Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | IMO |
Entity Registrant Name | IMPERIAL OIL LTD |
Entity Central Index Key | 49,938 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 802,679,927 |
Consolidated statement of incom
Consolidated statement of income - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||||
Revenues and other income | |||||||||
Revenues | [1] | $ 9,516 | [2] | $ 6,985 | [2] | $ 17,416 | [3] | $ 13,943 | [3] |
Investment and other income (note 5) | 27 | 48 | 61 | 246 | |||||
Total revenues and other income | 9,543 | 7,033 | 17,477 | 14,189 | |||||
Expenses | |||||||||
Exploration | 1 | 9 | 22 | ||||||
Purchases of crude oil and products | [4] | 6,537 | 4,642 | 11,317 | 8,975 | ||||
Production and manufacturing | [5] | 1,646 | 1,495 | 3,077 | 2,840 | ||||
Selling and general | [5] | 273 | 198 | 467 | 401 | ||||
Federal excise tax | 412 | 421 | 809 | 815 | |||||
Depreciation and depletion | 358 | 352 | 735 | 744 | |||||
Non-service pension and postretirement benefit | [7] | 26 | [6] | 33 | 53 | [6] | 66 | ||
Financing (note 7) | 26 | 17 | 49 | 31 | |||||
Total expenses | 9,279 | 7,158 | 16,516 | 13,894 | |||||
Income (loss) before income taxes | 264 | (125) | 961 | 295 | |||||
Income taxes | 68 | (48) | 249 | 39 | |||||
Net income (loss) | $ 196 | $ (77) | $ 712 | $ 256 | |||||
Per share information (Canadian dollars) | |||||||||
Net income (loss) per common share - basic (note 10) | $ 0.24 | $ (0.09) | $ 0.86 | $ 0.30 | |||||
Net income (loss) per common share - diluted (note 10) | 0.24 | (0.09) | 0.86 | 0.30 | |||||
Dividends per common share - declared | $ 0.19 | $ 0.16 | $ 0.35 | $ 0.31 | |||||
[1] | Amounts from related parties included in revenues. 1,769 1,008 3,142 2,045 | ||||||||
[2] | Included export sales to the United States of $1,561 million (2017 - $1,045 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | ||||||||
[3] | Included export sales to the United States of $2,768 million (2017 - $1,944 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | ||||||||
[4] | Amounts to related parties included in purchases of crude oil and products. 1,374 706 2,266 1,315 | ||||||||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 156 147 297 288 | ||||||||
[6] | As part of the implementation of Accounting Standard Update, Compensation - Retirement Benefits (Topic 715), beginning January 1, 2018, Corporate and other includes all non-service pension and postretirement benefit expense. Prior to 2018, the majority of these costs were allocated to the operating segments. See note 2 for additional details. | ||||||||
[7] | Prior year amounts have been reclassified. See note 2 for additional details. |
Consolidated statement of inco3
Consolidated statement of income (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Amounts from related parties included in revenues. | $ 1,769 | $ 1,008 | $ 3,142 | $ 2,045 |
Amounts to related parties included in purchases of crude oil and products. | 1,374 | 706 | 2,266 | 1,315 |
Amounts to related parties included in production and manufacturing, and selling and general expenses. | $ 156 | $ 147 | $ 297 | $ 288 |
Consolidated statement of compr
Consolidated statement of comprehensive income - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) | $ 196 | $ (77) | $ 712 | $ 256 |
Other comprehensive income (loss), net of income taxes | ||||
Postretirement benefits liability adjustment (excluding amortization) | (19) | 41 | ||
Amortization of postretirement benefits liability adjustment included in net periodic benefit costs | 33 | 36 | 67 | 72 |
Total other comprehensive income (loss) | 33 | 36 | 48 | 113 |
Comprehensive income (loss) | $ 229 | $ (41) | $ 760 | $ 369 |
Consolidated balance sheet
Consolidated balance sheet - CAD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | ||
Current assets | ||||
Cash | $ 873 | [1] | $ 1,195 | |
Accounts receivable, less estimated doubtful accounts | [2] | 2,625 | 2,712 | |
Inventories of crude oil and products | 1,221 | 1,075 | ||
Materials, supplies and prepaid expenses | [3] | 456 | 425 | |
Total current assets | 5,175 | 5,407 | ||
Investments and long-term receivables | [3] | 860 | 865 | |
Property, plant and equipment, | 53,272 | 52,778 | ||
less accumulated depreciation and depletion | (19,028) | (18,305) | ||
Property, plant and equipment, net | 34,244 | 34,473 | ||
Goodwill | 186 | 186 | ||
Other assets, including intangibles, net (note 9) | 925 | 670 | ||
Total assets | 41,390 | 41,601 | ||
Current liabilities | ||||
Notes and loans payable | [4] | 202 | 202 | |
Accounts payable and accrued liabilities (note 9) | [2] | 3,923 | 3,877 | |
Income taxes payable | 89 | 57 | ||
Total current liabilities | 4,214 | 4,136 | ||
Long-term debt (note 8) | [5] | 4,992 | 5,005 | |
Other long-term obligations (note 9) | [6] | 3,943 | 3,780 | |
Deferred income tax liabilities | 4,476 | 4,245 | ||
Total liabilities | 17,625 | 17,166 | ||
Shareholders' equity | ||||
Common shares at stated value (note 10) | [7] | 1,483 | 1,536 | |
Earnings reinvested (note 11) | 24,049 | 24,714 | ||
Accumulated other comprehensive income (loss) (note 12) | (1,767) | (1,815) | ||
Total shareholders' equity | 23,765 | 24,435 | ||
Total liabilities and shareholders' equity | $ 41,390 | $ 41,601 | ||
[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 $344 million (2017 - $509 million). | |||
[3] | Investments and long-term receivables included amounts from related parties of $56 million (2017 - $19 million). | |||
[4] | Notes and loans payable included amounts to related parties of $75 million (2017 - $75 million). | |||
[5] | Long-term debt included amounts to related parties of $4,447 million (2017 - $4,447 million). | |||
[6] | Other long-term obligations included amounts to related parties of $38 million (2017 - $60 million). | |||
[7] | Number of common shares authorized and outstanding were 1,100 million and 803 million, respectively (2017 - 1,100 million and 831 million, respectively). |
Consolidated balance sheet (Par
Consolidated balance sheet (Parenthetical) - CAD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Amounts receivable (payable) from (to) related parties | $ 344 | $ 509 |
Due to related parties, current | $ 75 | $ 75 |
Common shares authorized | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding | 802,680,000 | 831,242,000 |
Investments and Long Term Receivables | ||
Due from related parties | $ 56 | $ 19 |
Long-term debt | ||
Due to related parties | 4,447 | 4,447 |
Other long-term obligations | ||
Due to related parties | $ 38 | $ 60 |
Consolidated statement of cash
Consolidated statement of cash flows - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Operating activities | |||||
Net income (loss) | $ 196 | $ (77) | $ 712 | $ 256 | |
