Document and Entity Information
Document and Entity Information - CAD | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 07, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | IMO | ||
Entity Registrant Name | IMPERIAL OIL LTD | ||
Entity Central Index Key | 49,938 | ||
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 | 831,242,307 | ||
Entity Public Float | CAD 9,702,192,452 |
Consolidated statement of incom
Consolidated statement of income - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues and other income | ||||
Operating revenues | [1],[2] | CAD 29,125 | CAD 25,049 | CAD 26,756 |
Investment and other income (note 8) | 299 | 2,305 | 132 | |
Total revenues and other income | 29,424 | 27,354 | 26,888 | |
Expenses | ||||
Exploration (note 15) | [3] | 183 | 94 | 73 |
Purchases of crude oil and products | [4] | 18,145 | 15,120 | 15,284 |
Production and manufacturing | [5] | 5,698 | 5,224 | 5,434 |
Selling and general | [5] | 893 | 1,129 | 1,117 |
Federal excise tax | 1,673 | 1,650 | 1,568 | |
Depreciation and depletion | [3] | 2,172 | 1,628 | 1,450 |
Financing costs (note 12) | [6] | 78 | 65 | 39 |
Total expenses | 28,842 | 24,910 | 24,965 | |
Income (loss) before income taxes | 582 | 2,444 | 1,923 | |
Income taxes (note 3) | [7],[8] | 92 | 279 | 801 |
Net income (loss) | CAD 490 | CAD 2,165 | CAD 1,122 | |
Per share information (Canadian dollars) | ||||
Net income (loss) per common share - basic (note 10) | CAD 0.58 | CAD 2.55 | CAD 1.32 | |
Net income (loss) per common share - diluted (note 10) | 0.58 | 2.55 | 1.32 | |
Dividends per common share | CAD 0.63 | CAD 0.59 | CAD 0.54 | |
[1] | Amounts from related parties included in operating revenues (note 16). 4,110 2,342 3,058 | |||
[2] | Includes export sales to the United States of $4,392 million (2016 - $3,612 million, 2015 - $4,157 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | |||
[3] | The Upstream segment in 2017 includes non-cash impairment charges of $396 million, before tax, associated with the Horn River development and $379 million, before tax, associated with the Mackenzie gas project. The impairment charges are recognized in the lines exploration, and depreciation and depletion on the consolidated statement of income, and the accumulated depreciation and depletion line of the consolidated balance sheet. | |||
[4] | Amounts to related parties included in purchases of crude oil and products (note 16). 2,687 2,224 2,684 | |||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses (note 16). 544 533 442 | |||
[6] | Cash interest payments in 2017 were $58 million (2016 - $73 million, 2015 - $74 million). The weighted average interest rate on short-term borrowings in 2017 was 0.9 percent (2016 - 0.8 percent, 2015 - 0.8 percent). Average effective rate on the long-term borrowings with ExxonMobil in 2017 was 1.3 percent (2016 - 1.0 percent, 2015 - 1.0 percent). | |||
[7] | Cash outflow from income taxes, plus investment credits earned, was $322 million (2016 - $172 million, 2015 - $202 million). | |||
[8] | On November 2, 2017 the British Columbia government enacted a 1 percent increase in the provincial tax rate from 11 percent to 12 percent. On June 30, 2015 the Alberta government enacted a 2 percent increase in the provincial tax rate, from 10 percent to 12 percent. |
Consolidated statement of inco3
Consolidated statement of income (Parenthetical) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amounts from related parties included in operating revenues (note 16) | CAD 4,110 | CAD 2,342 | CAD 3,058 |
Amounts to related parties included in purchases of crude oil and products (note 16) | 2,687 | 2,224 | 2,684 |
Amounts to related parties included in production and manufacturing, and selling and general expenses (note 16) | CAD 544 | CAD 533 | CAD 442 |
Consolidated statement of compr
Consolidated statement of comprehensive income - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) | CAD 490 | CAD 2,165 | CAD 1,122 |
Other comprehensive income (loss), net of income taxes | |||
Post retirement benefits liability adjustment (excluding amortization) | (54) | (210) | 64 |
Amortization of post retirement benefits liability adjustment included in net periodic benefit costs | 136 | 141 | 167 |
Total other comprehensive income (loss) | 82 | (69) | 231 |
Comprehensive income (loss) | CAD 572 | CAD 2,096 | CAD 1,353 |
Consolidated balance sheet
Consolidated balance sheet - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Current assets | |||
Cash | [1] | CAD 1,195 | CAD 391 |
Accounts receivable, less estimated doubtful accounts | [2] | 2,712 | 2,023 |
Inventories of crude oil and products (note 11) | 1,075 | 949 | |
Materials, supplies and prepaid expenses | 425 | 468 | |
Total current assets | 5,407 | 3,831 | |
Investments and long-term receivables | [3] | 865 | 1,030 |
Property, plant and equipment, less accumulated depreciation and depletion | [4],[5] | 34,473 | 36,333 |
Goodwill | 186 | 186 | |
Other assets, including intangibles, net (note 5) | 670 | 274 | |
Total assets | 41,601 | 41,654 | |
Current liabilities | |||
Notes and loans payable (note 12) | [6] | 202 | 202 |
Accounts payable and accrued liabilities (note 11) | [2] | 3,877 | 3,193 |
Income taxes payable | 57 | 488 | |
Total current liabilities | 4,136 | 3,883 | |
Long-term debt (note 14) | [7] | 5,005 | 5,032 |
Other long-term obligations (note 5) | [8] | 3,780 | 3,656 |
Deferred income tax liabilities (note 3) | 4,245 | 4,062 | |
Total liabilities | 17,166 | 16,633 | |
Commitments and contingent liabilities (note 9) | |||
Shareholders' equity | |||
Common shares at stated value (note 10) | [9] | 1,536 | 1,566 |
Earnings reinvested | 24,714 | 25,352 | |
Accumulated other comprehensive income (loss) (note 17) | (1,815) | (1,897) | |
Total shareholders' equity | 24,435 | 25,021 | |
Total liabilities and shareholders' equity | CAD 41,601 | CAD 41,654 | |
[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] | Accounts receivable, less estimated doubtful accounts included net amounts receivable from related parties of $509 million (2016 - $172 million), (note 16). | ||
[3] | Investments and long-term receivables included amounts from related parties of $19 million (2016 - $0 million), (note 16). | ||
[4] | Includes property, plant and equipment under construction of $1,047 million (2016 - $2,705 million, 2015 - $3,719 million). | ||
[5] | The Upstream segment in 2017 includes non-cash impairment charges of $396 million, before tax, associated with the Horn River development and $379 million, before tax, associated with the Mackenzie gas project. The impairment charges are recognized in the lines exploration, and depreciation and depletion on the consolidated statement of income, and the accumulated depreciation and depletion line of the consolidated balance sheet. | ||
[6] | Notes and loans payable included amounts to related parties of $75 million (2016 - $75 million), (note 16). | ||
[7] | Long-term debt included amounts to related parties of $4,447 million (2016 - $4,447 million), (note 16). | ||
[8] | Other long-term obligations included amounts to related parties of $60 million (2016 - $104 million), (note 16). | ||
[9] | Number of common shares authorized and outstanding were 1,100 million and 831 million, respectively (2016 - 1,100 million and 848 million, respectively), (note 10). |
Consolidated balance sheet (Par
Consolidated balance sheet (Parenthetical) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Amounts receivable (payable) from (to) related parties | CAD 509 | CAD 172 |
Due to related parties, current | CAD 75 | CAD 75 |
Common shares authorized | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding | 831,242,000 | 847,599,000 |
Investments and Long Term Receivables | ||
Investments and long-term receivables | CAD 19 | CAD 0 |
Long-term debt | ||
Due to related parties | 4,447 | 4,447 |
Other long-term obligations | ||
Due to related parties | CAD 60 | CAD 104 |
Consolidated statement of share
Consolidated statement of shareholders' equity - CAD CAD in Millions | Total | Common shares at stated value (note 10) | Earnings reinvested | Accumulated other comprehensive income (loss) (note 17) |
At beginning of year at Dec. 31, 2014 | CAD 1,566 | CAD 23,023 | CAD (2,059) | |
Net income (loss) for the year | CAD 1,122 | 1,122 | ||
Issued under the stock option plan | 0 | |||
Other comprehensive income (loss) | 231 | 231 | ||
Dividends declared | (458) | |||
At end of year at Dec. 31, 2015 | 23,425 | 1,566 | 23,687 | (1,828) |
Net income (loss) for the year | 2,165 | 2,165 | ||
Issued under the stock option plan | 0 | |||
Other comprehensive income (loss) | (69) | (69) | ||
Dividends declared | (500) | |||
At end of year at Dec. 31, 2016 | 25,021 | 1,566 | 25,352 | (1,897) |
Net income (loss) for the year | 490 | 490 | ||
Issued under the stock option plan | 0 | |||
Other comprehensive income (loss) | 82 | 82 | ||
Share purchases in excess of stated value | (597) | |||
Share purchases at stated value | 30 | |||
Dividends declared | (531) | |||
At end of year at Dec. 31, 2017 | CAD 24,435 | CAD 1,536 | CAD 24,714 | CAD (1,815) |
Consolidated statement of cash
Consolidated statement of cash flows - CAD CAD in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Operating activities | ||||||
Net income (loss) | CAD 490 | CAD 2,165 | CAD 1,122 | |||
Adjustments for non-cash items: | ||||||
Depreciation and depletion | [1] | 2,172 | 1,628 | 1,450 | ||
(Gain) loss on asset sales (note 8) | [2],[3] | (220) | (2,244) | (97) | ||
Inventory write-down to current market value | 59 | |||||
Deferred income taxes and other | 321 | 114 | 367 | |||
Changes in operating assets and liabilities: | ||||||
Accounts receivable | (689) | (442) | (42) | |||
Inventories, materials, supplies and prepaid expenses | (83) | 197 | (172) | |||
Income taxes payable | (431) | 36 | 418 | |||
Accounts payable and accrued liabilities | 678 | 237 | (1,030) | |||
All other items - net | [4],[5] | 525 | 324 | 92 | ||
Cash flows from (used in) operating activities | 2,763 | 2,015 | 2,167 | |||
Investing activities | ||||||
Additions to property, plant and equipment | [5] | (993) | (1,073) | (2,994) | ||
Proceeds from asset sales (note 8) | 232 | 3,021 | 142 | |||
Additional investments | (1) | (1) | (32) | |||
Loans to equity company | (19) | |||||
Cash flows from (used in) investing activities | (781) | 1,947 | (2,884) | |||
Financing activities | ||||||
Short-term debt - net | (1,749) | (32) | ||||
Long-term debt - additions (note 14) | 495 | 1,206 | ||||
Long-term debt - reductions (note 14) | (2,000) | |||||
Reduction in capitalized lease obligations (note 14) | (27) | (28) | (20) | |||
Dividends paid | (524) | (492) | (449) | |||
Common shares purchased (note 10) | (627) | |||||
Cash flows from (used in) financing activities | (1,178) | (3,774) | 705 | |||
Increase (decrease) in cash | 804 | 188 | (12) | |||
Cash at beginning of year | 391 | [6] | 203 | [6] | 215 | |
Cash at end of year | [6] | CAD 1,195 | CAD 391 | CAD 203 | ||
[1] | The Upstream segment in 2017 includes non-cash impairment charges of $396 million, before tax, associated with the Horn River development and $379 million, before tax, associated with the Mackenzie gas project. The impairment charges are recognized in the lines exploration, and depreciation and depletion on the consolidated statement of income, and the accumulated depreciation and depletion line of the consolidated balance sheet. | |||||
[2] | 2016 included a gain of $2.0 billion ($1.7 billion, after tax) from the sale of company-owned Esso-branded retail sites; and a gain of $161 million ($134 million, after tax) from the sale of Imperial's general aviation business. | |||||
[3] | 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. | |||||
[4] | Included contribution to registered pension plans. 212 163 225 | |||||
[5] | The impact of carbon emission programs are included in additions to property, plant and equipment, and all other items - net. | |||||
[6] | 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. |
Consolidated statement of cash9
Consolidated statement of cash flows (Parenthetical) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Included contribution to registered pension plans | CAD 212 | CAD 163 | CAD 225 |
Long-term capital lease obligation | CAD 480 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Summary of significant accounting policies | 1. Summary of significant accounting policies Principles of consolidation The consolidated financial statements include the accounts of subsidiaries the company controls. 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. Imperial Oil Resources Limited is the only significant subsidiary included in the consolidated financial statements and is wholly owned by Imperial Oil Limited. The consolidated financial statements also include the company’s share of the undivided interest in certain upstream assets, liabilities, revenues and expenses, including its 25 percent interest in the Syncrude joint venture and its 70.96 percent interest in the Kearl joint venture. Revenues Revenues associated with sales of crude oil, natural gas, petroleum and chemical products and other items are recorded when the products are delivered. Delivery occurs when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. The company does not enter into ongoing arrangements whereby it is required to repurchase its products, nor does the company provide the customer with a right of return. Revenues include amounts billed to customers for shipping and handling. Shipping and handling costs incurred up to the point of final storage prior to delivery to a customer are included in “Purchases of crude oil and products” in the consolidated statement of income. Delivery costs from final storage to customer are recorded as a marketing expense in “Selling and general” expenses. Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are combined and recorded as exchanges measured at the book value of the item sold. Consumer taxes Taxes levied on the consumer and collected by the company are excluded from the consolidated statement of income. These are primarily provincial taxes on motor fuels, the federal goods and services tax and the federal/provincial harmonized sales tax. Derivative instruments Imperial has the ability to use derivative instruments to offset exposures associated with hydrocarbon prices that arise from existing assets, liabilities and forecasted transactions. The gains and losses resulting from changes in the fair value of derivatives are recorded under “Purchases of crude oil and products” on the consolidated statement of income. The company does not currently make use of derivative instruments to offset exposures associated with foreign currency and interest rates. Fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market. Inventories Inventories are recorded at the lower of current market value or cost. The cost of crude oil and products is determined primarily using the last-in, first-out first-in, first-out Inventory costs include expenditures and other charges (including depreciation), directly or indirectly incurred in bringing the inventory to its existing condition and location. Selling and general expenses are reported as period costs and excluded from inventory costs. Investments The company’s interests in the underlying net assets of affiliates it does not control, but over which it exercises significant influence, are accounted for using the equity method. They are recorded at the original cost of the investment plus Imperial’s share of earnings since the investment was made, less dividends received. Imperial’s share of the after-tax These investments represent interests in non-publicly Property, plant and equipment Cost basis Imperial uses the “successful efforts” method to account for its exploration and production activities. Under this method, costs are accumulated on a field-by-field Maintenance and repair costs, including planned major maintenance, are expensed as incurred. Improvements that increase or prolong the service life or capacity of an asset are capitalized. Depreciation, depletion and amortization Depreciation, depletion and amortization are primarily determined under either the unit-of-production Acquisition costs of proved properties are amortized using a unit-of-production unit-of-production unit-of-production unit-of-production To the extent that proved reserves for a property are substantially de-booked unit-of-production Investments in refinery, chemical process, and lubes basestock manufacturing equipment are generally depreciated on a straight-line basis over a 25-year Impairment assessment The company tests assets or groups of assets for recoverability on an ongoing basis whenever events or circumstances indicate the carrying amounts may not be recoverable. Among the events or changes in circumstances which could indicate that the carrying value of an asset or asset group may not be recoverable are the following: ● A significant decrease in the market price of a long-lived asset; ● A significant adverse change in the extent or manner in which an asset is being used or in its physical condition including a significant decrease in the company’s current and projected reserve volumes; ● A significant adverse change in legal factors or in the business climate that could affect the value, including a significant adverse action or assessment by a regulator; ● An accumulation of project costs significantly in excess of the amount originally expected; ● A current-period operating loss combined with a history and forecast of operating or cash flow losses; and ● A current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. Asset valuation analyses performed as part of the company’s asset management program and other profitability reviews assist Imperial in assessing whether events or circumstances indicate the carrying amounts of any of its assets may not be recoverable. In general, Imperial