Imperial Oil Limited (IMO) 10-Q 6 May 10 2010 Q1 Quarterly report Financial data

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