Adjustments for non-cash items: | |||||
Depreciation and depletion | 358 | 352 | 735 | 744 | |
(Gain) loss on asset sales (note 5) | [1] | (9) | (31) | (19) | (213) |
Deferred income taxes and other | 24 | (37) | 209 | 163 | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | (340) | 146 | 87 | 424 | |
Inventories, materials, supplies and prepaid expenses | 40 | (45) | (177) | (117) | |
Income taxes payable | 16 | 16 | 32 | (448) | |
Accounts payable and accrued liabilities | 439 | (30) | 24 | (240) | |
All other items - net | [2],[3] | 135 | 198 | 241 | 277 |
Cash flows from (used in) operating activities | 859 | 492 | 1,844 | 846 | |
Investing activities | |||||
Additions to property, plant and equipment | [3] | (357) | (320) | (728) | (442) |
Proceeds from asset sales (note 5) | 9 | 39 | 21 | 222 | |
Loan to equity company | (31) | (37) | |||
Cash flows from (used in) investing activities | (379) | (281) | (744) | (220) | |
Financing activities | |||||
Reduction in capitalized lease obligations (note 8) | (7) | (6) | (13) | (13) | |
Dividends paid | (132) | (127) | (266) | (254) | |
Common shares purchased (note 10) | (893) | (127) | (1,143) | (127) | |
Cash flows from (used in) financing activities | (1,032) | (260) | (1,422) | (394) | |
Increase (decrease) in cash | (552) | (49) | (322) | 232 | |
Cash at beginning of period | 1,425 | 672 | 1,195 | 391 | |
Cash at end of period | [4] | $ 873 | $ 623 | $ 873 | $ 623 |
[1] | The six months ended June 30, 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario | ||||
[2] | Included contribution to registered pension plans. (57) (58 ) (101) (98 ) | ||||
[3] | The impact of carbon emission programs are included in additions to property, plant and equipment, and all other items, net. | ||||
[4] | Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased. |
Consolidated statement of cash8
Consolidated statement of cash flows (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Included contribution to registered pension plans | $ (57) | $ (58) | $ (101) | $ (98) |
Basis of financial statement pr
Basis of financial statement preparation | 6 Months Ended |
Jun. 30, 2018 | |
Basis of financial statement preparation | 1. Basis of financial statement preparation These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the company’s 2017 annual report on Form 10-K. The company’s exploration and production activities are accounted for under the “successful efforts” method. The results for the six months ended June 30, 2018, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated. |
Accounting changes
Accounting changes | 6 Months Ended |
Jun. 30, 2018 | |
Accounting changes | 2. Accounting changes Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board’s standard, Revenue from Contracts with Customers, Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board’s 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 The impact of the retrospective presentation change on Imperial’s consolidated statement of income for the period ended June 30, 2018 is shown below. Second Quarter Six Months to millions of Canadian dollars 2017 June 30, 2017 As reported Change As adjusted As reported Change As adjusted Production and manufacturing 1,525 (30) 1,495 2,900 (60) 2,840 Selling and general 201 (3) 198 407 (6) 401 Non-service - 33 33 - 66 66 Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board’s standard update, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard also expanded disclosures related to financial statements. The company’s only notable financial instrument is long-term debt ($4,447 million, excluding capitalized lease obligations), where the difference between fair value and carrying value was de minimis. The fair value of long-term debt was primarily a level 2 measurement. |
Business segments
Business segments | 6 Months Ended |
Jun. 30, 2018 | |
Business segments | 3. Business segments Second Quarter Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 2,318 1,787 6,870 4,909 328 289 Intersegment sales 650 289 332 242 74 62 Investment and other income (note 5) 3 5 19 42 - (2 ) 2,971 2,081 7,221 5,193 402 349 Expenses Exploration 1 - - - - - Purchases of crude oil and products 1,573 1,026 5,803 4,014 216 193 Production and manufacturing (b) 1,106 1,051 488 426 52 48 Selling and general (b) - (7 ) 197 185 23 19 Federal excise tax - - 412 421 - - Depreciation and depletion 300 298 49 47 4 3 Non-service (b) - - - - - - Financing (note 7) - - - - - - Total expenses 2,980 2,368 6,949 5,093 295 263 Income (loss) before income taxes (9 ) (287 ) 272 100 107 86 Income taxes (3 ) (86 ) 71 22 29 22 Net income (loss) (6 ) (201 ) 201 78 78 64 Cash flows from (used in) operating activities (10 ) 117 776 302 116 100 Capital and exploration expenditures (c) 183 91 88 39 7 3 Second Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 9,516 6,985 Intersegment sales - - (1,056 ) (593 ) - - Investment and other income (note 5) 5 3 - - 27 48 5 3 (1,056 ) (593 ) 9,543 7,033 Expenses Exploration - - - - 1 - Purchases of crude oil and products - - (1,055 ) (591 ) 6,537 4,642 Production and manufacturing (b) - - - - 1,646 1,525 Selling and general (b) 54 6 (1 ) (2 ) 273 201 Federal excise tax - - - - 412 421 Depreciation and depletion 5 4 - - 358 352 Non-service (b) 26 - - - 26 - Financing (note 7) 26 17 - - 26 17 Total expenses 111 27 (1,056 ) (593 ) 9,279 7,158 Income (loss) before income taxes (106 ) (24 ) - - 264 (125 ) Income taxes (29 ) (6 ) - - 68 (48 ) Net income (loss) (77 ) (18 ) - - 196 (77 ) Cash flows from (used in) operating activities (23 ) (27 ) - - 859 492 Capital and exploration expenditures (c) 6 10 - - 284 143 (a) Included export sales to the United States of $1,561 million (2017 - $1,045 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) As part of the implementation of Accounting Standard Update, Compensation – Retirement Benefits (Topic 715), beginning January 1, 2018, Corporate and other includes all non-service (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. Six Months to June 30 Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 4,307 3,498 12,477 9,883 632 562 Intersegment sales 1,307 907 694 551 147 129 Investment and other income (note 5) 4 10 41 233 - (1 ) 5,618 4,415 13,212 10,667 779 690 Expenses Exploration 9 22 - - - - Purchases of crude oil and products 2,947 2,142 10,097 8,023 418 394 Production and manufacturing (b) 2,118 2,024 856 775 103 101 Selling and general (b) - (4 ) 370 373 44 41 Federal excise tax - - 809 815 - - Depreciation and depletion 618 634 100 95 7 6 Non-service (b) - - - - - - Financing (note 7) - 4 - - - - Total expenses 5,692 4,822 12,232 10,081 572 542 Income (loss) before income taxes (74 ) (407 ) 980 586 207 148 Income taxes (24 ) (120 ) 258 128 56 39 Net income (loss) (50 ) (287 ) 722 