Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2020shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Document Transition Report | false |
Entity Central Index Key | 0000049938 |
Current Fiscal Year End Date | --12-31 |
Document Quarterly Report | true |
Entity Registrant Name | IMPERIAL OIL LTD |
Amendment Flag | false |
Entity Filer Category | Large Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity File Number | 0-12014 |
Entity Small Business | false |
Entity Incorporation, State or Country Code | CA |
Entity Emerging Growth Company | false |
Entity Address, Address Line One | 505 Quarry Park Boulevard S.E. |
Entity Tax Identification Number | 98-0017682 |
Entity Address, City or Town | Calgary |
Entity Address, State or Province | AB |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | T2C 5N1 |
City Area Code | 1-800 |
Local Phone Number | 567-3776 |
Entity Common Stock, Shares Outstanding | 734,076,755 |
Consolidated statement of incom
Consolidated statement of income - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||||||
Revenues and other income | |||||||||
Revenues | [1] | $ 5,937 | [2] | $ 8,687 | [2] | $ 16,267 | [3] | $ 25,880 | [3] |
Investment and other income (note 4) | 18 | 49 | 88 | 99 | |||||
Total revenues and other income | 5,955 | 8,736 | 16,355 | 25,979 | |||||
Expenses | |||||||||
Exploration | 2 | 4 | 6 | 42 | |||||
Purchases of crude oil and products | [4] | 3,634 | 5,399 | 9,975 | 15,956 | ||||
Production and manufacturing (note 13) | [5] | 1,246 | 1,601 | 4,098 | 4,911 | ||||
Selling and general | [5] | 150 | 217 | 499 | 666 | ||||
Federal excise tax and fuel charge | 470 | 486 | 1,290 | 1,343 | |||||
Depreciation and depletion (note 13) | 409 | 419 | 1,295 | 1,201 | |||||
Non-service pension and postretirement benefit | 31 | 36 | 91 | 108 | |||||
Financing (note 7) | [6] | 10 | 20 | 46 | 71 | ||||
Total expenses | 5,952 | 8,182 | 17,300 | 24,298 | |||||
Income (loss) before income taxes | 3 | 554 | (945) | 1,681 | |||||
Income taxes | 0 | 130 | (234) | (248) | |||||
Net income (loss) | $ 3 | $ 424 | $ (711) | $ 1,929 | |||||
Per share information (Canadian dollars) | |||||||||
Net income (loss) per common share - basic (note 11) | $ 0 | $ 0.56 | $ (0.97) | $ 2.51 | |||||
Net income (loss) per common share - diluted (note 11) | $ 0 | $ 0.56 | $ (0.97) | $ 2.51 | |||||
[1] | Amounts from related parties included in revenues. 1,216 2,313 3,699 6,269 | ||||||||
[2] | Included export sales to the United States of $1,227 million (2019 - $1,807 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 $3,339 million (2019 - $5,623 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | ||||||||
[4] | Amounts to related parties included in purchases of crude oil and products. 627 717 1,762 2,353 | ||||||||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 107 157 428 479 | ||||||||
[6] | Amounts to related parties included in financing, (note 7). 12 23 50 75 |
Consolidated statement of inc_2
Consolidated statement of income (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Amounts from related parties included in revenues. | $ 1,216 | $ 2,313 | $ 3,699 | $ 6,269 |
Amounts to related parties included in purchases of crude oil and products. | 627 | 717 | 1,762 | 2,353 |
Amounts to related parties included in production and manufacturing, and selling and general expenses. | 107 | 157 | 428 | 479 |
Amounts to related parties included in financing, (note 7). | $ 12 | $ 23 | $ 50 | $ 75 |
Consolidated statement of compr
Consolidated statement of comprehensive income - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ 3 | $ 424 | $ (711) | $ 1,929 |
Other comprehensive income (loss), net of income taxes | ||||
Postretirement benefits liability adjustment (excluding amortization) | 0 | 0 | (114) | 18 |
Amortization of postretirement benefits liability adjustment included in net periodic benefit costs | 34 | 28 | 102 | 83 |
Total other comprehensive income (loss) | 34 | 28 | (12) | 101 |
Comprehensive income (loss) | $ 37 | $ 452 | $ (723) | $ 2,030 |
Consolidated balance sheet
Consolidated balance sheet - CAD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | ||
Current assets | ||||
Cash | $ 817 | [1] | $ 1,718 | |
Accounts receivable, less estimated doubtful accounts (note 5) | [2] | 1,732 | 2,699 | |
Inventories of crude oil and products | 1,088 | 1,296 | ||
Materials, supplies and prepaid expenses | 764 | 616 | ||
Total current assets | 4,401 | 6,329 | ||
Investments and long-term receivables (note 5) | [3] | 771 | 891 | |
Property, plant and equipment, | 55,463 | 54,868 | ||
less accumulated depreciation and depletion | (21,881) | (20,665) | ||
Property, plant and equipment, net | 33,582 | 34,203 | ||
Goodwill (note 13) | 166 | 186 | ||
Other assets, including intangibles, net | 462 | 578 | ||
Total assets | 39,382 | 42,187 | ||
Current liabilities | ||||
Notes and loans payable | [4] | 227 | 229 | |
Accounts payable and accrued liabilities (note 9) | [2] | 3,229 | 4,260 | |
Income taxes payable | 0 | 106 | ||
Total current liabilities | 3,456 | 4,595 | ||
Long-term debt (note 8) | [5] | 4,962 | 4,961 | |
Other long-term obligations (note 9) | 3,713 | 3,637 | ||
Deferred income tax liabilities | 4,459 | 4,718 | ||
Total liabilities | 16,590 | 17,911 | ||
Shareholders' equity | ||||
Common shares at stated value (note 11) | [6] | 1,357 | 1,375 | |
Earnings reinvested | 23,358 | 24,812 | ||
Accumulated other comprehensive income (loss) (note 12) | (1,923) | (1,911) | ||
Total shareholders' equity | 22,792 | 24,276 | ||
Total liabilities and shareholders' equity | $ 39,382 | $ 42,187 | ||
[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 $240 million (2019 - $1,007 million). | |||
[3] | Investments and long-term receivables included amounts from related parties of $313 million (2019 - $296 million). | |||
[4] | Notes and loans payable included amounts to related parties of $111 million (2019 - $111 million). | |||
[5] | Long-term debt included amounts to related parties of $4,447 million (2019 - $4,447 million). | |||
[6] | Number of common shares authorized and outstanding were 1,100 million and 734 million, respectively (2019 - 1,100 million and 744 million, respectively). |
Consolidated balance sheet (Par
Consolidated balance sheet (Parenthetical) - CAD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Amounts receivable (payable) from (to) related parties | $ 240 | $ 1,007 |
Common shares authorized | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding | 734,000,000 | 744,000,000 |
Investments and Long Term Receivables | ||
Due from related parties | $ 313 | $ 296 |
Long-term debt | ||
Due to related parties, current | 111 | 111 |
Other long-term obligations | ||
