonMobil increased investments across all business lines to help meet global demand for crude oil, natural gas and finished products. Capitalcapital and exploration expendituresproject spending increased to $7.0$6.9 billion, up 3826 percent from the second quarter of 2007.
Capital and exploration expenditures forFor the first sixnine months of 2008, were $12.5spending on capital and exploration projects was $19.3 billion, an increase of 3531 percent versus 2007. Through these investments we continue to make a substantial contribution to employment and economic activity in the countries in which we operate.
CapitalWe plan to continue our disciplined capital investments with our full year capital and exploration expenditures for full year 2007 were $20.9 billion and are expectedprojected to range frombe about $25 billion, to $30 billion for the next several years. Actual spending could vary depending on the progress of individual projects.consistent with previous guidance.
RECENTLY ISSUED STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS
In December 2007, the FASB issued Statement No. 160 (FAS 160), “Noncontrolling Interests in Consolidated Financial Statements – an Amendment of ARB No. 51.” FAS 160 changes the accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests and classified as a component of equity. FAS 160 must be adopted by the Corporation no later than January 1, 2009. FAS 160 requires retrospective adoption of the presentation and disclosure requirements for existing minority interests. All other requirements of FAS 160 will be applied prospectively. The Corporation does not expect the adoption of FAS 160 to have a material impact on the Corporation’s financial statements.
-21-
FORWARD-LOOKING STATEMENTS
Statements in this report relating to future plans, projections, events or conditions are forward-looking statements. Actual results, including project plans, resource recoveries and production rates, capital expenditures, and the impact of hurricane damage on future earnings, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; completion of repair projects as planned; unforeseen technical difficulties; political events or disturbances; reservoir performance; the outcome of commercial negotiations; wars and acts of terrorism or sabotage; changes in technical or operating conditions; and other factors discussed under the heading "Factors Affecting Future Results" on our website and in Item 1A of ExxonMobil's 2007 Form 10-K. We assume no duty to update these statements as of any future date.
-21-
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Information about market risks for the sixnine months ended JuneSeptember 30, 2008, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2007.
Item 4. Controls and Procedures
As indicated in the certifications in Exhibit 31 of this report, the Corporation’s chief executive officer, principal financial officer and principal accounting officer have evaluated the Corporation’s disclosure controls and procedures as of JuneSeptember 30, 2008. Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There were no changes during the Corporation's last fiscal quart erquarter that materially affected, or are reasonably likely to materially affect, the Corporation's internal control over financial reporting.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
On February 16,August 1, 2008, the Connecticut Department of Environmental Protection (CTDEP) requested a Consent Order as a result of an alleged June 2007 discharge of gasoline at a Mobil-branded service station in South Windsor, Connecticut. The proposed Consent Order seeks a penalty of $180,000. ExxonMobil is assessing its response to the South Coast Air Quality Management District (AQMD) issuedCTDEP.
Regarding a Noticepreviously reported matter, on September 11, 2008, Exxon Mobil Corporation entered into a Consent Decree with the State of Violation (NOV) alleging that a hole in the roof of oneMaryland Department of the Torrance Refinery's waste water/recovery oil tanks violated certain AQMD rules and applicable facility permit conditions. As part of a larger settlement of 10 other AQMD notices of violation on May 13, 2008, the AQMD and ExxonMobil Oil Corporation agreedEnvironment (MDE) to resolve the lawsuit filed by the MDE on May 15, 2006. In the litigation, the MDE alleged violationsthat a dealer-operated Exxon-branded service station in this NOV withJacksonville, Maryland, released petroleum from an underground storage tank. The Consent Decree requires ExxonMobil to pay a $4 million penalty payment of $320,000. Each of the other ten NOVs had an associated penalty of less than $100,000, resultingand complete remediation in exchange for a total penalty amount of $469,500 for settlementrelease of all 11 NOVs.claims asserted in the lawsuit.
