Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
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 Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 792,702,836 |
Consolidated statement of incom
Consolidated statement of income - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||||
Revenues and other income | |||||||||
Revenues | [1] | $ 9,697 | [2] | $ 7,134 | [2] | $ 27,113 | [3] | $ 21,077 | [3] |
Investment and other income (note 5) | 35 | 24 | 96 | 270 | |||||
Total revenues and other income | 9,732 | 7,158 | 27,209 | 21,347 | |||||
Expenses | |||||||||
Exploration | 4 | 7 | 13 | 29 | |||||
Purchases of crude oil and products | [4] | 6,099 | 4,251 | 17,416 | 13,226 | ||||
Production and manufacturing | [5] | 1,480 | 1,314 | 4,557 | 4,154 | ||||
Selling and general | [5] | 224 | 217 | 691 | 618 | ||||
Federal excise tax | 432 | 438 | 1,241 | 1,253 | |||||
Depreciation and depletion | [6] | 410 | 391 | 1,145 | 1,135 | ||||
Non-service pension and postretirement benefit | [7] | 27 | 26 | 80 | 92 | ||||
Financing (note 7) | 30 | 18 | 79 | 49 | |||||
Total expenses | 8,706 | 6,662 | 25,222 | 20,556 | |||||
Income (loss) before income taxes | 1,026 | 496 | 1,987 | 791 | |||||
Income taxes | 277 | 125 | 526 | 164 | |||||
Net income (loss) | $ 749 | $ 371 | $ 1,461 | $ 627 | |||||
Per share information (Canadian dollars) | |||||||||
Net income (loss) per common share - basic (note 10) | $ 0.94 | $ 0.44 | $ 1.79 | $ 0.74 | |||||
Net income (loss) per common share - diluted (note 10) | $ 0.94 | $ 0.44 | $ 1.79 | $ 0.74 | |||||
[1] | Amounts from related parties included in revenues. 1,809 756 4,951 2,801 | ||||||||
[2] | Included export sales to the United States of $1,741 million (2017 - $1,080 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 $4,509 million (2017 - $3,024 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. 1,071 604 3,337 1,919 | ||||||||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 136 127 433 415 | ||||||||
[6] | The Downstream segment in 2018 included a non-cash impairment charge of $46 million, before tax, associated with the Government of Ontario's revocation of its carbon emission cap and trade regulation. | ||||||||
[7] | Prior year amounts have been reclassified. See note 2 for additional details. |
Consolidated statement of inc_2
Consolidated statement of income (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amounts from related parties included in revenues. | $ 1,809 | $ 756 | $ 4,951 | $ 2,801 |
Amounts to related parties included in purchases of crude oil and products. | 1,071 | 604 | 3,337 | 1,919 |
Amounts to related parties included in production and manufacturing, and selling and general expenses. | $ 136 | $ 127 | $ 433 | $ 415 |
Consolidated statement of compr
Consolidated statement of comprehensive income - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income (loss) | $ 749 | $ 371 | $ 1,461 | $ 627 |
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 | 34 | 34 | 101 | 106 |
Total other comprehensive income (loss) | 34 | 34 | 82 | 147 |
Comprehensive income (loss) | $ 783 | $ 405 | $ 1,543 | $ 774 |
Consolidated balance sheet
Consolidated balance sheet - CAD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | ||
Current assets | ||||
Cash | $ 1,148 | [1] | $ 1,195 | |
Accounts receivable, less estimated doubtful accounts | [2] | 2,729 | 2,712 | |
Inventories of crude oil and products | 1,392 | 1,075 | ||
Materials, supplies and prepaid expenses | 464 | 425 | ||
Total current assets | 5,733 | 5,407 | ||
Investments and long-term receivables | [3] | 837 | 865 | |
Property, plant and equipment, | 53,592 | 52,778 | ||
less accumulated depreciation and depletion | (19,386) | (18,305) | ||
Property, plant and equipment, net | 34,206 | 34,473 | ||
Goodwill | 186 | 186 | ||
Other assets, including intangibles, net (note 9) | 857 | 670 | ||
Total assets | 41,819 | [4] | 41,601 | |
Current liabilities | ||||
Notes and loans payable | [5] | 202 | 202 | |
Accounts payable and accrued liabilities (note 9) | [2] | 4,565 | 3,877 | |
Income taxes payable | 11 | 57 | ||
Total current liabilities | 4,778 | 4,136 | ||
Long-term debt (note 8) | [6] | 4,986 | 5,005 | |
Other long-term obligations (note 9) | [7] | 3,334 | 3,780 | |
Deferred income tax liabilities | 4,742 | 4,245 | ||
Total liabilities | 17,840 | 17,166 | ||
Shareholders' equity | ||||
Common shares at stated value (note 10) | [8] | 1,465 | 1,536 | |
Earnings reinvested (note 11) | 24,247 | 24,714 | ||
Accumulated other comprehensive income (loss) (note 12) | (1,733) | (1,815) | ||
Total shareholders' equity | 23,979 | 24,435 | ||
Total liabilities and shareholders' equity | $ 41,819 | $ 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 $385 million (2017 - $509 million). | |||
[3] | Investments and long-term receivables included amounts from related parties of $94 million (2017 - $19 million). | |||
[4] | The Downstream segment in 2018 included a non-cash impairment charge of $46 million, before tax, associated with the Government of Ontario's revocation of its carbon emission cap and trade regulation. | |||
[5] | Notes and loans payable included amounts to related parties of $75 million (2017 - $75 million). | |||
[6] | Long-term debt included amounts to related parties of $4,447 million (2017 - $4,447 million). | |||
[7] | Other long-term obligations included amounts to related parties of $27 million (2017 - $60 million). | |||