Due to related parties | $ 4,447 | $ 4,447 |
Consolidated statement of share
Consolidated statement of shareholders' equity - CAD ($) $ in Millions | Total | Common shares at stated value (note 11) | Earnings reinvested | Accumulated other comprehensive income (loss) (note 18) |
At beginning of period at Dec. 31, 2018 | $ 1,446 | $ 24,560 | $ (1,517) | |
Net income (loss) for the period | $ 1,929 | 1,929 | ||
Share purchases at stated value | (55) | |||
Share purchases in excess of stated value | (1,017) | |||
Dividends declared | (482) | |||
Other comprehensive income (loss) | 101 | 101 | ||
At end of period at Sep. 30, 2019 | 24,965 | 1,391 | 24,990 | (1,416) |
At beginning of period at Dec. 31, 2018 | 1,446 | 24,560 | (1,517) | |
Share purchases at stated value | (71) | |||
Cumulative effect of accounting change (note 5) at Dec. 31, 2019 | 24,812 | |||
At end of period at Dec. 31, 2019 | 24,276 | 1,375 | 24,812 | (1,911) |
At beginning of period at Jun. 30, 2019 | 1,410 | 25,056 | (1,444) | |
Net income (loss) for the period | 424 | 424 | ||
Share purchases at stated value | (19) | |||
Share purchases in excess of stated value | (324) | |||
Dividends declared | (166) | |||
Other comprehensive income (loss) | 28 | 28 | ||
At end of period at Sep. 30, 2019 | 24,965 | 1,391 | 24,990 | (1,416) |
At beginning of period at Dec. 31, 2019 | 24,276 | 1,375 | 24,812 | (1,911) |
Net income (loss) for the period | (711) | (711) | ||
Share purchases at stated value | (18) | |||
Share purchases in excess of stated value | (256) | |||
Dividends declared | (485) | |||
Cumulative effect of accounting change (note 5) at Sep. 30, 2020 | 23,358 | (2) | ||
Other comprehensive income (loss) | (12) | (12) | ||
At end of period at Sep. 30, 2020 | 22,792 | 1,357 | 23,358 | (1,923) |
At beginning of period at Jun. 30, 2020 | 1,357 | 23,516 | (1,957) | |
Net income (loss) for the period | 3 | 3 | ||
Share purchases at stated value | 0 | |||
Share purchases in excess of stated value | 0 | |||
Dividends declared | (161) | |||
Cumulative effect of accounting change (note 5) at Sep. 30, 2020 | 23,358 | (2) | ||
Other comprehensive income (loss) | 34 | 34 | ||
At end of period at Sep. 30, 2020 | $ 22,792 | $ 1,357 | $ 23,358 | $ (1,923) |
Consolidated statement of cash
Consolidated statement of cash flows - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Operating activities | |||||
Net income (loss) | $ 3 | $ 424 | $ (711) | $ 1,929 | |
Adjustments for non-cash items: | |||||
Depreciation and depletion | 409 | 419 | 1,275 | 1,201 | |
Impairment of intangible assets (note 13) | 0 | 0 | 20 | 0 | |
(Gain) loss on asset sales (note 4) | (11) | (28) | (28) | (34) | |
Deferred income taxes and other | (11) | 116 | (210) | (359) | |
Changes in operating assets and liabilities: | |||||
Accounts receivable | 134 | 250 | 967 | (355) | |
Inventories, materials, supplies and prepaid expenses | 142 | 264 | 60 | 243 | |
Income taxes payable | 0 | 8 | (106) | (29) | |
Accounts payable and accrued liabilities | 66 | (82) | (1,008) | 646 | |
All other items - net | 143 | 5 | 223 | 163 | |
Cash flows from (used in) operating activities | 875 | 1,376 | 482 | 3,405 | |
Investing activities | |||||
Additions to property, plant and equipment | (142) | (417) | (657) | (1,242) | |
Proceeds from asset sales (note 4) | 19 | 30 | 68 | 66 | |
Loans to equity companies - net | (2) | (26) | (16) | (129) | |
Cash flows from (used in) investing activities | (125) | (413) | (605) | (1,305) | |
Financing activities | |||||
Reduction in finance lease obligations (note 8) | (4) | (7) | (16) | (20) | |
Dividends paid | (162) | (169) | (488) | (465) | |
Common shares purchased (note 11) | 0 | (343) | (274) | (1,072) | |
Cash flows from (used in) financing activities | (166) | (519) | (778) | (1,557) | |
Increase (decrease) in cash | 584 | 444 | (901) | 543 | |
Cash at beginning of period | 233 | 1,087 | 1,718 | 988 | |
Cash at end of period | [1] | $ 817 | $ 1,531 | $ 817 | $ 1,531 |
[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. |
Consolidated statement of cas_2
Consolidated statement of cash flows (Parenthetical) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Included contributions to registered pension plans | $ (59) | $ (57) | $ (159) | $ (155) | |
Income taxes (paid) refunded | 107 | 35 | (45) | 84 | |
Interest (paid), net of capitalization | [1] | $ (10) | $ (20) | $ (46) | $ (71) |
[1] | Note: restated 2019 |
Basis of financial statement pr
Basis of financial statement preparation | 9 Months Ended |
Sep. 30, 2020 | |
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 2019 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, 2020, 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, 2020 | |
Accounting changes | 2. Accounting changes Effective January 1, 2020, Imperial adopted the Financial Accounting Standards Board’s update, Financial Instruments - Credit Losses (Topic 326) |
Business segments
Business segments | 9 Months Ended |
Sep. 30, 2020 | |
Business segments | 3. Business segments Third Quarter Upstream Downstream Chemical millions of Canadian dollars 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) 1,651 2,185 4,061 6,266 225 236 Intersegment sales 658 913 321 314 43 61 Investment and other income (note 4) (6) 7 24 32 - 1 2,303 3,105 4,406 6,612 268 298 Expenses Exploration 2 4 - - - - Purchases of crude oil and products 1,176 1,376 3,322 5,142 157 167 Production and manufacturing (note 13) 863 1,087 335 460 48 54 Selling and general - - 140 191 23 23 Federal excise tax and fuel charge - - 470 486 - - Depreciation and depletion (note 13) 361 364 37 45 5 4 Non-service pension and postretirement benefit - - - - - - Financing (note 7) - - - - - - Total expenses 2,402 2,831 4,304 6,324 233 248 Income (loss) before income taxes (99) 274 102 288 35 50 Income taxes (25) 65 25 67 8 12 Net income (loss) (74) 209 77 221 27 38 Cash flows from (used in) operating activities 526 392 333 900 32 75 Capital and exploration expenditures (b) 78 302 50 124 4 4 Third Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) - - - - 5,937 8,687 Intersegment sales - - (1,022) (1,288) - - Investment and other income (note 4) - 9 - - 18 49 - 9 (1,022) (1,288) 5,955 8,736 Expenses Exploration - - - - 2 4 Purchases of crude oil and products - - (1,021) (1,286) 3,634 5,399 Production and manufacturing (note 13) - - - - 1,246 1,601 Selling and general (12) 5 (1) (2) 150 217 Federal excise tax and fuel charge - - - - 470 486 Depreciation and depletion (note 13) 6 6 - - 409 419 Non-service pension and postretirement benefit 31 36 - - 31 36 Financing (note 7) 10 20 - - 10 20 Total expenses 35 67 (1,022) (1,288) 5,952 8,182 Income (loss) before income taxes (35) (58) - - 3 554 Income taxes (8) (14) - - - 130 Net