does not view temporarily low prices or margins as an indication of impairment. Management believes prices over the long-term must be sufficient to generate investments in energy supply to meet global demand. Although prices will occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand fundamentals. On the supply side, industry production from mature fields is declining. This is being offset by investments to generate production from new discoveries, field developments and technology and efficiency advancements. OPEC investment activities and production policies also have an impact on world oil supplies. The demand side is largely a function of general economic activities and levels of prosperity. Because the lifespans of the company’s major assets are measured in decades, the value of these assets is predominantly based on long-term views of future commodity prices and production costs. During the lifespan of these major assets, the company expects that oil and gas prices will experience significant volatility, and consequently these assets will experience periods of higher earnings and periods of lower earnings, or even losses. In assessing whether the events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the company considers recent periods of operating losses in the context of its longer-term view of prices. While near-term prices are subject to wide fluctuations, longer term price views are more stable and meaningful for purposes of assessing future cash flows. When the industry experiences a prolonged and deep reduction in commodity prices, the market supply and demand conditions may result in changes to the company’s long-term price or margin assumptions it uses for its capital investment decisions. To the extent those changes result in a significant reduction to its long-term oil prices or natural gas prices or margin ranges, the company may consider that situation, in conjunction with other events and changes in circumstances such as a history of operating losses, as an indicator of potential impairment for certain assets. In the upstream, the standardized measure of discounted cash flows included in the “Supplemental information on oil and gas exploration and production activities” is required to use prices based on the yearly average of first-of-month If events or circumstances indicate that the carrying value of an asset may not be recoverable, the company estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. In performing this assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Cash flows used in recoverability assessments are based on the company’s assumptions which are developed in the annual planning and budgeting process, and are consistent with the criteria management uses to evaluate investment opportunities. These evaluations make use of the company’s assumptions of future capital allocations, crude oil and natural gas commodity prices, refining and chemical margins, volumes, costs, foreign currency exchange rates and inflation rates. Volumes are based on projected field and facility production profiles, throughput, or sales. Where unproved reserves exist, an appropriately risk-adjusted amount of these reserves may be included in the evaluation. Cash flow estimates for impairment testing exclude the effects of derivative instruments. An asset group is impaired if its estimated future undiscounted cash flows are less than the asset group’s carrying value. Impairments are measured by the amount by which the carrying value exceeds fair value. Fair value is based on market prices if an active market exists for the asset group or discounted cash flows using a discount rate commensurate with the risk. Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs would be recorded based on the estimated economic chance of success and the length of time that the company expects to hold the properties. Properties that are not individually significant are aggregated by groups and amortized based on development risk and average holding period. Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the company. Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value. Gains or losses on assets sold are included in “Investment and other income” in the consolidated statement of income. Interest capitalization Interest costs incurred to finance expenditures during the construction phase of projects are capitalized as part of property, plant and equipment and are depreciated over the service life of the related assets. The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use. Goodwill and other intangible assets Goodwill is not subject to amortization. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate it might be impaired. Impairment losses are recognized in current period earnings. The evaluation for impairment of goodwill is based on a comparison of the carrying values of goodwill and associated operating assets with the estimated present value of net cash flows from those operating assets. Intangible assets with determinable useful lives are amortized over the estimated service lives of the assets. Computer software development costs are amortized over a maximum of 15 years and customer lists are amortized over a maximum of 10 years. The amortization is included in “Depreciation and depletion” in the consolidated statement of income. Asset retirement obligations and other environmental liabilities Legal obligations associated with site restoration on the retirement of assets with determinable useful lives are recognized when they are incurred, which is typically at the time the assets are installed. These obligations primarily relate to soil reclamation and remediation, and costs of abandonment and demolition of oil and gas wells and related facilities. The company uses estimates, assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements, the credit-adjusted risk-free rate to be used, and inflation rates. The obligations are initially measured at fair value and discounted to present value. A corresponding amount equal to that of the initial obligation is added to the capitalized costs of the related asset. Over time, the discounted asset retirement obligation amount will be accreted for the change in its present value, and the initial capitalized costs will be depreciated over the useful lives of the related assets. No asset retirement obligations are set up for those manufacturing, distribution, marketing and office facilities with an indeterminate useful life. Asset retirement obligations for these facilities generally become firm at the time the facilities are permanently shut down and dismantled. These obligations may include the costs of asset disposal and additional soil remediation. However, these sites have indeterminate lives based on plans for continued operations, and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations. Provision for environmental liabilities of these assets is made when it is probable that obligations have been incurred and the amount can be reasonably estimated. Provisions for environmental liabilities are determined based on engineering estimated costs, taking into account the anticipated method and extent of remediation consistent with legal requirements, current technology and the possible use of the location. These provisions are not reduced by possible recoveries from third parties and projected cash expenditures are not discounted. Foreign-currency translation Monetary assets and liabilities in foreign currencies have been translated at the rates of exchange prevailing on December 31. Any exchange gains or losses are recognized in income. Share-based compensation The company awards share-based compensation to certain employees in the form of restricted stock units. Compensation expense is measured each reporting period based on the company’s current stock price and is recorded as “Selling and general” expenses in the consolidated statement of income over the requisite service period of each award. See note 7 to the consolidated financial statements on page 80 for further details. Recently issued accounting standards Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board (FASB) standard, Revenue from Contracts with Customers Effective January 1, 2018, Imperial adopted the FASB standard update, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (non-service “Non-service non-service Effective January 1, 2019, Imperial will adopt the FASB standard, Leases. |
Business segments
Business segments | 12 Months Ended |
Dec. 31, 2017 | |
Business segments | 2. 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 company’s 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 to distribute and market 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 company’s 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, short-term borrowings, long-term debt and liabilities associated with incentive compensation and post retirement benefits liability adjustment. Net earnings effects under Corporate and other activities primarily include debt-related financing, corporate governance costs, share-based incentive compensation expenses and interest income. 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 Corporate and other activities. The allocation is based on proportional segment expenses. 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 Downstream Chemical millions of Canadian dollars 2017 2016 2015 2017 2016 2015 2017 2016 2015 Revenues and other income Operating revenues (a) 7,302 5,492 5,776 20,714 18,511 19,796 1,109 1,046 1,184 Intersegment sales 2,264 2,215 2,486 1,155 1,007 1,019 262 212 234 Investment and other income (note 8) 16 13 22 269 2,278 104 - - - 9,582 7,720 8,284 22,138 21,796 20,919 1,371 1,258 1,418 Expenses Exploration (b) (note 15) 183 94 73 - - - - - - Purchases of crude oil and products 4,526 3,666 3,768 16,543 14,178 14,526 751 705 725 Production and manufacturing 3,913 3,591 3,766 1,576 1,428 1,461 209 205 207 Selling and general - (5 ) (2 ) 772 972 986 78 83 87 Federal excise tax - - - 1,673 1,650 1,568 - - - Depreciation and depletion (b) 1,939 1,396 1,193 202 206 233 12 10 11 Financing costs (note 12) 13 (7 ) 5 - - - - - - Total expenses 10,574 8,735 8,803 20,766 18,434 18,774 1,050 1,003 1,030 Income (loss) before income taxes (992 ) (1,015 ) (519 ) 1,372 3,362 2,145 321 255 388 Income taxes (note 3) Current 484 (491 ) (77 ) (504 ) 674 476 (32 ) 68 97 Deferred (770 ) 137 262 836 (66 ) 83 118 - 4 Total income tax expense (benefit) (286 ) (354 ) 185 332 608 559 86 68 101 Net income (loss) (706 ) (661 ) (704 ) 1,040 2,754 1,586 235 187 287 Cash flows from (used in) operating activities 1,257 402 224 1,396 1,574 1,686 235 203 383 Capital and exploration expenditures (c) 416 896 3,135 200 190 340 17 26 52 Property, plant and equipment Cost 45,542 45,850 45,171 5,683 6,166 7,596 888 872 857 Accumulated depreciation and depletion (13,844 ) (12,312 ) (11,016 ) (3,594 ) (4,037 ) (4,584 ) (644 ) (629 ) (616 ) Net property, plant and equipment (b) (d) 31,698 33,538 34,155 2,089 2,129 3,012 244 243 241 Total assets 35,044 36,840 36,971 4,890 3,958 5,574 399 346 394 Corporate and other Eliminations Consolidated millions of Canadian dollars 2017 2016 2015 2017 2016 2015 2017 2016 2015 Revenues and other income Operating revenues (a) - - - - - - 29,125 25,049 26,756 Intersegment sales - - - (3,681 ) (3,434 ) (3,739 ) - - - Investment and other income (note 8) 14 14 6 - - - 299 2,305 132 14 14 6 (3,681 ) (3,434 ) (3,739 ) 29,424 27,354 26,888 Expenses Exploration (b) (note 15) - - - - - - 183 94 73 Purchases of crude oil and products - - - (3,675 ) (3,429 ) (3,735 ) 18,145 15,120 15,284 Production and manufacturing - - - - - - 5,698 5,224 5,434 Selling and general 49 84 50 (6 ) (5 ) (4 ) 893 1,129 1,117 Federal excise tax - - - - - - 1,673 1,650 1,568 Depreciation and depletion (b) 19 16 13 - - - 2,172 1,628 1,450 Financing costs (note 12) 65 72 34 - - - 78 65 39 Total expenses 133 172 97 (3,681 ) (3,434 ) (3,739 ) 28,842 24,910 24,965 Income (loss) before income taxes (119 ) (158 ) (91 ) - - - 582 2,444 1,923 Income taxes (note 3) Current (6 ) (51 ) (45 ) - - - (58 ) 200 451 Deferred (34 ) 8 1 - - - 150 79 350 Total income tax expense (benefit) (40 ) (43 ) (44 ) - - - 92 279 801 Net income (loss) (79 ) (115 ) (47 ) - - - 490 2,165 1,122 Cash flows from (used in) operating activities (125 ) (143 ) (124 ) - (21 ) (2 ) 2,763 2,015 2,167 Capital and exploration expenditures (c) 38 49 68 - - - 671 1,161 3,595 Property, plant and equipment Cost 665 627 579 - - - 52,778 53,515 54,203 Accumulated depreciation and depletion (223 ) (204 ) (188 ) - - - (18,305 ) (17,182 ) (16,404 ) Net property, plant and equipment (b) (d) 442 423 391 - - - 34,473 36,333 37,799 Total assets 1,703 894 579 (435 ) (384 ) (348 ) 41,601 41,654 43,170 (a) Includes export sales to the United States of $4,392 million (2016 - $3,612 million, 2015 - $4,157 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) The Upstream segment in 2017 includes non-cash (c) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to capital leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. (d) Includes property, plant and equipment under construction of $1,047 million (2016 - $2,705 million, 2015 - $3,719 million). |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income taxes | 3. Income taxes millions of Canadian dollars 2017 2016 2015 Current income tax expense (a) (58 ) 200 451 Deferred income tax expense (a) (b) 150 79 350 Total income tax expense (a) (c) 92 279 801 Statutory corporate tax rate (percent) 26.9 26.8 27.2 Increase (decrease) resulting from: Disposals (d) (5.3 ) (11.6 ) (0.4 ) Enacted tax rate change (a) 0.9 - 16.1 Other (6.6 ) (3.8 ) (1.2 ) Effective income tax rate 15.9 11.4 41.7 (a) On November 2, 2017 the British Columbia government enacted a 1 percent increase in the provincial tax rate from 11 percent to 12 percent. On June 30, 2015 the Alberta government enacted a 2 percent increase in the provincial tax rate, from 10 percent to 12 percent. (b) There were no material net (charges) credits for the effect of changes in tax laws and rates included in the provisions for deferred income taxes in 2016. (c) Cash outflow from income taxes, plus investment credits earned, was $322 million (2016 - $172 million, 2015 - $202 million). (d) 2017 disposals are primarily associated with the sale of surplus property in Ontario. 2016 disposals are primarily associated with the sales of company-owned Esso retail sites and the general aviation business. Capital gains tax treatment was applied on the majority of disposals. In 2017 and 2016, the decrease in the statutory tax rate in the other category mainly represents prior year adjustments and re-assessments. Deferred income taxes are based on differences between the accounting and tax values of assets and liabilities. These differences in value are re-measured year-end millions of Canadian dollars 2017 2016 2015 Depreciation and amortization 5,564 5,361 4,677 Successful drilling and land acquisitions 762 891 922 Pension and benefits (422 ) (457 ) (396 ) Asset retirement obligation (376 ) (396 ) (406 ) Capitalized interest 118 114 104 LIFO inventory valuation (a) (318 ) (240 ) - Tax loss carryforwards (936 ) (1,056 ) (610 ) Other (a) (196 ) (212 ) (100 ) Net long-term deferred income tax liabilities 4,196 4,005 4,191 LIFO inventory valuation (a) - - (112 ) Other (a) - - (160 ) Net current deferred income tax assets - - (272 ) Net current deferred income tax liabilities (a) - - 41 Net deferred income tax liabilities 4,196 4,005 3,960 (a) Effective 2016, under ASU 2015-17, non-current. Unrecognized tax benefits Unrecognized tax benefits reflect the difference between positions taken or expected to be taken on income tax returns and the amounts recognized in the financial statements. The following table summarizes the movement in unrecognized tax benefits: millions of Canadian dollars 2017 2016 2015 Balance as of January 1 106 132 151 Additions for prior years’ tax position 2 2 10 Reductions for prior years’ tax positions - (18 ) (4 ) Reductions due to lapse of the statute of limitations - (5 ) - Settlements with tax authorities (30 ) (5 ) (25 ) Balance as of December 31 78 106 132 The unrecognized tax benefit balances shown above are predominately related to tax positions that would reduce the company’s effective tax rate if the positions are favourably resolved. Unfavourable resolution of these tax positions generally would not increase the effective tax rate. The 2017, 2016 and 2015 changes in unrecognized tax benefits did not have a material effect on the company’s net income or cash flow. The company’s tax filings from 2010 to 2017 are subject to examination by the tax authorities. Tax filings from 1998, 2000 and 2003 to 2009 have open objections and therefore are also subject to examination by the tax authorities. The Canada Revenue Agency has proposed certain adjustments to the company’s filings. Management is currently evaluating those proposed adjustments and believes that a number of outstanding matters are expected to be resolved in 2018. The impact on unrecognized tax benefits and the company’s effective income tax rate from these matters is not expected to be material. Resolution of the related tax positions could take many years to complete. It is difficult to predict the timing of resolution for tax positions since such timing is not entirely within the control of the company. The company classifies interest on income tax related balances as interest expense or interest income and classifies tax related penalties as operating expense. |
Employee retirement benefits
Employee retirement benefits | 12 Months Ended |
Dec. 31, 2017 | |