[8] | Number of common shares authorized and outstanding were 1,100 million and 793 million, respectively (2017 - 1,100 million and 831 million, respectively). |
Consolidated balance sheet (Par
Consolidated balance sheet (Parenthetical) - CAD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Amounts receivable (payable) from (to) related parties | $ 385 | $ 509 |
Due to related parties, current | $ 75 | $ 75 |
Common shares authorized | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding | 792,703,000 | 831,242,000 |
Investments and Long Term Receivables | ||
Due from related parties | $ 94 | $ 19 |
Long-term debt | ||
Due to related parties | 4,447 | 4,447 |
Other long-term obligations | ||
Due to related parties | $ 27 | $ 60 |
Consolidated statement of cash
Consolidated statement of cash flows - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Operating activities | |||||
Net income (loss) | $ 749 | $ 371 | $ 1,461 | $ 627 | |
Adjustments for non-cash items: | |||||
Depreciation and depletion | 364 | 391 | 1,099 | 1,135 | |
Impairment of intangible assets (note 9) | 46 | 46 | |||
(Gain) loss on asset sales (note 5) | [1] | (10) | (6) | (29) | (219) |
Deferred income taxes and other | 276 | 131 | 485 | 294 | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | (104) | (297) | (17) | 127 | |
Inventories, materials, supplies and prepaid expenses | (179) | 104 | (356) | (13) | |
Income taxes payable | (78) | 19 | (46) | (429) | |
Accounts payable and accrued liabilities | 78 | 81 | 102 | (159) | |
All other items - net (a) (b) | [2],[3] | 65 | 43 | 306 | 320 |
Cash flows from (used in) operating activities | 1,207 | 837 | 3,051 | 1,683 | |
Investing activities | |||||
Additions to property, plant and equipment (b) | [3] | (327) | (241) | (1,055) | (683) |
Proceeds from asset sales (note 5) | 13 | 8 | 34 | 230 | |
Additional investments | (1) | (1) | |||
Loan to equity company | (38) | (75) | |||
Cash flows from (used in) investing activities | (352) | (234) | (1,096) | (454) | |
Financing activities | |||||
Reduction in capitalized lease obligations (note 8) | (7) | (7) | (20) | (20) | |
Dividends paid | (155) | (136) | (421) | (390) | |
Common shares purchased (note 10) | (418) | (250) | (1,561) | (377) | |
Cash flows from (used in) financing activities | (580) | (393) | (2,002) | (787) | |
Increase (decrease) in cash | 275 | 210 | (47) | 442 | |
Cash at beginning of period | 873 | 623 | 1,195 | 391 | |
Cash at end of period (c) | [4] | $ 1,148 | $ 833 | $ 1,148 | $ 833 |
[1] | The nine months ended September 30, 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. | ||||
[2] | Included contribution to registered pension plans. (52 ) (78 ) (153 ) (176 ) | ||||
[3] | The impact of carbon emission programs are included in additions to property, plant and equipment, and all other items, net. | ||||
[4] | Cash is composed of cash in bank and cash equivalents at cost. Cash equivalents are all highly liquid securities with maturity of three months or less when purchased. |
Consolidated statement of cas_2
Consolidated statement of cash flows (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Included contribution to registered pension plans | $ (52) | $ (78) | $ (153) | $ (176) |
Environmental Obligations [Member] | ||||
Non-cash adjustments reversed out of accrued liabilities and all other items | $ 570 | $ 570 |
Basis of financial statement pr
Basis of financial statement preparation | 9 Months Ended |
Sep. 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 nine months ended September 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 | 9 Months Ended |
Sep. 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 (Topic 606), 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 September 30, 2018 is shown below. Third Quarter Nine Months to millions of Canadian dollars 2017 September 30, 2017 As Change As As Change As Production and manufacturing 1,338 (24) 1,314 4,238 (84) 4,154 Selling and general 219 (2) 217 626 (8) 618 Non-service - 26 26 - 92 92 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 | 9 Months Ended |
Sep. 30, 2018 | |
Business segments | 3. Business segments Third Quarter Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 2,489 1,668 6,880 5,204 328 262 Intersegment sales 771 587 425 241 79 62 Investment and other income (note 5) 2 7 25 15 1 - 3,262 2,262 7,330 5,460 408 324 Expenses Exploration 4 7 - - - - Purchases of crude oil and products 1,566 947 5,567 4,014 239 179 Production and manufacturing (b) 1,073 893 356 394 51 51 Selling and general (b) - 5 199 167 21 19 Federal excise tax - - 432 438 - - Depreciation and depletion (c) 309 330 91 53 4 3 Non-service (b) - - - - - - Financing (note 7) - 1 - - - - Total expenses 2,952 2,183 6,645 5,066 315 252 Income (loss) before income taxes 310 79 685 394 93 72 Income taxes 88 17 183 102 24 20 Net income (loss) 222 62 502 292 69 52 Cash flows from (used in) operating activities 872 479 281 268 79 99 Capital and exploration expenditures (d) 257 92 105 55 8 5 Third Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 9,697 7,134 Intersegment sales - - (1,275 ) (890 ) - - Investment and other income (note 5) 7 2 - - 35 24 7 2 (1,275 ) (890 ) 9,732 7,158 Expenses Exploration - - - - 4 7 Purchases of crude oil and products - - (1,273 ) (889 ) 6,099 4,251 Production and manufacturing (b) - - - - 1,480 1,338 Selling and general (b) 6 29 (2 ) (1 ) 224 219 Federal excise tax - - - - 432 438 Depreciation and depletion (c) 6 5 - - 410 391 Non-service (b) 27 - - - 27 - Financing (note 7) 30 17 - - 30 18 