Imperial Oil Limited (IMO) 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Statement of Incom

Consolidated Statement of Income. U.S. GAAP (CAD $)
In Millions, except Per Share data	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Revenues and other income
Operating revenues	$21,292	[1],[2]	$31,240	[1],[2]	$25,069	[1],[2]
Investment and other income (note 9)	106		339		374
Total revenues and other income	21,398		31,579		25,443
Expenses
Exploration	153		132		106
Purchases of crude oil and products	11,934	[4]	18,865	[4]	14,026	[4]
Production and manufacturing	3,951	[3]	4,228	[3]	3,474	[3]
Selling and general	1,106		1,038		1,335
Federal excise tax	1,268	[2]	1,312	[2]	1,307	[2]
Depreciation and depletion	781		728		780
Financing costs (note 13)	5		0		36
Total expenses	19,198		26,303		21,064
Income before income taxes	2,200		5,276		4,379
Income taxes (note 4)	621		1,398		1,191
Net income	$1,579		$3,878		$3,188
Per-share information (Canadian dollars)
Net income per common share - basic (note 11)	1.86		4.39		3.43
Net income per common share - diluted (note 11)	1.84		4.36		3.41
Dividends	0.4		0.38		0.35
[1]Operating revenues include amounts from related parties of $1,699 million (2008 - $2,150 million, 2007 - $1,772 million), (note 15).
[2]Operating revenues include federal excise tax of $1,268 million (2008 - $1,312 million, 2007 - $1,307 million).
[3]Production and manufacturing expenses include amounts to related parties of $217 million (2008 - $169 million, 2007 - $154 million), (note 15).
[4]Purchases of crude oil and products include amounts from related parties of $3,111 million (2008 - $4,729 million, 2007 - $3,331 million), (note 15).

Consolidated Balance Sheet. U.S

Consolidated Balance Sheet. U.S. GAAP (CAD $)
In Millions	Dec. 31, 2009		Dec. 31, 2008
Current Assets
Cash	$513	[2]	$1,974	[2]
Accounts receivable, less estimated doubtful amounts	1,714		1,455
Inventories of crude oil and products (note 12)	564		673
Materials, supplies and prepaid expenses	247		180
Deferred income tax assets (note 4)	467		361
Total current assets	3,505		4,643
Long-term receivables, investments and other long-term assets	854		881
Property, plant and equipment, less accumulated depreciation and depletion (note 3)	12,852		11,248
Goodwill (note 3)	204		204
Other intangible assets, net	58		59
Total assets (note 3)	17,473		17,035
Current liabilities
Notes and loans payable (note 13)	109		109
Accounts payable and accrued liabilities	2,811	[1]	2,586	[1]
Income taxes payable	848		1,498
Total current liabilities	3,768		4,193
Capitalized lease obligations (note 14)	31		34
Other long-term obligations (note 6)	2,839		2,254
Deferred income tax liabilities (note 4)	1,396		1,489
Total liabilities	8,034		7,970
Shareholders' equity
Common shares at stated value (note 11)	1,508	[3]	1,528	[3]
Earnings reinvested	9,252		8,484
Accumulated other comprehensive income	(1,321)		(947)
Total shareholders' equity	9,439		9,065
Total liabilities and shareholders' equity	$17,473		$17,035
[1]Accounts payable and accrued liabilities include amounts to related parties of $59 million (2008 - $127 million), (note 15).
[2]Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.
[3]Number of common shares outstanding was 848 million (2008 - 859 million), (note 11).