Employee retirement benefits | 4. 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 company’s 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 accepted actuarial practices and U.S. GAAP. 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 company’s defined benefit plans are measured on December 31. Pension benefits Other post retirement benefits 2017 2016 2017 2016 Assumptions used to determine benefit obligations Discount rate 3.40 3.75 3.40 3.75 Long-term rate of compensation increase 4.50 4.50 4.50 4.50 millions of Canadian dollars Change in projected benefit obligation Projected benefit obligation at January 1 8,356 8,147 706 642 Current service cost 217 203 16 16 Interest cost 313 319 23 27 Actuarial loss (gain) 415 157 (49 ) 46 Benefits paid (a) (516 ) (470 ) (26 ) (25 ) Projected benefit obligation at December 31 8,785 8,356 670 706 Accumulated benefit obligation at December 31 8,043 7,681 The discount rate for the purpose of calculating year-end Pension benefits Other post retirement benefits millions of Canadian dollars 2017 2016 2017 2016 Change in plan assets Fair value at January 1 7,359 7,260 Actual return (loss) on plan assets 700 316 Company contributions 212 163 Benefits paid (b) (401 ) (380 ) Fair value at December 31 7,870 7,359 Plan assets in excess of (less than) projected benefit obligation at December 31 Funded plans (408 ) (444 ) Unfunded plans (507 ) (553 ) (670 ) (706 ) Total (c) (915 ) (997 ) (670 ) (706 ) (a) Benefit payments for funded and unfunded plans. (b) Benefit payments for funded plans only. (c) Fair value of assets less projected benefit obligation shown above. Funding of registered retirement plans complies with federal and provincial pension regulations, and the company makes contributions to the plans based on an independent actuarial valuation. In accordance with authoritative guidance relating to the accounting for defined pension and other post retirement benefits plans, the underfunded status of the company’s defined benefit post retirement plans was recorded as a liability in the balance sheet, and the changes in that funded status in the year in which the changes occurred was recognized through other comprehensive income. Pension benefits Other post retirement benefits millions of Canadian dollars 2017 2016 2017 2016 Amounts recorded in the consolidated balance sheet consist of: Current liabilities (28 ) (29 ) (28 ) (29 ) Other long-term obligations (887 ) (968 ) (642 ) (677 ) Total recorded (915 ) (997 ) (670 ) (706 ) Amounts recorded in accumulated other comprehensive income consist of: Net actuarial loss (gain) 2,408 2,461 140 197 Prior service cost 4 14 - - Total recorded in accumulated other 2,412 2,475 140 197 The company establishes the long-term expected rate of return on plan assets by developing a forward-looking long-term return assumption for each asset class, taking into account factors such as the expected real return for the specific asset class and inflation. A single, long-term rate of return is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. The 2017 long-term expected return of 5.5 percent used in the calculations of pension expense compares to an actual rate of return of 6.3 percent and 7.3 percent over the last 10- 20-year Pension benefits Other post retirement benefits millions of Canadian dollars 2017 2016 2015 2017 2016 2015 Assumptions used to determine net periodic benefit cost for years ended December 31 (percent) Discount rate 3.75 4.00 3.75 3.75 4.00 3.75 Long-term rate of return on funded assets 5.50 5.50 5.75 - - - Long-term rate of compensation increase 4.50 4.50 4.50 4.50 4.50 4.50 millions of Canadian dollars Components of net periodic benefit cost Current service cost 217 203 211 16 16 15 Interest cost 313 319 307 23 27 25 Expected return on plan assets (408 ) (400 ) (392 ) - - - Amortization of prior service cost 10 9 16 - - - Amortization of actuarial loss (gain) 176 162 198 8 13 14 Net periodic benefit cost 308 293 340 47 56 54 Changes in amounts recorded in accumulated Net actuarial loss (gain) 123 241 (86 ) (49 ) 46 (2 ) Amortization of net actuarial (loss) gain included in (176 ) (162 ) (198 ) (8 ) (13 ) (14 ) Amortization of prior service cost included in net (10 ) (9 ) (16 ) - - - Total recorded in other comprehensive income (63 ) 70 (300 ) (57 ) 33 (16 ) Total recorded in net periodic benefit cost and 245 363 40 (10 ) 89 38 Costs for defined contribution plans, primarily the employee savings plan, were $40 million in 2017 (2016 - $44 million, 2015 - $43 million). A summary of the change in accumulated other comprehensive income is shown in the table below: Total pension and other post retirement benefits millions of Canadian dollars 2017 2016 2015 (Charge) credit to other comprehensive income, before tax 120 (103 ) 316 Deferred income tax (charge) credit (note 17) (38 ) 34 (85 ) (Charge) credit to other comprehensive income, after tax 82 (69 ) 231 The company’s investment strategy for pension plan assets reflects a long-term view, a careful assessment of the risks inherent in various asset classes and broad diversification to reduce the risk of the portfolio. Consistent with the long-term nature of the liability, the plan assets are primarily invested in global, market-cap-weighted The 2017 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below: Fair value measurements at December 31, 2017, using: millions of Canadian dollars Total Level 1 Level 2 Level 3 Net Asset Value Asset class Equity securities Canadian 182 182 Non-Canadian 2,138 2,138 Debt securities - Canadian Corporate 1,248 1,248 Government 4,016 4,016 Asset backed - - Equities – Venture capital 215 215 Cash 71 34 37 Total plan assets at fair value 7,870 34 - - 7,836 The 2016 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below: Fair value measurements at December 31, 2016, using: millions of Canadian dollars Total Level 1 Level 2 Level 3 Net Asset (a) Asset class Equity securities Canadian 433 433 Non-Canadian 2,448 2,448 Debt securities - Canadian Corporate 988 988 Government 3,218 3,218 Asset backed - - Equities – Venture capital 241 241 Cash 31 6 25 Total plan assets at fair value 7,359 6 - - 7,353 (a) Per ASU 2015-07, re-categorized A summary of pension plans with accumulated benefit obligations in excess of plan assets is shown in the table below: Pension benefits millions of Canadian dollars 2017 2016 For funded pension plans with accumulated benefit Projected benefit obligation - - Accumulated benefit obligation - - Fair value of plan assets - - Accumulated benefit obligation less fair value of plan assets - - For unfunded plans covered by book reserves: Projected benefit obligation 507 553 Accumulated benefit obligation 480 525 Estimated 2018 amortization from accumulated other comprehensive income millions of Canadian dollars Pension benefits Other post retirement benefits Net actuarial loss (gain) (a) 170 9 Prior service cost (b) 4 - (a) The company amortizes the net balance of actuarial loss (gain) as a component of net periodic benefit cost over the average remaining service period of active plan participants. (b) The company amortizes prior service cost on a straight-line basis. Cash flows Benefit payments expected in: millions of Canadian dollars Pension benefits Other post retirement benefits 2018 425 29 2019 430 29 2020 435 29 2021 435 30 2022 435 30 2023 - 2027 2,165 155 In 2018, the company expects to make cash contributions of about $240 million to its pension plans. Sensitivities A one percent change in the assumptions at which retirement liabilities could be effectively settled is as follows: Increase (decrease) millions of Canadian dollars One percent increase One percent decrease Rate of return on plan assets: Effect on net benefit cost, before tax (75) 75 Discount rate: Effect on net benefit cost, before tax (90) 120 Effect on benefit obligation (1,215) 1,570 Rate of pay increases: Effect on net benefit cost, before tax 55 (45) Effect on benefit obligation 265 (225) A one percent change in the assumed health-care cost trend rate would have the following effects: Increase (decrease) millions of Canadian dollars One percent increase One percent decrease Effect on service and interest cost components 6 (5) Effect on benefit obligation 80 (60) |
Other long-term obligations
Other long-term obligations | 12 Months Ended |
Dec. 31, 2017 | |
Other long-term obligations | 5. Other long-term obligations millions of Canadian dollars 2017 2016 Employee retirement benefits (a) (note 4) 1,529 1,645 Asset retirement obligations and other environmental liabilities (b) (d) 1,460 1,544 Share-based incentive compensation liabilities (note 7) 99 139 Other obligations (c) 692 328 Total other long-term obligations 3,780 3,656 (a) Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2016 – $58 million). (b) Total asset retirement obligations and other environmental liabilities also included $101 million in current liabilities (2016 – $108 million). (c) Included carbon emission program obligations. Carbon emission program credits are recorded under other assets, including intangibles, net. (d) For 2017, the asset retirement obligations were discounted at 6 percent (2016 - 6 percent). Asset retirement obligations incurred in the current period were Level 3 fair value measurements. The following table summarizes the activity in the liability for asset retirement obligations: millions of Canadian dollars 2017 2016 Balance as at January 1 1,472 1,571 Additions (deductions) (124 ) (160 ) Accretion 92 97 Settlement (43 ) (36 ) Balance as at December 31 1,397 1,472 |
Derivatives and financial instr
Derivatives and financial instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivatives and financial instruments | 6. Derivatives and financial instruments The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the company’s enterprise-wide risk from changes in currency exchange rates and commodity prices. The company makes use of derivatives instruments to offset exposures associated with hydrocarbon prices that arise from existing assets, liabilities and forecasted transactions. Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company believes there are no material market or credit risks to the company’s financial position, results of operations or liquidity as a result of the derivatives. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity. The estimated fair value of derivative instruments outstanding and recorded on the balance sheet was a net liability of $4 million at year-end The company’s fair value measurement of its derivative instruments use either Level 1 or Level 2 inputs. The company recognized a before-tax The fair value of the company’s 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 company’s financial instruments and the recorded book value. The fair value hierarchy for long-term debt is primarily Level 2. |
Share-based incentive compensat
Share-based incentive compensation programs | 12 Months Ended |
Dec. 31, 2017 | |
Share-based incentive compensation programs | 7. 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 company’s future business performance and shareholder value over the long-term. The nonemployee directors also participate in share-based incentive compensation programs. Restricted stock units and deferred share units Under the restricted stock unit plan, each unit entitles the recipient to the conditional right to receive from the company, upon vesting, an amount equal to the value of one common share of the company, based on the five-day The deferred share unit plan is made available to nonemployee directors. The nonemployee directors can elect to receive all or part of their eligible directors’ fees in units. The number of units granted is determined at the end of each calendar quarter by dividing the dollar amount of the nonemployee director’s fees for that calendar quarter elected to be received as deferred share units by the average closing price of the company’s shares for the five consecutive trading days (“average closing price”) immediately prior to the last day of the calendar quarter. Additional units are granted based on the cash dividend payable on the company’s 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. Deferred share units cannot be exercised until after termination of service as a director, including termination due to death, and must be exercised in their entirety in one election no later than December 31 of the year following the year of termination of service. On the exercise date, the cash value to be received for the units is determined based on the company’s average closing price immediately prior to the date of exercise, as adjusted for any share splits. All units require settlement by cash payments with the following exceptions. The restricted stock unit program provides that, for units granted to Canadian residents, the recipient may receive one common share of the company per unit or elect to receive the cash payment for the units that vest on the seventh year anniversary of the grant date. For units where 50 percent vest on the fifth anniversary of the grant date and the remainder vest on either the tenth anniversary of grant, or the later of ten years following the grant date or the retirement date of the recipient, the recipient may receive one common share of the company per unit or elect to receive cash payment for all that vest. The company accounts for all units by using the fair-value-based method. The fair value of awards in the form of restricted stock and deferred share units is the market price of the company’s stock. Under this method, compensation expense related to the units of these programs is measured each reporting period based on the company’s current stock price and is recorded in the consolidated statement of income over the requisite service period of each award. The following table summarizes information about these units for the year ended December 31, 2017: Restricted Deferred Outstanding at January 1, 2017 6,662,126 136,177 Granted 758,990 13,231 Vested / Exercised (1,545,921 ) - Forfeited and cancelled (16,145 ) - Outstanding at December 31, 2017 5,859,050 149,408 In 2017, the before-tax (2016 - $83 million, As of December 31, 2017, there was $94 million of total before-tax non-vested non-vested |
Investment and other income
Investment and other income | 12 Months Ended |
Dec. 31, 2017 | |
Investment and other income | 8. Investment and other income Investment and other income includes gains and losses on asset sales as follows: millions of Canadian dollars 2017 2016 2015 Proceeds from asset sales 232 3,021 142 Book value of asset sales 12 777 45 Gain (loss) on asset sales, before tax (a) (b) 220 2,244 97 Gain (loss) on asset sales, after tax (a) (b) 192 1,908 79 (a) 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. (b) 2016 included a gain of $2.0 billion ($1.7 billion, after tax) from the sale of company-owned Esso-branded retail sites; and a gain of $161 million ($134 million, after tax) from the sale of Imperial’s general aviation business. |
Litigation and other contingenc
Litigation and other contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Litigation and other contingencies | 9. Litigation and other contingencies A variety of claims have been made against Imperial 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. For purposes of the company’s contingency disclosures, “significant” includes material matters, as well as other matters which management believes should be disclosed. 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 company’s operations, financial condition, or financial statements taken as a whole. 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 company’s operations or financial condition. Unconditional purchase obligations, as defined by accounting standards, are those long-term commitments that are non-cancelable As a result of the completed sale of Imperial’s remaining company-owned Esso retail sites, the company was contingently liable at December 31, 2017, for guarantees relating to performance under contracts of other third-party obligations totaling $42 million (2016 - $49 million). |
Common shares
Common shares | 12 Months Ended |
Dec. 31, 2017 | |
Common shares | 10. Common shares thousands of shares As at Dec 31 2017 As at Dec 31 2016 Authorized 1,100,000 1,100,000 Common shares outstanding 831,242 847,599 The current 12-month The company’s common share activities are summarized below: Thousands of Millions of Balance as at January 1, 2015 847,599 1,566 Issued under employee share-based awards 1 - Purchases at stated value (1 ) - Balance as at December 31, 2015 847,599 1,566 Issued under employee share-based awards 1 - Purchases at stated value (1 ) - Balance as at December 31, 2016 847,599 1,566 Issued under employee share-based awards 2 - Purchases at stated value (16,359 ) (30 ) Balance as at December 31, 2017 831,242 1,536 The following table provides the calculation of basic and diluted earnings per common share: 2017 2016 2015 Net income (loss) per common share – basic Net income (loss) (millions of Canadian dollars) 490 2,165 1,122 Weighted average number of common shares outstanding (millions of shares) 842.9 847.6 847.6 Net income (loss) per common share (dollars) 0.58 2.55 1.32 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 490 2,165 1,122 Weighted average number of common shares outstanding 842.9 847.6 847.6 Effect of employee share-based awards (millions of shares) 2.8 2.9 3.0 Weighted average number of common shares outstanding, assuming dilution 845.7 850.5 850.6 Net income (loss) per common share (dollars) 0.58 2.55 1.32 |
Miscellaneous financial informa
Miscellaneous financial information | 12 Months Ended |
Dec. 31, 2017 | |
Miscellaneous financial information | 11. Miscellaneous financial information In 2017, net income included an after-tax last-in, first-out year-end millions of Canadian dollars 2017 2016 Crude oil 690 558 Petroleum products 307 300 Chemical products 42 51 Natural gas and other 36 40 Total inventories of crude oil and products 1,075 949 Net research and development costs charged to expenses in 2017 were $111 million (2016 – $152 million, 2015 – $149 million). These costs are included in expenses due to the uncertainty of future benefits. Accounts payable and accrued liabilities included accrued taxes other than income taxes of $437 million at December 31, 2017 (2016 – $396 million). |