Total expenses 69 51 (1,275 ) (890 ) 8,706 6,662 Income (loss) before income taxes (62 ) (49 ) - - 1,026 496 Income taxes (18 ) (14 ) - - 277 125 Net income (loss) (44 ) (35 ) - - 749 371 Cash flows from (used in) operating activities (25 ) (9 ) - - 1,207 837 Capital and exploration expenditures (d) 6 7 - - 376 159 (a) Included export sales to the United States of $1,741 million (2017 - $1,080 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) The Downstream segment in 2018 included a non-cash (d) 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. Nine Months to September 30 Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 6,796 5,166 19,357 15,087 960 824 Intersegment sales 2,078 1,494 1,119 792 226 191 Investment and other income (note 5) 6 17 66 248 1 (1 ) 8,880 6,677 20,542 16,127 1,187 1,014 Expenses Exploration 13 29 - - - - Purchases of crude oil and products 4,513 3,089 15,664 12,037 657 573 Production and manufacturing (b) 3,191 2,917 1,212 1,169 154 152 Selling and general (b) - 1 569 540 65 60 Federal excise tax - - 1,241 1,253 - - Depreciation and depletion (c) 927 964 191 148 11 9 Non-service (b) - - - - - - Financing (note 7) - 5 - - - - Total expenses 8,644 7,005 18,877 15,147 887 794 Income (loss) before income taxes 236 (328 ) 1,665 980 300 220 Income taxes 64 (103 ) 441 230 80 59 Net income (loss) 172 (225 ) 1,224 750 220 161 Cash flows from (used in) operating activities 1,199 904 1,647 626 278 176 Capital and exploration expenditures (d) 646 286 250 128 19 12 Total assets as at September 30 (c) 34,570 35,387 5,426 4,671 427 365 Nine Months to September 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 27,113 21,077 Intersegment sales - - (3,423 ) (2,477 ) - - Investment and other income (note 5) 23 6 - - 96 270 23 6 (3,423 ) (2,477 ) 27,209 21,347 Expenses Exploration - - - - 13 29 Purchases of crude oil and products - - (3,418 ) (2,473 ) 17,416 13,226 Production and manufacturing (b) - - - - 4,557 4,238 Selling and general (b) 62 29 (5 ) (4 ) 691 626 Federal excise tax - - - - 1,241 1,253 Depreciation and depletion (c) 16 14 - - 1,145 1,135 Non-service (b) 80 - - - 80 - Financing (note 7) 79 44 - - 79 49 Total expenses 237 87 (3,423 ) (2,477 ) 25,222 20,556 Income (loss) before income taxes (214 ) (81 ) - - 1,987 791 Income taxes (59 ) (22 ) - - 526 164 Net income (loss) (155 ) (59 ) - - 1,461 627 Cash flows from (used in) operating activities (73 ) (23 ) - - 3,051 1,683 Capital and exploration expenditures (d) 19 29 - - 934 455 Total assets as at September 30 (c) 1,727 1,283 (331 ) (336 ) 41,819 41,370 (a) Included export sales to the United States of $4,509 million (2017 - $3,024 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) The Downstream segment in 2018 included a non-cash (d) 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 | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Investment and other income | 5. Investment and other income Investment and other income included gains and losses on asset sales as follows: Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Proceeds from asset sales 13 8 34 230 Book value of asset sales 3 2 5 12 Gain (loss) on asset sales, before tax (a) 10 6 29 219 Gain (loss) on asset sales, after tax (a) 6 5 21 191 (a) The nine months ended September 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 | 9 Months Ended |
Sep. 30, 2018 | |
Employee retirement benefits | 6. Employee retirement benefits The components of net benefit cost were as follows: Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Pension benefits: Current service cost 59 54 179 163 Interest cost 76 77 227 235 Expected return on plan assets (100 ) (104 ) (301 ) (306 ) Amortization of prior service cost 1 2 3 7 Amortization of actuarial loss (gain) 43 43 130 132 Net periodic benefit cost 79 72 238 231 Other postretirement benefits: Current service cost 5 4 13 12 Interest cost 5 6 16 18 Amortization of actuarial loss (gain) 2 2 5 6 Net periodic benefit cost 12 12 34 36 |
Financing and additional notes
Financing and additional notes and loans payable information | 9 Months Ended |
Sep. 30, 2018 | |
Financing and additional notes and loans payable information | 7. Financing and additional notes and loans payable information Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Debt-related interest 36 24 98 73 Capitalized interest (6 ) (7 ) (19 ) (29 ) Net interest expense 30 17 79 44 Other interest - 1 - 5 Total financing 30 18 79 49 |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2018 | |
Long-term debt | 8. Long-term debt As at As at Sept 30 Dec 31 millions of Canadian dollars 2018 2017 Long-term debt 4,447 4,447 Capital leases 539 558 Total long-term debt 4,986 5,005 |
Other long-term obligations
Other long-term obligations | 9 Months Ended |
Sep. 30, 2018 | |
Other long-term obligations | 9. Other long-term obligations As at As at Sept 30 Dec 31 millions of Canadian dollars 2018 2017 Employee retirement benefits (a) 1,466 1,529 Asset retirement obligations and other environmental liabilities (b) 1,473 1,460 Share-based incentive compensation liabilities 131 99 Other obligations (c) 264 692 Total other long-term obligations 3,334 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. In light of these announcements and the anticipated legislative process, the company recorded a non-cash |
Common shares
Common shares | 9 Months Ended |
Sep. 30, 2018 | |