458 151 109 Cash flows from (used in) operating activities 327 425 1,366 358 199 77 Capital and exploration expenditures (c) 389 194 145 73 11 7 Total assets as at June 30 34,781 35,527 5,090 4,334 408 384 Six Months to June 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 17,416 13,943 Intersegment sales - - (2,148 ) (1,587 ) - - Investment and other income (note 5) 16 4 - - 61 246 16 4 (2,148 ) (1,587 ) 17,477 14,189 Expenses Exploration - - - - 9 22 Purchases of crude oil and products - - (2,145 ) (1,584 ) 11,317 8,975 Production and manufacturing (b) - - - - 3,077 2,900 Selling and general (b) 56 - (3 ) (3 ) 467 407 Federal excise tax - - - - 809 815 Depreciation and depletion 10 9 - - 735 744 Non-service (b) 53 - - - 53 - Financing (note 7) 49 27 - - 49 31 Total expenses 168 36 (2,148 ) (1,587 ) 16,516 13,894 Income (loss) before income taxes (152 ) (32 ) - - 961 295 Income taxes (41 ) (8 ) - - 249 39 Net income (loss) (111 ) (24 ) - - 712 256 Cash flows from (used in) operating activities (48 ) (14 ) - - 1,844 846 Capital and exploration expenditures (c) 13 22 - - 558 296 Total assets as at June 30 1,438 1,071 (327 ) (211 ) 41,390 41,105 (a) Included export sales to the United States of $2,768 million (2017 - $1,944 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) As part of the implementation of Accounting Standard Update, Compensation – Retirement Benefits (Topic 715), beginning January 1, 2018, Corporate and other includes all non-service (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. |
Accounting policy for revenue r
Accounting policy for revenue recognition | 6 Months Ended |
Jun. 30, 2018 | |
Accounting policy for revenue recognition | 4. Accounting policy for revenue recognition Imperial generally sells crude oil, natural gas and petroleum and chemical products under short-term agreements at prevailing market prices. In some cases, products may be sold under long-term agreements, with periodic price adjustments to reflect market conditions. Revenue is recognized at the amount the company expects to receive when the customer has taken control, which is typically when title transfers and the customer has assumed the risks and rewards of ownership. The prices of certain sales are based on price indexes that are sometimes not available until the next period. In such cases, estimated realizations are accrued when the sale is recognized, and are finalized when final information is available. Such adjustments to revenue from performance obligations satisfied in previous periods are not significant. Payment for revenue transactions is typically due within 30 days. Future volume delivery obligations that are unsatisfied at the end of the period are expected to be fulfilled through ordinary production or purchases. These performance obligations are based on market prices at the time of the transaction and are fully constrained due to market price volatility. “Revenues” and “Accounts receivable, less estimated doubtful accounts” primarily arise from contracts with customers. Long-term receivables are primarily from non-customers. |
Investment and other income
Investment and other income | 6 Months Ended |
Jun. 30, 2018 | |
Investment and other income | 5. Investment and other income Investment and other income included gains and losses on asset sales as follows: Six Months Second Quarter to June 30 millions of Canadian dollars 2018 2017 2018 2017 Proceeds from asset sales 9 39 21 222 Book value of asset sales - 9 2 10 Gain (loss) on asset sales, before tax (a) 9 31 19 213 Gain (loss) on asset sales, after tax (a) 8 28 15 186 (a) The six months ended June 30, 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. |
Employee retirement benefits
Employee retirement benefits | 6 Months Ended |
Jun. 30, 2018 | |
Employee retirement benefits | 6. Employee retirement benefits The components of net benefit cost were as follows: Six Months Second Quarter to June 30 millions of Canadian dollars 2018 2017 2018 2017 Pension benefits: Current service cost 60 54 120 109 Interest cost 75 79 151 158 Expected return on plan assets (100 ) (101 ) (201 ) (202 ) Amortization of prior service cost 1 2 2 5 Amortization of actuarial loss (gain) 43 45 87 89 Net periodic benefit cost 79 79 159 159 Other postretirement benefits: Current service cost 4 4 8 8 Interest cost 6 6 11 12 Amortization of actuarial loss (gain) 1 2 3 4 Net periodic benefit cost 11 12 22 24 |
Financing and additional notes
Financing and additional notes and loans payable information | 6 Months Ended |
Jun. 30, 2018 | |
Financing and additional notes and loans payable information | 7. Financing and additional notes and loans payable information Six Months Second Quarter to June 30 millions of Canadian dollars 2018 2017 2018 2017 Debt-related interest 32 27 62 49 Capitalized interest (6 ) (10 ) (13 ) (22 ) Net interest expense 26 17 49 27 Other interest - - - 4 Total financing 26 17 49 31 |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2018 | |
Long-term debt | 8. Long-term debt As at As at June 30 Dec 31 millions of Canadian dollars 2018 2017 Long-term debt 4,447 4,447 Capital leases 545 558 Total long-term debt 4,992 5,005 |
Other long-term obligations
Other long-term obligations | 6 Months Ended |
Jun. 30, 2018 | |
Other long-term obligations | 9. Other long-term obligations As at As at June 30 Dec 31 millions of Canadian dollars 2018 2017 Employee retirement benefits (a) 1,501 1,529 Asset retirement obligations and other environmental liabilities (b) 1,471 1,460 Share-based incentive compensation liabilities 129 99 Other obligations (c) 842 692 Total other long-term obligations 3,943 3,780 (a) Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2017 - $56 million). (b) Total asset retirement obligations and other environmental liabilities also included $101 million in current liabilities (2017 - $101 million). (c) Included carbon emission program obligations. Carbon emission program credits are recorded under other assets, including intangibles, net. On July 3, 2018, the Government of Ontario revoked its carbon emission cap and trade regulation, prohibiting all trading of emissions allowances. On July 25, 2018, the Government of Ontario introduced legislation proposing to repeal Ontario’s cap and trade legislation and providing the framework for the wind down of the cap and trade program. The company’s net carbon emission program credits (obligations) reflected in the Consolidated balance sheet approximately totalled $65 million at June 30, 2018. Imperial will continue to assess this financial position in light of these announcements and the anticipated legislative process. |
Common shares
Common shares | 6 Months Ended |
Jun. 30, 2018 | |