Statement Of Shareholders Equit

Statement Of Shareholders Equity And Other Comprehensive Income U.S. GAAP (CAD $)
In Millions		Earnings reinvested	Accumulated other comprehensive income	Total
At beginning of year at Dec. 31, 2006	$1,677	$6,462	($733)
Cumulative effect of accounting change (note 4)		14
Post-retirement benefits liability adjustment (note 5)			(87)
Issued under the stock option plan	12
Net income for the year		3,188		3,188
Amortization of post-retirement benefits liability adjustment included in net periodic benefit cost			72
Share purchases at stated value	(89)
Share purchases in excess of stated value		(2,269)
Other comprehensive income
Dividends		(324)
At end of year at Dec. 31, 2007	1,600	7,071	(748)	7,923
Cumulative effect of accounting change (note 4)		0
Post-retirement benefits liability adjustment (note 5)			(283)
Issued under the stock option plan	7
Net income for the year		3,878		3,878
Amortization of post-retirement benefits liability adjustment included in net periodic benefit cost			84
Share purchases at stated value	(79)
Share purchases in excess of stated value		(2,131)
Other comprehensive income
Dividends		(334)
At end of year at Dec. 31, 2008	1,528	8,484	(947)	9,065
Cumulative effect of accounting change (note 4)		0
Post-retirement benefits liability adjustment (note 5)			(468)
Issued under the stock option plan	1
Net income for the year		1,579		1,579
Amortization of post-retirement benefits liability adjustment included in net periodic benefit cost			94
Share purchases at stated value	(21)
Share purchases in excess of stated value		(471)
Other comprehensive income
Dividends		(340)
At end of year at Dec. 31, 2009	$1,508	$9,252	($1,321)	$9,439

Consolidated Statement of Cash

Consolidated Statement of Cash Flows. U.S. GAAP (CAD $)
In Millions	12 Months Ended Dec. 31, 2009		12 Months Ended Dec. 31, 2008		12 Months Ended Dec. 31, 2007
Operating activities
Net income	$1,579		$3,878		$3,188
Adjustments for non-cash items:
Depreciation and depletion	781		728		780
(Gain)/loss on asset sales	(45)		(241)		(215)
Deferred income taxes and other	(61)		387		75
Changes in operating assets and liabilities:
Accounts receivable	(261)		679		(261)
Inventories and prepaids	42		(159)		13
Income taxes payable	(650)		0		(77)
Accounts payable	271		(798)		250
All other items - net	(65)	[2]	(211)	[2]	(127)	[2]
Cash from operating activities	1,591		4,263		3,626
Investing activities
Additions to property, plant and equipment and intangibles	(2,285)		(1,231)		(899)
Proceeds from asset sales	67		272		279
Loans to equity company	2		(2)		0
Cash from (used in) investing activities	(2,216)		(961)		(620)
Financing activities
Short-term debt - net	0		0		(65)
Repayment of long-term debt	0		0		(1,722)
Long-term debt issued	0		0		500
Reduction in capitalized lease obligations	(4)		(3)		(4)
Issuance of common shares under stock option plan	1		7		12
Common shares purchased (note 11)	(492)		(2,210)		(2,358)
Dividends paid	(341)		(330)		(319)
Cash from (used in) financing activities	(836)		(2,536)		(3,956)
Increase (decrease) in cash	(1,461)		766		(950)
Cash at beginning of year	1,974	[1]	1,208	[1]	2,158
Cash at end of year	$513	[1]	$1,974	[1]	$1,208	[1]
[1]Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased.
[2]Includes contribution to registered pension plans of $180 million (2008 - $165 million, 2007 - $163 million).

Summary of significant accounti

Summary of significant accounting policies
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Summary of significant accounting policies	1. Summary of significant accounting policies Principles of consolidation The consolidated financial statements include the accounts of Imperial Oil Limited and its subsidiaries. Intercompany accounts and transactions are eliminated. Subsidiaries include those companies in which Imperial has both an equity interest and the continuing ability to unilaterally determine strategic, operating, investing and financing policies. Significant subsidiaries included in the consolidated financial statements include Imperial Oil Resources Limited, Imperial Oil Resources N.W.T. Limited, Imperial Oil Resources Ventures Limited and McColl-Frontenac Petroleum Inc. All of the above companies are wholly owned. A significant portion of the companys Upstream activities is conducted jointly with other companies. The accounts reflect the companys share of undivided interest in such activities, including its 25 percent interest in the Syncrude joint venture and its nine percent interest in the Sable offshore energy project. Inventories Inventories are recorded at the lower of cost or current market value. The cost of crude oil and products is determined primarily using the last-in, first-out (LIFO) method. LIFO was selected over the alternative first-in, first-out and average cost methods because it provides a better matching of current costs with the revenues generated in the period. Inventory costs include expenditures and other charges, including depreciation, directly or indirectly incurred in bringing the inventory to its existing condition and final storage prior to delivery to a customer. Selling and general expenses are reported as period costs and excluded from inventory costs. Investments The principal investments in companies other than subsidiaries are accounted for using the equity method. They are recorded at the original cost of the investment plus Imperials share of earnings since the investment was made, less dividends received. Imperials share of the after-tax earnings of these companies is included in investment and other income in the consolidated statement of income. Other investments are recorded at cost. Dividends from these other investments are included in investment and other income. These investments represent interests in non-publicly traded pipeline companies that facilitate the sale and purchase of crude oil and natural gas in the conduct of company operations. Other parties who also have an equity interest in these companies share in the risks and rewards according to their percentage of ownership. Imperial does not invest in these companies in order to remove liabilities from its balance sheet. Property, plant and equipment Property, plant and equipment are recorded at cost. Investment tax credits and other similar grants are treated as a reduction of the capitalized cost of the asset to which they apply. The company uses the successful-efforts method to account for its exploration and development activities. Under this method, costs are accumulated on a field-by-field basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred. Costs of productive wells and development dr