Financing costs and additional
Financing costs and additional notes and loans payable information | 12 Months Ended |
Dec. 31, 2017 | |
Financing costs and additional notes and loans payable information | 12. Financing costs and additional notes and loans payable information millions of Canadian dollars 2017 2016 2015 Debt-related interest 103 121 102 Capitalized interest (38 ) (49 ) (68 ) Net interest expense 65 72 34 Other interest 13 (7 ) 5 Total financing costs (a) 78 65 39 (a) Cash interest payments in 2017 were $58 million (2016 – $73 million, 2015 – $74 million). The weighted average interest rate on short-term borrowings in 2017 was 0.9 percent (2016 – 0.8 percent, 2015 – 0.8 percent). Average effective rate on the long-term borrowings with ExxonMobil in 2017 was 1.3 percent (2016 - 1.0 percent, 2015 - 1.0 percent). As at December 31, 2017, the company had borrowed $75 million under an arrangement with an affiliated company of ExxonMobil that provides for a non-interest In November 2017, the company extended the maturity date of its existing $250 million committed long-term line of credit to November 2019. The company has not drawn on the facility. In December 2017, the company extended the maturity date of its existing $250 million committed short-term line of credit to December 2018. The company has not drawn on the facility. |
Leased facilities
Leased facilities | 12 Months Ended |
Dec. 31, 2017 | |
Leased facilities | 13. Leased facilities At December 31, 2017, the company held non-cancelable Payments due by period millions of Canadian dollars 2018 2019 2020 2021 2022 After Total Lease payments under (a) 120 56 19 2 1 1 199 (a) Net rental cost under cancelable and non-cancelable |
Long-term debt
Long-term debt | 12 Months Ended |
Dec. 31, 2017 | |
Long-term debt | 1 millions of Canadian dollars As at As at Long-term debt (a) 4,447 4,447 Capital leases (b) 558 585 Total long-term debt 5,005 5,032 (a) Borrowed under an existing agreement with an affiliated company of ExxonMobil that provides for a long-term, variable-rate, Canadian dollar loan from ExxonMobil to the company of up to $7.75 billion at interest equivalent to Canadian market rates. The agreement is effective until July 31, 2020, cancelable if ExxonMobil provides at least 370 days advance written notice. (b) Capital leases are primarily associated with transportation facilities and services agreements. The average imputed rate was 7.0 percent in 2017 (2016 – 6.9 percent). Total capitalized lease obligations also include $27 million in current liabilities (2016 - $27 million). Principal payments on capital leases of approximately $21 million on average per year are due in each of the next four years after December 31, 2018. |
Accounting for suspended explor
Accounting for suspended exploratory well costs | 12 Months Ended |
Dec. 31, 2017 | |
Accounting for suspended exploratory well costs | 15. Accounting for suspended exploratory well costs The company continues capitalization of exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and the company is making sufficient progress assessing the reserves and the economic and operating viability of the project. The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Exploratory well costs at year-end The following two tables provide details of the changes in the balance of suspended exploratory well costs, as well as an aging summary of those costs. Change in capitalized suspended exploratory well costs: millions of Canadian dollars 2017 2016 2015 Balance as at January 1 143 167 167 Additions pending the determination of proved reserves - - - Charged to expense (143 ) (24 ) - Reclassification to wells, facilities and equipment - - - Balance as at December 31 - 143 167 Period end capitalized suspended exploratory well costs: millions of Canadian dollars 2017 2016 2015 Capitalized for a period of one year or less - - - Capitalized for a period of between one and ten years - 143 167 Capitalized for a period of greater than one year - 143 167 Total - 143 167 Exploration activity often involves drilling multiple wells, over a number of years, to fully evaluate a project. The table below provides a breakdown of the number of projects with exploratory well costs capitalized in the preceding 12 months and those that have had exploratory well costs capitalized for a period greater than 12 months. 2017 2016 2015 Number of projects with first capitalized well - - - Number of projects that have exploratory well costs - 1 1 Total - 1 1 |
Transactions with related parti
Transactions with related parties | 12 Months Ended |
Dec. 31, 2017 | |
Transactions with related parties | 16. Transactions with related parties Revenues and expenses of the company also include the results of transactions with affiliated companies of ExxonMobil in the normal course of operations. These were conducted on terms comparable to those which would have been conducted with unrelated parties and primarily consisted of the purchase and sale of crude oil, natural gas, petroleum and chemical products, as well as technical, engineering and research, and development costs. Transactions with ExxonMobil also included amounts paid and received in connection with the company’s participation in a number of upstream activities conducted jointly in Canada. In addition, the company has existing agreements with ExxonMobil: a) To 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) To operate certain western Canada production properties owned by ExxonMobil, as well as provide for the delivery of management, business and technical services to ExxonMobil in Canada. These agreements are designed to provide organizational efficiencies and to reduce costs. No separate legal entities were created from these arrangements. 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) To provide for the delivery of management, business and technical services to Syncrude Canada Ltd. by ExxonMobil; d) To provide for the option of equal participation in new upstream opportunities; and e) Whereby ExxonMobil enters into derivative agreements on the company’s behalf. Certain charges from ExxonMobil have been capitalized; they are not material in the aggregate. The amounts of purchases and sales by Imperial in 2017, with ExxonMobil, were $2,648 million and $4,080 million respectively (2016 - $2,187 million and $2,315 million respectively). As at December 31, 2017, the company had outstanding long-term loans of $4,447 million (2016 – $4,447 million) and short-term loans of $75 million (2016 – $75 million) from ExxonMobil (see note 14 “Long-term debt”, on page 84 and note 12, “Financing costs and additional notes and loans payable information”, on page 83 for further details). Imperial has other related party transactions not detailed above in note 16, as they are not significant. |
Other comprehensive income (los
Other comprehensive income (loss) information | 12 Months Ended |
Dec. 31, 2017 | |
Other comprehensive income (loss) information | 17. Other comprehensive income (loss) information Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2017 2016 2015 Balance at January 1 (1,897 ) (1,828 ) (2,059 ) Post retirement benefits liability adjustment: Current period change excluding amounts reclassified (54 ) (210 ) 64 Amounts reclassified from accumulated other comprehensive income 136 141 167 Balance at December 31 (1,815 ) (1,897 ) (1,828 ) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax millions of Canadian dollars 2017 2016 2015 Amortization of post retirement benefits liability adjustment (a) (194 ) (184 ) (228 ) (a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 4). Income tax expense (credit) for components of other comprehensive income (loss): millions of Canadian dollars 2017 2016 2015 Post retirement benefits liability adjustments: Post retirement benefits liability adjustment (excluding amortization) (20 ) (77 ) 24 Amortization of post retirement benefits liability adjustment 58 43 61 Total 38 (34 ) 85 |
Summary of significant accoun27
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of subsidiaries the company controls. 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. Imperial Oil Resources Limited is the only significant subsidiary included in the consolidated financial statements and is wholly owned by Imperial Oil Limited. The consolidated financial statements also include the company’s share of the undivided interest in certain upstream assets, liabilities, revenues and expenses, including its 25 percent interest in the Syncrude joint venture and its 70.96 percent interest in the Kearl joint venture. |
Revenues | Revenues Revenues associated with sales of crude oil, natural gas, petroleum and chemical products and other items are recorded when the products are delivered. Delivery occurs when the customer has taken title and has assumed the risks and rewards of ownership, prices are fixed or determinable and collectability is reasonably assured. The company does not enter into ongoing arrangements whereby it is required to repurchase its products, nor does the company provide the customer with a right of return. Revenues include amounts billed to customers for shipping and handling. Shipping and handling costs incurred up to the point of final storage prior to delivery to a customer are included in “Purchases of crude oil and products” in the consolidated statement of income. Delivery costs from final storage to customer are recorded as a marketing expense in “Selling and general” expenses. Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are combined and recorded as exchanges measured at the book value of the item sold. |
Consumer taxes | Consumer taxes Taxes levied on the consumer and collected by the company are excluded from the consolidated statement of income. These are primarily provincial taxes on motor fuels, the federal goods and services tax and the federal/provincial harmonized sales tax. |
Derivative instruments | Derivative instruments Imperial has the ability to use derivative instruments to offset exposures associated with hydrocarbon prices that arise from existing assets, liabilities and forecasted transactions. The gains and losses resulting from changes in the fair value of derivatives are recorded under “Purchases of crude oil and products” on the consolidated statement of income. The company does not currently make use of derivative instruments to offset exposures associated with foreign currency and interest rates. |
Fair value | Fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs other than quoted prices included within Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market. |
Inventories | Inventories Inventories are recorded at the lower of current market value or cost. The cost of crude oil and products is determined primarily using the last-in, first-out first-in, first-out Inventory costs include expenditures and other charges (including depreciation), directly or indirectly incurred in bringing the inventory to its existing condition and location. Selling and general expenses are reported as period costs and excluded from inventory costs. |
Investments | Investments The company’s interests in the underlying net assets of affiliates it does not control, but over which it exercises significant influence, are accounted for using the equity method. They are recorded at the original cost of the investment plus Imperial’s share of earnings since the investment was made, less dividends received. Imperial’s share of the after-tax These investments represent interests in non-publicly |
Property, plant and equipment | Property, plant and equipment Cost basis Imperial uses the “successful efforts” method to account for its exploration and production activities. Under this method, costs are accumulated on a field-by-field Maintenance and repair costs, including planned major maintenance, are expensed as incurred. Improvements that increase or prolong the service life or capacity of an asset are capitalized. Depreciation, depletion and amortization Depreciation, depletion and amortization are primarily determined under either the unit-of-production Acquisition costs of proved properties are amortized using a unit-of-production unit-of-production unit-of-production unit-of-production To the extent that proved reserves for a property are substantially de-booked unit-of-production Investments in refinery, chemical process, and lubes basestock manufacturing equipment are generally depreciated on a straight-line basis over a 25-year Impairment assessment The company tests assets or groups of assets for recoverability on an ongoing basis whenever events or circumstances indicate the carrying amounts may not be recoverable. Among the events or changes in circumstances which could indicate that the carrying value of an asset or asset group may not be recoverable are the following: ● A significant decrease in the market price of a long-lived asset; ● A significant adverse change in the extent or manner in which an asset is being used or in its physical condition including a significant decrease in the company’s current and projected reserve volumes; ● A significant adverse change in legal factors or in the business climate that could affect the value, including a significant adverse action or assessment by a regulator; ● An accumulation of project costs significantly in excess of the amount originally expected; ● A current-period operating loss combined with a history and forecast of operating or cash flow losses; and ● A current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. Asset valuation analyses performed as part of the company’s asset management program and other profitability reviews assist Imperial in assessing whether events or circumstances indicate the carrying amounts of any of its assets may not be recoverable. In general, Imperial does not view temporarily low prices or margins as an indication of impairment. Management believes prices over the long-term must be sufficient to generate investments in energy supply to meet global demand. Although prices will occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand fundamentals. On the supply side, industry production from mature fields is declining. This is being offset by investments to generate production from new discoveries, field developments and technology and efficiency advancements. OPEC investment activities and production policies also have an impact on world oil supplies. The demand side is largely a function of general economic activities and levels of prosperity. Because the lifespans of the company’s major assets are measured in decades, the value of these assets is predominantly based on long-term views of future commodity prices and production costs. During the lifespan of these major assets, the company expects that oil and gas prices will experience significant volatility, and consequently these assets will experience periods of higher earnings and periods of lower earnings, or even losses. In assessing whether the events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the company considers recent periods of operating losses in the context of its longer-term view of prices. While near-term prices are subject to wide fluctuations, longer term price views are more stable and meaningful for purposes of assessing future cash flows. When the industry experiences a prolonged and deep reduction in commodity prices, the market supply and demand conditions may result in changes to the company’s long-term price or margin assumptions it uses for its capital investment decisions. To the extent those changes result in a significant reduction to its long-term oil prices or natural gas prices or margin ranges, the company may consider that situation, in conjunction with other events and changes in circumstances such as a history of operating losses, as an indicator of potential impairment for certain assets. In the upstream, the standardized measure of discounted cash flows included in the “Supplemental information on oil and gas exploration and production activities” is required to use prices based on the yearly average of first-of-month If events or circumstances indicate that the carrying value of an asset may not be recoverable, the company estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. In performing this assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets. Cash flows used in recoverability assessments are based on the company’s assumptions which are developed in the annual planning and budgeting process, and are consistent with the criteria management uses to evaluate investment opportunities. These evaluations make use of the company’s assumptions of future capital allocations, crude oil and natural gas commodity prices, refining and chemical margins, volumes, costs, foreign currency exchange rates and inflation rates. Volumes are based on projected field and facility production profiles, throughput, or sales. Where unproved reserves exist, an appropriately risk-adjusted amount of these reserves may be included in the evaluation. Cash flow estimates for impairment testing exclude the effects of derivative instruments. An asset group is impaired if its estimated future undiscounted cash flows are less than the asset group’s carrying value. Impairments are measured by the amount by which the carrying value exceeds fair value. Fair value is based on market prices if an active market exists for the asset group or discounted cash flows using a discount rate commensurate with the risk. Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs would be recorded based on the estimated economic chance of success and the length of time that the company expects to hold the properties. Properties that are not individually significant are aggregated by groups and amortized based on development risk and average holding period. Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the company. Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value. Gains or losses on assets sold are included in “Investment and other income” in the consolidated statement of income. |