Common shares | 10. Common shares As of As of June 30 Dec 31 thousands of shares 2018 2017 Authorized 1,100,000 1,100,000 Common shares outstanding 802,680 831,242 The 12-month The company announced another 12-month The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested. The company’s common share activities are summarized below: Thousands of Millions of 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 Issued under employee share-based awards - - Purchases at stated value (28,562 ) (53 ) Balance as at June 30, 2018 802,680 1,483 The following table provides the calculation of basic and diluted earnings per common share: Second Quarter Six Months to June 30 2018 2017 2018 2017 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 196 (77 ) 712 256 Weighted average number of common shares outstanding (millions of shares) 816.1 847.0 822.6 847.3 Net income (loss) per common share (dollars) 0.24 (0.09 ) 0.86 0.30 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 196 (77 ) 712 256 Weighted average number of common shares outstanding (millions of shares) 816.1 847.0 822.6 847.3 Effect of employee share-based awards (millions of shares) 2.7 2.9 2.6 2.8 Weighted average number of common shares outstanding, assuming dilution (millions of shares) 818.8 849.9 825.2 850.1 Net income (loss) per common share (dollars) 0.24 (0.09 ) 0.86 0.30 |
Earnings reinvested
Earnings reinvested | 6 Months Ended |
Jun. 30, 2018 | |
Earnings reinvested | 11. Earnings reinvested Second Quarter Six Months to June 30 millions of Canadian dollars 2018 2017 2018 2017 Earnings reinvested at beginning of period 24,861 25,558 24,714 25,352 Net income (loss) for the period 196 (77 ) 712 256 Share purchases in excess of stated value (853 ) (121 ) (1,090 ) (121 ) Dividends declared (155 ) (136 ) (287 ) (263 ) Earnings reinvested at end of period 24,049 25,224 24,049 25,224 |
Other comprehensive income (los
Other comprehensive income (loss) information | 6 Months Ended |
Jun. 30, 2018 | |
Other comprehensive income (loss) information | 12. Other comprehensive income (loss) information Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2018 2017 Balance at January 1 (1,815 ) (1,897 ) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified (19 ) 41 Amounts reclassified from accumulated other comprehensive income 67 72 Balance at June 30 (1,767 ) (1,784 ) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Second Quarter Six Months to June 30 millions of Canadian dollars 2018 2017 2018 2017 Amortization of postretirement benefits liability adjustment (a) (46 ) (49 ) (92 ) (98 ) (a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 6). Income tax expense (credit) for components of other comprehensive income (loss): Second Quarter Six Months to June 30 millions of Canadian dollars 2018 2017 2018 2017 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) - - (7 ) 16 Amortization of postretirement benefits liability adjustment included 13 13 25 26 Total 13 13 18 42 |
Recently issued accounting stan
Recently issued accounting standards | 6 Months Ended |
Jun. 30, 2018 | |
Recently issued accounting standards | 13. Recently issued accounting standards Effective January 1, 2019, Imperial will adopt the Financial Accounting Standards Board’s standard, Leases (Topic 842) |
Accounting changes (Policies)
Accounting changes (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting changes | Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board’s standard, Revenue from Contracts with Customers, Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board’s 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, 2018, Imperial adopted the Financial Accounting Standards Board’s standard update, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities The standard also expanded disclosures related to financial statements. The company’s only notable financial instrument is long-term debt ($4,447 million, excluding capitalized lease obligations), where the difference between fair value and carrying value was de minimis. The fair value of long-term debt was primarily a level 2 measurement. |
Accounting policy for revenue recognition | Imperial generally sells crude oil, natural gas and petroleum and chemical products under short-term agreements at prevailing market prices. In some cases, products may be sold under long-term agreements, with periodic price adjustments to reflect market conditions. Revenue is recognized at the amount the company expects to receive when the customer has taken control, which is typically when title transfers and the customer has assumed the risks and rewards of ownership. The prices of certain sales are based on price indexes that are sometimes not available until the next period. In such cases, estimated realizations are accrued when the sale is recognized, and are finalized when final information is available. Such adjustments to revenue from performance obligations satisfied in previous periods are not significant. Payment for revenue transactions is typically due within 30 days. Future volume delivery obligations that are unsatisfied at the end of the period are expected to be fulfilled through ordinary production or purchases. These performance obligations are based on market prices at the time of the transaction and are fully constrained due to market price volatility. “Revenues” and “Accounts receivable, less estimated doubtful accounts” primarily arise from contracts with customers. Long-term receivables are primarily from non-customers. |
Accounting changes (Tables)
Accounting changes (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Presentation Change on Consolidated Statement of Income | The impact of the retrospective presentation change on Imperial’s consolidated statement of income for the period ended June 30, 2018 is shown below. Second Quarter Six Months to millions of Canadian dollars 2017 June 30, 2017 As reported Change As adjusted As reported Change As adjusted Production and manufacturing 1,525 (30) 1,495 2,900 (60) 2,840 Selling and general 201 (3) 198 407 (6) 401 Non-service - 33 33 - 66 66 |
Business segments (Tables)
