Document and Entity Information
Document and Entity Information | ||
3 Months Ended
Mar. 31, 2010 CAD ($) | Mar. 31, 2010
CAD ($) | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | 2010-03-31 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | IMO | |
Entity Registrant Name | IMPERIAL OIL LTD | |
Entity Central Index Key | 0000049938 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 847,599,011 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (U.S. GAAP, unaudited) (CAD $) | |||||||||||||||||||
In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | |||||||||||||||||
REVENUES AND OTHER INCOME | |||||||||||||||||||
Operating revenues | $6,134 | [1],[2] | $4,653 | [1],[2] | |||||||||||||||
Investment and other income (4) | 32 | 17 | |||||||||||||||||
TOTAL REVENUES AND OTHER INCOME | 6,166 | 4,670 | |||||||||||||||||
EXPENSES | |||||||||||||||||||
Exploration | 87 | 83 | |||||||||||||||||
Purchases of crude oil and products | 3,661 | [3] | 2,320 | [3] | |||||||||||||||
Production and manufacturing (5) | 1,030 | [4] | 1,030 | [4] | |||||||||||||||
Selling and general (5) | 250 | 330 | |||||||||||||||||
Federal excise tax | 304 | [2] | 306 | [2] | |||||||||||||||
Depreciation and depletion | 182 | 197 | |||||||||||||||||
Financing costs | 1 | 2 | |||||||||||||||||
TOTAL EXPENSES | 5,515 | 4,268 | |||||||||||||||||
INCOME BEFORE INCOME TAXES | 651 | 402 | |||||||||||||||||
INCOME TAXES | 175 | 113 | |||||||||||||||||
NET INCOME (3) | $476 | $289 | |||||||||||||||||
NET INCOME PER COMMON SHARE - BASIC (dollars) (7) | 0.56 | 0.34 | |||||||||||||||||
NET INCOME PER COMMON SHARE - DILUTED (dollars) (7) | 0.56 | 0.33 | |||||||||||||||||
DIVIDENDS PER COMMON SHARE (dollars) | 0.1 | 0.1 | |||||||||||||||||
[1]Amounts from related parties included in operating revenues of $608 million (2009 - $314 million). | |||||||||||||||||||
[2]Federal excise tax included in operating revenues of $304 million (2009 - $306 million). | |||||||||||||||||||
[3]Amounts to related parties included in purchases of crude oil and products of $523 million (2009 - $697 million). | |||||||||||||||||||
[4]Amounts to related parties included in production and manufacturing expenses of $55 million (2009 - $59 million). |
CONSOLIDATED BALANCE SHEET (U.S
CONSOLIDATED BALANCE SHEET (U.S. GAAP, unaudited) (CAD $) | |||||||||||||||||||
In Millions | Mar. 31, 2010
| Dec. 31, 2009
| |||||||||||||||||
Current assets | |||||||||||||||||||
Cash | $534 | $513 | |||||||||||||||||
Accounts receivable, less estimated doubtful accounts | 1,894 | 1,714 | |||||||||||||||||
Inventories of crude oil and products | 663 | 564 | |||||||||||||||||
Materials, supplies and prepaid expenses | 282 | 247 | |||||||||||||||||
Deferred income tax assets | 468 | 467 | |||||||||||||||||
Total current assets | 3,841 | 3,505 | |||||||||||||||||
Long-term receivables, investments and other long-term assets | 750 | 854 | |||||||||||||||||
Property, plant and equipment, | 27,185 | 26,421 | |||||||||||||||||
less accumulated depreciation and depletion | 13,706 | 13,569 | |||||||||||||||||
Property, plant and equipment, net | 13,479 | 12,852 | |||||||||||||||||
Goodwill | 204 | 204 | |||||||||||||||||
Other intangible assets, net | 61 | 58 | |||||||||||||||||
TOTAL ASSETS | 18,335 | 17,473 | |||||||||||||||||
Current liabilities | |||||||||||||||||||
Notes and loans payable | 109 | 109 | |||||||||||||||||
Accounts payable and accrued liabilities (6) | 3,448 | [1] | 2,811 | [1] | |||||||||||||||
Income taxes payable | 686 | 848 | |||||||||||||||||
Total current liabilities | 4,243 | 3,768 | |||||||||||||||||
Capitalized lease obligations | 30 | 31 | |||||||||||||||||
Other long-term obligations (6) | 2,679 | 2,839 | |||||||||||||||||
Deferred income tax liabilities | 1,440 | 1,396 | |||||||||||||||||
TOTAL LIABILITIES | 8,392 | 8,034 | |||||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||
Common shares at stated value | 1,508 | [2] | 1,508 | [2] | |||||||||||||||
Earnings reinvested | 9,644 | 9,252 | |||||||||||||||||
Accumulated other comprehensive income (8) | (1,209) | (1,321) | |||||||||||||||||