Common shares | 10. Common shares As of As of Sept 30 Dec 31 thousands of shares 2018 2017 Authorized 1,100,000 1,100,000 Common shares outstanding 792,703 831,242 The current 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 shares dollars 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 (38,539 ) (71 ) Balance as at September 30, 2018 792,703 1,465 The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares: Nine Months Third Quarter to September 30 2018 2017 2018 2017 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 749 371 1,461 627 Weighted average number of common shares outstanding (millions of shares) 797.6 841.8 814.2 845.5 Net income (loss) per common share (dollars) 0.94 0.44 1.79 0.74 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 749 371 1,461 627 Weighted average number of common shares outstanding (millions of shares) 797.6 841.8 814.2 845.5 Effect of employee share-based awards (millions of shares) 2.9 3.1 2.7 2.9 Weighted average number of common shares outstanding, assuming dilution (millions of shares) 800.5 844.9 816.9 848.4 Net income (loss) per common share (dollars) 0.94 0.44 1.79 0.74 Dividends per common share - declared (dollars) 0.19 0.16 0.54 0.47 |
Earnings reinvested
Earnings reinvested | 9 Months Ended |
Sep. 30, 2018 | |
Earnings reinvested | 11. Earnings reinvested Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Earnings reinvested at beginning of period 24,049 25,224 24,714 25,352 Net income (loss) for the period 749 371 1,461 627 Share purchases in excess of stated value (400 ) (237 ) (1,490 ) (358 ) Dividends declared (151 ) (134 ) (438 ) (397 ) Earnings reinvested at end of period 24,247 25,224 24,247 25,224 |
Other comprehensive income (los
Other comprehensive income (loss) information | 9 Months Ended |
Sep. 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 from accumulated other comprehensive income (19 ) 41 Amounts reclassified from accumulated other comprehensive income 101 106 Balance at September 30 (1,733 ) (1,750 ) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (46 ) (47 ) (138 ) (145 ) (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): Nine Months Third Quarter to September 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 in net periodic benefit cost 12 13 37 39 Total 12 13 30 55 |
Recently issued accounting stan
Recently issued accounting standards | 9 Months Ended |
Sep. 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) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting changes | Effective January 1, 2018, Imperial adopted the Financial Accounting Standards Board’s standard, Revenue from Contracts with Customers (Topic 606), 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) | 9 Months Ended |
Sep. 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 September 30, 2018 is shown below. Third Quarter Nine Months to millions of Canadian dollars 2017 September 30, 2017 As Change As As Change As Production and manufacturing 1,338 (24) 1,314 4,238 (84) 4,154 Selling and general 219 (2) 217 626 (8) 618 Non-service - 26 26 - 92 92 |
Business segments (Tables)
Business segments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Business Segments | Third Quarter Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 2,489 1,668 6,880 5,204 328 262 Intersegment sales 771 587 425 241 79 62 Investment and other income (note 5) 2 7 25 15 1 - 3,262 2,262 7,330 5,460 408 324 Expenses Exploration 4 7 - - - - Purchases of crude oil and products 1,566 947 5,567 4,014 239 179 Production and manufacturing (b) 1,073 893 356 394 51 51 Selling and general (b) - 5 199 167 21 19 Federal excise tax - - 432 438 - - Depreciation and depletion (c) 309 330 91 53 4 3 Non-service (b) - - - - - - Financing (note 7) - 1 - - - - Total expenses 2,952 2,183 6,645 5,066 315 252 Income (loss) before income taxes 310 79 685 394 93 72 Income taxes 88 17 183 102 24 20 Net income (loss) 222 62 502 292 69 52 Cash flows from (used in) operating activities 872 479 281 268 79 99 Capital and exploration expenditures (d) 257 92 105 55 8 5 Third Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 9,697 7,134 Intersegment sales - - (1,275 ) (890 ) - - Investment and other income (note 5) 7 2 - - 35 24 7 2 (1,275 ) (890 ) 9,732 7,158 Expenses Exploration - - - - 4 7 Purchases of crude oil and products - - (1,273 ) (889 ) 6,099 4,251 Production and manufacturing (b) - - - - 1,480 1,338 Selling and general (b) 6 29 (2 ) (1 ) 224 219 Federal excise tax - - - - 432 438 Depreciation and depletion (c) 6 5 - - 410 391 Non-service (b) 27 - - - 27 - Financing (note 7) 30 17 - - 30 18 Total expenses 69 51 (1,275 ) (890 ) 8,706 6,662 Income (loss) before income taxes (62 ) (49 ) - - 1,026 496 Income taxes (18 ) (14 ) - - 277 125 Net income (loss) (44 ) (35 ) - - 749 371 Cash flows from (used in) operating activities (25 ) (9 ) - - 1,207 837 Capital and exploration expenditures (d) 6 7 - - 376 159 (a) Included export sales to the United States of $1,741 million (2017 - $1,080 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) The Downstream segment in 2018 included a non-cash (d) 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. Nine Months to September 30 Upstream Downstream Chemical millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) 6,796 5,166 19,357 15,087 960 824 Intersegment sales 2,078 1,494 1,119 792 226 191 Investment and other income (note 5) 6 17 66 248 1 (1 ) 8,880 6,677 20,542 16,127 1,187 1,014 Expenses Exploration 13 29 - - - - Purchases of crude oil and products 4,513 3,089 15,664 12,037 657 573 Production and manufacturing (b) 3,191 2,917 1,212 