Business segments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Segments | Second Quarter Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 2,318 1,787 6,870 4,909 328 289 Intersegment sales 650 289 332 242 74 62 Investment and other income (note 5) 3 5 19 42 - (2 ) 2,971 2,081 7,221 5,193 402 349 Expenses Exploration 1 - - - - - Purchases of crude oil and products 1,573 1,026 5,803 4,014 216 193 Production and manufacturing (b) 1,106 1,051 488 426 52 48 Selling and general (b) - (7 ) 197 185 23 19 Federal excise tax - - 412 421 - - Depreciation and depletion 300 298 49 47 4 3 Non-service (b) - - - - - - Financing (note 7) - - - - - - Total expenses 2,980 2,368 6,949 5,093 295 263 Income (loss) before income taxes (9 ) (287 ) 272 100 107 86 Income taxes (3 ) (86 ) 71 22 29 22 Net income (loss) (6 ) (201 ) 201 78 78 64 Cash flows from (used in) operating activities (10 ) 117 776 302 116 100 Capital and exploration expenditures (c) 183 91 88 39 7 3 Second Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 9,516 6,985 Intersegment sales - - (1,056 ) (593 ) - - Investment and other income (note 5) 5 3 - - 27 48 5 3 (1,056 ) (593 ) 9,543 7,033 Expenses Exploration - - - - 1 - Purchases of crude oil and products - - (1,055 ) (591 ) 6,537 4,642 Production and manufacturing (b) - - - - 1,646 1,525 Selling and general (b) 54 6 (1 ) (2 ) 273 201 Federal excise tax - - - - 412 421 Depreciation and depletion 5 4 - - 358 352 Non-service (b) 26 - - - 26 - Financing (note 7) 26 17 - - 26 17 Total expenses 111 27 (1,056 ) (593 ) 9,279 7,158 Income (loss) before income taxes (106 ) (24 ) - - 264 (125 ) Income taxes (29 ) (6 ) - - 68 (48 ) Net income (loss) (77 ) (18 ) - - 196 (77 ) Cash flows from (used in) operating activities (23 ) (27 ) - - 859 492 Capital and exploration expenditures (c) 6 10 - - 284 143 (a) Included export sales to the United States of $1,561 million (2017 - $1,045 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) As part of the implementation of Accounting Standard Update, Compensation – Retirement Benefits (Topic 715), beginning January 1, 2018, Corporate and other includes all non-service (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. Six Months to June 30 Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 4,307 3,498 12,477 9,883 632 562 Intersegment sales 1,307 907 694 551 147 129 Investment and other income (note 5) 4 10 41 233 - (1 ) 5,618 4,415 13,212 10,667 779 690 Expenses Exploration 9 22 - - - - Purchases of crude oil and products 2,947 2,142 10,097 8,023 418 394 Production and manufacturing (b) 2,118 2,024 856 775 103 101 Selling and general (b) - (4 ) 370 373 44 41 Federal excise tax - - 809 815 - - Depreciation and depletion 618 634 100 95 7 6 Non-service (b) - - - - - - Financing (note 7) - 4 - - - - Total expenses 5,692 4,822 12,232 10,081 572 542 Income (loss) before income taxes (74 ) (407 ) 980 586 207 148 Income taxes (24 ) (120 ) 258 128 56 39 Net income (loss) (50 ) (287 ) 722 458 151 109 Cash flows from (used in) operating activities 327 425 1,366 358 199 77 Capital and exploration expenditures (c) 389 194 145 73 11 7 Total assets as at June 30 34,781 35,527 5,090 4,334 408 384 Six Months to June 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 17,416 13,943 Intersegment sales - - (2,148 ) (1,587 ) - - Investment and other income (note 5) 16 4 - - 61 246 16 4 (2,148 ) (1,587 ) 17,477 14,189 Expenses Exploration - - - - 9 22 Purchases of crude oil and products - - (2,145 ) (1,584 ) 11,317 8,975 Production and manufacturing (b) - - - - 3,077 2,900 Selling and general (b) 56 - (3 ) (3 ) 467 407 Federal excise tax - - - - 809 815 Depreciation and depletion 10 9 - - 735 744 Non-service (b) 53 - - - 53 - Financing (note 7) 49 27 - - 49 31 Total expenses 168 36 (2,148 ) (1,587 ) 16,516 13,894 Income (loss) before income taxes (152 ) (32 ) - - 961 295 Income taxes (41 ) (8 ) - - 249 39 Net income (loss) (111 ) (24 ) - - 712 256 Cash flows from (used in) operating activities (48 ) (14 ) - - 1,844 846 Capital and exploration expenditures (c) 13 22 - - 558 296 Total assets as at June 30 1,438 1,071 (327 ) (211 ) 41,390 41,105 (a) Included export sales to the United States of $2,768 million (2017 - $1,944 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) As part of the implementation of Accounting Standard Update, Compensation – Retirement Benefits (Topic 715), beginning January 1, 2018, Corporate and other includes all non-service (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. |
Investment and other income (Ta
Investment and other income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Gains and Losses on Asset Sales | Investment and other income included gains and losses on asset sales as follows: Six Months Second Quarter to June 30 millions of Canadian dollars 2018 2017 2018 2017 Proceeds from asset sales 9 39 21 222 Book value of asset sales - 9 2 10 Gain (loss) on asset sales, before tax (a) 9 31 19 213 Gain (loss) on asset sales, after tax (a) 8 28 15 186 (a) The six months ended June 30, 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. |
Employee retirement benefits (T
Employee retirement benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Schedule of Components of Net Benefit Cost | The components of net benefit cost were as follows: Six Months Second Quarter to June 30 millions of Canadian dollars 2018 2017 2018 2017 Pension benefits: Current service cost 60 54 120 109 Interest cost 75 79 151 158 Expected return on plan assets (100 ) (101 ) (201 ) (202 ) Amortization of prior service cost 1 2 2 5 Amortization of actuarial loss (gain) 43 45 87 89 Net periodic benefit cost 79 79 159 159 Other postretirement benefits: Current service cost 4 4 8 8 Interest cost 6 6 11 12 Amortization of actuarial loss (gain) 1 2 3 4 Net periodic benefit cost 11 12 22 24 |
Financing and additional note27
Financing and additional notes and loans payable information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Financing and Additional Notes and Loans Payable Information | Six Months Second Quarter to June 30 millions of Canadian dollars 2018 2017 2018 2017 Debt-related interest 32 27 62 49 Capitalized interest (6 ) (10 ) (13 ) (22 ) Net interest expense 26 17 49 27 Other interest - - - 4 Total financing 26 17 49 31 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Long-Term Debt | As at As at June 30 Dec 31 millions of Canadian dollars 2018 2017 Long-term debt 4,447 4,447 Capital leases 545 558 Total long-term debt 4,992 5,005 |
Other long-term obligations (Ta
Other long-term obligations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Long-Term Obligations | As at As at June 30 Dec 31 millions of Canadian dollars 2018 2017 Employee retirement benefits (a) 1,501 1,529 Asset retirement obligations and other environmental liabilities (b) 1,471 1,460 Share-based incentive compensation liabilities 129 99 Other obligations (c) 842 692 Total other long-term obligations 3,943 3,780 (a) Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2017 - $56 million). (b) Total asset retirement obligations and other environmental liabilities also included $101 million in current liabilities (2017 - $101 million). (c) Included carbon emission program obligations. Carbon emission program credits are recorded under other assets, including intangibles, net. |
Common shares (Tables)
Common shares (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Common Shares | As of As of June 30 Dec 31 thousands of shares 2018 2017 Authorized 1,100,000 1,100,000 Common shares outstanding 802,680 831,242 |