Interest capitalization | Interest capitalization Interest costs incurred to finance expenditures during the construction phase of projects are capitalized as part of property, plant and equipment and are depreciated over the service life of the related assets. The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use. |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill is not subject to amortization. Goodwill is tested for impairment annually or more frequently if events or circumstances indicate it might be impaired. Impairment losses are recognized in current period earnings. The evaluation for impairment of goodwill is based on a comparison of the carrying values of goodwill and associated operating assets with the estimated present value of net cash flows from those operating assets. Intangible assets with determinable useful lives are amortized over the estimated service lives of the assets. Computer software development costs are amortized over a maximum of 15 years and customer lists are amortized over a maximum of 10 years. The amortization is included in “Depreciation and depletion” in the consolidated statement of income. |
Asset retirement obligations and other environmental liabilities | Asset retirement obligations and other environmental liabilities Legal obligations associated with site restoration on the retirement of assets with determinable useful lives are recognized when they are incurred, which is typically at the time the assets are installed. These obligations primarily relate to soil reclamation and remediation, and costs of abandonment and demolition of oil and gas wells and related facilities. The company uses estimates, assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements, the credit-adjusted risk-free rate to be used, and inflation rates. The obligations are initially measured at fair value and discounted to present value. A corresponding amount equal to that of the initial obligation is added to the capitalized costs of the related asset. Over time, the discounted asset retirement obligation amount will be accreted for the change in its present value, and the initial capitalized costs will be depreciated over the useful lives of the related assets. No asset retirement obligations are set up for those manufacturing, distribution, marketing and office facilities with an indeterminate useful life. Asset retirement obligations for these facilities generally become firm at the time the facilities are permanently shut down and dismantled. These obligations may include the costs of asset disposal and additional soil remediation. However, these sites have indeterminate lives based on plans for continued operations, and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations. Provision for environmental liabilities of these assets is made when it is probable that obligations have been incurred and the amount can be reasonably estimated. Provisions for environmental liabilities are determined based on engineering estimated costs, taking into account the anticipated method and extent of remediation consistent with legal requirements, current technology and the possible use of the location. These provisions are not reduced by possible recoveries from third parties and projected cash expenditures are not discounted. |
Foreign-currency translation | Foreign-currency translation Monetary assets and liabilities in foreign currencies have been translated at the rates of exchange prevailing on December 31. Any exchange gains or losses are recognized in income. |
Share-based compensation | Share-based compensation The company awards share-based compensation to certain employees in the form of restricted stock units. Compensation expense is measured each reporting period based on the company’s current stock price and is recorded as “Selling and general” expenses in the consolidated statement of income over the requisite service period of each award. See note 7 to the consolidated financial statements on page 80 for further details. |
Recently issued accounting standards | Recently issued accounting standards Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board (FASB) standard, Revenue from Contracts with Customers Effective January 1, 2018, Imperial adopted the FASB standard update, Compensation – Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (non-service “Non-service non-service Effective January 1, 2019, Imperial will adopt the FASB standard, Leases. |
Business segments (Tables)
Business segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Segments | Upstream Downstream Chemical millions of Canadian dollars 2017 2016 2015 2017 2016 2015 2017 2016 2015 Revenues and other income Operating revenues (a) 7,302 5,492 5,776 20,714 18,511 19,796 1,109 1,046 1,184 Intersegment sales 2,264 2,215 2,486 1,155 1,007 1,019 262 212 234 Investment and other income (note 8) 16 13 22 269 2,278 104 - - - 9,582 7,720 8,284 22,138 21,796 20,919 1,371 1,258 1,418 Expenses Exploration (b) (note 15) 183 94 73 - - - - - - Purchases of crude oil and products 4,526 3,666 3,768 16,543 14,178 14,526 751 705 725 Production and manufacturing 3,913 3,591 3,766 1,576 1,428 1,461 209 205 207 Selling and general - (5 ) (2 ) 772 972 986 78 83 87 Federal excise tax - - - 1,673 1,650 1,568 - - - Depreciation and depletion (b) 1,939 1,396 1,193 202 206 233 12 10 11 Financing costs (note 12) 13 (7 ) 5 - - - - - - Total expenses 10,574 8,735 8,803 20,766 18,434 18,774 1,050 1,003 1,030 Income (loss) before income taxes (992 ) (1,015 ) (519 ) 1,372 3,362 2,145 321 255 388 Income taxes (note 3) Current 484 (491 ) (77 ) (504 ) 674 476 (32 ) 68 97 Deferred (770 ) 137 262 836 (66 ) 83 118 - 4 Total income tax expense (benefit) (286 ) (354 ) 185 332 608 559 86 68 101 Net income (loss) (706 ) (661 ) (704 ) 1,040 2,754 1,586 235 187 287 Cash flows from (used in) operating activities 1,257 402 224 1,396 1,574 1,686 235 203 383 Capital and exploration expenditures (c) 416 896 3,135 200 190 340 17 26 52 Property, plant and equipment Cost 45,542 45,850 45,171 5,683 6,166 7,596 888 872 857 Accumulated depreciation and depletion (13,844 ) (12,312 ) (11,016 ) (3,594 ) (4,037 ) (4,584 ) (644 ) (629 ) (616 ) Net property, plant and equipment (b) (d) 31,698 33,538 34,155 2,089 2,129 3,012 244 243 241 Total assets 35,044 36,840 36,971 4,890 3,958 5,574 399 346 394 Corporate and other Eliminations Consolidated millions of Canadian dollars 2017 2016 2015 2017 2016 2015 2017 2016 2015 Revenues and other income Operating revenues (a) - - - - - - 29,125 25,049 26,756 Intersegment sales - - - (3,681 ) (3,434 ) (3,739 ) - - - Investment and other income (note 8) 14 14 6 - - - 299 2,305 132 14 14 6 (3,681 ) (3,434 ) (3,739 ) 29,424 27,354 26,888 Expenses Exploration (b) (note 15) - - - - - - 183 94 73 Purchases of crude oil and products - - - (3,675 ) (3,429 ) (3,735 ) 18,145 15,120 15,284 Production and manufacturing - - - - - - 5,698 5,224 5,434 Selling and general 49 84 50 (6 ) (5 ) (4 ) 893 1,129 1,117 Federal excise tax - - - - - - 1,673 1,650 1,568 Depreciation and depletion (b) 19 16 13 - - - 2,172 1,628 1,450 Financing costs (note 12) 65 72 34 - - - 78 65 39 Total expenses 133 172 97 (3,681 ) (3,434 ) (3,739 ) 28,842 24,910 24,965 Income (loss) before income taxes (119 ) (158 ) (91 ) - - - 582 2,444 1,923 Income taxes (note 3) Current (6 ) (51 ) (45 ) - - - (58 ) 200 451 Deferred (34 ) 8 1 - - - 150 79 350 Total income tax expense (benefit) (40 ) (43 ) (44 ) - - - 92 279 801 Net income (loss) (79 ) (115 ) (47 ) - - - 490 2,165 1,122 Cash flows from (used in) operating activities (125 ) (143 ) (124 ) - (21 ) (2 ) 2,763 2,015 2,167 Capital and exploration expenditures (c) 38 49 68 - - - 671 1,161 3,595 Property, plant and equipment Cost 665 627 579 - - - 52,778 53,515 54,203 Accumulated depreciation and depletion (223 ) (204 ) (188 ) - - - (18,305 ) (17,182 ) (16,404 ) Net property, plant and equipment (b) (d) 442 423 391 - - - 34,473 36,333 37,799 Total assets 1,703 894 579 (435 ) (384 ) (348 ) 41,601 41,654 43,170 (a) Includes export sales to the United States of $4,392 million (2016 - $3,612 million, 2015 - $4,157 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) The Upstream segment in 2017 includes non-cash (c) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to capital leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. (d) Includes property, plant and equipment under construction of $1,047 million (2016 - $2,705 million, 2015 - $3,719 million). |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Income Tax Expense (Benefit) | millions of Canadian dollars 2017 2016 2015 Current income tax expense (a) (58 ) 200 451 Deferred income tax expense (a) (b) 150 79 350 Total income tax expense (a) (c) 92 279 801 Statutory corporate tax rate (percent) 26.9 26.8 27.2 Increase (decrease) resulting from: Disposals (d) (5.3 ) (11.6 ) (0.4 ) Enacted tax rate change (a) 0.9 - 16.1 Other (6.6 ) (3.8 ) (1.2 ) Effective income tax rate 15.9 11.4 41.7 (a) On November 2, 2017 the British Columbia government enacted a 1 percent increase in the provincial tax rate from 11 percent to 12 percent. On June 30, 2015 the Alberta government enacted a 2 percent increase in the provincial tax rate, from 10 percent to 12 percent. (b) There were no material net (charges) credits for the effect of changes in tax laws and rates included in the provisions for deferred income taxes in 2016. (c) Cash outflow from income taxes, plus investment credits earned, was $322 million (2016 - $172 million, 2015 - $202 million). (d) 2017 disposals are primarily associated with the sale of surplus property in Ontario. 2016 disposals are primarily associated with the sales of company-owned Esso retail sites and the general aviation business. Capital gains tax treatment was applied on the majority of disposals. |
Components of Deferred Income Tax Liabilities and Assets | Components of deferred income tax liabilities and assets as at December 31 were: millions of Canadian dollars 2017 2016 2015 Depreciation and amortization 5,564 5,361 4,677 Successful drilling and land acquisitions 762 891 922 Pension and benefits (422 ) (457 ) (396 ) Asset retirement obligation (376 ) (396 ) (406 ) Capitalized interest 118 114 104 LIFO inventory valuation (a) (318 ) (240 ) - Tax loss carryforwards (936 ) (1,056 ) (610 ) Other (a) (196 ) (212 ) (100 ) Net long-term deferred income tax liabilities 4,196 4,005 4,191 LIFO inventory valuation (a) - - (112 ) Other (a) - - (160 ) Net current deferred income tax assets - - (272 ) Net current deferred income tax liabilities (a) - - 41 Net deferred income tax liabilities 4,196 4,005 3,960 (a) Effective 2016, under ASU 2015-17, non-current. |
Unrecognized Tax Benefits | The following table summarizes the movement in unrecognized tax benefits: millions of Canadian dollars 2017 2016 2015 Balance as of January 1 106 132 151 Additions for prior years’ tax position 2 2 10 Reductions for prior years’ tax positions - (18 ) (4 ) Reductions due to lapse of the statute of limitations - (5 ) - Settlements with tax authorities (30 ) (5 ) (25 ) Balance as of December 31 78 106 132 |
Employee retirement benefits (T
Employee retirement benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Assumptions Used to Determine Benefit Obligations | The benefit obligations and plan assets associated with the company’s defined benefit plans are measured on December 31. Pension benefits Other post retirement benefits 2017 2016 2017 2016 Assumptions used to determine benefit obligations Discount rate 3.40 3.75 3.40 3.75 Long-term rate of compensation increase 4.50 4.50 4.50 4.50 millions of Canadian dollars Change in projected benefit obligation Projected benefit obligation at January 1 8,356 8,147 706 642 Current service cost 217 203 16 16 Interest cost 313 319 23 27 Actuarial loss (gain) 415 157 (49 ) 46 Benefits paid (a) (516 ) (470 ) (26 ) (25 ) Projected benefit obligation at December 31 8,785 8,356 670 706 Accumulated benefit obligation at December 31 8,043 7,681 |
Change in Plan Assets of Pension and Other Postretirement Benefits | Pension benefits Other post retirement benefits millions of Canadian dollars 2017 2016 2017 2016 Change in plan assets Fair value at January 1 7,359 7,260 Actual return (loss) on plan assets 700 316 Company contributions 212 163 Benefits paid (b) (401 ) (380 ) Fair value at December 31 7,870 7,359 Plan assets in excess of (less than) projected benefit obligation at December 31 Funded plans (408 ) (444 ) Unfunded plans (507 ) (553 ) (670 ) (706 ) Total (c) (915 ) (997 ) (670 ) (706 ) (a) Benefit payments for funded and unfunded plans. (b) Benefit payments for funded plans only. (c) Fair value of assets less projected benefit obligation shown above. |
Amounts Recorded in Consolidated Balance Sheet and Accumulated Other Comprehensive Income | Pension benefits Other post retirement benefits millions of Canadian dollars 2017 2016 2017 2016 Amounts recorded in the consolidated balance sheet consist of: Current liabilities (28 ) (29 ) (28 ) (29 ) Other long-term obligations (887 ) (968 ) (642 ) (677 ) Total recorded (915 ) (997 ) (670 ) (706 ) Amounts recorded in accumulated other comprehensive income consist of: Net actuarial loss (gain) 2,408 2,461 140 197 Prior service cost 4 14 - - Total recorded in accumulated other 2,412 2,475 140 197 |
Assumptions Used to Determine Periodic Benefit Cost | Pension benefits Other post retirement benefits millions of Canadian dollars 2017 2016 2015 2017 2016 2015 Assumptions used to determine net periodic benefit cost for years ended December 31 (percent) Discount rate 3.75 4.00 3.75 3.75 4.00 3.75 Long-term rate of return on funded assets 5.50 5.50 5.75 - - - Long-term rate of compensation increase 4.50 4.50 4.50 4.50 4.50 4.50 millions of Canadian dollars Components of net periodic benefit cost Current service cost 217 203 211 16 16 15 Interest cost 313 319 307 23 27 25 Expected return on plan assets (408 ) (400 ) (392 ) - - - Amortization of prior service cost 10 9 16 - - - Amortization of actuarial loss (gain) 176 162 198 8 13 14 Net periodic benefit cost 308 293 340 47 56 54 Changes in amounts recorded in accumulated Net actuarial loss (gain) 123 241 (86 ) (49 ) 46 (2 ) Amortization of net actuarial (loss) gain included in (176 ) (162 ) (198 ) (8 ) (13 ) (14 ) Amortization of prior service cost included in net (10 ) (9 ) (16 ) - - - Total recorded in other comprehensive income (63 ) 70 (300 ) (57 ) 33 (16 ) Total recorded in net periodic benefit cost and 245 363 40 (10 ) 89 38 |
Summary of Change in Accumulated Other Comprehensive Income | A summary of the change in accumulated other comprehensive income is shown in the table below: Total pension and other post retirement benefits millions of Canadian dollars 2017 2016 2015 (Charge) credit to other comprehensive income, before tax 120 (103 ) 316 Deferred income tax (charge) credit (note 17) (38 ) 34 (85 ) (Charge) credit to other comprehensive income, after tax 82 (69 ) 231 |
Fair Value of Pension Plan Assets Including Level within Fair Value Hierarchy | The 2017 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below: Fair value measurements at December 31, 2017, using: millions of Canadian dollars Total Level 1 Level 2 Level 3 Net Asset Value Asset class Equity securities Canadian 182 182 Non-Canadian 2,138 2,138 Debt securities - Canadian Corporate 1,248 1,248 Government 4,016 4,016 Asset backed - - Equities – Venture capital 215 215 Cash 71 34 37 Total plan assets at fair value 7,870 34 - - 7,836 The 2016 fair value of the pension plan assets, including the level within the fair value hierarchy, is shown in the table below: Fair value measurements at December 31, 2016, using: millions of Canadian dollars Total Level 1 Level 2 Level 3 Net Asset Asset class Equity securities Canadian 433 433 Non-Canadian 2,448 2,448 Debt securities - Canadian Corporate 988 988 Government 3,218 3,218 Asset backed - - Equities – Venture capital 241 241 Cash 31 6 25 Total plan assets at fair value 7,359 6 - - 7,353 (a) Per ASU 2015-07, re-categorized |
Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | A summary of pension plans with accumulated benefit obligations in excess of plan assets is shown in the table below: Pension benefits millions of Canadian dollars 2017 2016 For funded pension plans with accumulated benefit Projected benefit obligation - - Accumulated benefit obligation - - Fair value of plan assets - - Accumulated benefit obligation less fair value of plan assets - - For unfunded plans covered by book reserves: Projected benefit obligation 507 553 Accumulated benefit obligation 480 525 |
Estimated 2018 Amortization from Accumulated Other Comprehensive Income | Estimated 2018 amortization from accumulated other comprehensive income millions of Canadian dollars Pension benefits Other post retirement benefits Net actuarial loss (gain) (a) 170 9 Prior service cost (b) 4 - (a) The company amortizes the net balance of actuarial loss (gain) as a component of net periodic benefit cost over the average remaining service period of active plan participants. (b) The company amortizes prior service cost on a straight-line basis. |
Benefit Payments Expected | Benefit payments expected in: millions of Canadian dollars Pension benefits Other post retirement benefits 2018 425 29 2019 430 29 2020 435 29 2021 435 30 2022 435 30 2023 - 2027 2,165 155 |
Effect of One Percent Change in Assumptions at Which Retirement Liabilities Could be Effectively Settled | A one percent change in the assumptions at which retirement liabilities could be effectively settled is as follows: Increase (decrease) millions of Canadian dollars One percent increase One percent decrease Rate of return on plan assets: Effect on net benefit cost, before tax (75) 75 Discount rate: Effect on net benefit cost, before tax (90) 120 Effect on benefit obligation (1,215) 1,570 Rate of pay increases: Effect on net benefit cost, before tax 55 (45) Effect on benefit obligation 265 (225) |