1,169 154 152 Selling and general (b) - 1 569 540 65 60 Federal excise tax - - 1,241 1,253 - - Depreciation and depletion (c) 927 964 191 148 11 9 Non-service (b) - - - - - - Financing (note 7) - 5 - - - - Total expenses 8,644 7,005 18,877 15,147 887 794 Income (loss) before income taxes 236 (328 ) 1,665 980 300 220 Income taxes 64 (103 ) 441 230 80 59 Net income (loss) 172 (225 ) 1,224 750 220 161 Cash flows from (used in) operating activities 1,199 904 1,647 626 278 176 Capital and exploration expenditures (d) 646 286 250 128 19 12 Total assets as at September 30 (c) 34,570 35,387 5,426 4,671 427 365 Nine Months to September 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2018 2017 2018 2017 2018 2017 Revenues and other income Revenues (a) - - - - 27,113 21,077 Intersegment sales - - (3,423 ) (2,477 ) - - Investment and other income (note 5) 23 6 - - 96 270 23 6 (3,423 ) (2,477 ) 27,209 21,347 Expenses Exploration - - - - 13 29 Purchases of crude oil and products - - (3,418 ) (2,473 ) 17,416 13,226 Production and manufacturing (b) - - - - 4,557 4,238 Selling and general (b) 62 29 (5 ) (4 ) 691 626 Federal excise tax - - - - 1,241 1,253 Depreciation and depletion (c) 16 14 - - 1,145 1,135 Non-service (b) 80 - - - 80 - Financing (note 7) 79 44 - - 79 49 Total expenses 237 87 (3,423 ) (2,477 ) 25,222 20,556 Income (loss) before income taxes (214 ) (81 ) - - 1,987 791 Income taxes (59 ) (22 ) - - 526 164 Net income (loss) (155 ) (59 ) - - 1,461 627 Cash flows from (used in) operating activities (73 ) (23 ) - - 3,051 1,683 Capital and exploration expenditures (d) 19 29 - - 934 455 Total assets as at September 30 (c) 1,727 1,283 (331 ) (336 ) 41,819 41,370 (a) Included export sales to the United States of $4,509 million (2017 - $3,024 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) The Downstream segment in 2018 included a non-cash (d) 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) | 9 Months Ended |
Sep. 30, 2018 | |
Gains and Losses on Asset Sales | Investment and other income included gains and losses on asset sales as follows: Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Proceeds from asset sales 13 8 34 230 Book value of asset sales 3 2 5 12 Gain (loss) on asset sales, before tax (a) 10 6 29 219 Gain (loss) on asset sales, after tax (a) 6 5 21 191 (a) The nine months ended September 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) | 9 Months Ended |
Sep. 30, 2018 | |
Schedule of Components of Net Benefit Cost | The components of net benefit cost were as follows: Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Pension benefits: Current service cost 59 54 179 163 Interest cost 76 77 227 235 Expected return on plan assets (100 ) (104 ) (301 ) (306 ) Amortization of prior service cost 1 2 3 7 Amortization of actuarial loss (gain) 43 43 130 132 Net periodic benefit cost 79 72 238 231 Other postretirement benefits: Current service cost 5 4 13 12 Interest cost 5 6 16 18 Amortization of actuarial loss (gain) 2 2 5 6 Net periodic benefit cost 12 12 34 36 |
Financing and additional note_2
Financing and additional notes and loans payable information (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Financing and Additional Notes and Loans Payable Information | Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Debt-related interest 36 24 98 73 Capitalized interest (6 ) (7 ) (19 ) (29 ) Net interest expense 30 17 79 44 Other interest - 1 - 5 Total financing 30 18 79 49 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Long-Term Debt | As at As at Sept 30 Dec 31 millions of Canadian dollars 2018 2017 Long-term debt 4,447 4,447 Capital leases 539 558 Total long-term debt 4,986 5,005 |
Other long-term obligations (Ta
Other long-term obligations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Long-Term Obligations | As at As at Sept 30 Dec 31 millions of Canadian dollars 2018 2017 Employee retirement benefits (a) 1,466 1,529 Asset retirement obligations and other environmental liabilities (b) 1,473 1,460 Share-based incentive compensation liabilities 131 99 Other obligations (c) 264 692 Total other long-term obligations 3,334 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) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Common Shares | As of As of Sept 30 Dec 31 thousands of shares 2018 2017 Authorized 1,100,000 1,100,000 Common shares outstanding 792,703 831,242 |
Common Share Activities | The company’s common share activities are summarized below: Thousands of Millions of shares dollars 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 (38,539 ) (71 ) Balance as at September 30, 2018 792,703 1,465 |
Calculation of Basic and Diluted Earnings Per Share | The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares: Nine Months Third Quarter to September 30 2018 2017 2018 2017 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 749 371 1,461 627 Weighted average number of common shares outstanding (millions of shares) 797.6 841.8 814.2 845.5 Net income (loss) per common share (dollars) 0.94 0.44 1.79 0.74 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 749 371 1,461 627 Weighted average number of common shares outstanding (millions of shares) 797.6 841.8 814.2 845.5 Effect of employee share-based awards (millions of shares) 2.9 3.1 2.7 2.9 Weighted average number of common shares outstanding, assuming dilution (millions of shares) 800.5 844.9 816.9 848.4 Net income (loss) per common share (dollars) 0.94 0.44 1.79 0.74 Dividends per common share - declared (dollars) 0.19 0.16 0.54 0.47 |