Common Share Activities | The company’s common share activities are summarized below: Thousands of Millions of 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 Issued under employee share-based awards - - Purchases at stated value (28,562 ) (53 ) Balance as at June 30, 2018 802,680 1,483 |
Calculation of Basic and Diluted Earnings Per Share | The following table provides the calculation of basic and diluted earnings per common share: Second Quarter Six Months to June 30 2018 2017 2018 2017 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 196 (77 ) 712 256 Weighted average number of common shares outstanding (millions of shares) 816.1 847.0 822.6 847.3 Net income (loss) per common share (dollars) 0.24 (0.09 ) 0.86 0.30 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 196 (77 ) 712 256 Weighted average number of common shares outstanding (millions of shares) 816.1 847.0 822.6 847.3 Effect of employee share-based awards (millions of shares) 2.7 2.9 2.6 2.8 Weighted average number of common shares outstanding, assuming dilution (millions of shares) 818.8 849.9 825.2 850.1 Net income (loss) per common share (dollars) 0.24 (0.09 ) 0.86 0.30 |
Earnings reinvested (Tables)
Earnings reinvested (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Earnings Reinvested | Second Quarter Six Months to June 30 millions of Canadian dollars 2018 2017 2018 2017 Earnings reinvested at beginning of period 24,861 25,558 24,714 25,352 Net income (loss) for the period 196 (77 ) 712 256 Share purchases in excess of stated value (853 ) (121 ) (1,090 ) (121 ) Dividends declared (155 ) (136 ) (287 ) (263 ) Earnings reinvested at end of period 24,049 25,224 24,049 25,224 |
Other comprehensive income (l32
Other comprehensive income (loss) information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2018 2017 Balance at January 1 (1,815 ) (1,897 ) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified (19 ) 41 Amounts reclassified from accumulated other comprehensive income 67 72 Balance at June 30 (1,767 ) (1,784 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) - Before-Tax Income (Expense) | Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Second Quarter Six Months to June 30 millions of Canadian dollars 2018 2017 2018 2017 Amortization of postretirement benefits liability adjustment (a) (46 ) (49 ) (92 ) (98 ) (a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 6). |
Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) | Income tax expense (credit) for components of other comprehensive income (loss): Second Quarter Six Months to June 30 millions of Canadian dollars 2018 2017 2018 2017 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) - - (7 ) 16 Amortization of postretirement benefits liability adjustment included 13 13 25 26 Total 13 13 18 42 |
Accounting changes - Presentati
Accounting changes - Presentation Change on Consolidated Statement of Income (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||||
Change in Accounting Estimate [Line Items] | |||||||
Production and manufacturing | [1] | $ 1,646 | $ 1,495 | $ 3,077 | $ 2,840 | ||
Selling and general | [1] | 273 | 198 | 467 | 401 | ||
Non-service pension and postretirement benefit | [3] | $ 26 | [2] | 33 | $ 53 | [2] | 66 |
Previously reported | |||||||
Change in Accounting Estimate [Line Items] | |||||||
Production and manufacturing | 1,525 | 2,900 | |||||
Selling and general | 201 | 407 | |||||
Change higher/(lower) | |||||||
Change in Accounting Estimate [Line Items] | |||||||
Production and manufacturing | (30) | (60) | |||||
Selling and general | (3) | (6) | |||||
Non-service pension and postretirement benefit | $ 33 | $ 66 | |||||
[1] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 156 147 297 288 | ||||||
[2] | As part of the implementation of Accounting Standard Update, Compensation - Retirement Benefits (Topic 715), beginning January 1, 2018, Corporate and other includes all non-service pension and postretirement benefit expense. Prior to 2018, the majority of these costs were allocated to the operating segments. See note 2 for additional details. | ||||||
[3] | Prior year amounts have been reclassified. See note 2 for additional details. |
Accounting changes - Additional
Accounting changes - Additional Information (Detail) - CAD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Other Long Term Liabilities [Line Items] | ||
Long-term debt excluding capitalized lease obligations | $ 4,447 | $ 4,447 |
Business Segments (Detail)
Business Segments (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | ||||||
Revenues and other income | ||||||||||
Revenues | [1] | $ 9,516 | [2] | $ 6,985 | [2] | $ 17,416 | [3] | $ 13,943 | [3] | |
Investment and other income (note 5) | 27 | 48 | 61 | 246 | ||||||
Total revenues and other income | 9,543 | 7,033 | 17,477 | 14,189 | ||||||
Expenses | ||||||||||
Exploration | 1 | 9 | 22 | |||||||
Purchases of crude oil and products | [4] | 6,537 | 4,642 | 11,317 | 8,975 | |||||
Production and manufacturing | [5] | 1,646 | 1,525 | 3,077 | 2,900 | |||||
Selling and general | [5] | 273 | 201 | 467 | 407 | |||||
Federal excise tax | 412 | 421 | 809 | 815 | ||||||
Depreciation and depletion | 358 | 352 | 735 | 744 | ||||||
Non-service pension and postretirement benefit | [6] | 26 | [5] | 33 | 53 | [5] | 66 | |||
Financing (note 7) | 26 | 17 | 49 | 31 | ||||||
Total expenses | 9,279 | 7,158 | 16,516 | 13,894 | ||||||
Income (loss) before income taxes | 264 | (125) | 961 | 295 | ||||||
Income taxes | 68 | (48) | 249 | 39 | ||||||
Net income (loss) | 196 | (77) | 712 | 256 | ||||||
Cash flows from (used in) operating activities | 859 | 492 | 1,844 | 846 | ||||||
Capital and exploration expenditures | [7] | 284 | 143 | 558 | 296 | |||||
Total assets as at June 30 | 41,390 | 41,105 | 41,390 | 41,105 | $ 41,601 | |||||
Upstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 2,318 | [2] | 1,787 | [2] | 4,307 | [3] | 3,498 | [3] | ||
Intersegment sales | 650 | 289 | 1,307 | 907 | ||||||
Investment and other income (note 5) | 3 | 5 | 4 | 10 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 2,971 | 2,081 | 5,618 | 4,415 | ||||||
Expenses | ||||||||||
Exploration | 1 | 9 | 22 | |||||||
Purchases of crude oil and products | 1,573 | 1,026 | 2,947 | 2,142 | ||||||
Production and manufacturing | [5] | 1,106 | 1,051 | 2,118 | 2,024 | |||||
Selling and general | [5] | (7) | (4) | |||||||
Depreciation and depletion | 300 | 298 | 618 | 634 | ||||||
Financing (note 7) | 4 | |||||||||
Total expenses | 2,980 | 2,368 | 5,692 | 4,822 | ||||||
Income (loss) before income taxes | (9) | (287) | (74) | (407) | ||||||
Income taxes | (3) | (86) | (24) | (120) | ||||||
Net income (loss) | (6) | (201) | (50) | (287) | ||||||