income (loss) (27) (44) - - 3 424 Cash flows from (used in) operating activities (16) 9 - - 875 1,376 Capital and exploration expenditures (b) 9 12 - - 141 442 (a) Included export sales to the United States of $1,227 million (2019 - $1,807 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance 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 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) 4,211 7,012 11,444 18,115 612 753 Intersegment sales 1,642 2,977 1,013 1,249 114 181 Investment and other income (note 4) 4 11 66 61 1 1 5,857 10,000 12,523 19,425 727 935 Expenses Exploration 6 42 - - - - Purchases of crude oil and products 3,338 4,764 8,987 15,062 416 531 Production and manufacturing (note 13) 2,855 3,414 1,086 1,315 157 182 Selling and general - - 456 571 69 67 Federal excise tax and fuel charge - - 1,290 1,343 - - Depreciation and depletion (note 13) 1,141 1,036 123 137 13 11 Non-service - - - - - - Financing (note 7) - - - - - - Total expenses 7,340 9,256 11,942 18,428 655 791 Income (loss) before income taxes (1,483) 744 581 997 72 144 Income tax expense (benefit) (357) (508) 134 261 17 34 Net income (loss) (1,126) 1,252 447 736 55 110 Cash flows from (used in) operating activities 22 1,257 443 2,055 75 175 Capital and exploration expenditures (b) 454 975 177 364 15 27 Total assets as at September 30 (note 13) 32,941 35,066 4,590 4,433 417 423 Nine Months to September 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) - - - - 16,267 25,880 Intersegment sales - - (2,769) (4,407) - - Investment and other income (note 4) 17 26 - - 88 99 17 26 (2,769) (4,407) 16,355 25,979 Expenses Exploration - - - - 6 42 Purchases of crude oil and products - - (2,766) (4,401) 9,975 15,956 Production and manufacturing (note 13) - - - - 4,098 4,911 Selling and general (23) 34 (3) (6) 499 666 Federal excise tax and fuel charge - - - - 1,290 1,343 Depreciation and depletion (note 13) 18 17 - - 1,295 1,201 Non-service 91 108 - - 91 108 Financing (note 7) 46 71 - - 46 71 Total expenses 132 230 (2,769) (4,407) 17,300 24,298 Income (loss) before income taxes (115) (204) - - (945) 1,681 Income tax expense (benefit) (28) (35) - - (234) (248) Net income (loss) (87) (169) - - (711) 1,929 Cash flows from (used in) operating activities (58) (82 ) - - 482 3,405 Capital and exploration expenditures (b) 33 34 - - 679 1,400 Total assets as at September 30 (note 13) 1,679 2,298 (245) (313) 39,382 41,907 (a) Included export sales to the United States of $3,339 million (2019 - $5,623 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. |
Investment and other income
Investment and other income | 9 Months Ended |
Sep. 30, 2020 | |
Investment and other income | 4. Investment and other income Investment and other income included gains and losses on asset sales as follows: Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Proceeds from asset sales 19 30 68 66 Book value of asset sales 8 2 40 32 Gain (loss) on asset sales, before tax 11 28 28 34 Gain (loss) on asset sales, after tax 10 25 25 31 |
Allowance for current expected
Allowance for current expected credit loss (CECL) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Allowance for current expected credit loss (CECL) | 5. Allowance for current expected credit loss (CECL) Effective January 1, 2020, the company adopted the Financial Accounting Standards Board’s update, Financial Instruments – Credit Losses (Topic 326), off-balance-sheet The company is exposed to credit losses primarily through sales of petroleum products, crude oil, natural gas liquids and natural gas, as well as loans to equity companies and joint venture receivables. A counterparty’s ability to pay is assessed through a credit review process that considers payment terms, the counterparty’s established credit rating or the company’s assessment of the counterparty’s credit worthiness, contract terms, and other risks. The company can require prepayment or collateral to mitigate certain credit risks. The company groups financial assets into portfolios that share similar risk characteristics for purposes of determining the allowance for credit losses. Each reporting period, the company assesses whether a significant change in credit loss or risk has occurred. Among the quantitative and qualitative factors considered are historical financial data, current conditions, industry and country risk, current credit ratings and the quality of third-party guarantees secured from the counterparty. Financial assets are written off in whole, or in part, when practical recovery efforts have been exhausted and no reasonable expectation of recovery exists. Subsequent recoveries of amounts previously written off are recognized in earnings. The company manages receivable portfolios using past due balances as a key credit quality indicator. The company recognizes a credit allowance for off-balance-sheet In 2020, the COVID-19 Financial Instruments – Credit Losses (Topic 326) off-balance-sheet |
Employee retirement benefits
Employee retirement benefits | 9 Months Ended |
Sep. 30, 2020 | |
Employee retirement benefits | 6. Employee retirement benefits The components of net benefit cost were as follows: Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Pension benefits: Current service cost 76 57 229 171 Interest cost 77 81 231 243 Expected return on plan assets (97 ) (87 ) (293 ) (262 ) Amortization of prior service cost 4 - 11 - Amortization of actuarial loss (gain) 38 37 115 112 Net periodic benefit cost 98 88 293 264 Other postretirement benefits: Current service cost 6 4 18 12 Interest cost 6 5 18 16 Amortization of actuarial loss (gain) 3 - 9 (1 ) Net periodic benefit cost 15 9 45 27 |
Financing costs
Financing costs | 9 Months Ended |
Sep. 30, 2020 | |
Financing costs | 7. Financing costs Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Debt-related interest 19 32 79 105 Capitalized interest (9 ) (12 ) (33 ) (34 ) Net interest expense 10 20 46 71 Other interest - - - - Total financing 10 20 46 71 During the second quarter of 2020, in addition to existing credit facilities of $500 million, the company entered into a $500 million committed short-term line of credit to May 2021, and a $300 million committed short-term line of credit to June 2021. The company has not drawn on any of its credit facilities. |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2020 | |
Long-term debt | 8. Long-term debt As at As at millions of Canadian dollars 2020 2019 Long-term debt 4,447 4,447 Finance leases 515 514 Total long-term debt 4,962 4,961 |
Other long-term obligations
Other long-term obligations | 9 Months Ended |
Sep. 30, 2020 | |