Earnings reinvested (Tables)
Earnings reinvested (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Earnings Reinvested | Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Earnings reinvested at beginning of period 24,049 25,224 24,714 25,352 Net income (loss) for the period 749 371 1,461 627 Share purchases in excess of stated value (400 ) (237 ) (1,490 ) (358 ) Dividends declared (151 ) (134 ) (438 ) (397 ) Earnings reinvested at end of period 24,247 25,224 24,247 25,224 |
Other comprehensive income (l_2
Other comprehensive income (loss) information (Tables) | 9 Months Ended |
Sep. 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 from accumulated other comprehensive income (19 ) 41 Amounts reclassified from accumulated other comprehensive income 101 106 Balance at September 30 (1,733 ) (1,750 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) - Before-Tax Income (Expense) | Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Nine Months Third Quarter to September 30 millions of Canadian dollars 2018 2017 2018 2017 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (46 ) (47 ) (138 ) (145 ) (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): Nine Months Third Quarter to September 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 in net periodic benefit cost 12 13 37 39 Total 12 13 30 55 |
Accounting changes - Presentati
Accounting changes - Presentation Change on Consolidated Statement of Income (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Change in Accounting Estimate [Line Items] | |||||
Production and manufacturing | [1] | $ 1,480 | $ 1,314 | $ 4,557 | $ 4,154 |
Selling and general | [1] | 224 | 217 | 691 | 618 |
Non-service pension and postretirement benefit | [2] | $ 27 | 26 | $ 80 | 92 |
Previously reported | |||||
Change in Accounting Estimate [Line Items] | |||||
Production and manufacturing | 1,338 | 4,238 | |||
Selling and general | 219 | 626 | |||
Change higher/(lower) | |||||
Change in Accounting Estimate [Line Items] | |||||
Production and manufacturing | (24) | (84) | |||
Selling and general | (2) | (8) | |||
Non-service pension and postretirement benefit | $ 26 | $ 92 | |||
[1] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 136 127 433 415 | ||||
[2] | Prior year amounts have been reclassified. See note 2 for additional details. |
Accounting changes - Additional
Accounting changes - Additional Information (Detail) - CAD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Long term debt | ||
Long-term debt excluding capitalized lease obligations | $ 4,447 | $ 4,447 |
Business Segments (Detail)
Business Segments (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||||||
Revenues and other income | ||||||||||
Revenues | [1] | $ 9,697 | [2] | $ 7,134 | [2] | $ 27,113 | [3] | $ 21,077 | [3] | |
Investment and other income (note 5) | 35 | 24 | 96 | 270 | ||||||
Total revenues and other income | 9,732 | 7,158 | 27,209 | 21,347 | ||||||
Expenses | ||||||||||
Exploration | 4 | 7 | 13 | 29 | ||||||
Purchases of crude oil and products | [4] | 6,099 | 4,251 | 17,416 | 13,226 | |||||
Production and manufacturing | [5] | 1,480 | 1,338 | 4,557 | 4,238 | |||||
Selling and general | [5] | 224 | 219 | 691 | 626 | |||||
Federal excise tax | 432 | 438 | 1,241 | 1,253 | ||||||
Depreciation and depletion | [6] | 410 | 391 | 1,145 | 1,135 | |||||
Non-service pension and postretirement benefit | [5] | 27 | 80 | |||||||
Financing (note 7) | 30 | 18 | 79 | 49 | ||||||
Total expenses | 8,706 | 6,662 | 25,222 | 20,556 | ||||||
Income (loss) before income taxes | 1,026 | 496 | 1,987 | 791 | ||||||
Income taxes | 277 | 125 | 526 | 164 | ||||||
Net income (loss) | 749 | 371 | 1,461 | 627 | ||||||
Cash flows from (used in) operating activities | 1,207 | 837 | 3,051 | 1,683 | ||||||
Capital and exploration expenditures | 376 | [7] | 159 | [7] | 934 | [8] | 455 | [8] | ||
Total assets as at September 30 | 41,819 | [6] | 41,370 | [6] | 41,819 | [6] | 41,370 | [6] | $ 41,601 | |
Upstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 2,489 | [2] | 1,668 | [2] | 6,796 | [3] | 5,166 | [3] | ||
Intersegment sales | 771 | 587 | 2,078 | 1,494 | ||||||
Investment and other income (note 5) | 2 | 7 | 6 | 17 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 3,262 | 2,262 | 8,880 | 6,677 | ||||||
Expenses | ||||||||||
Exploration | 4 | 7 | 13 | 29 | ||||||
Purchases of crude oil and products | 1,566 | 947 | 4,513 | 3,089 | ||||||
Production and manufacturing | [5] | 1,073 | 893 | 3,191 | 2,917 | |||||
Selling and general | [5] | 5 | 1 | |||||||
Depreciation and depletion | [6] | 309 | 330 | 927 | 964 | |||||
Financing (note 7) | 1 | 5 | ||||||||
Total expenses | 2,952 | 2,183 | 8,644 | 7,005 | ||||||
Income (loss) before income taxes | 310 | 79 | 236 | (328) | ||||||
Income taxes | 88 | 17 | 64 | (103) | ||||||
Net income (loss) | 222 | 62 | 172 | (225) | ||||||
Cash flows from (used in) operating activities | 872 | 479 | 1,199 | 904 | ||||||
Capital and exploration expenditures | 257 | [7] | 92 | [7] | 646 | [8] | 286 | [8] | ||
Total assets as at September 30 | [6] | 34,570 | 35,387 | 34,570 | 35,387 | |||||
Downstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 6,880 | [2] | 5,204 | [2] | 19,357 | [3] | 15,087 | [3] | ||
Intersegment sales | 425 | 241 | 1,119 | 792 | ||||||
Investment and other income (note 5) | 25 | 15 | 66 | 248 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 7,330 | 5,460 | 20,542 | 16,127 | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | 5,567 | 4,014 | 15,664 | 12,037 | ||||||