Accounting changes

Accounting changes
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Accounting changes	2. Accounting changes Fair value measurements Effective January1, 2009, the company adopted the authoritative guidance for fair value measurements as they relate to nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis. The guidance 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 the guidance as it relates to 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. Oil and gas reserves Effective December31, 2009, the company adopted the authoritative guidance for estimating and disclosing oil and gas reserve quantities. Year-end 2009 proved reserve volumes as well as the 2009 reserve change categories were calculated using average prices during the 12-month period ending December31, 2009. Year-end 2008 and 2007 reserve volumes were calculated using December31 prices. The effect on unit-of- production depreciation rates of using 12-month average versus December31 year-end prices will be applied prospectively commencing in 2010. Additionally, the definition of oil and gas producing activities has been expanded to include bitumen extracted through mining activities and hydrocarbons from other non-traditional resources. The amended rules also adopted a reliable technology definition that permits reserves to be added based on field-tested technologies. The adoption of this guidance is not expected to have a material impact on the companys consolidated financial position or results of operations.

Business segments

Business segments
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Business segments	3. Business segments The company operates its business in Canada. The Upstream, Downstream and Chemical functions best define the operating segments of the business that are reported separately. The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment and the structure of the companys internal organization. The Upstream segment is organized and operates to explore for and ultimately produce crude oil and its equivalent, and natural gas. The Downstream segment is organized and operates to refine crude oil into petroleum products and the distribution and marketing of these products. The Chemical segment is organized and operates to manufacture and market hydrocarbon-based chemicals and chemical products. The above segmentation has been the long-standing practice of the company and is broadly understood across the petroleum and petrochemical industries. These functions have been defined as the operating segments of the company because they are the segments (a)that engage in business activities from which revenues are earned and expenses are incurred; (b)whose operating results are regularly reviewed by the companys chief operating decision maker to make decisions about resources to be allocated to each segment and assess its performance; and (c)for which discrete financial information is available. Corporate and other includes assets and liabilities that do not specifically relate to business segments primarily cash, capitalized interest costs, long-term debt and liabilities associated with incentive compensation and post-retirement benefits liability adjustment. Net income in this segment primarily includes financing costs, interest income and share-based incentive compensation expenses. Segment accounting policies are the same as those described in the summary of significant accounting policies. Upstream, Downstream and Chemical expenses include amounts allocated from the Corporate and other segment. The allocation is based on a combination of fee for service, proportional segment expenses and a three-year average of capital expenditures. Transfers of assets between segments are recorded at book amounts. Intersegment sales are made essentially at prevailing market prices. Assets and liabilities that are not identifiable by segment are allocated. Upstream (a) Downstream Chemical millions of dollars 2009 2008 2007 2009 2008 2007 2009 2008 2007 Revenues and other income External sales (b) 3,552 5,819 4,539 16,793 24,049 19,230 947 1,372 1,300 Intersegment sales 3,328 5,403 4,146 1,535 2,892 2,305 289 460 335 Investment and other income 39 18 233 53 271 52 1 6,919 11,240 8,918 18,381 27,212 21,587 1,236 1,833 1,635 Expenses Exploration 153 132 106 Purchases of crude oil and products 2,024 3,995 3,113 14,164 22,223 16,469 898 1,401 1,230 Production and manufacturing 2,385 2,569 2,057 1,372