OnRegarding a previously reported matter, the Puerto Rico Environmental Quality Board (EQB) issued an order on May 20, 2008, the Illinois Attorney General and Illinois EPA filed a civil complaint against ExxonMobil Oil Corporation in the Circuit Court of Will County, Illinois,21, 2001, alleging that the Joliet Refinery violated certain air emission regulationsEsso Standard Oil Company (Puerto Rico) (Esso) failed to investigate and caused petroleum sheensremediate alleged hydrocarbon contamination associated with underground storage tanks at the facility wharf,a service station in violation of federal and State of Illinois requirements.Barranquitas, Puerto Rico. The Complaint includes eight counts alleging a total of five water related violations and 12 air related violations. The air emission events relate to several electrical power outages suffered at the refinery during the period 2005 through 2007. The Complaint seeks a civil penalty in excess of $100,000. The Complaint also seeks an Order requiring ExxonMobil to conduct “an independent engineering evaluation of the adequacy of the Refinery’s power system" and to undertake “the necessary corrective action to permanently eliminate source areas” of petrole um contamination in the wharf area.
As previously reported, the Texas Commission on Environmental Quality (TCEQ) issued a Notice of Enforcement and Proposed Agreed Order on November 22, 2006, alleging that the Company's Beaumont Refinery violated provisions of the Texas Health and Safety Code and the Texas Water Code. The allegations related to permit and reporting requirements applicable to certain of the refinery's aboveground storage tanks. The TCEQ initially proposedEQB sought a penalty of $136,200.$75.9 million. On November 7, 2006, after granting Esso’s motion for summary judgment, the District Court issued a permanent injunction prohibiting the EQB from conducting any administrative proceedings against Esso related to the penalty. The matterEQB Defendants appealed and, on April 10, 2008, the U.S. Court of Appeals for the First Circuit issued its decision upholding the permanent injunction. The time for appeals has been resolved as of July 10, 2008. The TCEQ agreed to eliminate throughputnow passed and emissions exceedance allegationson September 19, 2008, the District Court, on remand, granted Esso’s request for attorney fees and added one allegation for late submittal of a Permit by Rule. ExxonMobil agreedcosts and ordered the EQB Defendants to pay a total of $55,200, with halfEsso approximately $1.7 million in fees and expenses. An appeal of that amount to be paid as a penalty and half to be paid to fund a Supplemental Environmental Project for retrofit/replacement of Jefferson County heavy vehicles. The agreed order is expected to be signed in the nex t several months.
The U.S. Environmental Protection Agency (EPA) and U.S. Department of Justice (DOJ) have alleged certain violations of Clean Air Act air permitting requirements and air quality rules associated with certain storage tanks and loading racks at ExxonMobil affiliates' Cabras Terminal (Guam) and Saipan Terminal (Saipan). No formal complaint has been filed in this matter, but the EPA and DOJ have indicated that they will seek corrective action and penalties in excess of $100,000 to resolve the matter.expected.
-22-
On April 14,Regarding a previously reported matter, on August 21, 2008, ExxonMobil executed a ComplianceConsent Agreement and Final Order on Consent(CAFO) was filed with Region 9 of the Colorado Department of Public Health and Environment (CDPHE)Environmental Protection Agency (EPA) to resolve analleged violations under the Toxic Substances Control Act. The EPA sought enforcement action relating to excess air emissions eventsunder the Act for alleged leaks of PCB-containing oil from transformers and related alleged violations of PCB disposal requirements at the Piceance CreekSanta Ynez Unit Gas Plant. The issues were identified during agency inspections and internal reviews in 2006 and 2007. The Company also self-disclosed an issue associated with emissions that were not reflected inPlatform Hondo facility, offshore California. Under the air permit, but discovered during testing. As partterms of the settlement, ExxonMobil agreed to payCAFO, on September 2, 2008, Exxon Mobil Corporation paid a total penalty settlement amount of $738,430 and also agreed to install and operate a thermal oxidizer to control emissions of volatile organic compounds consistent with state and federal air permitting requirements. The settlement amount consists of two components: i) $285,500 as ancivil administrative penalty of which $228,400 may be offset via performance$2,642,000. Prior to the completion of one or more supplemental environmental proj ects, and ii) $452,930 as an economic benefit penalty.
the CAFO, the transformers were replaced with new PCB-free transformers.
Refer to the relevant portions of note 3 on pages 6 and 7 of this Quarterly Report on Form 10-Q for further information on legal proceedings.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Note 1 -- On August 1, 2000, the Corporation announced its intention to resume purchases of shares of its common stock for the treasury both to offset shares issued in conjunction with the Company's benefit plans and programs and to gradually reduce the number of shares outstanding. The announcement did not specify an amount or expiration date. The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases. Purchases may be made in both the open market and through negotiated transactions, and purchases may be increased, decreased or discontinued at any time without prior notice.