TOTAL SHAREHOLDERS' EQUITY | 9,943 | 9,439 | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $18,335 | $17,473 | |||||||||||||||||
[1]Accounts payable and accrued liabilities include amounts to related parties of $250 million (2009 - $59 million). | |||||||||||||||||||
[2]Number of common shares authorized and outstanding were 1,100 million and 848 million, respectively (December 31, 2009 - 1,100 million and 848 million, respectively). |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (U.S. GAAP, unaudited) (CAD $) | |||||||||||||||||||
In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 | |||||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||||
Net income | $476 | $289 | |||||||||||||||||
Adjustment for non-cash items: | |||||||||||||||||||
Depreciation and depletion | 182 | 197 | |||||||||||||||||
(Gain)/loss on asset sales (4) | (4) | (1) | |||||||||||||||||
Deferred income taxes and other | 2 | 28 | |||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||
Accounts receivable | (180) | (125) | |||||||||||||||||
Inventories and prepaids | (134) | (297) | |||||||||||||||||
Income taxes payable | (162) | (560) | |||||||||||||||||
Accounts payable | 637 | 288 | |||||||||||||||||
All other items - net | 97 | [1] | (115) | [1] | |||||||||||||||
CASH FROM (USED IN) OPERATING ACTIVITIES | 914 | (296) | |||||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Additions to property, plant and equipment and intangibles | (813) | (411) | |||||||||||||||||
Proceeds from asset sales | 6 | 2 | |||||||||||||||||
Loans to equity company | 0 | 2 | |||||||||||||||||
CASH FROM (USED IN) INVESTING ACTIVITIES | (807) | (407) | |||||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Reduction in capitalized lease obligations | (1) | (1) | |||||||||||||||||
Common shares purchased | 0 | (429) | |||||||||||||||||
Dividends paid | (85) | (86) | |||||||||||||||||
CASH FROM (USED IN) FINANCING ACTIVITIES | (86) | (516) | |||||||||||||||||
INCREASE (DECREASE) IN CASH | 21 | (1,219) | |||||||||||||||||
CASH AT BEGINNING OF PERIOD | 513 | 1,974 | |||||||||||||||||
CASH AT END OF PERIOD | $534 | $755 | |||||||||||||||||
[1]Includes contribution to registered pension plans of ($70 ) million (2009 - ($161 ) million). |
Basis of financial statement pr
Basis of financial statement presentation | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
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 March31, 2010, and December31, 2009, and the results of operations and changes in cash flows for the three months ended March31, 2010 and 2009. All such adjustments are of a normal recurring nature. 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 2010 presentation. The results for the three months ended March31, 2010, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated. |
Accounting change for variable-
Accounting change for variable-interest entities | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
Accounting change for variable-interest entities | 2. Accounting change for variable-interest entities Effective January1, 2010, the company adopted the authoritative guidance for variable-interest entities (VIEs). The guidance requires the enterprise to qualitatively assess if it is the primary beneficiary of the VIE and, if so, the VIE must be consolidated. The adoption did not have any impact on the companys financial statements. |
Business Segments
Business Segments | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
Business Segments | 3. Business Segments Three months to March31 Upstream Downstream Chemical millions of dollars 2010 2009 2010 2009 2010 2009 REVENUES AND OTHER INCOME External sales (a) 1,241 760 4,610 3,685 283 208 Intersegment sales 948 656 571 390 70 64 Investment and other income 20 4 11 8 0 0 2,209 1,420 5,192 4,083 353 272 EXPENSES Exploration 87 83 0 0 0 0 Purchases of crude oil and products 787 364 4,187 2,867 276 199 Production and manufacturing 602 646 370 336 58 48 Selling and general 2 1 224 233 17 19 Federal excise tax 0 0 304 306 0 0 Depreciation and depletion 125 136 52 56 3 3 Financing costs 0 0 0 1 0 0 TOTAL EXPENSES 1,603 