Notes to Consolidated Financial Statements. U.S. GAAP, Unaudited | |
| 6 Months Ended
Jun. 30, 2009
CAD ($)
CAD / shares
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Notes to Financial Statements [Abstract] | |
1.Basis of financial statement presentation |
1. Basis of financial statement presentation
These unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles of the United States of America and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements. In the opinion of the management, the information furnished herein reflects all known accruals and adjustments necessary for a fair presentation of the financial position of the company as at June30, 2009, and December31, 2008, and the results of operations and changes in cash flows for the six months ended June30, 2009 and 2008. All such adjustments are of a normal recurring nature. Subsequent events have been evaluated through July30, 2009, the date the financial statements were issued. The companys exploration and production activities are accounted for under the successful efforts method. Certain reclassifications to the prior year have been made to conform to the 2009 presentation.
The results for the six months ended June30, 2009, are not necessarily indicative of the operations to be expected for the full year.
All amounts are in Canadian dollars unless otherwise indicated. |
2.Accounting change for fair value measurements |
2. Accounting change for fair value measurements
Effective January1, 2009, the company adopted the Financial Accounting Standards Boards (FASB) Statement No.157 (SFAS 157), Fair Value Measurements for nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. SFAS 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 companys financial statements. The company previously adopted SFAS 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. |
3.Business Segments |
3. Business Segments
Second Quarter Upstream Downstream Chemical
millions of dollars 2009 2008 2009 2008 2009 2008
REVENUES AND OTHER INCOME
External sales (a) 879 1,836 4,152 6,401 230 381
Intersegment sales 698 1,554 355 892 83 141
Investment and other income 19 5 23 228 - -
1,596 3,395 4,530 7,521 313 522
EXPENSES
Exploration (b) 22 17 - - - -
Purchases of crude oil and products 468 1,261 3,566 6,209 233 429
Production and manufacturing 630 675 400 382 47 57
Selling and general 1 1 234 243 19 19
Federal excise tax - - 314 328 - -
Depreciation and depletion 129 118 59 59 3 3
Financing costs 1 - - (1 ) - -
TOTAL EXPENSES 1,251 2,072 4,573 7,220 302 508
INCOME BEFORE INCOME TAXES 345 1,323 (43 ) 301 11 14
INCOME TAXES 93 385 (5 ) 62 3 4
NET INCOME 252 938 (38 ) 239 8 10
Export sales to the United States 422 915 322 368 111 230
Cash flows from (used in) operating activities 38 1,025 240 417 11 18
CAPEX (b) 471 212 61 63 2 2
Second Quarter
Corporate
and Other Eliminations Consolidated
millions of dollars 2009 2008 2009 2008 2009 2008
REVENUES AND OTHER INCOME
External sales (a) - - - - 5,261 8,618
Intersegment sales - - (1,136 ) (2,587 ) - -
Investment and other income - 8 - - 42 241
- 8 (1,136 ) (2,587 ) 5,303 8,859
EXPENSES
Exploration (b) - - - - 22 17
Purchases of crude oil and products - - (1,136 ) (2,587 ) 3,131 5,312
Production and manufacturing - - - - 1,077 1,114
Selling and general 17 61 - - 271 324
Federal excise tax - - - - 314 328
Depreciation and depletion 2 1 - - 193 181
Financing costs - 1 - - 1 -
TOTAL EXPENSES 19 63 (1,136 ) (2,587 ) 5,009 7,276
INCOME BEFORE INCOME TAXES (19 ) (55 ) - - 294 1,583
INCOME TAXES (6 ) (16 ) - - 85 435
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4.Investment and other income |
4. Investment and other income
Investment and other income includes gains and losses on asset sales as follows:
SecondQuarter
Six Months
to June30
millions of dollars 2009 2008 2009 2008
Proceeds from asset sales 35 228 37 241
Book value of assets sold 4 7 5 9
Gain/(loss) on asset sales, before tax (a) 31 221 32 232
Gain/(loss) on asset sales, after tax (a) 25 192 26 201
(a) The second quarter of 2008 included a gain of $219 million ($187 million, after tax) from the sale of Rainbow Pipe Line Co. Ltd., an equity company.