Item 5. Other Information
The Registrant hereby furnishes the information set forth in its news release, dated November 4, 2008, announcing enhancements to its corporate governance structure and the appointment of Samuel J. Palmisano as Presiding Director. A copy of the release is included as Exhibit 99.1.
-23-
Item 4. Submission of Matters to a Vote of Security Holders
At the annual meeting of shareholders on May 28, 2008, the following proposals were voted upon. Percentages are based on the total of the shares voted For and either Withheld or voted Against, as appropriate.
Concerning Election of Directors |
|
| |||||
|
|
|
|
| |||
|
| Votes |
| Votes | |||
Nominees |
| Cast For |
| Withheld | |||
Michael J. Boskin |
| 4,261,202,105 | 95.1% | 218,251,360 | |||
Larry R. Faulkner |
| 4,338,082,660 | 96.8% | 141,370,805 | |||
William W. George |
| 4,357,013,761 | 97.3% | 122,439,704 | |||
James R. Houghton |
| 4,310,463,918 | 96.2% | 168,989,547 | |||
Reatha Clark King |
| 4,327,173,349 | 96.6% | 152,280,116 | |||
Marilyn Carlson Nelson |
| 4,331,867,232 | 96.7% | 147,586,233 | |||
Samuel J. Palmisano |
| 4,358,570,442 | 97.3% | 120,883,023 | |||
Steven S Reinemund |
| 4,340,093,996 | 96.9% | 139,359,469 | |||
Walter V. Shipley |
| 4,353,963,941 | 97.2% | 125,489,524 | |||
Rex W. Tillerson |
| 4,343,542,327 | 97.0% | 135,911,138 | |||
Edward E. Whitacre, Jr. |
| 4,358,483,138 | 97.3% | 120,970,327 | |||
|
|
|
|
| |||
Concerning Ratification of Independent Auditors |
|
| |||||
Votes Cast For: |
| 4,309,316,861 | 98.0% |
| |||
Votes Cast Against: |
| 89,936,431 | 2.0% |
| |||
Abstentions: |
| 80,200,173 |
|
| |||
Broker Non-Votes: |
| 0 |
|
| |||
|
|
|
|
| |||
Concerning Shareholder Proposals Prohibited |
|
| |||||
Votes Cast For: |
| 94,563,822 | 2.8% |
| |||
Votes Cast Against: |
| 3,293,199,805 | 97.2% |
| |||
Abstentions: |
| 153,137,758 |
|
| |||
Broker Non-Votes: |
| 938,552,080 |
|
| |||
|
|
| |||||
Concerning Director Nominee Qualifications |
|
| |||||
Votes Cast For: |
| 118,326,019 | 3.4% |
| |||
Votes Cast Against: |
| 3,322,211,694 | 96.6% |
| |||
Abstentions: |
| 100,363,672 |
|
| |||
Broker Non-Votes: |
| 938,552,080 |
|
| |||
|
|
|
|
| |||
Concerning Board Chairman and CEO |
|
| |||||
Votes Cast For: |
| 1,361,080,211 | 39.5% |
| |||
Votes Cast Against: |
| 2,081,307,709 | 60.5% |
| |||
Abstentions: |
| 98,513,465 |
|
| |||
Broker Non-Votes: |
| 938,552,080 |
|
| |||
|
|
|
|
| |||
Concerning Shareholder Return Policy |
|
| |||||
Votes Cast For: |
| 162,879,474 | 4.7% |
| |||
Votes Cast Against: |
| 3,272,308,929 | 95.3% |
| |||
Abstentions: |
| 105,712,982 |
|
| |||
Broker Non-Votes: |
| 938,552,080 |
|
| |||
|
|
|
|
| |||
Concerning Shareholder Advisory Vote on Executive Compensation | |||||||
Votes Cast For: |
| 1,361,229,410 | 40.7% |
| |||
Votes Cast Against: |
| 1,981,102,514 | 59.3% |
| |||
Abstentions: |
| 198,569,461 |
|
| |||
Broker Non-Votes: |
| 938,552,080 |
|
| |||
|
|
| |||||
Concerning Executive Compensation Report |
|
| |||||
Votes Cast For: |
| 368,484,255 | 10.9% |
| |||
Votes Cast Against: |
| 3,025,097,742 | 89.1% |
| |||
Abstentions: |
| 147,319,388 |
|
| |||
Broker Non-Votes: |
| 938,552,080 |
|
|
-24-
|
|
| |||
Concerning Incentive Pay Recoupment |
|
| |||
Votes Cast For: |
| 428,405,781 | 12.5% |
| |
Votes Cast Against: |
| 3,010,622,412 | 87.5% |
| |
Abstentions: |
| 101,873,192 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning Corporate Sponsorships Report |
|
| |||
Votes Cast For: |
| 287,651,144 | 9.7% |
| |
Votes Cast Against: |
| 2,688,298,219 | 90.3% |
| |
Abstentions: |
| 564,952,022 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning Political Contributions Report |
|
| |||
Votes Cast For: |
| 843,964,133 | 27.6% |
| |
Votes Cast Against: |
| 2,211,647,378 | 72.4% |