Other long-term obligations | 9. Other long-term obligation s As at As at Sept 30 Dec 31 millions of Canadian dollars 2020 2019 Employee retirement benefits (a) 1,965 1,822 Asset retirement obligations and other environmental liabilities (b) 1,388 1,388 Share-based incentive compensation liabilities 33 65 Operating lease liability (c) 95 143 Other obligations 232 219 Total other long-term obligations 3,713 3,637 (a) Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2019 - $58 million). (b) Total asset retirement obligations and other environmental liabilities also included $124 million in current liabilities (2019 - $124 million). (c) Total operating lease liability also included $95 million in current liabilities (2019 - $115 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $27 million (2019 - $6 million). |
Financial and derivative instru
Financial and derivative instruments | 9 Months Ended |
Sep. 30, 2020 | |
Financial and derivative instruments | 10. Financial and derivative instruments Financial instruments The fair value of the company’s financial instruments is determined by reference to various market data and other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At September 30, 2020 and December 31, 2019 the fair value of long-term debt ($4,447 million, excluding finance lease obligations) was primarily a level 2 measurement. Derivative instruments The company’s size, strong capital structure and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the company’s enterprise-wide risk from changes in commodity prices and currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instruments to manage commodity price risk. The company does not designate derivative instruments as a hedge for hedge accounting purposes. Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity. At September 30, 2020, the carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $2 million, gross liabilities of $3 million and collateral receivable of $6 million, with the net effects reflected in “Accounts receivable, less estimated doubtful accounts” on the Consolidated balance sheet. At December 31, 2019 the carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $0 million, gross liabilities of $2 million and collateral receivable of $6 million. At September 30, 2020, the net notional forward long / (short) position of derivative instruments was 200,000 barrels for crude and ( ) ( ) Realized and unrealized gain or (loss) on derivative instruments before-tax Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Revenues 1 - (7 ) (2 ) Purchases of crude oil and products - 1 (18 ) (5 ) Total 1 1 (25 ) (7 ) |
Common shares
Common shares | 9 Months Ended |
Sep. 30, 2020 | |
Common shares | 11. Common shares thousands of shares As of 2020 As of Dec 31 Authorized 1,100,000 1,100,000 Common shares outstanding 734,077 743,902 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 Thousands Millions Balance as at December 31, 2018 782,565 1,446 Issued under employee share-based awards 1 - Purchases at stated value (38,664 ) (71 ) Balance as at December 31, 2019 743,902 1,375 Issued under employee share-based awards - - Purchases at stated value (9,825 ) (18 ) Balance as at September 30, 2020 734,077 1,357 The following table provides the calculation of basic and diluted earnings Third Quarter Nine Months 2020 2019 2020 2019 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 3 424 (711 ) 1,929 Weighted average number of common shares outstanding (millions of shares) 734.1 757.8 735.7 767.6 Net income (loss) per common share (dollars) - 0.56 (0.97 ) 2.51 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 3 424 (711 ) 1,929 Weighted average number of common shares outstanding (millions of shares) 734.1 757.8 735.7 767.6 Effect of employee share-based awards (millions of shares) (a) 2.2 2.5 - 2.4 Weighted average number of common shares outstanding, assuming dilution (millions of shares) 736.3 760.3 735.7 770.0 Net income (loss) per common share (dollars) - 0.56 (0.97 ) 2.51 Dividends per common share - declared (dollars) 0.22 0.22 0.66 0.63 (a) For Nine Months to September 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.1 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future. |
Other comprehensive income (los
Other comprehensive income (loss) information | 9 Months Ended |
Sep. 30, 2020 | |
Other comprehensive income (loss) information | 12. Other comprehensive income (loss) information Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2020 2019 Balance at January 1 (1,911 ) (1,517 ) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified from accumulated other comprehensive income (114 ) 18 Amounts reclassified from accumulated other comprehensive income 102 83 Balance at September 30 (1,923 ) (1,416 ) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (45) (37 ) (135) (111 ) (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): Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) - - (37 ) 7 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost 11 9 33 28 Total 11 9 (4 ) 35 |
Miscellaneous financial informa
Miscellaneous financial information | 9 Months Ended |
Sep. 30, 2020 | |
Miscellaneous financial information | 13. Miscellaneous financial information In the second quarter of 2020, the Government of Canada implemented the Canada Emergency Wage Subsidy (CEWS) as part of its COVID-19 Economic Response Plan. The program’s intent is to help sustain employment levels by providing expense relief to companies during the pandemic. The company qualified for these wage subsidies which are recognized throughout the year when received. The relief provided under this program, about $120 million (before tax) year-to-date, including the company’s proportionate share of a joint venture, is recognized as a reduction to expense and is included in the Consolidated statement of income, primarily as part of “Production and manufacturing”. As disclosed in Imperial’s 2019 Form 10-K, non-cash |
Accounting changes (Policies)
Accounting changes (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting changes | Effective January 1, 2020, Imperial adopted the Financial Accounting Standards Board’s update, Financial Instruments - Credit Losses (Topic 326) |
Business segments (Tables)