Income taxes

Income taxes
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Income taxes	4. Income taxes millions of dollars 2009 2008 2007 Current income tax expense 694 1,005 1,163 Deferred income tax expense (a) (73) 393 28 Total income tax expense (b) 621 1,398 1,191 Statutory corporate tax rate (percent) 28.7 29.5 30.1 Increase/(decrease) resulting from: Enacted tax rate change 0.2 (2.2) Other (0.7) (3.0) (0.7) Effective income tax rate 28.2 26.5 27.2 a) The provisions for deferred income taxes in 2009 include net (charges)/credits for the effect of changes in tax laws and rates of $(4) million (2008 - $1 million, 2007 - $90 million). b) Cash outflow from income taxes, plus investment credits earned, was $1,330 million in 2009 (2008 - $1,101 million, 2007 - $1,395 million). Income taxes (charged)/credited directly to shareholders equity were: millions of dollars 2009 2008 2007 Post-retirement benefits liability adjustment: Net actuarial loss/(gain) 160 102 21 Amortization of net actuarial (loss)/gain (29) (26) (24) Prior service cost 13 Amortization of prior service cost (4) (5) (6) Total post-retirement benefits liability adjustment 127 71 4 Deferred income taxes are based on differences between the accounting and tax values of assets and liabilities. These differences in value are re-measured at each year-end using the tax rates and tax laws expected to apply when those differences are realized or settled in the future. Components of deferred income tax liabilities and assets as at December31 were: millions of dollars 2009 2008 2007 Depreciation and amortization 1,691 1,685 1,624 Successful drilling and land acquisitions 305 258 276 Pension and benefits (427) (312) (249) Site restoration (233) (202) (156) Net tax loss carryforwards (a) (2) (37) Capitalized interest 49 53 49 Other 11 9 (36) Deferred income tax liabilities 1,396 1,489 1,471 LIFO inventory valuation (403) (301) (547) Other (64) (60) (113) Deferred income tax assets (467) (361) (660) Valuation allowance Net deferred income tax liabilities 929 1,128 811 a) Tax losses can be carried forward indefinitely. Unrecognized tax benefits As of January1, 2007, the company adopted the authoritative guidance on accounting for uncertainty in income taxes. The cumulative adjustment for the accounting change reported in 2007 was an after-tax gain of $14 million. The gain reflected the recognition of several refund claims with associated interest, partly offset by increased income tax reserves. Unrecognized tax benefits reflect the difference between positions taken on tax returns and the amounts recognized in the financial statements. Resolution of the related t

Employee retirement benefits

Employee retirement benefits
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Employee retirement benefits	5. Employee retirement benefits Retirement benefits, which cover almost all retired employees and their surviving spouses, include pension income and certain health care and life insurance benefits. They are met through funded registered retirement plans and through unfunded supplementary benefits that are paid directly to recipients. Pension income benefits consist mainly of company-paid defined benefit plans that are based on years of service and final average earnings. The company shares in the cost of health care and life insurance benefits. The companys benefit obligations are based on the projected benefit method of valuation that includes employee service to date and present compensation levels as well as a projection of salaries to retirement. The expense and obligations for both funded and unfunded benefits are determined in accordance with United States generally accepted accounting principles and actuarial procedures. The process for determining retirement-income expense and related obligations includes making certain long-term assumptions regarding the discount rate, rate of return on plan assets and rate of compensation increases. The obligation and pension expense can vary significantly with changes in the assumptions used to estimate the obligation and the expected return on plan assets. The benefit obligations and plan assets associated with the companys defined benefit plans are measured on December31. Pensionbenefits Otherpost-retirement benefits 2009 2008 2009 2008 Assumptions used to determine benefit obligations at December31 (percent) Discount rate 6.25 7.50 6.25 7.50 Long-term rate of compensation increase 4.50 4.50 4.50 4.50 millions of dollars Change in projected benefit obligation Projected benefit obligation at January1 4,136 4,685 372 426 Current service cost 80 94 4 6 Interest cost 303 271 26 25 Actuarial loss/(gain) 834 (583) 47 (61) Benefits paid (a) (297) (331) (23) (24) Projected benefit obligation at December31 5,056 4,136 426 372 Accumulated benefit obligation at December31 4,520 3,719 The discount rate for calculating year-end post-retirement liabilities is based on the yield for high quality, long-term Canadian corporate bonds at year-end with an average maturity (or duration) approximately that of the liabilities. The measurement of the accumulated post-retirement benefit obligation assumes a health care cost trend rate of 5.50 percent in 2010 that declines to 4.50 percent by 2011. Pensionbenefits Otherpost-retirement benefits millions of dollars 2009 2008 2009 2008 Change in plan assets Fair value at January1 3,312 4,098 Actual return/(loss) on plan assets 520 (699) Company contributions 180 165 Benefits paid (b) (259) (252) Fair value at December31 3,753 3,312 Plan assets