Cash flows from (used in) operating activities | (10) | 117 | 327 | 425 | ||||||
Capital and exploration expenditures | [7] | 183 | 91 | 389 | 194 | |||||
Total assets as at June 30 | 34,781 | 35,527 | 34,781 | 35,527 | ||||||
Downstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 6,870 | [2] | 4,909 | [2] | 12,477 | [3] | 9,883 | [3] | ||
Intersegment sales | 332 | 242 | 694 | 551 | ||||||
Investment and other income (note 5) | 19 | 42 | 41 | 233 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 7,221 | 5,193 | 13,212 | 10,667 | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | 5,803 | 4,014 | 10,097 | 8,023 | ||||||
Production and manufacturing | [5] | 488 | 426 | 856 | 775 | |||||
Selling and general | [5] | 197 | 185 | 370 | 373 | |||||
Federal excise tax | 412 | 421 | 809 | 815 | ||||||
Depreciation and depletion | 49 | 47 | 100 | 95 | ||||||
Total expenses | 6,949 | 5,093 | 12,232 | 10,081 | ||||||
Income (loss) before income taxes | 272 | 100 | 980 | 586 | ||||||
Income taxes | 71 | 22 | 258 | 128 | ||||||
Net income (loss) | 201 | 78 | 722 | 458 | ||||||
Cash flows from (used in) operating activities | 776 | 302 | 1,366 | 358 | ||||||
Capital and exploration expenditures | [7] | 88 | 39 | 145 | 73 | |||||
Total assets as at June 30 | 5,090 | 4,334 | 5,090 | 4,334 | ||||||
Chemical | ||||||||||
Revenues and other income | ||||||||||
Revenues | 328 | [2] | 289 | [2] | 632 | [3] | 562 | [3] | ||
Intersegment sales | 74 | 62 | 147 | 129 | ||||||
Investment and other income (note 5) | (2) | (1) | ||||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 402 | 349 | 779 | 690 | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | 216 | 193 | 418 | 394 | ||||||
Production and manufacturing | [5] | 52 | 48 | 103 | 101 | |||||
Selling and general | [5] | 23 | 19 | 44 | 41 | |||||
Depreciation and depletion | 4 | 3 | 7 | 6 | ||||||
Total expenses | 295 | 263 | 572 | 542 | ||||||
Income (loss) before income taxes | 107 | 86 | 207 | 148 | ||||||
Income taxes | 29 | 22 | 56 | 39 | ||||||
Net income (loss) | 78 | 64 | 151 | 109 | ||||||
Cash flows from (used in) operating activities | 116 | 100 | 199 | 77 | ||||||
Capital and exploration expenditures | [7] | 7 | 3 | 11 | 7 | |||||
Total assets as at June 30 | 408 | 384 | 408 | 384 | ||||||
Corporate and Other | ||||||||||
Revenues and other income | ||||||||||
Investment and other income (note 5) | 5 | 3 | 16 | 4 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 5 | 3 | 16 | 4 | ||||||
Expenses | ||||||||||
Selling and general | [5] | 54 | 6 | 56 | ||||||
Depreciation and depletion | 5 | 4 | 10 | 9 | ||||||
Non-service pension and postretirement benefit | [5] | 26 | 53 | |||||||
Financing (note 7) | 26 | 17 | 49 | 27 | ||||||
Total expenses | 111 | 27 | 168 | 36 | ||||||
Income (loss) before income taxes | (106) | (24) | (152) | (32) | ||||||
Income taxes | (29) | (6) | (41) | (8) | ||||||
Net income (loss) | (77) | (18) | (111) | (24) | ||||||
Cash flows from (used in) operating activities | (23) | (27) | (48) | (14) | ||||||
Capital and exploration expenditures | [7] | 6 | 10 | 13 | 22 | |||||
Total assets as at June 30 | 1,438 | 1,071 | 1,438 | 1,071 | ||||||
Consolidation, Eliminations | ||||||||||
Revenues and other income | ||||||||||
Intersegment sales | (1,056) | (593) | (2,148) | (1,587) | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | (1,056) | (593) | (2,148) | (1,587) | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | (1,055) | (591) | (2,145) | (1,584) | ||||||
Selling and general | [5] | (1) | (2) | (3) | (3) | |||||
Total expenses | (1,056) | (593) | (2,148) | (1,587) | ||||||
Total assets as at June 30 | $ (327) | $ (211) | $ (327) | $ (211) | ||||||
[1] | Amounts from related parties included in revenues. 1,769 1,008 3,142 2,045 | |||||||||
[2] | Included export sales to the United States of $1,561 million (2017 - $1,045 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | |||||||||
[3] | Included export sales to the United States of $2,768 million (2017 - $1,944 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | |||||||||
[4] | Amounts to related parties included in purchases of crude oil and products. 1,374 706 2,266 1,315 | |||||||||
[5] | As part of the implementation of Accounting Standard Update, Compensation - Retirement Benefits (Topic 715), beginning January 1, 2018, Corporate and other includes all non-service pension and postretirement benefit expense. Prior to 2018, the majority of these costs were allocated to the operating segments. See note 2 for additional details. | |||||||||
[6] | Prior year amounts have been reclassified. See note 2 for additional details. | |||||||||
[7] | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to capital leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. |
Business Segments (Parenthetica
Business Segments (Parenthetical) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
United States Exports | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,561 | $ 1,045 | $ 2,768 | $ 1,944 |
Gains and Losses on Asset Sales
Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Investment And Other Income [Line Items] | |||||
Proceeds from asset sales | $ 9 | $ 39 | $ 21 | $ 222 | |
Book value of asset sales | 9 | 2 | 10 | ||
Gain (loss) on asset sales, before-tax | [1] | 9 | 31 | 19 | 213 |
Gain (loss) on asset sales, after-tax | [1] | $ 8 | $ 28 | $ 15 | $ 186 |
[1] | The six months ended June 30, 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario |
Gains and Losses on Asset Sal38
Gains and Losses on Asset Sales (Parenthetical) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Investment And Other Income [Line Items] | |||||
Gain (loss) on asset sales, before- tax | [1] | $ 9 | $ 31 | $ 19 | $ 213 |
Gain (loss) on asset sales, after- tax | [1] | $ 8 | $ 28 | $ 15 | 186 |
Surplus Property | |||||
Investment And Other Income [Line Items] | |||||
Gain (loss) on asset sales, before- tax | 174 | ||||
Gain (loss) on asset sales, after- tax | $ 151 | ||||
[1] | The six months ended June 30, 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current service cost | $ 60 | $ 54 | $ 120 | $ 109 |
Interest cost | 75 | 79 | 151 | 158 |
Expected return on plan assets | (100) | (101) | (201) | (202) |
Amortization of prior service cost | 1 | 2 | 2 | 5 |
Amortization of actuarial loss (gain) | 43 | 45 | 87 | 89 |
Net periodic benefit cost | 79 | 79 | 159 | 159 |
Other postretirement benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current service cost | 4 | 4 | 8 | 8 |
Interest cost | 6 | 6 | 11 | 12 |
Amortization of actuarial loss (gain) | 1 | 2 | 3 | 4 |
Net periodic benefit cost | $ 11 | $ 12 | $ 22 | $ 24 |
Financing and Additional Note40
Financing and Additional Notes and Loans Payable Information (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt-related interest | $ 32 | $ 27 | $ 62 | $ 49 |