Effect of One Percent Change in Assumed Health-Care Cost Trend Rate | A one percent change in the assumed health-care cost trend rate would have the following effects: Increase (decrease) millions of Canadian dollars One percent increase One percent decrease Effect on service and interest cost components 6 (5) Effect on benefit obligation 80 (60) |
Other long-term obligations (Ta
Other long-term obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Long-Term Obligations | millions of Canadian dollars 2017 2016 Employee retirement benefits (a) (note 4) 1,529 1,645 Asset retirement obligations and other environmental liabilities (b) (d) 1,460 1,544 Share-based incentive compensation liabilities (note 7) 99 139 Other obligations (c) 692 328 Total other long-term obligations 3,780 3,656 (a) Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2016 – $58 million). (b) Total asset retirement obligations and other environmental liabilities also included $101 million in current liabilities (2016 – $108 million). (c) Included carbon emission program obligations. Carbon emission program credits are recorded under other assets, including intangibles, net. (d) For 2017, the asset retirement obligations were discounted at 6 percent (2016 - 6 percent). |
Schedule of Asset Retirement Obligations | Asset retirement obligations incurred in the current period were Level 3 fair value measurements. The following table summarizes the activity in the liability for asset retirement obligations: millions of Canadian dollars 2017 2016 Balance as at January 1 1,472 1,571 Additions (deductions) (124 ) (160 ) Accretion 92 97 Settlement (43 ) (36 ) Balance as at December 31 1,397 1,472 |
Share-based incentive compens32
Share-based incentive compensation programs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summarized Information about Incentive Share, Deferred Share and Restricted Stock Units | The following table summarizes information about these units for the year ended December 31, 2017: Restricted Deferred Outstanding at January 1, 2017 6,662,126 136,177 Granted 758,990 13,231 Vested / Exercised (1,545,921 ) - Forfeited and cancelled (16,145 ) - Outstanding at December 31, 2017 5,859,050 149,408 |
Investment and other income (Ta
Investment and other income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Gains and Losses on Asset Sales | Investment and other income includes gains and losses on asset sales as follows: millions of Canadian dollars 2017 2016 2015 Proceeds from asset sales 232 3,021 142 Book value of asset sales 12 777 45 Gain (loss) on asset sales, before tax (a) (b) 220 2,244 97 Gain (loss) on asset sales, after tax (a) (b) 192 1,908 79 (a) 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. (b) 2016 included a gain of $2.0 billion ($1.7 billion, after tax) from the sale of company-owned Esso-branded retail sites; and a gain of $161 million ($134 million, after tax) from the sale of Imperial’s general aviation business. |
Common shares (Tables)
Common shares (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Common Shares | thousands of shares As at Dec 31 2017 As at Dec 31 2016 Authorized 1,100,000 1,100,000 Common shares outstanding 831,242 847,599 |
Common Share Activities | The company’s common share activities are summarized below: Thousands of Millions of Balance as at January 1, 2015 847,599 1,566 Issued under employee share-based awards 1 - Purchases at stated value (1 ) - Balance as at December 31, 2015 847,599 1,566 Issued under employee share-based awards 1 - Purchases at stated value (1 ) - Balance as at December 31, 2016 847,599 1,566 Issued under employee share-based awards 2 - Purchases at stated value (16,359 ) (30 ) Balance as at December 31, 2017 831,242 1,536 |
Calculation of Basic and Diluted Earnings Per Share | The following table provides the calculation of basic and diluted earnings per common share: 2017 2016 2015 Net income (loss) per common share – basic Net income (loss) (millions of Canadian dollars) 490 2,165 1,122 Weighted average number of common shares outstanding (millions of shares) 842.9 847.6 847.6 Net income (loss) per common share (dollars) 0.58 2.55 1.32 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 490 2,165 1,122 Weighted average number of common shares outstanding 842.9 847.6 847.6 Effect of employee share-based awards (millions of shares) 2.8 2.9 3.0 Weighted average number of common shares outstanding, assuming dilution 845.7 850.5 850.6 Net income (loss) per common share (dollars) 0.58 2.55 1.32 |
Miscellaneous financial infor35
Miscellaneous financial information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories of Crude Oil and Products | Inventories of crude oil and products at year-end millions of Canadian dollars 2017 2016 Crude oil 690 558 Petroleum products 307 300 Chemical products 42 51 Natural gas and other 36 40 Total inventories of crude oil and products 1,075 949 |
Financing costs and additiona36
Financing costs and additional notes and loans payable information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financing Costs and Additional Notes and Loans Payable Information | millions of Canadian dollars 2017 2016 2015 Debt-related interest 103 121 102 Capitalized interest (38 ) (49 ) (68 ) Net interest expense 65 72 34 Other interest 13 (7 ) 5 Total financing costs (a) 78 65 39 (a) Cash interest payments in 2017 were $58 million (2016 – $73 million, 2015 – $74 million). The weighted average interest rate on short-term borrowings in 2017 was 0.9 percent (2016 – 0.8 percent, 2015 – 0.8 percent). Average effective rate on the long-term borrowings with ExxonMobil in 2017 was 1.3 percent (2016 - 1.0 percent, 2015 - 1.0 percent). |
Leased facilities (Tables)
Leased facilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Operating Leases | At December 31, 2017, the company held non-cancelable Payments due by period millions of Canadian dollars 2018 2019 2020 2021 2022 After Total Lease payments under (a) 120 56 19 2 1 1 199 (a) Net rental cost under cancelable and non-cancelable |
Long-term debt (Tables)
Long-term debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Long-Term Debt | millions of Canadian dollars As at As at Long-term debt (a) 4,447 4,447 Capital leases (b) 558 585 Total long-term debt 5,005 5,032 (a) Borrowed under an existing agreement with an affiliated company of ExxonMobil that provides for a long-term, variable-rate, Canadian dollar loan from ExxonMobil to the company of up to $7.75 billion at interest equivalent to Canadian market rates. The agreement is effective until July 31, 2020, cancelable if ExxonMobil provides at least 370 days advance written notice. (b) Capital leases are primarily associated with transportation facilities and services agreements. The average imputed rate was 7.0 percent in 2017 (2016 – 6.9 percent). Total capitalized lease obligations also include $27 million in current liabilities (2016 - $27 million). Principal payments on capital leases of approximately $21 million on average per year are due in each of the next four years after December 31, 2018. |
Accounting for suspended expl39
Accounting for suspended exploratory well costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Change in Capitalized Suspended Exploratory Well Costs | Change in capitalized suspended exploratory well costs: millions of Canadian dollars 2017 2016 2015 Balance as at January 1 143 167 167 Additions pending the determination of proved reserves - - - Charged to expense (143 ) (24 ) - Reclassification to wells, facilities and equipment - - - Balance as at December 31 - 143 167 |
Schedule of Aging of Capitalized Exploratory Well Costs | Period end capitalized suspended exploratory well costs: millions of Canadian dollars 2017 2016 2015 Capitalized for a period of one year or less - - - Capitalized for a period of between one and ten years - 143 167 Capitalized for a period of greater than one year - 143 167 Total - 143 167 |
Number of Projects With Suspended Exploratory Well Costs | The table below provides a breakdown of the number of projects with exploratory well costs capitalized in the preceding 12 months and those that have had exploratory well costs capitalized for a period greater than 12 months. 2017 2016 2015 Number of projects with first capitalized well - - - Number of projects that have exploratory well costs - 1 1 Total - 1 1 |
Other comprehensive income (l40
Other comprehensive income (loss) information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2017 2016 2015 Balance at January 1 (1,897 ) (1,828 ) (2,059 ) Post retirement benefits liability adjustment: Current period change excluding amounts reclassified (54 ) (210 ) 64 Amounts reclassified from accumulated other comprehensive income 136 141 167 Balance at December 31 (1,815 ) (1,897 ) (1,828 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) - Before-Tax Income (Expense) | Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax millions of Canadian dollars 2017 2016 2015 Amortization of post retirement benefits liability adjustment (a) (194 ) (184 ) (228 ) (a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 4). |
Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) | Income tax expense (credit) for components of other comprehensive income (loss): millions of Canadian dollars 2017 2016 2015 Post retirement benefits liability adjustments: Post retirement benefits liability adjustment (excluding amortization) (20 ) (77 ) 24 Amortization of post retirement benefits liability adjustment 58 43 61 Total 38 (34 ) 85 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |
Amortization of computer software development costs, in years | 15 years |
Amortization of customer lists, in years | 10 years |
Refinery Chemical Process And Lubes Basestock Manufacturing Equipment | |
Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 25 years |
Maximum | Mining Heavy Equipment | |
Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 15 years |
Maximum | Ore Processing Plant Assets | |
Significant Accounting Policies [Line Items] | |
Property plant and equipment, useful life | 50 years |
Syncrude Joint Venture | |
Significant Accounting Policies [Line Items] | |
Undivided interest in oil and gas activities | 25.00% |
Kearl Joint Venture | |
Significant Accounting Policies [Line Items] | |
Undivided interest in oil and gas activities | 70.96% |
Business Segments (Detail)
Business Segments (Detail) - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues and other income | ||||
Operating revenues | [1],[2] | CAD 29,125 | CAD 25,049 | CAD 26,756 |
Investment and other income (note 8) | 299 | 2,305 | 132 | |
Total revenues and other income | 29,424 | 27,354 | 26,888 | |
Expenses | ||||
Exploration (note 15) | [3] | 183 | 94 | 73 |
Purchases of crude oil and products | [4] | 18,145 | 15,120 | 15,284 |
Production and manufacturing | [5] | 5,698 | 5,224 | 5,434 |
Selling and general | [5] | 893 | 1,129 | 1,117 |
Federal excise tax | 1,673 | 1,650 | 1,568 | |
Depreciation and depletion | [3] | 2,172 | 1,628 | 1,450 |
Financing costs (note 12) | [6] | 78 | 65 | 39 |
Total expenses | 28,842 | 24,910 | 24,965 | |
Income (loss) before income taxes | 582 | 2,444 | 1,923 | |
Income taxes (note 3) | ||||
Current | [7] | (58) | 200 | 451 |
Deferred | [7],[8] | 150 | 79 | 350 |
Total income tax expense (benefit) | [7],[9] | 92 | 279 | 801 |
Net income (loss) | 490 | 2,165 | 1,122 | |
Cash flows from (used in) operating activities | 2,763 | 2,015 | 2,167 | |
Capital and exploration expenditures | [10] | 671 | 1,161 | 3,595 |
Property, plant and equipment Cost | 52,778 | 53,515 | 54,203 | |
Accumulated depreciation and depletion | (18,305) | (17,182) | (16,404) | |
Net property, plant and equipment | [3],[11] | 34,473 | 36,333 | 37,799 |
Total assets | 41,601 | 41,654 | 43,170 | |
Consolidation, Eliminations | ||||
Revenues and other income | ||||
Intersegment sales | (3,681) | (3,434) | (3,739) | |
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | (3,681) | (3,434) | (3,739) | |
Expenses | ||||
Purchases of crude oil and products | (3,675) | (3,429) | (3,735) | |
Selling and general | (6) | (5) | (4) | |
Total expenses | (3,681) | (3,434) | (3,739) | |
Income taxes (note 3) | ||||
Cash flows from (used in) operating activities | (21) | (2) | ||
Total assets | (435) | (384) | (348) | |
Upstream | ||||
Revenues and other income | ||||
Operating revenues | [2] | 7,302 | 5,492 | 5,776 |
Intersegment sales | 2,264 | 2,215 | 2,486 | |
Investment and other income (note 8) | 16 | 13 | 22 | |
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 9,582 | 7,720 | 8,284 | |
Expenses | ||||
Exploration (note 15) | [3] | 183 | 94 | 73 |
Purchases of crude oil and products | 4,526 | 3,666 | 3,768 | |
Production and manufacturing | 3,913 | 3,591 | 3,766 | |
Selling and general | (5) | (2) | ||
Depreciation and depletion | [3] | 1,939 | 1,396 | 1,193 |
Financing costs (note 12) | 13 | (7) | 5 | |
Total expenses | 10,574 | 8,735 | 8,803 | |
Income (loss) before income taxes | (992) | (1,015) | (519) | |
Income taxes (note 3) | ||||
Current | 484 | (491) | (77) | |
Deferred | (770) | 137 | 262 | |
Total income tax expense (benefit) | (286) | (354) | 185 | |
Net income (loss) | (706) | (661) | (704) | |
Cash flows from (used in) operating activities | 1,257 | 402 | 224 | |
Capital and exploration expenditures | [10] | 416 | 896 | 3,135 |
Property, plant and equipment Cost | 45,542 | 45,850 | 45,171 | |
Accumulated depreciation and depletion | (13,844) | (12,312) | (11,016) | |
Net property, plant and equipment | [3],[11] | 31,698 | 33,538 | 34,155 |
Total assets | 35,044 | 36,840 | 36,971 | |
Downstream | ||||
Revenues and other income | ||||
Operating revenues | [2] | 20,714 | 18,511 | 19,796 |
Intersegment sales | 1,155 | 1,007 | 1,019 | |
Investment and other income (note 8) | 269 | 2,278 | 104 | |
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 22,138 | 21,796 | 20,919 | |
Expenses | ||||
Purchases of crude oil and products | 16,543 | 14,178 | 14,526 | |
Production and manufacturing | 1,576 | 1,428 | 1,461 | |
Selling and general | 772 | 972 | 986 | |
Federal excise tax | 1,673 | 1,650 | 1,568 | |
Depreciation and depletion | [3] | 202 | 206 | 233 |
Total expenses | 20,766 | 18,434 | 18,774 | |
Income (loss) before income taxes | 1,372 | 3,362 | 2,145 | |
Income taxes (note 3) | ||||
Current | (504) | 674 | 476 | |
Deferred | 836 | (66) | 83 | |
Total income tax expense (benefit) | 332 | 608 | 559 | |
Net income (loss) | 1,040 | 2,754 | 1,586 | |
Cash flows from (used in) operating activities | 1,396 | 1,574 | 1,686 | |
Capital and exploration expenditures | [10] | 200 | 190 | 340 |
Property, plant and equipment Cost | 5,683 | 6,166 | 7,596 | |
Accumulated depreciation and depletion | (3,594) | (4,037) | (4,584) | |
Net property, plant and equipment | [3],[11] | 2,089 | 2,129 | 3,012 |
Total assets | 4,890 | 3,958 | 5,574 | |
Chemical | ||||
Revenues and other income | ||||
Operating revenues | [2] | 1,109 | 1,046 | 1,184 |
Intersegment sales | 262 | 212 | 234 | |
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 1,371 | 1,258 | 1,418 | |
Expenses | ||||
Purchases of crude oil and products | 751 | 705 | 725 | |
Production and manufacturing | 209 | 205 | 207 | |
Selling and general | 78 | 83 | 87 | |
Depreciation and depletion | [3] | 12 | 10 | 11 |
Total expenses | 1,050 | 1,003 | 1,030 | |
Income (loss) before income taxes | 321 | 255 | 388 | |
Income taxes (note 3) | ||||
Current | (32) | 68 | 97 | |
Deferred | 118 | 4 | ||
Total income tax expense (benefit) | 86 | 68 | 101 | |
Net income (loss) | 235 | 187 | 287 | |
Cash flows from (used in) operating activities | 235 | 203 | 383 | |
Capital and exploration expenditures | [10] | 17 | 26 | 52 |
Property, plant and equipment Cost | 888 | 872 | 857 | |
Accumulated depreciation and depletion | (644) | (629) | (616) | |
Net property, plant and equipment | [3],[11] | 244 | 243 | 241 |
Total assets | 399 | 346 | 394 | |
Corporate and Other | ||||
Revenues and other income | ||||
Investment and other income (note 8) | 14 | 14 | 6 | |
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 14 | 14 | 6 | |
Expenses | ||||
Selling and general | 49 | 84 | 50 | |
Depreciation and depletion | [3] | 19 | 16 | 13 |
Financing costs (note 12) | 65 | 72 | 34 | |
Total expenses | 133 | 172 | 97 | |
Income (loss) before income taxes | (119) | (158) | (91) | |
Income taxes (note 3) | ||||
Current | (6) | (51) | (45) | |
Deferred | (34) | 8 | 1 | |
Total income tax expense (benefit) | (40) | (43) | (44) | |
Net income (loss) | (79) | (115) | (47) | |
Cash flows from (used in) operating activities | (125) | (143) | (124) | |
Capital and exploration expenditures | [10] | 38 | 49 | 68 |
Property, plant and equipment Cost | 665 | 627 | 579 | |
Accumulated depreciation and depletion | (223) | (204) | (188) | |
Net property, plant and equipment | [3],[11] | 442 | 423 | 391 |
Total assets | CAD 1,703 | CAD 894 | CAD 579 | |
[1] | Amounts from related parties included in operating revenues (note 16). 4,110 2,342 3,058 | |||
[2] | Includes export sales to the United States of $4,392 million (2016 - $3,612 million, 2015 - $4,157 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | |||
[3] | The Upstream segment in 2017 includes non-cash impairment charges of $396 million, before tax, associated with the Horn River development and $379 million, before tax, associated with the Mackenzie gas project. The impairment charges are recognized in the lines exploration, and depreciation and depletion on the consolidated statement of income, and the accumulated depreciation and depletion line of the consolidated balance sheet. | |||