Business segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Segments | Third Quarter Upstream Downstream Chemical millions of Canadian dollars 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) 1,651 2,185 4,061 6,266 225 236 Intersegment sales 658 913 321 314 43 61 Investment and other income (note 4) (6) 7 24 32 - 1 2,303 3,105 4,406 6,612 268 298 Expenses Exploration 2 4 - - - - Purchases of crude oil and products 1,176 1,376 3,322 5,142 157 167 Production and manufacturing (note 13) 863 1,087 335 460 48 54 Selling and general - - 140 191 23 23 Federal excise tax and fuel charge - - 470 486 - - Depreciation and depletion (note 13) 361 364 37 45 5 4 Non-service pension and postretirement benefit - - - - - - Financing (note 7) - - - - - - Total expenses 2,402 2,831 4,304 6,324 233 248 Income (loss) before income taxes (99) 274 102 288 35 50 Income taxes (25) 65 25 67 8 12 Net income (loss) (74) 209 77 221 27 38 Cash flows from (used in) operating activities 526 392 333 900 32 75 Capital and exploration expenditures (b) 78 302 50 124 4 4 Third Quarter Corporate and other Eliminations Consolidated millions of Canadian dollars 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) - - - - 5,937 8,687 Intersegment sales - - (1,022) (1,288) - - Investment and other income (note 4) - 9 - - 18 49 - 9 (1,022) (1,288) 5,955 8,736 Expenses Exploration - - - - 2 4 Purchases of crude oil and products - - (1,021) (1,286) 3,634 5,399 Production and manufacturing (note 13) - - - - 1,246 1,601 Selling and general (12) 5 (1) (2) 150 217 Federal excise tax and fuel charge - - - - 470 486 Depreciation and depletion (note 13) 6 6 - - 409 419 Non-service pension and postretirement benefit 31 36 - - 31 36 Financing (note 7) 10 20 - - 10 20 Total expenses 35 67 (1,022) (1,288) 5,952 8,182 Income (loss) before income taxes (35) (58) - - 3 554 Income taxes (8) (14) - - - 130 Net income (loss) (27) (44) - - 3 424 Cash flows from (used in) operating activities (16) 9 - - 875 1,376 Capital and exploration expenditures (b) 9 12 - - 141 442 (a) Included export sales to the United States of $1,227 million (2019 - $1,807 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance 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 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) 4,211 7,012 11,444 18,115 612 753 Intersegment sales 1,642 2,977 1,013 1,249 114 181 Investment and other income (note 4) 4 11 66 61 1 1 5,857 10,000 12,523 19,425 727 935 Expenses Exploration 6 42 - - - - Purchases of crude oil and products 3,338 4,764 8,987 15,062 416 531 Production and manufacturing (note 13) 2,855 3,414 1,086 1,315 157 182 Selling and general - - 456 571 69 67 Federal excise tax and fuel charge - - 1,290 1,343 - - Depreciation and depletion (note 13) 1,141 1,036 123 137 13 11 Non-service - - - - - - Financing (note 7) - - - - - - Total expenses 7,340 9,256 11,942 18,428 655 791 Income (loss) before income taxes (1,483) 744 581 997 72 144 Income tax expense (benefit) (357) (508) 134 261 17 34 Net income (loss) (1,126) 1,252 447 736 55 110 Cash flows from (used in) operating activities 22 1,257 443 2,055 75 175 Capital and exploration expenditures (b) 454 975 177 364 15 27 Total assets as at September 30 (note 13) 32,941 35,066 4,590 4,433 417 423 Nine Months to September 30 Corporate and other Eliminations Consolidated millions of Canadian dollars 2020 2019 2020 2019 2020 2019 Revenues and other income Revenues (a) - - - - 16,267 25,880 Intersegment sales - - (2,769) (4,407) - - Investment and other income (note 4) 17 26 - - 88 99 17 26 (2,769) (4,407) 16,355 25,979 Expenses Exploration - - - - 6 42 Purchases of crude oil and products - - (2,766) (4,401) 9,975 15,956 Production and manufacturing (note 13) - - - - 4,098 4,911 Selling and general (23) 34 (3) (6) 499 666 Federal excise tax and fuel charge - - - - 1,290 1,343 Depreciation and depletion (note 13) 18 17 - - 1,295 1,201 Non-service 91 108 - - 91 108 Financing (note 7) 46 71 - - 46 71 Total expenses 132 230 (2,769) (4,407) 17,300 24,298 Income (loss) before income taxes (115) (204) - - (945) 1,681 Income tax expense (benefit) (28) (35) - - (234) (248) Net income (loss) (87) (169) - - (711) 1,929 Cash flows from (used in) operating activities (58) (82 ) - - 482 3,405 Capital and exploration expenditures (b) 33 34 - - 679 1,400 Total assets as at September 30 (note 13) 1,679 2,298 (245) (313) 39,382 41,907 (a) Included export sales to the United States of $3,339 million (2019 - $5,623 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. (b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance 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, 2020 | |
Gains and Losses on Asset Sales | Investment and other income included gains and losses on asset sales as follows: Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Proceeds from asset sales 19 30 68 66 Book value of asset sales 8 2 40 32 Gain (loss) on asset sales, before tax 11 28 28 34 Gain (loss) on asset sales, after tax 10 25 25 31 |
Employee retirement benefits (T
Employee retirement benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Schedule of Net Benefit Costs | The components of net benefit cost were as follows: Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Pension benefits: Current service cost 76 57 229 171 Interest cost 77 81 231 243 Expected return on plan assets (97 ) (87 ) (293 ) (262 ) Amortization of prior service cost 4 - 11 - Amortization of actuarial loss (gain) 38 37 115 112 Net periodic benefit cost 98 88 293 264 Other postretirement benefits: Current service cost 6 4 18 12 Interest cost 6 5 18 16 Amortization of actuarial loss (gain) 3 - 9 (1 ) Net periodic benefit cost 15 9 45 27 |
Financing costs (Tables)
Financing costs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Financing costs | Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Debt-related interest 19 32 79 105 Capitalized interest (9 ) (12 ) (33 ) (34 ) Net interest expense 10 20 46 71 Other interest - - - - Total financing 10 20 46 71 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Long-term Debt | As at As at millions of Canadian dollars 2020 2019 Long-term debt 4,447 4,447 Finance leases 515 514 Total long-term debt 4,962 4,961 |
Other long-term obligations (Ta
Other long-term obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Other Long-Term Obligations | As at As at Sept 30 Dec 31 millions of Canadian dollars 2020 2019 Employee retirement benefits (a) 1,965 1,822 Asset retirement obligations and other environmental liabilities (b) 1,388 1,388 Share-based incentive compensation liabilities 33 65 Operating lease liability (c) 95 143 Other obligations 232 219 Total other long-term obligations 3,713 3,637 (a) Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2019 - $58 million). (b) Total asset retirement obligations and other environmental liabilities also included $124 million in current liabilities (2019 - $124 million). (c) Total operating lease liability also included $95 million in current liabilities (2019 - $115 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $27 million (2019 - $6 million). |
Financial and derivative inst_2
Financial and derivative instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Realized and Unrealized Gain or (Loss) on Derivative Instruments | Realized and unrealized gain or (loss) on derivative instruments before-tax Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Revenues 1 - (7 ) (2 ) Purchases of crude oil and products - 1 (18 ) (5 ) Total 1 1 (25 ) (7 ) |