Production and manufacturing | [5] | 356 | 394 | 1,212 | 1,169 | |||||
Selling and general | [5] | 199 | 167 | 569 | 540 | |||||
Federal excise tax | 432 | 438 | 1,241 | 1,253 | ||||||
Depreciation and depletion | [6] | 91 | 53 | 191 | 148 | |||||
Total expenses | 6,645 | 5,066 | 18,877 | 15,147 | ||||||
Income (loss) before income taxes | 685 | 394 | 1,665 | 980 | ||||||
Income taxes | 183 | 102 | 441 | 230 | ||||||
Net income (loss) | 502 | 292 | 1,224 | 750 | ||||||
Cash flows from (used in) operating activities | 281 | 268 | 1,647 | 626 | ||||||
Capital and exploration expenditures | 105 | [7] | 55 | [7] | 250 | [8] | 128 | [8] | ||
Total assets as at September 30 | [6] | 5,426 | 4,671 | 5,426 | 4,671 | |||||
Chemical | ||||||||||
Revenues and other income | ||||||||||
Revenues | 328 | [2] | 262 | [2] | 960 | [3] | 824 | [3] | ||
Intersegment sales | 79 | 62 | 226 | 191 | ||||||
Investment and other income (note 5) | 1 | 1 | (1) | |||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 408 | 324 | 1,187 | 1,014 | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | 239 | 179 | 657 | 573 | ||||||
Production and manufacturing | [5] | 51 | 51 | 154 | 152 | |||||
Selling and general | [5] | 21 | 19 | 65 | 60 | |||||
Depreciation and depletion | [6] | 4 | 3 | 11 | 9 | |||||
Total expenses | 315 | 252 | 887 | 794 | ||||||
Income (loss) before income taxes | 93 | 72 | 300 | 220 | ||||||
Income taxes | 24 | 20 | 80 | 59 | ||||||
Net income (loss) | 69 | 52 | 220 | 161 | ||||||
Cash flows from (used in) operating activities | 79 | 99 | 278 | 176 | ||||||
Capital and exploration expenditures | 8 | [7] | 5 | [7] | 19 | [8] | 12 | [8] | ||
Total assets as at September 30 | [6] | 427 | 365 | 427 | 365 | |||||
Corporate and Other | ||||||||||
Revenues and other income | ||||||||||
Investment and other income (note 5) | 7 | 2 | 23 | 6 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 7 | 2 | 23 | 6 | ||||||
Expenses | ||||||||||
Selling and general | [5] | 6 | 29 | 62 | 29 | |||||
Depreciation and depletion | [6] | 6 | 5 | 16 | 14 | |||||
Non-service pension and postretirement benefit | [5] | 27 | 80 | |||||||
Financing (note 7) | 30 | 17 | 79 | 44 | ||||||
Total expenses | 69 | 51 | 237 | 87 | ||||||
Income (loss) before income taxes | (62) | (49) | (214) | (81) | ||||||
Income taxes | (18) | (14) | (59) | (22) | ||||||
Net income (loss) | (44) | (35) | (155) | (59) | ||||||
Cash flows from (used in) operating activities | (25) | (9) | (73) | (23) | ||||||
Capital and exploration expenditures | 6 | [7] | 7 | [7] | 19 | [8] | 29 | [8] | ||
Total assets as at September 30 | [6] | 1,727 | 1,283 | 1,727 | 1,283 | |||||
Consolidation, Eliminations | ||||||||||
Revenues and other income | ||||||||||
Intersegment sales | (1,275) | (890) | (3,423) | (2,477) | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | (1,275) | (890) | (3,423) | (2,477) | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | (1,273) | (889) | (3,418) | (2,473) | ||||||
Selling and general | [5] | (2) | (1) | (5) | (4) | |||||
Total expenses | (1,275) | (890) | (3,423) | (2,477) | ||||||
Total assets as at September 30 | [6] | $ (331) | $ (336) | $ (331) | $ (336) | |||||
[1] | Amounts from related parties included in revenues. 1,809 756 4,951 2,801 | |||||||||
[2] | Included export sales to the United States of $1,741 million (2017 - $1,080 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 $4,509 million (2017 - $3,024 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. 1,071 604 3,337 1,919 | |||||||||
[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] | The Downstream segment in 2018 included a non-cash impairment charge of $46 million, before tax, associated with the Government of Ontario's revocation of its carbon emission cap and trade regulation. | |||||||||
[7] | (d) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to capital leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. | |||||||||
[8] | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to capital leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. |
Business Segments (Parenthetica
Business Segments (Parenthetical) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Impairment charge, before tax | $ 46 | $ 46 | ||
United States Exports | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,741 | $ 1,080 | $ 4,509 | $ 3,024 |
Gains and Losses on Asset Sales
Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Investment And Other Income [Line Items] | |||||
Proceeds from asset sales | $ 13 | $ 8 | $ 34 | $ 230 | |
Book value of asset sales | 3 | 2 | 5 | 12 | |
Gain (loss) on asset sales, before-tax | [1] | 10 | 6 | 29 | 219 |
Gain (loss) on asset sales, after-tax | [1] | $ 6 | $ 5 | $ 21 | $ 191 |
[1] | The nine months ended September 30, 2017 included a gain of $174 million ($151 million after tax) from the sale of surplus property in Ontario. |
Gains and Losses on Asset Sal_2
Gains and Losses on Asset Sales (Parenthetical) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Investment And Other Income [Line Items] | |||||
Gain (loss) on asset sales, before- tax | [1] | $ 10 | $ 6 | $ 29 | $ 219 |
Gain (loss) on asset sales, after- tax | [1] | $ 6 | $ 5 | 21 | $ 191 |
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 nine months ended September 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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Pension benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current service cost | $ 59 | $ 54 | $ 179 | $ 163 |