Capitalized interest | (6) | (10) | (13) | (22) |
Net interest expense | 26 | 17 | 49 | 27 |
Other interest | 4 | |||
Total financing | $ 26 | $ 17 | $ 49 | $ 31 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - CAD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,447 | $ 4,447 | |
Capital leases | 545 | 558 | |
Total long-term debt | [1] | $ 4,992 | $ 5,005 |
[1] | Long-term debt included amounts to related parties of $4,447 million (2017 - $4,447 million). |
Other Long-Term Obligations (De
Other Long-Term Obligations (Detail) - CAD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Schedule of Other Liabilities [Line Items] | |||
Employee retirement benefits | [1] | $ 1,501 | $ 1,529 |
Asset retirement obligations and other environmental liabilities | [2] | 1,471 | 1,460 |
Share-based incentive compensation liabilities | 129 | 99 | |
Other obligations | [3] | 842 | 692 |
Total other long-term obligations | [4] | $ 3,943 | $ 3,780 |
[1] | Total recorded employee retirement benefits obligations also included $56 million in current liabilities (2017 - $56 million). | ||
[2] | Total asset retirement obligations and other environmental liabilities also included $101 million in current liabilities (2017 - $101 million). | ||
[3] | Included carbon emission program obligations. Carbon emission program credits are recorded under other assets, including intangibles, net. | ||
[4] | Other long-term obligations included amounts to related parties of $38 million (2017 - $60 million). |
Other Long-Term Obligations (Pa
Other Long-Term Obligations (Parenthetical) (Detail) - CAD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Other Liabilities [Line Items] | ||
Employee retirement benefit obligations in current liabilities | $ 56 | $ 56 |
Asset retirement obligations and other environmental liabilities in current liabilities | $ 101 | $ 101 |
Other long-term obligations - A
Other long-term obligations - Additional Information (Detail) - CAD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Other long-term obligations | [1] | $ 3,943 | $ 3,780 |
Environmental Obligations Noncurrent [Member] | |||
Other long-term obligations | $ 65 | ||
[1] | Other long-term obligations included amounts to related parties of $38 million (2017 - $60 million). |
Summary of Common Shares (Detai
Summary of Common Shares (Detail) - shares | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | |||
Authorized | 1,100,000,000 | 1,100,000,000 | |
Common shares outstanding | 802,680,000 | 831,242,000 | 847,599,000 |
Common Shares - Additional Info
Common Shares - Additional Information (Detail) - shares | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 27, 2018 | Jun. 13, 2018 | Jun. 13, 2017 | |
Class of Stock [Line Items] | ||||
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% | |||
Normal course issuer bid share repurchase shares authorized | 42,326,545 | 40,391,196 | ||
Percent of total shares | 5.00% | 5.00% | ||
Normal course issuer bid share repurchase term, months | 12 months |
Common Share Activities (Detail
Common Share Activities (Detail) - CAD ($) shares in Thousands, $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | |||
Class of Stock [Line Items] | ||||
Common stock beginning balance, shares | 831,242 | 847,599 | ||
Issued under employee share-based awards, shares | 2 | |||
Purchases at stated value, shares | (28,562) | (16,359) | ||
Common stock, ending balance, shares | 802,680 | 831,242 | ||
Common stock beginning balance, value | $ 1,536 | [1] | $ 1,566 | |
Issued under employee share-based awards, value | 0 | 0 | ||
Common stock, ending balance, value | [1] | 1,483 | 1,536 | |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Purchases at stated value, value | $ (53) | $ (30) | ||
[1] | Number of common shares authorized and outstanding were 1,100 million and 803 million, respectively (2017 - 1,100 million and 831 million, respectively). |
Calculation of basic and dilute
Calculation of basic and diluted earnings per common share (Detail) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Net income (loss) per common share - basic | ||||
Net income (loss) | $ 196 | $ (77) | $ 712 | $ 256 |
Weighted average number of common shares outstanding (millions of shares) | 816.1 | 847 | 822.6 | 847.3 |
Net income (loss) per common share (dollars) | $ 0.24 | $ (0.09) | $ 0.86 | $ 0.30 |
Net income (loss) per common share - diluted | ||||
Net income (loss) | $ 196 | $ (77) | $ 712 | $ 256 |
Weighted average number of common shares outstanding (millions of shares) | 816.1 | 847 | 822.6 | 847.3 |
Effect of employee share-based awards (millions of shares) | 2.7 | 2.9 | 2.6 | 2.8 |
Weighted average number of common shares outstanding, assuming dilution (millions of shares) | 818.8 | 849.9 | 825.2 | 850.1 |
Net income (loss) per common share (dollars) | $ 0.24 | $ (0.09) | $ 0.86 | $ 0.30 |
Summary of Earnings Reinvested
Summary of Earnings Reinvested (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Retained Earnings Adjustments [Line Items] | ||||
Earnings reinvested at beginning of period | $ 24,861 | $ 25,558 | $ 24,714 | $ 25,352 |
Net income (loss) for the period | 196 | (77) | 712 | 256 |
Share purchases in excess of stated value | (853) | (121) | (1,090) | (121) |
Dividends declared | (155) | (136) | (287) | (263) |
Earnings reinvested at end of period | $ 24,049 | $ 25,224 | $ 24,049 | $ 25,224 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at January 1 | $ (1,815) | $ (1,897) | ||
Current period change excluding amounts reclassified from accumulated other comprehensive income | (19) | 41 | ||
Amounts reclassified from accumulated other comprehensive income | $ 33 | $ 36 | 67 | 72 |
Balance at June 30 | $ (1,767) | $ (1,784) | $ (1,767) | $ (1,784) |
Amounts Reclassified Out of Acc
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost | [1] | $ (46) | $ (49) | $ (92) | $ (98) |
[1] | This accumulated other comprehensive income component is included in the computation of net periodic benefit cost (note 6). |
Income Tax Expense (Credit) for
Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Postretirement benefits liability adjustment (excluding amortization) | $ (7) | $ 16 | ||
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost | $ 13 | $ 13 | 25 | 26 |
Total | $ 13 | $ 13 | $ 18 | $ 42 |
Recently Issued Accounting St53
Recently Issued Accounting Standards - Additional Information (Detail) - Scenario, Plan - Adjustments for New Accounting Pronouncement | Jan. 01, 2019CAD ($) |
Minimum | |
Operating lease right of use assets | $ 200,000,000 |
Operating lease liability | 200,000,000 |
Maximum | |
Operating lease right of use assets | 250,000,000 |
Operating lease liability | $ 250,000,000 |