[4] | Amounts to related parties included in purchases of crude oil and products (note 16). 2,687 2,224 2,684 | |||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses (note 16). 544 533 442 | |||
[6] | Cash interest payments in 2017 were $58 million (2016 - $73 million, 2015 - $74 million). The weighted average interest rate on short-term borrowings in 2017 was 0.9 percent (2016 - 0.8 percent, 2015 - 0.8 percent). Average effective rate on the long-term borrowings with ExxonMobil in 2017 was 1.3 percent (2016 - 1.0 percent, 2015 - 1.0 percent). | |||
[7] | On November 2, 2017 the British Columbia government enacted a 1 percent increase in the provincial tax rate from 11 percent to 12 percent. On June 30, 2015 the Alberta government enacted a 2 percent increase in the provincial tax rate, from 10 percent to 12 percent. | |||
[8] | There were no material net (charges) credits for the effect of changes in tax laws and rates included in the provisions for deferred income taxes in 2016. | |||
[9] | Cash outflow from income taxes, plus investment credits earned, was $322 million (2016 - $172 million, 2015 - $202 million). | |||
[10] | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to capital leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. | |||
[11] | Includes property, plant and equipment under construction of $1,047 million (2016 - $2,705 million, 2015 - $3,719 million). |
Business Segments (Parenthetica
Business Segments (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||
Operating revenues | [1],[2] | CAD 29,125 | CAD 25,049 | CAD 26,756 |
Plant and equipment under construction | 1,047 | 2,705 | 3,719 | |
Horn River Development | ||||
Segment Reporting Information [Line Items] | ||||
Impairment charge, before tax | 396 | |||
Mackenzie Gas Project | ||||
Segment Reporting Information [Line Items] | ||||
Impairment charge, before tax | 379 | |||
United States Exports | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | CAD 4,392 | CAD 3,612 | CAD 4,157 | |
[1] | Amounts from related parties included in operating revenues (note 16). 4,110 2,342 3,058 | |||
[2] | Includes export sales to the United States of $4,392 million (2016 - $3,612 million, 2015 - $4,157 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. |
Income Taxes (Detail)
Income Taxes (Detail) - CAD CAD in Millions | Nov. 02, 2017 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Schedule Of Income Tax [Line Items] | ||||||||
Current income tax expense | [1] | CAD (58) | CAD 200 | CAD 451 | ||||
Deferred income tax expense | [1],[2] | 150 | 79 | 350 | ||||
Total income tax expense | [1],[3] | CAD 92 | CAD 279 | CAD 801 | ||||
Statutory corporate tax rate (percent) | 26.90% | 26.80% | 27.20% | |||||
Disposals | [4] | (5.30%) | (11.60%) | (0.40%) | ||||
Enacted tax rate change | 1.00% | 2.00% | 0.90% | [1] | 16.10% | [1] | ||
Other | (6.60%) | (3.80%) | (1.20%) | |||||
Effective income tax rate | 15.90% | 11.40% | 41.70% | |||||
[1] | On November 2, 2017 the British Columbia government enacted a 1 percent increase in the provincial tax rate from 11 percent to 12 percent. On June 30, 2015 the Alberta government enacted a 2 percent increase in the provincial tax rate, from 10 percent to 12 percent. | |||||||
[2] | There were no material net (charges) credits for the effect of changes in tax laws and rates included in the provisions for deferred income taxes in 2016. | |||||||
[3] | Cash outflow from income taxes, plus investment credits earned, was $322 million (2016 - $172 million, 2015 - $202 million). | |||||||
[4] | 2017 disposals are primarily associated with the sale of surplus property in Ontario. 2016 disposals are primarily associated with the sales of company-owned Esso retail sites and the general aviation business. Capital gains tax treatment was applied on the majority of disposals. |
Income Taxes (Parenthetical) (D
Income Taxes (Parenthetical) (Detail) - CAD CAD in Millions | Nov. 02, 2017 | Jun. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Schedule Of Income Tax [Line Items] | |||||||
Increase in the provincial tax rate | 1.00% | 2.00% | 0.90% | [1] | 16.10% | [1] | |
Cash outflow from income taxes, plus investment credits earned | CAD 322 | CAD 172 | CAD 202 | ||||
Minimum | |||||||
Schedule Of Income Tax [Line Items] | |||||||
Provincial tax rate | 11.00% | 10.00% | |||||
Maximum | |||||||
Schedule Of Income Tax [Line Items] | |||||||
Provincial tax rate | 12.00% | 12.00% | |||||
[1] | On November 2, 2017 the British Columbia government enacted a 1 percent increase in the provincial tax rate from 11 percent to 12 percent. On June 30, 2015 the Alberta government enacted a 2 percent increase in the provincial tax rate, from 10 percent to 12 percent. |
Components of Deferred Income T
Components of Deferred Income Tax Liabilities and Assets (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components Of Deferred Tax Assets And Liabilities [Line Items] | ||||
Depreciation and amortization | CAD 5,564 | CAD 5,361 | CAD 4,677 | |
Successful drilling and land acquisitions | 762 | 891 | 922 | |
Pension and benefits | (422) | (457) | (396) | |
Asset retirement obligation | (376) | (396) | (406) | |
Capitalized interest | 118 | 114 | 104 | |
LIFO inventory valuation | [1] | (318) | (240) | |
Tax loss carryforwards | (936) | (1,056) | (610) | |
Other | [1] | (196) | (212) | (100) |
Net long-term deferred income tax liabilities | 4,196 | 4,005 | 4,191 | |
LIFO inventory valuation | [1] | (112) | ||
Other | [1] | (160) | ||
Net current deferred income tax assets | (272) | |||
Net current deferred income tax liabilities | [1] | 41 | ||
Net deferred income tax liabilities | CAD 4,196 | CAD 4,005 | CAD 3,960 | |
[1] | Effective 2016, under ASU 2015-17, deferred tax assets and liabilities have been classified as non-current. 2015 was not restated. |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Unrecognized Tax Benefits [Line Items] | |||
Balance as of January 1 | CAD 106 | CAD 132 | CAD 151 |
Additions for prior years' tax position | 2 | 2 | 10 |
Reductions for prior years' tax positions | (18) | (4) | |
Reductions due to lapse of the statute of limitations | (5) | ||
Settlements with tax authorities | (30) | (5) | (25) |
Balance as of December 31 | CAD 78 | CAD 106 | CAD 132 |
Assumptions Used to Determine B
Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.40% | 3.75% |
Long-term rate of compensation increase | 4.50% | 4.50% |
Other post-retirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.40% | 3.75% |
Long-term rate of compensation increase | 4.50% | 4.50% |
Change in Projected Benefit Obl
Change in Projected Benefit Obligation (Detail) - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Pension benefits | ||||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||||
Projected benefit obligation at January 1 | CAD 8,356 | CAD 8,147 | ||
Current service cost | 217 | 203 | CAD 211 | |
Interest cost | 313 | 319 | 307 | |
Actuarial loss (gain) | 415 | 157 | ||
Benefits paid | [1] | (516) | (470) | |
Projected benefit obligation at December 31 | 8,785 | 8,356 | 8,147 | |
Accumulated benefit obligation at December 31 | 8,043 | 7,681 | ||
Other post-retirement benefits | ||||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | ||||
Projected benefit obligation at January 1 | 706 | 642 | ||
Current service cost | 16 | 16 | 15 | |
Interest cost | 23 | 27 | 25 | |
Actuarial loss (gain) | (49) | 46 | ||
Benefits paid | [1] | (26) | (25) | |
Projected benefit obligation at December 31 | CAD 670 | CAD 706 | CAD 642 | |
[1] | Benefit payments for funded and unfunded plans. |
Employee Retirement Benefits -
Employee Retirement Benefits - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | 120 Months Ended | 240 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Health care cost trend rate assumed for 2018 and subsequent years | 4.50% | 4.50% | 4.50% | ||
Long-term expected return | 5.50% | ||||
Actual rate of return | 6.30% | 7.30% | |||
Cost for defined contributions plans | CAD 40 | CAD 44 | CAD 43 | ||
Plan assets invested in venture capital partnerships | 5.00% | ||||
Cash contributions to pension plans in 2018 | CAD 240 | CAD 240 | CAD 240 | ||
Equity Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation securities | 28.00% | 28.00% | 28.00% | ||
Debt Securities | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Target allocation securities | 67.00% | 67.00% | 67.00% |
Change in Plan Assets and Plan
Change in Plan Assets and Plan Assets in Excess of Less Than Projected Benefit Obligation (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Fair value at January 1 | CAD 7,359 | ||
Fair value at December 31 | 7,870 | CAD 7,359 | |
Pension benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Fair value at January 1 | 7,359 | 7,260 | |
Actual return (loss) on plan assets | 700 | 316 | |
Company contributions | 212 | 163 | |
Benefits paid | [1] | (401) | (380) |
Fair value at December 31 | 7,870 | 7,359 | |
Funded plans | (408) | (444) | |
Unfunded plans | (507) | (553) | |
Total | [2] | (915) | (997) |
Other post-retirement benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Unfunded plans | (670) | (706) | |
Total | [2] | CAD (670) | CAD (706) |
[1] | Benefit payments for funded plans only. | ||
[2] | Fair value of assets less projected benefit obligation shown above. |
Amounts Recorded in Consolidate
Amounts Recorded in Consolidated Balance Sheet and Accumulated Other Comprehensive Income (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Current liabilities | CAD (56) | CAD (58) | |
Other long-term obligations | [1] | (1,529) | (1,645) |
Pension benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Current liabilities | (28) | (29) | |
Other long-term obligations | (887) | (968) | |
Total recorded | (915) | (997) | |
Net actuarial loss (gain) | 2,408 | 2,461 | |
Prior service cost | 4 | 14 | |
Total recorded in accumulated other comprehensive income, before tax | 2,412 | 2,475 | |
Other post-retirement benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Current liabilities | (28) | (29) | |
Other long-term obligations | (642) | (677) | |
Total recorded | (670) | (706) | |
Net actuarial loss (gain) | 140 | 197 | |
Total recorded in accumulated other comprehensive income, before tax | CAD 140 | CAD 197 | |
[1] | Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2016 - $58 million). |
Assumptions Used to Determine P
Assumptions Used to Determine Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Long-term rate of return on funded assets | 5.50% | ||
Pension benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Discount rate | 3.75% | 4.00% | 3.75% |
Long-term rate of return on funded assets | 5.50% | 5.50% | 5.75% |
Long-term rate of compensation increase | 4.50% | 4.50% | 4.50% |
Other post-retirement benefits | |||
Schedule Of Defined Benefit Plans Disclosures [Line Items] | |||
Discount rate | 3.75% | 4.00% | 3.75% |
Long-term rate of compensation increase | 4.50% | 4.50% | 4.50% |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost and Changes in Amounts Recorded in Accumulated Other Comprehensive Income (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total recorded in other comprehensive income | CAD (120) | CAD 103 | CAD (316) |
Pension benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current service cost | 217 | 203 | 211 |
Interest cost | 313 | 319 | 307 |
Expected return on plan assets | (408) | (400) | (392) |
Amortization of prior service cost | 10 | 9 | 16 |
Amortization of actuarial loss (gain) | 176 | 162 | 198 |
Net periodic benefit cost | 308 | 293 | 340 |
Net actuarial loss (gain) | 123 | 241 | (86) |
Amortization of net actuarial (loss) gain included in net periodic benefit cost | (176) | (162) | (198) |
Amortization of prior service cost included in net periodic benefit cost | (10) | (9) | (16) |
Total recorded in other comprehensive income | (63) | 70 | (300) |
Total recorded in net periodic benefit cost and other comprehensive income, before tax | 245 | 363 | 40 |
Other post-retirement benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current service cost | 16 | 16 | 15 |
Interest cost | 23 | 27 | 25 |
Amortization of actuarial loss (gain) | 8 | 13 | 14 |
Net periodic benefit cost | 47 | 56 | 54 |
Net actuarial loss (gain) | (49) | 46 | (2) |
Amortization of net actuarial (loss) gain included in net periodic benefit cost | (8) | (13) | (14) |
Total recorded in other comprehensive income | (57) | 33 | (16) |
Total recorded in net periodic benefit cost and other comprehensive income, before tax | CAD (10) | CAD 89 | CAD 38 |
Summary of Change in Accumulate
Summary of Change in Accumulated Other Comprehensive Income (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
(Charge) credit to other comprehensive income, before tax | CAD 120 | CAD (103) | CAD 316 |
Deferred income tax (charge) credit (note 17) | (38) | 34 | (85) |
(Charge) credit to other comprehensive income, after tax | CAD 82 | CAD (69) | CAD 231 |
Fair Value of Pension Plan Asse
Fair Value of Pension Plan Assets Including Level Within Fair Value Hierarchy (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | CAD 7,870 | CAD 7,359 | |
Investments that are measured at fair value using net asset value | 7,836 | 7,353 | [1] |
Canadian Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 182 | 433 | |
Investments that are measured at fair value using net asset value | 182 | 433 | [1] |
Non-Canadian Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 2,138 | 2,448 | |
Investments that are measured at fair value using net asset value | 2,138 | 2,448 | [1] |
Corporate Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 1,248 | 988 | |
Investments that are measured at fair value using net asset value | 1,248 | 988 | [1] |
Government Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 4,016 | 3,218 | |
Investments that are measured at fair value using net asset value | 4,016 | 3,218 | [1] |
Equities - Venture Capital | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 215 | 241 | |
Investments that are measured at fair value using net asset value | 215 | 241 | [1] |
Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 71 | 31 | |
Investments that are measured at fair value using net asset value | 37 | 25 | [1] |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | 34 | 6 | |
Level 1 | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total plan assets at fair value | CAD 34 | CAD 6 | |
[1] | Per ASU 2015-07, certain investments that are measured at fair value using the Net Asset Value (NAV) per share practical expedient have been re-categorized from the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total value of plan assets. |
Pension Plan with Accumulated B
Pension Plan with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | CAD 7,870 | CAD 7,359 |
Funded Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Accumulated benefit obligation less fair value of plan assets | 0 | 0 |
Unfunded Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 507 | 553 |
Accumulated benefit obligation | CAD 480 | CAD 525 |
Estimated 2018 Amortization fro
Estimated 2018 Amortization from Accumulated Other Comprehensive Income (Detail) CAD in Millions | Dec. 31, 2017CAD | |
Pension benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | CAD 170 | [1] |
Prior service cost | 4 | [2] |
Other post-retirement benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss (gain) | CAD 9 | [1] |
[1] | The company amortizes the net balance of actuarial loss (gain) as a component of net periodic benefit cost over the average remaining service period of active plan participants. | |
[2] | The company amortizes prior service cost on a straight-line basis. |
Expected Benefit Payments (Deta
Expected Benefit Payments (Detail) CAD in Millions | Dec. 31, 2017CAD |
Pension benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | CAD 425 |
2,019 | 430 |
2,020 | 435 |
2,021 | 435 |
2,022 | 435 |
2023 - 2027 | 2,165 |
Other post-retirement benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 29 |
2,019 | 29 |
2,020 | 29 |
2,021 | 30 |
2,022 | 30 |
2023 - 2027 | CAD 155 |
Effect of One Percent Change in
Effect of One Percent Change in Assumptions at Which Retirement Liabilities Could be Effectively Settled (Detail) CAD in Millions | 12 Months Ended |
Dec. 31, 2017CAD | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on net benefit cost, before tax, One percent increase - Rate of return on plan assets | CAD (75) |
Effect on net benefit cost, before tax, One percent increase - Discount rate | (90) |
Effect on benefit obligation, One percent increase - Discount rate | (1,215) |
Effect on net benefit cost, before tax, One percent increase- Rate of pay increases | 55 |
Effect on benefit obligation, One percent increase - Rate of pay increases | 265 |
Effect on net benefit cost, before tax, One percent decrease - Rate of return on plan assets | 75 |
Effect on net benefit cost, before tax, One percent decrease - Discount rate | 120 |
Effect on benefit obligation, One percent decrease - Discount rate | 1,570 |
Effect on net benefit cost, before tax, One percent decrease- Rate of pay increases | (45) |
Effect on benefit obligation, One percent decrease - Rate of pay increases | CAD (225) |
Effect of One Percent Change 61
Effect of One Percent Change in Assumed Health-Care Cost Trend Rate (Detail) CAD in Millions | 12 Months Ended |
Dec. 31, 2017CAD | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on service and interest cost components, One percent increase | CAD 6 |
Effect on service and interest cost components, One percent decrease | (5) |
Effect on benefit obligation, One percent increase | 80 |
Effect on benefit obligation, One percent decrease | CAD (60) |
Other Long-Term Obligations (De
Other Long-Term Obligations (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Other Liabilities [Line Items] | |||
Employee retirement benefits | [1] | CAD 1,529 | CAD 1,645 |
Asset retirement obligations and other environmental liabilities | [2],[3] | 1,460 | 1,544 |