Interest cost | 76 | 77 | 227 | 235 |
Expected return on plan assets | (100) | (104) | (301) | (306) |
Amortization of prior service cost | 1 | 2 | 3 | 7 |
Amortization of actuarial loss (gain) | 43 | 43 | 130 | 132 |
Net periodic benefit cost | 79 | 72 | 238 | 231 |
Other postretirement benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Current service cost | 5 | 4 | 13 | 12 |
Interest cost | 5 | 6 | 16 | 18 |
Amortization of actuarial loss (gain) | 2 | 2 | 5 | 6 |
Net periodic benefit cost | $ 12 | $ 12 | $ 34 | $ 36 |
Financing and Additional Note_3
Financing and Additional Notes and Loans Payable Information (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Debt-related interest | $ 36 | $ 24 | $ 98 | $ 73 |
Capitalized interest | (6) | (7) | (19) | (29) |
Net interest expense | 30 | 17 | 79 | 44 |
Other interest | 1 | 5 | ||
Total financing | $ 30 | $ 18 | $ 79 | $ 49 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - CAD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,447 | $ 4,447 | |
Capital leases | 539 | 558 | |
Total long-term debt | [1] | $ 4,986 | $ 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 | Sep. 30, 2018 | Dec. 31, 2017 | |
Schedule of Other Liabilities [Line Items] | |||
Employee retirement benefits | [1] | $ 1,466 | $ 1,529 |
Asset retirement obligations and other environmental liabilities | [2] | 1,473 | 1,460 |
Share-based incentive compensation liabilities | 131 | 99 | |
Other obligations | [3] | 264 | 692 |
Total other long-term obligations | [4] | $ 3,334 | $ 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 $27 million (2017 - $60 million). |
Other Long-Term Obligations (Pa
Other Long-Term Obligations (Parenthetical) (Detail) - CAD ($) $ in Millions | Sep. 30, 2018 | Sep. 30, 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 | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Impairment charge, before tax | $ 46 | $ 46 |
Summary of Common Shares (Detai
Summary of Common Shares (Detail) - shares | Sep. 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 | 792,703,000 | 831,242,000 | 847,599,000 |
Common Shares - Additional Info
Common Shares - Additional Information (Detail) - shares | 9 Months Ended | ||
Sep. 30, 2018 | Jun. 27, 2018 | Jun. 13, 2018 | |
Class of Stock [Line Items] | |||
Normal course issuer bid share repurchase shares authorized | 40,391,196 | ||
Percent of total shares | 5.00% | ||
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% | ||
Normal course issuer bid share repurchase term, months | 12 months |
Common Share Activities (Detail
Common Share Activities (Detail) - CAD ($) shares in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 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 | (38,539) | (16,359) | ||
Common stock, ending balance, shares | 792,703 | 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] | 1,465 | 1,536 | |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Purchases at stated value, value | $ (71) | $ (30) | ||
[1] | Number of common shares authorized and outstanding were 1,100 million and 793 million, respectively (2017 - 1,100 million and 831 million, respectively). |
Calculation of basic and dilute
Calculation of basic and diluted earnings per common share and the dividend declared by the company on its outstanding common shares (Detail) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net income (loss) per common share - basic | ||||
Net income (loss) | $ 749 | $ 371 | $ 1,461 | $ 627 |
Weighted average number of common shares outstanding (millions of shares) | 797.6 | 841.8 | 814.2 | 845.5 |
Net income (loss) per common share (dollars) | $ 0.94 | $ 0.44 | $ 1.79 | $ 0.74 |
Net income (loss) per common share - diluted | ||||
Net income (loss) | $ 749 | $ 371 | $ 1,461 | $ 627 |
Weighted average number of common shares outstanding (millions of shares) | 797.6 | 841.8 | 814.2 | 845.5 |
Effect of employee share-based awards (millions of shares) | 2.9 | 3.1 | 2.7 | 2.9 |
Weighted average number of common shares outstanding, assuming dilution (millions of shares) | 800.5 | 844.9 | 816.9 | 848.4 |
Net income (loss) per common share (dollars) | $ 0.94 | $ 0.44 | $ 1.79 | $ 0.74 |
Dividends per common share - declared (dollars) | $ 0.19 | $ 0.16 | $ 0.54 | $ 0.47 |
Summary of Earnings Reinvested
Summary of Earnings Reinvested (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Retained Earnings Adjustments [Line Items] | ||||
Earnings reinvested at beginning of period | $ 24,049 | $ 25,224 | $ 24,714 | $ 25,352 |
Net income (loss) for the period | 749 | 371 | 1,461 | 627 |
Share purchases in excess of stated value | (400) | (237) | (1,490) | (358) |
Dividends declared | (151) | (134) | (438) | (397) |
Earnings reinvested at end of period | $ 24,247 | $ 25,224 | $ 24,247 | $ 25,224 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 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 | $ 34 | $ 34 | 101 | 106 |
Balance at September 30 | $ (1,733) | $ (1,750) | $ (1,733) | $ (1,750) |
Amounts Reclassified Out of Acc
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 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) | $ (47) | $ (138) | $ (145) |
[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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 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 | $ 12 | $ 13 | 37 | 39 |
Total | $ 12 | $ 13 | $ 30 | $ 55 |
Recently Issued Accounting St_2
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 |