1,230 5,137 3,799 354 269 INCOME BEFORE INCOME TAXES 606 190 55 284 (1 ) 3 INCOME TAXES 162 48 16 82 0 0 NET INCOME 444 142 39 202 (1 ) 3 Export sales to the United States 297 405 298 237 165 109 Cash flows from (used in) operating activities 742 (230 ) 186 (46 ) 4 (14 ) CAPEX (b) 855 447 38 42 6 4 Total assets as at March31 11,190 9,154 6,323 6,326 414 420 Three months to March31 Corporate and Other Eliminations Consolidated millions of dollars 2010 2009 2010 2009 2010 2009 REVENUES AND OTHER INCOME External sales (a) 0 0 0 0 6,134 4,653 Intersegment sales 0 0 (1,589 ) (1,110 ) 0 0 Investment and other income 1 5 0 0 32 17 1 5 (1,589 ) (1,110 ) 6,166 4,670 EXPENSES Exploration 0 0 0 0 87 83 Purchases of crude oil and products 0 0 (1,589 ) (1,110 ) 3,661 2,320 Production and manufacturing 0 0 0 0 1,030 1,030 Selling and general 7 77 0 0 250 330 Federal excise tax 0 0 0 0 304 306 Depreciation and depletion 2 2 0 0 182 197 Financing costs 1 1 0 0 1 2 TOTAL EXPENSES 10 80 (1,589 ) (1,110 ) 5,515 4,268 INCOME BEFORE INCOME TAXES (9 ) (75 ) 0 0 651 402 INCOME TAXES (3 ) (17 ) 0 0 175 113 NE |
Investment and other income
Investment and other income | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
Investment and other income | 4. Investment and other income Investment and other income includes gains and losses on asset sales as follows: Threemonths to March 31 millions of dollars 2010 2009 Proceeds from asset sales 6 2 Book value of assets sold 2 1 Gain/(loss) on asset sales, before tax 4 1 Gain/(loss) on asset sales, after tax 4 1 |
Employee retirement benefits
Employee retirement benefits | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
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: Threemonths to March 31 millions of dollars 2010 2009 Pension benefits: Current service cost 25 26 Interest cost 77 73 Expected return on plan assets (68 ) (68 ) Amortization of prior service cost 4 4 Recognized actuarial loss/(gain) 34 28 Net benefit cost 72 63 Other post-retirement benefits: Current service cost 1 1 Interest cost 6 7 Net benefit cost 7 8 |
Other long-term obligations
Other long-term obligations | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
Other long-term obligations | 6. Other long-term obligations millions of dollars Asat Mar.31 2010 As at Dec.31 2009 Employee retirement benefits (a) 1,523 1,682 Asset retirement obligations and other environmental liabilities (b) 799 806 Share-based incentive compensation liabilities 152 144 Other obligations 205 207 Total other long-term obligations 2,679 2,839 (a) Total recorded employee retirement benefits obligations also include $47 million in current liabilities (December 31, 2009 - $47 million). (b) Total asset retirement obligations and other environmental liabilities also include $112 million in current liabilities (December 31, 2009 - $114 million). |
Net income per share
Net income per share | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
Net income per share | 7. Net income per share Threemonths to March 31 2010 2009 Net income per common share - basic Net income (millions of dollars) 476 289 Weighted average number of common shares outstanding (millions of shares) 847.6 856.0 Net income per common share (dollars) 0.56 0.34 Net income per common share - diluted Net income (millions of dollars) 476 289 Weighted average number of common shares outstanding (millions of shares) 847.6 856.0 Effect of employee share - based awards (millions of shares) 6.6 6.7 Weighted average number of common shares outstanding, assuming dilution (millions of shares) 854.2 862.7 Net income per common share (dollars) 0.56 0.33 |
Comprehensive income
Comprehensive income | |
3 Months Ended
Mar. 31, 2010 CAD ($) | |
Comprehensive income | 8. Comprehensive income Threemonths to March 31 millions of dollars 2010 2009 Net income 476 289 Post-retirement benefit liability adjustment (excluding amortization) 84 0 Amortization of post retirement benefit liability adjustment included in net periodic benefit costs 28 23 Other comprehensive income (net of income taxes) 112 23 Total comprehensive income 588 312 |