Common shares (Tables)
Common shares (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Summary of Common Shares | thousands of shares As of 2020 As of Dec 31 Authorized 1,100,000 1,100,000 Common shares outstanding 734,077 743,902 |
Common Share Activities | The company’s common share activities are summarized Thousands Millions Balance as at December 31, 2018 782,565 1,446 Issued under employee share-based awards 1 - Purchases at stated value (38,664 ) (71 ) Balance as at December 31, 2019 743,902 1,375 Issued under employee share-based awards - - Purchases at stated value (9,825 ) (18 ) Balance as at September 30, 2020 734,077 1,357 |
Calculation of Basic and Diluted Earnings Per Share | The following table provides the calculation of basic and diluted earnings Third Quarter Nine Months 2020 2019 2020 2019 Net income (loss) per common share - basic Net income (loss) (millions of Canadian dollars) 3 424 (711 ) 1,929 Weighted average number of common shares outstanding (millions of shares) 734.1 757.8 735.7 767.6 Net income (loss) per common share (dollars) - 0.56 (0.97 ) 2.51 Net income (loss) per common share - diluted Net income (loss) (millions of Canadian dollars) 3 424 (711 ) 1,929 Weighted average number of common shares outstanding (millions of shares) 734.1 757.8 735.7 767.6 Effect of employee share-based awards (millions of shares) (a) 2.2 2.5 - 2.4 Weighted average number of common shares outstanding, assuming dilution (millions of shares) 736.3 760.3 735.7 770.0 Net income (loss) per common share (dollars) - 0.56 (0.97 ) 2.51 Dividends per common share - declared (dollars) 0.22 0.22 0.66 0.63 (a) For Nine Months to September 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.1 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future. |
Other comprehensive income (l_2
Other comprehensive income (loss) information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss): millions of Canadian dollars 2020 2019 Balance at January 1 (1,911 ) (1,517 ) Postretirement benefits liability adjustment: Current period change excluding amounts reclassified from accumulated other comprehensive income (114 ) 18 Amounts reclassified from accumulated other comprehensive income 102 83 Balance at September 30 (1,923 ) (1,416 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) - Before-Tax Income (Expense) | Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (45) (37 ) (135) (111 ) (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): Third Quarter Nine Months millions of Canadian dollars 2020 2019 2020 2019 Postretirement benefits liability adjustments: Postretirement benefits liability adjustment (excluding amortization) - - (37 ) 7 Amortization of postretirement benefits liability adjustment included in net periodic benefit cost 11 9 33 28 Total 11 9 (4 ) 35 |
Business Segments (Detail)
Business Segments (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||||||
Revenues and other income | ||||||||||
Revenues | [1] | $ 5,937 | [2] | $ 8,687 | [2] | $ 16,267 | [3] | $ 25,880 | [3] | |
Investment and other income (note 4) | 18 | 49 | 88 | 99 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 5,955 | 8,736 | 16,355 | 25,979 | ||||||
Expenses | ||||||||||
Exploration | 2 | 4 | 6 | 42 | ||||||
Purchases of crude oil and products | [4] | 3,634 | 5,399 | 9,975 | 15,956 | |||||
Production and manufacturing (note 13) | [5] | 1,246 | 1,601 | 4,098 | 4,911 | |||||
Selling and general | [5] | 150 | 217 | 499 | 666 | |||||
Federal excise tax and fuel charge | 470 | 486 | 1,290 | 1,343 | ||||||
Depreciation and depletion (note 13) | 409 | 419 | 1,295 | 1,201 | ||||||
Non-service pension and postretirement benefit | 31 | 36 | 91 | 108 | ||||||
Financing (note 7) | [6] | 10 | 20 | 46 | 71 | |||||
Total expenses | 5,952 | 8,182 | 17,300 | 24,298 | ||||||
Income (loss) before income taxes | 3 | 554 | (945) | 1,681 | ||||||
Income tax expense (benefit) | 0 | 130 | (234) | (248) | ||||||
Net income (loss) | 3 | 424 | (711) | 1,929 | ||||||
Cash flows from (used in) operating activities | 875 | 1,376 | 482 | 3,405 | ||||||
Capital and exploration expenditures | [7] | 141 | 442 | 679 | 1,400 | |||||
Total assets as at September 30 (note 13) | 39,382 | 41,907 | 39,382 | 41,907 | $ 42,187 | |||||
Consolidation, Eliminations | ||||||||||
Revenues and other income | ||||||||||
Intersegment sales | (1,022) | (1,288) | (2,769) | (4,407) | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | (1,022) | (1,288) | (2,769) | (4,407) | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | (1,021) | (1,286) | (2,766) | (4,401) | ||||||
Selling and general | (1) | (2) | (3) | (6) | ||||||
Total expenses | (1,022) | (1,288) | (2,769) | (4,407) | ||||||
Cash flows from (used in) operating activities | 0 | 0 | 0 | 0 | ||||||
Capital and exploration expenditures | [7] | 0 | 0 | 0 | 0 | |||||
Total assets as at September 30 (note 13) | (245) | (313) | (245) | (313) | ||||||
Upstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 1,651 | [2] | 2,185 | [2] | 4,211 | [3] | 7,012 | [3] | ||
Intersegment sales | 658 | 913 | 1,642 | 2,977 | ||||||
Investment and other income (note 4) | (6) | 7 | 4 | 11 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 2,303 | 3,105 | 5,857 | 10,000 | ||||||
Expenses | ||||||||||
Exploration | 2 | 4 | 6 | 42 | ||||||
Purchases of crude oil and products | 1,176 | 1,376 | 3,338 | 4,764 | ||||||
Production and manufacturing (note 13) | 863 | 1,087 | 2,855 | 3,414 | ||||||
Depreciation and depletion (note 13) | 361 | 364 | 1,141 | 1,036 | ||||||
Total expenses | 2,402 | 2,831 | 7,340 | 9,256 | ||||||
Income (loss) before income taxes | (99) | 274 | (1,483) | 744 | ||||||
Income tax expense (benefit) | (25) | 65 | (357) | (508) | ||||||
Net income (loss) | (74) | 209 | (1,126) | 1,252 | ||||||
Cash flows from (used in) operating activities | 526 | 392 | 22 | 1,257 | ||||||
Capital and exploration expenditures | [7] | 78 | 302 | 454 | 975 | |||||
Total assets as at September 30 (note 13) | 32,941 | 35,066 | 32,941 | 35,066 | ||||||
Downstream | ||||||||||
Revenues and other income | ||||||||||
Revenues | 4,061 | [2] | 6,266 | [2] | 11,444 | [3] | 18,115 | [3] | ||
Intersegment sales | 321 | 314 | 1,013 | 1,249 | ||||||
Investment and other income (note 4) | 24 | 32 | 66 | 61 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 4,406 | 6,612 | 12,523 | 19,425 | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | 3,322 | 5,142 | 8,987 | 15,062 | ||||||
Production and manufacturing (note 13) | 335 | 460 | 1,086 | 1,315 | ||||||
Selling and general | 140 | 191 | 456 | 571 | ||||||