Other long-term obligations

Other long-term obligations
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Other long-term obligations	6. Other long-term obligations millions of dollars 2009 2008 Employee retirement benefits (note 5) (a) 1,682 1,151 Asset retirement obligations and other environmental liabilities (b) 806 728 Share-based incentive compensation liabilities (note 8) 144 159 Other obligations 207 216 Total other long-term obligations 2,839 2,254 a) Total recorded employee retirement benefit obligations also include $47 million in current liabilities (2008 $45 million). b) Total asset retirement obligations and other environmental liabilities also include $114 million in current liabilities (2008 $83 million). Asset retirement obligations incurred in the current period were Level 3 (unobservable inputs) fair value measurements. The following table summarizes the activity in the liability for asset retirement obligations: January 1 balance 711 488 Additions 135 232 Accretion 42 29 Settlement (78) (38) December 31 balance 810 711

Derivatives and financial instr

Derivatives and financial instruments
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Derivatives and financial instruments	7. Derivatives and financial instruments The company did not enter into any energy derivatives, foreign-exchange forward contracts or currency and interest-rate swaps in the past three years. The company maintains a system of controls that includes a policy covering the authorization, reporting and monitoring of derivative activity. The fair value of the companys financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair values of the companys financial instruments and the recorded book value.

Share-based incentive compensat

Share-based incentive compensation programs
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Share-based incentive compensation programs	8. Share-based incentive compensation programs Share-based incentive compensation programs are designed to retain selected employees, reward them for high performance and promote individual contribution to sustained improvement in the companys future business performance and shareholder value. Incentive share units, deferred share units and restricted stock units Incentive share units have value if the market price of the companys common shares when the unit is exercised exceeds the market value when the unit was issued, as adjusted for any share splits. The issue price of incentive share units is the closing price of the companys shares on the Toronto Stock Exchange on the grant date. Up to 50 percent of the units may be exercised after one year from issuance; an additional 25 percent may be exercised after two years; and the remaining 25 percent may be exercised after three years. Incentive share units are eligible for exercise up to ten years from issuance. The last grant expires in 2011. The units may expire earlier if employment is terminated other than by retirement, death or disability. The deferred share unit plan is made available to selected executives and nonemployee directors. The selected executives can elect to receive all or part of their performance bonus compensation in units, and the nonemployee directors can elect to receive all or part of their directors fees in units. The number of units granted to executives is determined by dividing the amount of the bonus elected to be received as deferred share units by the average of the closing prices of the companys shares on the Toronto Stock Exchange for the five consecutive trading days immediately prior to the date that the bonus would have been paid. The number of units granted to a nonemployee director is determined at the end of each calendar quarter by dividing the amount of directors fees for the calendar quarter that the nonemployee director elected to receive as deferred share units by the average closing price of the companys shares for the five consecutive trading days immediately prior to the last day of the calendar quarter. Additional units are granted based on the cash dividend payable on the companys shares divided by the average closing price immediately prior to the payment date for that dividend and multiplying the resulting number by the number of deferred share units held by the recipient, as adjusted for any share splits. In February 2010, the company announced that the deferred share unit plan for selected executives was terminated. Deferred share units cannot be exercised until after termination of employment with the company or resignation as a director and must be exercised no later than December31 of the year following termination or resignation. On the exercise date, the cash value to be received for the units is determined based on the average closing price of the companys shares for the five consecutive trading days immediately prior to the date of exercise, as adjusted for any share splits. Under the restricted stock unit plan, each unit entitles the recipient to the conditional right to receive from the company, upon exercise, an amo