Share-based incentive compensation liabilities | 99 | 139 | |
Other obligations | [4] | 692 | 328 |
Total other long-term obligations | [5] | CAD 3,780 | CAD 3,656 |
[1] | Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2016 - $58 million). | ||
[2] | For 2017, the asset retirement obligations were discounted at 6 percent (2016 - 6 percent). | ||
[3] | Total asset retirement obligations and other environmental liabilities also included $101 million in current liabilities (2016 - $108 million). | ||
[4] | Included carbon emission program obligations. Carbon emission program credits are recorded under other assets, including intangibles, net. | ||
[5] | Other long-term obligations included amounts to related parties of $60 million (2016 - $104 million), (note 16). |
Other Long-Term Obligations (Pa
Other Long-Term Obligations (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Other Liabilities [Line Items] | ||
Employee retirement benefit obligations in current liabilities | CAD 56 | CAD 58 |
Asset retirement obligations and other environmental liabilities in current liabilities | CAD 101 | CAD 108 |
Asset retirement obligations discount rate | 6.00% | 6.00% |
Schedule of Asset Retirement Ob
Schedule of Asset Retirement Obligations (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Changes in Asset Retirement Obligations [Line Items] | ||
Balance as at January 1 | CAD 1,472 | CAD 1,571 |
Additions (deductions) | (124) | (160) |
Accretion | 92 | 97 |
Settlement | (43) | (36) |
Balance as at December 31 | CAD 1,397 | CAD 1,472 |
Derivative and Financial Instru
Derivative and Financial Instruments (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments [Line Items] | ||
Derivative, Fair Value, Net | CAD 4 | CAD 0 |
Loss recognized related to settled and unsettled derivative, before tax | CAD (5) | CAD 0 |
Share-Based Incentive Compens66
Share-Based Incentive Compensation Programs - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense charged against income | CAD 14 | CAD 83 | CAD 48 |
Income tax benefit recognized in income related to compensation expense | 4 | 24 | 13 |
Cash payment for compensation expense | CAD 71 | CAD 79 | CAD 78 |
Restricted Stock Unit Plan 1 And 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of consecutive trading days of share price to average prior to exercise date | 5 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Before-tax unrecognized compensation expense related to non-vested restricted stock | CAD 94 | ||
Weighted average vesting period of nonvested restricted stock | 3 years 9 months 18 days | ||
Restricted Stock Units | Restricted Stock Unit Plan 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage restricted stock units vested on third anniversary of the grant date | 50.00% | ||
Percentage restricted stock units vested on seventh anniversary of the grant date | 50.00% | ||
Restricted Stock Units | Restricted Stock Unit Plan 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage restricted stock units vested on fifth anniversary of the grant date | 50.00% | ||
Percentage restricted stock units vested on tenth anniversary of the grant date | 50.00% | ||
Restricted Stock Units | Restricted Stock Unit Plan 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage restricted stock units vested on fifth anniversary of the grant date | 50.00% | ||
Percentage restricted stock units vested on tenth anniversary of the grant date | 50.00% |
Summarized Information About In
Summarized Information About Incentive Share, Deferred Share and Restricted Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2017shares | |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 1, 2017 | 6,662,126 |
Granted | 758,990 |
Vested / Exercised | (1,545,921) |
Forfeited and cancelled | (16,145) |
Outstanding at December 31, 2017 | 5,859,050 |
Deferred Share Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at January 1, 2017 | 136,177 |
Granted | 13,231 |
Outstanding at December 31, 2017 | 149,408 |
Gains and Losses on Asset Sales
Gains and Losses on Asset Sales (Detail) - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Investment And Other Income [Line Items] | ||||
Proceeds from asset sales | CAD 232 | CAD 3,021 | CAD 142 | |
Book value of asset sales | 12 | 777 | 45 | |
Gain (loss) on asset sales, before tax | [1],[2] | 220 | 2,244 | 97 |
Gain (loss) on asset sales, after tax | [1],[2] | CAD 192 | CAD 1,908 | CAD 79 |
[1] | 2016 included a gain of $2.0 billion ($1.7 billion, after tax) from the sale of company-owned Esso-branded retail sites; and a gain of $161 million ($134 million, after tax) from the sale of Imperial's general aviation business. | |||
[2] | 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. |
Gains and Losses on Asset Sal69
Gains and Losses on Asset Sales (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Investment And Other Income [Line Items] | ||||
Gain (loss) on asset sales, before tax | [1],[2] | CAD 220 | CAD 2,244 | CAD 97 |
Gain (loss) on asset sales, after tax | [1],[2] | 192 | 1,908 | CAD 79 |
Esso Retail Sites | ||||
Investment And Other Income [Line Items] | ||||
Gain (loss) on asset sales, before tax | 2,000 | |||
Gain (loss) on asset sales, after tax | 1,700 | |||
General Aviation Business | ||||
Investment And Other Income [Line Items] | ||||
Gain (loss) on asset sales, before tax | 161 | |||
Gain (loss) on asset sales, after tax | CAD 134 | |||
Surplus Property | ||||
Investment And Other Income [Line Items] | ||||
Gain (loss) on asset sales, before tax | 174 | |||
Gain (loss) on asset sales, after tax | CAD 151 | |||
[1] | 2016 included a gain of $2.0 billion ($1.7 billion, after tax) from the sale of company-owned Esso-branded retail sites; and a gain of $161 million ($134 million, after tax) from the sale of Imperial's general aviation business. | |||
[2] | 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. |
Litigation and Other Continge70
Litigation and Other Contingencies - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Litigation And Other Contingencies [Line Items] | |||
Total payment on unconditional purchase obligation | CAD 0 | CAD 0 | CAD 125 |
Total other third party obligations payable | CAD 42 | CAD 49 |
Summary of Common Shares (Detai
Summary of Common Shares (Detail) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||||
Authorized | 1,100,000,000 | 1,100,000,000 | ||
Common shares outstanding | 831,242,000 | 847,599,000 | 847,599,000 | 847,599,000 |
Common Shares - Additional Info
Common Shares - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2017 | Jun. 13, 2017 | |
Class of Stock [Line Items] | ||
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% | |
Normal course issuer bid share repurchase shares authorized | 25,395,927 | |
Percent of total shares | 3.00% | |
Normal course issuer bid share repurchase term, months | 12 months |
Common Share Activities (Detail
Common Share Activities (Detail) - CAD shares in Thousands, CAD in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Class of Stock [Line Items] | |||||
Common stock beginning balance, shares | 847,599 | 847,599 | 847,599 | ||
Issued under employee share-based awards | 2 | 1 | 1 | ||
Purchases at stated value, shares | (16,359) | (1) | (1) | ||
Common stock, ending balance, shares | 831,242 | 847,599 | 847,599 | ||
Common stock beginning balance, value | CAD 1,566 | [1] | CAD 1,566 | CAD 1,566 | |
Issued under employee share-based awards, value | 0 | 0 | 0 | ||
Common stock, ending balance, value | 1,536 | [1] | CAD 1,566 | [1] | CAD 1,566 |
Common Stock | |||||
Class of Stock [Line Items] | |||||
Purchases at stated value, value | CAD (30) | ||||
[1] | Number of common shares authorized and outstanding were 1,100 million and 831 million, respectively (2016 - 1,100 million and 848 million, respectively), (note 10). |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Detail) - CAD CAD / shares in Units, shares in Millions, CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income (loss) per common share - basic | |||
Net income (loss) | CAD 490 | CAD 2,165 | CAD 1,122 |
Weighted average number of common shares outstanding (millions of shares) | 842.9 | 847.6 | 847.6 |
Net income (loss) per common share (dollars) | CAD 0.58 | CAD 2.55 | CAD 1.32 |
Net income (loss) per common share - diluted | |||
Net income (loss) | CAD 490 | CAD 2,165 | CAD 1,122 |
Weighted average number of common shares outstanding (millions of shares) | 842.9 | 847.6 | 847.6 |
Effect of employee share-based awards (millions of shares) | 2.8 | 2.9 | 3 |
Weighted average number of common shares outstanding, assuming dilution (millions of shares) | 845.7 | 850.5 | 850.6 |
Net income (loss) per common share (dollars) | CAD 0.58 | CAD 2.55 | CAD 1.32 |
Miscellaneous Financial Infor75
Miscellaneous Financial Information - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Additional Financial Information [Line Items] | |||
Effect of LIFO inventory liquidation on income | CAD 5 | CAD 5 | CAD (39) |
Difference between LIFO carrying values and replacement cost of inventories | 1,400 | 1,000 | |
Research and development costs charged to expenses | 111 | 152 | CAD 149 |
Accounts payable and accrued liabilities included accrued taxes other than income taxes | CAD 437 | CAD 396 |
Inventories of Crude Oil and Pr
Inventories of Crude Oil and Products (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Product Information [Line Items] | ||
Crude oil | CAD 690 | CAD 558 |
Petroleum products | 307 | 300 |
Chemical products | 42 | 51 |
Natural gas and other | 36 | 40 |
Total inventories of crude oil and products | CAD 1,075 | CAD 949 |
Financing Costs and Additiona77
Financing Costs and Additional Notes and Loans Payable Information (Detail) - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt-related interest | CAD 103 | CAD 121 | CAD 102 | |
Capitalized interest | (38) | (49) | (68) | |
Net interest expense | 65 | 72 | 34 | |
Other interest | 13 | (7) | 5 | |
Total financing costs | [1] | CAD 78 | CAD 65 | CAD 39 |
[1] | Cash interest payments in 2017 were $58 million (2016 - $73 million, 2015 - $74 million). The weighted average interest rate on short-term borrowings in 2017 was 0.9 percent (2016 - 0.8 percent, 2015 - 0.8 percent). Average effective rate on the long-term borrowings with ExxonMobil in 2017 was 1.3 percent (2016 - 1.0 percent, 2015 - 1.0 percent). |
Financing Costs and Additiona78
Financing Costs and Additional Notes and Loans Payable Information (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash interest payments | CAD 58 | CAD 73 | CAD 74 |
Weighted average interest rate on short-term borrowings | 0.90% | 0.80% | 0.80% |
Average effective rate for affiliate long-term borrowing | 1.30% | 1.00% | 1.00% |
Financing Costs and Additiona79
Financing Costs and Additional Notes and Loans Payable Information - Additional Information (Detail) - CAD | 1 Months Ended | |
Dec. 31, 2017 | Nov. 30, 2017 | |
Long Term Line Of Credit | ||
Financing Activities [Line Items] | ||
Non-interest bearing, revolving demand loan, outstanding amount | CAD 0 | |
Debt instrument, maturity date | Nov. 30, 2019 | |
Non-interest bearing, revolving demand loan, remaining borrowing capacity | CAD 250,000,000 | |
Short Term Line of Credit | ||
Financing Activities [Line Items] | ||
Non-interest bearing, revolving demand loan, outstanding amount | CAD 0 | |
Debt instrument, maturity date | Dec. 31, 2018 | |
Non-interest bearing, revolving demand loan, remaining borrowing capacity | CAD 250,000,000 | |
Exxon Mobil | Revolving demand loan | ||
Financing Activities [Line Items] | ||
Non-interest bearing, revolving demand loan, maximum borrowing capacity | 75,000,000 | |
Non-interest bearing, revolving demand loan, outstanding amount | CAD 75,000,000 |
Leased Facilities - Additional
Leased Facilities - Additional Information (Detail) CAD in Millions | Dec. 31, 2017CAD | |
Operating Leased Assets [Line Items] | ||
Minimum undiscounted lease commitments | CAD 199 | [1] |
[1] | Net rental cost under cancelable and non-cancelable operating leases incurred in 2017 was $206 million (2016 - $253 million, 2015 - $311 million). Related rental income was not material. |
Schedule of Non Cancelable Oper
Schedule of Non Cancelable Operating Leases (Detail) CAD in Millions | Dec. 31, 2017CAD | [1] |
Operating Leased Assets [Line Items] | ||
Lease payments under minimum commitments, 2018 | CAD 120 | |
Lease payments under minimum commitments, 2019 | 56 | |
Lease payments under minimum commitments, 2020 | 19 | |
Lease payments under minimum commitments, 2021 | 2 | |
Lease payments under minimum commitments, 2022 | 1 | |
Lease payments under minimum commitments, After 2022 | 1 | |
Total lease payments under minimum commitments | CAD 199 | |
[1] | Net rental cost under cancelable and non-cancelable operating leases incurred in 2017 was $206 million (2016 - $253 million, 2015 - $311 million). Related rental income was not material. |
Schedule of Non Cancelable Op82
Schedule of Non Cancelable Operating Leases (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Net rental cost incurred for operating leases | CAD 206 | CAD 253 | CAD 311 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||
Long-term debt | [1] | CAD 4,447 | CAD 4,447 |
Capital leases | [2] | 558 | 585 |
Total long-term debt | [3] | CAD 5,005 | CAD 5,032 |
[1] | Borrowed under an existing agreement with an affiliated company of ExxonMobil that provides for a long-term, variable-rate, Canadian dollar loan from ExxonMobil to the company of up to $7.75 billion at interest equivalent to Canadian market rates. The agreement is effective until July 31, 2020, cancelable if ExxonMobil provides at least 370 days advance written notice. | ||
[2] | Capital leases are primarily associated with transportation facilities and services agreements. The average imputed rate was 7.0 percent in 2017 (2016 - 6.9 percent). Total capitalized lease obligations also include $27 million in current liabilities (2016 - $27 million). Principal payments on capital leases of approximately $21 million on average per year are due in each of the next four years after December 31, 2018. | ||
[3] | Long-term debt included amounts to related parties of $4,447 million (2016 - $4,447 million), (note 16). |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Maximum long-term borrowing from affiliate | CAD 7,750,000,000 | |
Cancellation period long-term borrowing from affiliate, days | 370 days | |
Capitalized lease obligations for marine services, average imputed rate | 7.00% | 6.90% |
Total capitalized lease obligations in current liabilities | CAD 27,000,000 | CAD 27,000,000 |
Principal payments on capital leases, in two years | 21,000,000 | |
Principal payments on capital leases, in three years | 21,000,000 | |
Principal payments on capital leases, in four years | 21,000,000 | |
Principal payments on capital leases, in five years | CAD 21,000,000 |
Period End Capitalized Suspende
Period End Capitalized Suspended Exploratory Well Costs (Detail) - CAD CAD in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||||
Capitalized suspended exploratory well costs, total | CAD 143 | CAD 167 | CAD 167 | CAD 143 | CAD 167 |
Beginning Balance | 143 | 167 | 167 | ||
Additions pending the determination of proved reserves | 0 | 0 | 0 | ||
Charged to expense | (143) | (24) | |||
Reclassification to wells, facilities and equipment based on the determination of proved reserves | 0 | 0 | 0 | ||
Ending Balance | CAD 143 | CAD 167 | |||
Capitalized for a period of one year or less | CAD 0 | 0 | 0 | ||
Capitalized For Period Of Between One And Ten Years | |||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||||
Capitalized suspended exploratory well costs | 143 | 167 | |||
Capitalized For A Period Of Greater Than One Year | |||||
Projects with Exploratory Well Costs Capitalized for More than One Year [Line Items] | |||||
Capitalized suspended exploratory well costs | CAD 143 | CAD 167 |
Number of Projects with Explora
Number of Projects with Exploratory Well Costs (Detail) - Project | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Exploratory Wells Drilled [Line Items] | |||
Number of projects with first capitalized well drilled in the preceding 12 months | 0 | 0 | 0 |
Number of projects that have exploratory well costs capitalized for a period of greater than 12 months | 1 | 1 | |
Total projects | 1 | 1 |
Transactions with Related Par87
Transactions with Related Parties - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Amounts of sales by Imperial | CAD 4,110 | CAD 2,342 | CAD 3,058 |
Long-Term Loans | |||
Related Party Transaction [Line Items] | |||
Outstanding loans from an affiliate | 4,447 | 4,447 | |
Short-Term Loans | |||
Related Party Transaction [Line Items] | |||
Outstanding loans from an affiliate | 75 | 75 | |
Exxon Mobil | |||
Related Party Transaction [Line Items] | |||
Amounts of purchases by Imperial | 2,648 | 2,187 | |
Amounts of sales by Imperial | CAD 4,080 | CAD 2,315 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance at January 1 | CAD (1,897) | CAD (1,828) | CAD (2,059) |
Current period change excluding amounts reclassified from accumulated other comprehensive income | (54) | (210) | 64 |
Amounts reclassified from accumulated other comprehensive income | 136 | 141 | 167 |
Balance at December 31 | CAD (1,815) | CAD (1,897) | CAD (1,828) |
Amounts Reclassified Out of Acc
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of post retirement benefits liability adjustment included in net periodic benefit cost | [1] | CAD (194) | CAD (184) | CAD (228) |
[1] | This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 4). |
Income Tax Expense (Credit) for
Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Post retirement benefits liability adjustment (excluding amortization) | CAD (20) | CAD (77) | CAD 24 |
Amortization of post retirement benefits liability adjustment included in net periodic benefit cost | 58 | 43 | 61 |
Total | CAD 38 | CAD (34) | CAD 85 |