| Notes to Financial Statements | |
| 6 Months Ended
Jun. 30, 2009
USD / shares
|
| Notes to Financial Statements [Abstract] | |
| 1.Basis of Financial Statement Preparation |
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 Corporations 2008 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. Subsequent events have been evaluated through August5, 2009, the date the financial statements were issued. The Corporations exploration and production activities are accounted for under the successful efforts method. |
| 2.Accounting Changes |
2. Accounting Changes
Effective January1, 2009, ExxonMobil adopted the Financial Accounting Standards Boards (FASB) Statement No.157 (FAS 157), Fair Value Measurements for nonfinancial assets and liabilities that are measured at fair value on a nonrecurring 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 measures. The adoption did not have a material impact on the Corporations financial statements. The Corporation previously adopted FAS 157 for financial assets and liabilities that are measured at fair value and for nonfinancial assets and liabilities that are measured at fair value on a recurring basis.
Effective January1, 2009, ExxonMobil adopted Financial Accounting Standards Boards (FASB) Statement No.160 (FAS 160), Noncontrolling Interests in Consolidated Financial Statements an Amendment of ARB No.51. FAS 160 changed the accounting and reporting for minority interests, which were recharacterized as noncontrolling interests and classified as a component of equity. FAS 160 required retrospective adoption of the presentation and disclosure requirements for existing minority interests. All other requirements of FAS 160 will be applied prospectively. The adoption of FAS 160 did not have a material impact on the Corporations financial statements.
Effective January1, 2009, ExxonMobil adopted the Financial Accounting Standards Boards Staff Position (FSP) on the Emerging Issues Task Force (EITF) Issue No.03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities. The FSP required that all unvested share-based payment awards that contain nonforfeitable rights to dividends should be included in the basic Earnings Per Share (EPS) calculation. Prior-year EPS numbers have been adjusted retrospectively on a consistent basis with 2009 reporting. This standard did not affect the consolidated financial position or results of operations. |
| 3.Litigation and Other Contingencies |
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 significant, 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 Corporations operations or financial condition.
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. On June25, 2008, the 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. The parties filed briefs in the Ninth Circuit Court of Appeals on the issue of post-judgment interest and recovery of costs. Exxon Mobil Corporation recorded total after-tax charges of $460 million in 2008 reflecting an estimate of the resolution of these issues.
On June15, 2009, the U. S. Court of Appeals for the Ninth Circuit awarded plaintiffs in the Valdez litigation interest on the $507.5 million punitive damages award from the date of the original trial court judgment in 1996. The Court also denied the Corporations claims to recover up to $70 million in appeal costs. An after-tax charge of $140 million was recorded in the second quarter of 2009 to reflect the Courts decision.
Other Contingencies
As of June30, 2009
Equity Company Obligations Other ThirdParty Obligations Total
(millions of dollars)
Total guarantees $ 6,599 $ 1,985 $ 8,584
The Corporation and certain of its consolidated subsidiaries were contingently liable at June30, 2009, for $8,584 million, pr |
| 4.Comprehensive Income |
4. Comprehensive Income
ThreeMonthsEnded June30, Six Months Ended June30,
2009 2008 2009 2008
(millions of dollars)
Net income including noncontrolling interests $ 3,946 $ 11,905 $ 8,648 $ 23,077
Other comprehensive income (net of income taxes)
Foreign exchange translation adjustment 3,035 (110 ) 1,624 1,602
Adjustment for foreign exchange translation loss included in net income 0 171 0 171
Postretirement benefits reserves adjustment (excluding amortization) (492 ) (107 ) (534 ) (247 )
Amortization of postretirement benefits reserves adjustment included in net periodic benefit costs 354 186 704 375
Comprehensive income including noncontrolling interests 6,843 12,045 10,442 24,978
Comprehensive income attributable to noncontrolling interests 242 22 260 550
Comprehensive income attributable to ExxonMobil $ 6,601 $ 12,023 $ 10,182 $ 24,428
|
| 5.Earnings Per Share |
5. Earnings Per Share
ThreeMonthsEnded June30, Six Months Ended June30,
2009 2008 2009 2008
EARNINGS PER COMMON SHARE
Net income attributable to ExxonMobil (millions of dollars) $ 3,950 $ 11,680 $ 8,500 $ 22,570
Weighted average number of common shares outstanding (millions of shares) 4,851 5,248 4,896 5,296
Earnings per common share (dollars) $ 0.82 $ 2.24 $ 1.74 $ 4.27
EARNINGS PER COMMON SHARE - ASSUMING DILUTION
Net income attributable to ExxonMobil (millions of dollars) $ 3,950 $ 11,680 $ 8,500 $ 22,570
Weighted average number of common shares outstanding (millions of shares) 4,851 5,248 4,896 5,296
Effect of employee stock-based awards 20 33 20 33
Weighted average number of common shares outstanding - assuming dilution 4,871 5,281 4,916 5,329
Earnings per common share - assuming dilution (dollars) $ 0.81 $ 2.22 $ 1.73 $ 4.24
|
| 6.Pension and Other Postretirement Benefits |
6. Pension and Other Postretirement Benefits
ThreeMonthsEnded June30, SixMonthsEnded June30,
2009 2008 2009 2008
(millions of dollars)
Pension Benefits - U.S.
Components of net benefit cost
Service cost $ 106 $ 96 $ 209 $ 191
Interest cost 202 182 404 364
Expected return on plan assets (164 ) (229 ) (328 ) (458 )
Amortization of actuarial loss/(gain) and prior service cost 174 59 347 118
Net pension enhancement and curtailment/settlement cost 121 43 242 87
Net benefit cost $ 439 $ 151 $ 874 $ 302
Pension Benefits - Non-U.S.