| |
Abstentions: |
| 485,289,874 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning Amendment of EEO Policy |
|
| |||
Votes Cast For: |
| 1,296,428,500 | 39.6% |
| |
Votes Cast Against: |
| 1,975,180,175 | 60.4% |
| |
Abstentions: |
| 269,292,710 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning Community Environmental Impact |
|
| |||
Votes Cast For: |
| 327,559,000 | 10.8% |
| |
Votes Cast Against: |
| 2,700,516,909 | 89.2% |
| |
Abstentions: |
| 512,825,476 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning ANWR Drilling Report |
|
| |||
Votes Cast For: |
| 252,395,955 | 8.4% |
| |
Votes Cast Against: |
| 2,737,719,520 | 91.6% |
| |
Abstentions: |
| 550,785,910 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning Greenhouse Gas Emissions Goals |
|
| |||
Votes Cast For: |
| 922,633,711 | 30.9% |
| |
Votes Cast Against: |
| 2,066,475,554 | 69.1% |
| |
Abstentions: |
| 551,792,120 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning CO2 Information at the Pump |
|
| |||
Votes Cast For: |
| 211,432,634 | 7.0% |
| |
Votes Cast Against: |
| 2,819,336,182 | 93.0% |
| |
Abstentions: |
| 510,132,569 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning Climate Change and Technology Report |
|
| |||
Votes Cast For: |
| 314,453,997 | 10.4% |
| |
Votes Cast Against: |
| 2,709,207,016 | 89.6% |
| |
Abstentions: |
| 517,240,372 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
| |
|
|
|
|
| |
Concerning Energy Technology Report |
|
| |||
Votes Cast For: |
| 284,241,536 | 9.4% |
| |
Votes Cast Against: |
| 2,739,669,008 | 90.6% |
| |
Abstentions: |
| 516,990,841 |
|
| |
Broker Non-Votes: |
| 938,552,080 |
|
|
-25-
|
|
|
|
|
Concerning Renewable Energy Policy |
|
| ||
Votes Cast For: |
| 805,429,204 | 27.5% |
|
Votes Cast Against: |
| 2,128,479,852 | 72.5% |
|
Abstentions: |
| 606,992,329 |
|
|
Broker Non-Votes: |
| 938,552,080 |
|
|
For additional information, see the registrant's definitive proxy statement dated April 10, 2008, "Item 1 - Election of Directors" (beginning on page 12) and the items beginning with "Item 2 - Ratification of Independent Auditors", on page 47, through "Item 19 - Renewable Energy Policy", ending on page 73.
Item 6. Exhibits
Exhibit
Description
31.1
Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief
Executive Officer.
31.2
Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal
Financial Officer.
31.3
Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal
Accounting Officer.
32.1
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief
Executive Officer.
32.2
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by
Principal Financial Officer.
32.3
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by
Principal Accounting Officer.
99.1
Exxon Mobil Corporation News Release, dated November 4, 2008, relating to
its corporate governance structure.
-26--24-
EXXON MOBIL CORPORATION
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EXXON MOBIL CORPORATION
Date: August 5,November 4, 2008
By: /s/ Patrick T. Mulva
Name: Patrick T. Mulva
Title: Vice President, Controller and
Principal Accounting Officer
-27--25-
INDEX TO EXHIBITS
Exhibit
Description
31.1
Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by
Chief Executive Officer.
31.2
Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by
Principal Financial Officer.
31.3
Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by
Principal Accounting Officer.
32.1
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief
Executive Officer.
32.2
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal
Financial Officer.
32.3
Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal
Accounting Officer.
99.1
Exxon Mobil Corporation News Release, dated November 4, 2008, relating to
its corporate governance structure.
-28--26-