Federal excise tax and fuel charge | 470 | 486 | 1,290 | 1,343 | ||||||
Depreciation and depletion (note 13) | 37 | 45 | 123 | 137 | ||||||
Total expenses | 4,304 | 6,324 | 11,942 | 18,428 | ||||||
Income (loss) before income taxes | 102 | 288 | 581 | 997 | ||||||
Income tax expense (benefit) | 25 | 67 | 134 | 261 | ||||||
Net income (loss) | 77 | 221 | 447 | 736 | ||||||
Cash flows from (used in) operating activities | 333 | 900 | 443 | 2,055 | ||||||
Capital and exploration expenditures | [7] | 50 | 124 | 177 | 364 | |||||
Total assets as at September 30 (note 13) | 4,590 | 4,433 | 4,590 | 4,433 | ||||||
Chemical | ||||||||||
Revenues and other income | ||||||||||
Revenues | 225 | [2] | 236 | [2] | 612 | [3] | 753 | [3] | ||
Intersegment sales | 43 | 61 | 114 | 181 | ||||||
Investment and other income (note 4) | 0 | 1 | 1 | 1 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 268 | 298 | 727 | 935 | ||||||
Expenses | ||||||||||
Purchases of crude oil and products | 157 | 167 | 416 | 531 | ||||||
Production and manufacturing (note 13) | 48 | 54 | 157 | 182 | ||||||
Selling and general | 23 | 23 | 69 | 67 | ||||||
Depreciation and depletion (note 13) | 5 | 4 | 13 | 11 | ||||||
Total expenses | 233 | 248 | 655 | 791 | ||||||
Income (loss) before income taxes | 35 | 50 | 72 | 144 | ||||||
Income tax expense (benefit) | 8 | 12 | 17 | 34 | ||||||
Net income (loss) | 27 | 38 | 55 | 110 | ||||||
Cash flows from (used in) operating activities | 32 | 75 | 75 | 175 | ||||||
Capital and exploration expenditures | [7] | 4 | 4 | 15 | 27 | |||||
Total assets as at September 30 (note 13) | 417 | 423 | 417 | 423 | ||||||
Corporate and Other | ||||||||||
Revenues and other income | ||||||||||
Investment and other income (note 4) | 0 | 9 | 17 | 26 | ||||||
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME | 0 | 9 | 17 | 26 | ||||||
Expenses | ||||||||||
Selling and general | (12) | 5 | (23) | 34 | ||||||
Depreciation and depletion (note 13) | 6 | 6 | 18 | 17 | ||||||
Non-service pension and postretirement benefit | 31 | 36 | 91 | 108 | ||||||
Financing (note 7) | 10 | 20 | 46 | 71 | ||||||
Total expenses | 35 | 67 | 132 | 230 | ||||||
Income (loss) before income taxes | (35) | (58) | (115) | (204) | ||||||
Income tax expense (benefit) | (8) | (14) | (28) | (35) | ||||||
Net income (loss) | (27) | (44) | (87) | (169) | ||||||
Cash flows from (used in) operating activities | (16) | 9 | (58) | (82) | ||||||
Capital and exploration expenditures | [7] | 9 | 12 | 33 | 34 | |||||
Total assets as at September 30 (note 13) | $ 1,679 | $ 2,298 | $ 1,679 | $ 2,298 | ||||||
[1] | Amounts from related parties included in revenues. 1,216 2,313 3,699 6,269 | |||||||||
[2] | Included export sales to the United States of $1,227 million (2019 - $1,807 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 $3,339 million (2019 - $5,623 million). Export sales to the United States were recorded in all operating segments, with the largest effects in the Upstream segment. | |||||||||
[4] | Amounts to related parties included in purchases of crude oil and products. 627 717 1,762 2,353 | |||||||||
[5] | Amounts to related parties included in production and manufacturing, and selling and general expenses. 107 157 428 479 | |||||||||
[6] | Amounts to related parties included in financing, (note 7). 12 23 50 75 | |||||||||
[7] | Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits. |
Business Segments (Parenthetica
Business Segments (Parenthetical) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
United States Exports | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 1,227 | $ 1,807 | $ 3,339 | $ 5,623 |
Gains and Losses on Asset Sales
Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investment And Other Income [Line Items] | ||||
Proceeds from asset sales | $ 19 | $ 30 | $ 68 | $ 66 |
Book value of asset sales | 8 | 2 | 40 | 32 |
Gain (loss) on asset sales, before-tax | 11 | 28 | 28 | 34 |
Gain (loss) on asset sales, after-tax | $ 10 | $ 25 | $ 25 | $ 31 |
Allowance for current expecte_2
Allowance for current expected credit loss (CECL) - Additional Information (Detail) - CAD ($) $ in Millions | Sep. 30, 2020 | Jan. 01, 2020 |
Receivables [Abstract] | ||
Cumulative effect of earnings reinvested | $ 2 | |
Accounts receivable, net | $ 1,400 | |
Allowance for doubtful accounts receivable | 4 | |
Long term investments and receivables | 327 | |
Credit allowance recognized as a liability | $ 0 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Pension benefits | ||||
Current service cost | $ 76 | $ 57 | $ 229 | $ 171 |
Interest cost | 77 | 81 | 231 | 243 |
Expected return on plan assets | (97) | (87) | (293) | (262) |
Amortization of prior service cost | 4 | 0 | 11 | 0 |
Amortization of actuarial loss (gain) | 38 | 37 | 115 | 112 |
Net periodic benefit cost | 98 | 88 | 293 | 264 |
Other postretirement benefits | ||||
Current service cost | 6 | 4 | 18 | 12 |
Interest cost | 6 | 5 | 18 | 16 |
Amortization of actuarial loss (gain) | 3 | 0 | 9 | (1) |
Net periodic benefit cost | $ 15 | $ 9 | $ 45 | $ 27 |
Financing costs (Detail)
Financing costs (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Debt-related interest | $ 19 | $ 32 | $ 79 | $ 105 | |
Capitalized interest | (9) | (12) | (33) | (34) | |
Net interest expense | 10 | 20 | 46 | 71 | |
Other interest | 0 | 0 | 0 | 0 | |
Total financing | [1] | $ 10 | $ 20 | $ 46 | $ 71 |
[1] | Amounts to related parties included in financing, (note 7). 12 23 50 75 |
Financing costs - Additional In
Financing costs - Additional Information (Detail) $ in Millions | Jun. 30, 2020CAD ($) |
Line of Credit Facility [Line Items] | |
Line of credit facility | $ 500 |
Short-term line of credit facility due May 2021 | |
Line of Credit Facility [Line Items] | |
Line of credit facility | 500 |
Short-term line of credit facility due June 2021 | |
Line of Credit Facility [Line Items] | |
Line of credit facility | $ 300 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - CAD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 4,447 | $ 4,447 | |
Finance leases | 515 | 514 | |
Total long-term debt | [1] | $ 4,962 | $ 4,961 |
[1] | Long-term debt included amounts to related parties of $4,447 million (2019 - $4,447 million). |
Other Long-Term Obligations (De
Other Long-Term Obligations (Detail) - CAD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Other Liabilities [Line Items] | |||
Employee retirement benefits | [1] | $ 1,965 | $ 1,822 |
Asset retirement obligations and other environmental liabilities | [2] | 1,388 | 1,388 |
Share-based incentive compensation liabilities | 33 | 65 | |
Operating lease liability | [3] | 95 | 143 |
Other obligations | 232 | 219 | |
Total other long-term obligations | $ 3,713 | $ 3,637 | |