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5.Employee retirement benefits |
5. Employee retirement benefits
The components of net benefit cost included in production and manufacturing and selling and general expenses in the consolidated statement of income are as follows:
SecondQuarter Six Months toJune30
millions of dollars 2009 2008 2009 2008
Pension benefits:
Current service cost 14 23 40 47
Interest cost 79 70 152 136
Expected return on plan assets (66 ) (83 ) (134 ) (165 )
Amortization of prior service cost 5 4 9 9
Recognized actuarial loss 28 26 56 46
Net benefit cost 60 40 123 73
Other post-retirement benefits:
Current service cost 1 2 2 3
Interest cost 6 6 13 12
Recognized actuarial loss/(gain) (1 ) 2 (1 ) 3
Net benefit cost 6 10 14 18
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6.Other long-term obligations |
6. Other long-term obligations
millions of dollars As at June30 2009 As at Dec.31 2008
Employee retirement benefits (a) 1,051 1,151
Asset retirement obligations and other environmental liabilities (b) 712 728
Share-based incentive compensation liabilities 260 203
Other obligations 209 216
Total other long-term obligations 2,232 2,298
(a) Total recorded employee retirement benefits obligations also include $45 million in current liabilities (December 31, 2008 - $45 million).
(b) Total asset retirement obligations and other environmental liabilities also include $84 million in current liabilities (December 31, 2008 - $83 million).
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7.Common shares |
7. Common shares
thousands of shares As at June 30 2009 As at Dec. 31 2008
Authorized 1,100,000 1,100,000
Common shares outstanding 847,599 859,402
From 1995 through 2008, the company purchased shares under fourteen 12-month normal course issuer bid share repurchase programs, as well as an auction tender. On June25, 2009, another 12-month normal course issuer bid program was implemented with an allowable purchase of 42.4million shares (five percent of the total on June15, 2009), less shares purchased from Exxon Mobil Corporation and shares purchased by the employee savings plan and company pension fund. The results of these activities are as shown below:
millions of
Year Shares Dollars
1995 - 2007 846.1 12,811
2008 - Second Quarter 10.6 606
- Full year 44.3 2,210
2009 - Second Quarter 1.3 61
- Year-to-date 11.8 490
Cumulative purchases to date 902.2 15,511
Exxon Mobil Corporations participation in the above share repurchase maintained its ownership interest in Imperial at 69.6 percent.
The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.
The following table provides the calculation of net income per common share:
SecondQuarter Six Months to June30
2009 2008 2009 2008
Net income per common share - basic
Net income (millions of dollars) 209 1,148 498 1,829
Weighted average number of common shares outstanding (millions of shares) 847.8 888.1 851.9 893.9
Net income per common share (dollars) 0.25 1.29 0.59 2.05
Net income per common share - diluted
Net income (millions of dollars) 209 1,148 498 1,829
Weighted average number of common shares outstanding (millions of shares) 847.8 888.1 851.9 893.9
Effect of employee share-based awards (millions of shares) 7.1 6.5 6.9 6.4
Weighted average number of common shares outstanding, assuming dilution (millions of shares) 854.9 894.6 858.8 900.3
Net income per common share (dollars) 0.25 1.28 0.58 2.03
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8.Comprehensive income |
8. Comprehensive income
Six Months
SecondQuarter to June30
millions of dollars 2009 2008 2009 2008
Net income 209 1,148 498 1,829
Post-retirement benefit liability adjustment (excluding amortization) (25 ) (105 ) (25 ) (105 )
Amortization of post retirement benefit liability adjustment included in net periodic benefit costs 24 23 47 42
Other comprehensive income (net of income taxes) (1 ) (82 ) 22 (63 )
Total comprehensive income 208 1,066 520 1,766
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