Investment and other income

Investment and other income
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Investment and other income	9. Investment and other income Investment and other income includes gains and losses on asset sales as follows: millions of dollars 2009 2008 2007 Proceeds from asset sales 67 272 279 Book value of assets sold 22 31 64 Gain/(loss) on asset sales, before tax (a)(b) 45 241 215 Gain/(loss) on asset sales, after tax (a)(b) 38 209 156 a) 2007 included a gain of $200 million ($142 million, after tax) from the sale of the companys interests in a natural gas producing property in British Columbia and in the Willesden Green producing property. b) 2008 included a gain of $219 million ($187 million, after tax) from the sale of the companys equity investment in Rainbow Pipe Line Co. Ltd.

Litigation and other contingenc

Litigation and other contingencies
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Litigation and other contingencies	10. Litigation and other contingencies A variety of claims have been made against Imperial Oil Limited and its subsidiaries in a number of 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 company 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 company 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 unfavourable outcome is reasonably possible and which are significant, the company discloses the nature of the contingency and, where feasible, an estimate of the possible loss. Based on a consideration of all relevant facts and circumstances, the company does not believe the ultimate outcome of any currently pending lawsuits against the company will have a material adverse effect on the companys operations or financial condition. Additionally, the company has other commitments arising in the normal course of business for operating and capital needs, all of which are expected to be fulfilled with no adverse consequences material to the companys operations or financial condition. Unconditional purchase obligations, as defined by accounting standards, are those long-term commitments that are non-cancelable or cancelable only under certain conditions and that third parties have used to secure financing for the facilities that will provide the contracted goods and services. Payments due by period millions of dollars 2010 2011 2012 2013 2014 After 2014 Total Unconditional purchase obligations (a) 55 64 32 32 31 192 406 a) Undiscounted obligations of $406 million mainly pertain to pipeline throughput agreements. Total payments under unconditional purchase obligations were $74 million (2008 - $117 million, 2007 - $94 million). The present value of these commitments, excluding imputed interest of $98 million, totaled $308 million.

Common shares

Common shares
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Common shares	11. Common shares thousands of shares As at Dec. 31 2009 As at Dec. 31 2008 Authorized 1,100,000 1,100,000 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. Year Purchased shares (thousands) Millionsof dollars 1995 to 2007 846,139 12,811 2008 44,295 2,210 2009 11,856 492 Cumulative purchases to date 902,290 15,513 Exxon Mobil Corporations participation in the above 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 companys common share activities are summarized below: Thousands of shares Millionsof dollars Balance as at January1, 2007 952,988 1,677 Issued for cash under the stock option plan 791 12 Purchases at stated value (50,516) (89) Balance as at December31, 2007 903,263 1,600 Issued for cash under the stock option plan 434 7 Purchases at stated value (44,295) (79) Balance as at December31, 2008 859,402 1,528 Issued under employee share-based awards 54 1 Purchases at stated value (11,856) (21) Balance as at December31, 2009 847,600 1,508 The following table provides the calculation of basic and diluted earnings per share: 2009 2008 2007 Net income per common share - basic Net income (millions of dollars) 1,579 3,878 3,188 Weighted average number of common shares outstanding (thousands of shares) 849,760 882,604 928,527 Net income per common share (dollars) 1.86 4.39 3.43 Net income per common share - diluted Net income (millions of dollars) 1,579 3,878 3,188 Weighted average number of common shares outstanding (thousands of shares) 849,760 882,604 928,527 Effect of employee share-based awards (thousands of shares) 6,880 6,418 5,811 Weighted average number of common shares outstanding, assuming dilution (thousands of shares) 856,640 889,022 934,338 Net income per common share (dollars) 1.84 4.36 3.41

Miscellaneous financial informa

Miscellaneous financial information
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Miscellaneous financial information	12. Miscellaneous financial information In 2009, net income included an after-tax gain of $46 million (2008 $27 million gain, 2007 $25 million gain) attributable to the effect of changes in last-in, first-out (LIFO) inventories. The replacement cost of inventories was estimated to exceed their LIFO carrying values at December31, 2009 by $1,579 million (2008 $994 million). Inventories of crude oil and products at year-end consisted of the following: millions of dollars 2009 2008 Crude oil 312 328 Petroleum products 186 268 Chemical products 53 65 Natural gas and other 13 12 Total inventories of crude oil and products 564 673 Research and development costs in 2009 were $89 million (2008 $83 million, 2007 $89 million) before investment tax credits earned on these expenditures of $11 million (2008 $9 million, 2007 $9 million). Research and development costs are included in expenses due to the uncertainty of future benefits. Cash flow from operating activities included dividends of $14 million received from equity investments in 2009 (2008 $11 million, 2007 $22 million).