[1] | Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2019 - $58 million). | ||
[2] | Total asset retirement obligations and other environmental liabilities also included $124 million in current liabilities (2019 - $124 million). | ||
[3] | Total operating lease liability also included $95 million in current liabilities (2019 - $115 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $27 million (2019 - $6 million). |
Other Long-Term Obligations (Pa
Other Long-Term Obligations (Parenthetical) (Detail) - CAD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Schedule of Other Liabilities [Line Items] | ||
Employee retirement benefit obligations in current liabilities | $ 58 | $ 58 |
Asset retirement obligations and other environmental liabilities in current liabilities | 124 | 124 |
Undiscounted Commitments | 27 | 6 |
Accounts Payable and Accrued Liabilities [Member] | ||
Schedule of Other Liabilities [Line Items] | ||
Lease liability due within one year, Operating leases | $ 95 | $ 115 |
Financial and derivative inst_3
Financial and derivative instruments - Additional Information (Detail) $ in Millions | Sep. 30, 2020CAD ($)bbl | Dec. 31, 2019CAD ($)bbl |
Financial Instruments And Derivatives [Line Items] | ||
Fair value of collateral receivable | $ 6 | $ 6 |
Long-term Debt, Fair Value | 4,447 | 4,447 |
Fair value of derivative asset | 2 | 0 |
Fair value of derivative liability | 3 | 2 |
Derivative collateral receivable | $ 6 | $ 6 |
Product | ||
Financial Instruments And Derivatives [Line Items] | ||
Net notional forward long / (short) position of derivative instruments, barrels of product | bbl | (780,000) | 0 |
Crude Oil | ||
Financial Instruments And Derivatives [Line Items] | ||
Net notional forward long / (short) position of derivative instruments | bbl | 200,000 | (590,000) |
Summary of Realized and Unreali
Summary of Realized and Unrealized Gain or (Loss) on Derivative Instruments (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financial Instruments And Derivatives [Line Items] | ||||
Revenues | $ 1 | $ 0 | $ (7) | $ (2) |
Purchases of crude oil and products | 0 | 1 | (18) | (5) |
Total | $ 1 | $ 1 | $ (25) | $ (7) |
Common Shares - Additional Info
Common Shares - Additional Information (Detail) | Jun. 29, 2020shares |
Class of Stock [Line Items] | |
Normal course issuer bid share repurchase shares authorized | 50,000 |
Exxon Mobil Corporation's ownership interest in Imperial | 69.60% |
Normal course issuer bid share repurchase term, months | 12 months |
Summary of Common Shares (Detai
Summary of Common Shares (Detail) - shares | Sep. 30, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||
Authorized | 1,100,000,000 | 1,100,000,000 |
Common shares outstanding | 734,077,000 | 743,902,000 |
Common Share Activities (Detail
Common Share Activities (Detail) - CAD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | ||
Class of Stock [Line Items] | ||||||
Common stock beginning balance, shares | 743,902 | |||||
Common stock, ending balance, shares | 734,077 | 734,077 | 743,902 | |||
Common stock beginning balance, value | [1] | $ 1,375 | ||||
Common stock, ending balance, value | [1] | $ 1,357 | $ 1,357 | $ 1,375 | ||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock beginning balance, shares | 743,902 | 782,565 | 782,565 | |||
Issued under employee share-based awards, shares | 0 | 1 | ||||
Purchases at stated value, shares | (9,825) | (38,664) | ||||
Common stock, ending balance, shares | 734,077 | 734,077 | 743,902 | |||
Common stock beginning balance, value | $ 1,375 | $ 1,446 | $ 1,446 | |||
Issued under employee share-based awards, value | 0 | 0 | ||||
Purchases at stated value, value | $ 0 | $ (19) | (18) | $ (55) | (71) | |
Common stock, ending balance, value | $ 1,357 | $ 1,357 | $ 1,375 | |||
[1] | Number of common shares authorized and outstanding were 1,100 million and 734 million, respectively (2019 - 1,100 million and 744 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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Net income (loss) per common share - basic | |||||
Net income (loss) (millions of Canadian dollars) | $ 3 | $ 424 | $ (711) | $ 1,929 | |
Weighted average number of common shares outstanding (millions of shares) | 734.1 | 757.8 | 735.7 | 767.6 | |
Net income (loss) per common share (dollars) | $ 0 | $ 0.56 | $ (0.97) | $ 2.51 | |
Net income (loss) per common share - diluted | |||||
Net income (loss) (millions of Canadian dollars) | $ 3 | $ 424 | $ (711) | $ 1,929 | |
Weighted average number of common shares outstanding (millions of shares) | 734.1 | 757.8 | 735.7 | 767.6 | |
Effect of employee share-based awards (millions of shares) | [1] | 2.2 | 2.5 | 0 | 2.4 |
Weighted average number of common shares outstanding, assuming dilution (millions of shares) | 736.3 | 760.3 | 735.7 | 770 | |
Net income (loss) per common share (dollars) | $ 0 | $ 0.56 | $ (0.97) | $ 2.51 | |
Dividends per common share - declared (dollars) | $ 0.22 | $ 0.22 | $ 0.66 | $ 0.63 | |
[1] | For Nine Months to September 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.1 million employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future. |
Calculation of basic and dilu_2
Calculation of basic and diluted earnings per common share and the dividend declared by the company on its outstanding common shares (Parenthetical) (Detail) shares in Millions | 9 Months Ended |
Sep. 30, 2020shares | |
Earnings Per Share [Abstract] | |
Effect of employee share-based awards excluded from computation | 2.1 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at January 1 | $ (1,911) | $ (1,517) | ||
Current period change excluding amounts reclassified from accumulated other comprehensive income | $ 0 | $ 0 | (114) | 18 |
Amounts reclassified from accumulated other comprehensive income | 34 | 28 | 102 | 83 |
Balance at September 30 | $ (1,923) | $ (1,416) | $ (1,923) | $ (1,416) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
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 | $ (45) | $ (37) | $ (135) | $ (111) |
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, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Postretirement benefits liability adjustment (excluding amortization) | $ 0 | $ 0 | $ (37) | $ 7 |
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost | 11 | 9 | 33 | 28 |
Total | $ 11 | $ 9 | $ (4) | $ 35 |
Miscellaneous Financial Infor_2
Miscellaneous Financial Information - Additional Information (Detail) - CAD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Additional Financial Information [Line Items] | ||
Amount received as part of the federal government subsidy program | $ 120 | |
Upstream [Member] | ||
Additional Financial Information [Line Items] | ||
Non-cash impairment of goodwill | $ 20 |