Components of net benefit cost
Service cost $ 100 $ 114 $ 203 $ 227
Interest cost 275 305 536 606
Expected return on plan assets (216 ) (317 ) (421 ) (635 )
Amortization of actuarial loss/(gain) and prior service cost 177 109 344 210
Net pension enhancement and curtailment/settlement cost 0 2 0 2
Net benefit cost $ 336 $ 213 $ 662 $ 410
Other Postretirement Benefits
Components of net benefit cost
Service cost $ 23 $ 28 $ 50 $ 57
Interest cost 104 129 214 237
Expected return on plan assets (2 ) (22 ) (18 ) (34 )
Amortization of actuarial loss/(gain) and prior service cost 58 72 129 156
Net benefit cost $ 183 $ 207 $ 375 $ 416
|
| 7.Financial Instruments and Derivatives |
7. Financial Instruments and Derivatives
The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. The only category of financial instruments where the difference between fair value and recorded book value is of significance is long-term debt. The estimated fair value of total long-term debt, including capitalized lease obligations, was $7.8 billion and $7.6 billion, at June30, 2009 and December31, 2008, respectively, as compared to recorded book values of $7.1 billion and $7.0 billion at June30, 2009 and December31, 2008, respectively.
The estimated fair value of derivatives outstanding and recorded on the balance sheet was a net payable of $122 million and a net receivable of $118 million on June30, 2009 and December31, 2008, respectively. The Corporation would have paid or received this amount from third parties if these derivatives had been settled in the open market based on observable market inputs.
The fair value of derivatives outstanding at June30, 2009, is immaterial in relation to total assets of $225 billion or net income attributable to ExxonMobil for the six months ended June30, 2009, of $8.5 billion. |
| 8.Disclosures about Segments and Related Information |
8. Disclosures about Segments and Related Information
Three Months Ended June30, Six Months Ended June30,
2009 2008 2009 2008
(millions of dollars)
EARNINGS AFTER INCOME TAX
Upstream
United States $ 813 $ 2,034 $ 1,173 $ 3,665
Non-U.S. 2,999 7,978 6,142 15,132
Downstream
United States (15 ) 293 337 691
Non-U.S. 527 1,265 1,308 2,033
Chemical
United States 79 102 162 386
Non-U.S. 288 585 555 1,329
All other (741 ) (577 ) (1,177 ) (666 )
Corporate total $ 3,950 $ 11,680 $ 8,500 $ 22,570
SALES AND OTHER OPERATING REVENUE (1)
Upstream
United States $ 753 $ 2,010 $ 1,574 $ 3,774
Non-U.S. 5,101 8,989 10,277 17,388
Downstream
United States 18,853 36,066 34,046 64,524
Non-U.S. 41,238 75,667 77,223 140,184
Chemical
United States 2,317 4,170 4,165 7,822
Non-U.S. 3,897 6,870 7,000 13,299
All other 8 4 10 8
Corporate total $ 72,167 $ 133,776 $ 134,295 $ 246,999
(1)Includes sales-based taxes
INTERSEGMENT REVENUE
Upstream
United States $ 1,615 $ 3,072 $ 2,819 $ 5,633
Non-U.S. 7,250 17,260 13,826 32,141
Downstream
United States 2,568 5,241 4,237 9,102
Non-U.S. 9,525 21,406 16,404 37,949
Chemical
United States 1,834 3,177 3,055 5,605
Non-U.S. 1,647 2,670 2,931 5,102
All other 72 71 143 138
|
| 9.Condensed Consolidating Financial Information Related to Guaranteed Securities Issued by Subsidiaries |
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 ($2,034 million long-term at June30, 2009) and the debt securities due 2009-2011 ($26 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.
ExxonMobil Corporation Parent Guarantor SeaRiver Maritime Financial Holdings Inc. All Other Subsidiaries Consolidating and Eliminating Adjustments Consolidated
(millions of dollars)
Condensed consolidated statement of income for three months ended June30, 2009
Revenues and other income
Salesandotheroperatingrevenue, including sales-based taxes $ 2,633 $ $ 69,534 $ $ 72,167
Income from equity affiliates 4,271 (3 ) 1,560 (4,245 ) 1,583
Other income 440 267 707
Intercompany revenue 7,441 1 64,665 (72,107 )
Total revenues and other income 14,785 (2 ) 136,026 (76,352 ) 74,457
Costs and other deductions
Crude oil and product purchases 7,511 98,426 (69,034 ) 36,903
Production and manufacturing expenses 1,913 7,458 (1,342 ) 8,029
Selling, general and administrative expenses 560 3,128 (169 ) 3,519
Depreciation and depletion 361 2,643 3,004
Explorationexpenses,includingdry holes 77 413 490
Interest expense 597 56 1,272 (1,582 ) 343
Sales-based taxes 6,216 6,216
Other taxes and duties (43 ) 8,479 8,436
Total costs and other deductions 10,976 56 128,035 (72,127 ) 66,940
Income before income taxes 3,809 (58 ) 7,991 (4,225 ) 7,517
Income taxes (141 ) (21 ) 3,733 3,571
Net income including noncontrolling interests 3,950 (37 ) 4,258 (4,225 ) 3,946
Net income attributable to noncontrolling interests (4 ) (4 )
Net income attributable to ExxonMobil $ 3,950 $ (37 ) $ 4,262 $ (4,225 ) $ |