Financing costs

Financing costs
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Financing costs	13. Financing costs millions of dollars 2009 2008 2007 Debt-related interest 5 8 62 Capitalized interest (5) (8) (36) Net interest expense 26 Other interest 5 10 Total financing costs (a) 5 36 a) Cash interest payments in 2009 were $8 million (2008 $6 million, 2007 $80 million). The weighted average interest rate on short-term borrowings in 2009 was 0.7 percent (2008 3.5 percent).

Leased facilities and capitaliz

Leased facilities and capitalized lease obligations
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Leased facilities and capitalized lease obligations	14. Leased facilities and capitalized lease obligations At December31, 2009, the company held non-cancelable operating leases covering office buildings, rail cars, service stations and other properties with minimum undiscounted lease commitments totaling $415 million as indicated in the following table: Payments due by period millions of dollars 2010 2011 2012 2013 2014 After 2014 Total Lease payments under minimum commitments (a) 72 68 59 53 49 114 415 a) Total rental expenditures incurred for operating leases in 2009 was $129 million (2008 $149 million, 2007 $98 million), which included minimum rental expenditures of $128 million (2008 - $140 million, 2007 - $86 million). Related rental income was not material. Capitalized lease obligations primarily relate to the capital lease for marine services, which are provided by the lessor commencing in 2004 for a period of 10 years, extendable for an additional five years. The average imputed rate was 11.1 percent in 2009 (2008 11.0 percent). Total capitalized lease obligations also include $4 million in current liabilities (2008 - $4 million). Principal payments on capital leases of approximately $4 million a year are due in each of the next five years.

Transactions with related parti

Transactions with related parties
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Transactions with related parties	15. Transactions with related parties Revenues and expenses of the company also include the results of transactions with Exxon Mobil Corporation and affiliated companies (ExxonMobil) in the normal course of operations. These were conducted on terms as favourable as they would have been with unrelated parties and primarily consisted of the purchase and sale of crude oil, natural gas, petroleum and chemical products, as well as transportation, technical and engineering services. Transactions with ExxonMobil also included amounts paid and received in connection with the companys participation in a number of upstream activities conducted jointly in Canada. In addition, the company has existing agreements with ExxonMobil to: a) provide computer and customer support services to the company and to share common business and operational support services that allow the companies to consolidate duplicate work and systems; b) operate the Western Canada production properties owned by ExxonMobil. This contractual agreement is designed to provide organizational efficiencies and to reduce costs. No separate legal entities were created from this arrangement. Separate books of account continue to be maintained for the company and ExxonMobil. The company and ExxonMobil retain ownership of their respective assets, and there is no impact on operations or reserves; c) provide for the delivery of management, business and technical services to Syncrude Canada Ltd. by ExxonMobil; and d) provide for equal participation in new upstream opportunities. Certain charges from ExxonMobil have been capitalized; they are not material in the aggregate. In 2009, the company entered into an agreement with ExxonMobil that provides for a long-term variable-rate loan from ExxonMobil to the company of up to $5 billion (Canadian) at interest equivalent to Canadian market rates. The company has not drawn on this agreement. As at December31, 2009, the company had outstanding loans of $33 million (2008 - $35 million) to Montreal Pipe Line Limited, in which the company has an equity interest, for financing of the equity companys capital expenditure programs and working capital requirements.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009 CAD ($) CAD / shares
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (CAD $)
	12 Months Ended Dec. 31, 2009	Feb. 12, 2010	Jun. 30, 2009
Trading Symbol	IMO
Entity Registrant Name	IMPERIAL OIL LTD
Entity Central Index Key	0000049938
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		847,602,581
Entity Public Float			$11,626,102,344