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Imperial Oil (IMO)

Cover Page

Cover Page6 Months Ended
Jun. 30, 2021shares
Cover [Abstract]
Document Type10-Q
Document Period End DateJun. 30,
2021
Document Fiscal Year Focus2021
Document Fiscal Period FocusQ2
Document Transition Reportfalse
Entity Central Index Key0000049938
Current Fiscal Year End Date--12-31
Document Quarterly Reporttrue
Entity Registrant NameIMPERIAL OIL LIMITED
Amendment Flagfalse
Entity Filer CategoryLarge Accelerated Filer
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Shell Companyfalse
Entity File Number0-12014
Entity Small Businessfalse
Entity Incorporation, State or Country CodeCA
Entity Emerging Growth Companyfalse
Entity Address, Address Line One505 Quarry Park Boulevard S.E.
Entity Tax Identification Number98-0017682
Entity Address, City or TownCalgary
Entity Address, State or ProvinceAB
Entity Address, CountryCA
Entity Address, Postal Zip CodeT2C 5N1
City Area Code800
Local Phone Number567-3776
Entity Common Stock, Shares Outstanding704,578,328

Consolidated statement of incom

Consolidated statement of income - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Revenues and other income
Revenues[1] $ 8,007 [2] $ 3,666 [2] $ 14,999 [3] $ 10,330 [3]
Investment and other income (note 3)40 44 46 70
Total revenues and other income8,047 3,710 15,045 10,400
Expenses
Exploration2 3 4 4
Purchases of crude oil and products (note 11)[4]4,867 2,115 8,754 6,341
Production and manufacturing[5]1,569 1,273 3,054 2,852
Selling and general[5]200 183 389 349
Federal excise tax and fuel charge465 369 869 820
Depreciation and depletion (note 11)450 413 944 886
Non-service pension and postretirement benefit10 30 21 60
Financing (note 5)[6]13 17 27 36
Total expenses7,576 4,403 14,062 11,348
Income (loss) before income taxes471 (693)983 (948)
Income taxes105 (167)225 (234)
Net income (loss) $ 366 $ (526) $ 758 $ (714)
Per share information (Canadian dollars)
Net income (loss) per common share - basic (note 9) $ 0.51 $ (0.72) $ 1.04 $ (0.97)
Net income (loss) per common share - diluted (note 9) $ 0.50 $ (0.72) $ 1.04 $ (0.97)
[1]Amounts from related parties included in revenues. 1,405 747 2,913 2,483
[2]Included export sales to the United States of $1,544 million (2020 - $739 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 $3,113 million (2020 - $2,112 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. 666 396 1,181 1,135
[5] Amounts to related parties included in production and manufacturing, and selling and general expenses. 106 138 222 321
[6]Amounts to related parties included in financing, (note 5). 10 14 21 38

Consolidated statement of inc_2

Consolidated statement of income (Parenthetical) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Amounts from related parties included in revenues. $ 1,405 $ 747 $ 2,913 $ 2,483
Amounts to related parties included in purchases of crude oil and products.666 396 1,181 1,135
Amounts to related parties included in production and manufacturing, and selling and general expenses.106 138 222 321
Amounts to related parties included in financing, (note 5). $ 10 $ 14 $ 21 $ 38

Consolidated statement of compr

Consolidated statement of comprehensive income - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Net income (loss) $ 366 $ (526) $ 758 $ (714)
Other comprehensive income (loss), net of income taxes
Postretirement benefits liability adjustment (excluding amortization) 54 (114)
Amortization of postretirement benefits liability adjustment included in net periodic benefit costs33 34 66 68
Total other comprehensive income (loss)33 34 120 (46)
Comprehensive income (loss) $ 399 $ (492) $ 878 $ (760)

Consolidated balance sheet

Consolidated balance sheet - CAD ($) $ in MillionsJun. 30, 2021Dec. 31, 2020
Current assets
Cash $ 776 [1] $ 771
Accounts receivable - net[2]3,163 1,919
Inventories of crude oil and products1,213 1,161
Materials, supplies and prepaid expenses722 673
Total current assets5,874 4,524
Investments and long-term receivables[3]748 781
Property, plant and equipment,56,257 55,771
less accumulated depreciation and depletion(24,664)(23,737)
Property, plant and equipment, net31,593 32,034
Goodwill (note 11)166 166
Other assets, including intangibles - net558 526
Total assets38,939 38,031
Current liabilities
Notes and loans payable[4]197 227
Accounts payable and accrued liabilities (note 7)[2]4,411 3,153
Income taxes payable42
Total current liabilities4,650 3,380
Long-term debt (note 6)[5]5,065 4,957
Other long-term obligations (note 7)4,061 4,100
Deferred income tax liabilities4,394 4,176
Total liabilities18,170 16,613
Shareholders' equity
Common shares at stated value (note 9)[6]1,302 1,357
Earnings reinvested21,336 22,050
Accumulated other comprehensive income (loss) (note 10)(1,869)(1,989)
Total shareholders' equity20,769 21,418
Total liabilities and shareholders' equity $ 38,939 $ 38,031
[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 - net included net amounts receivable from related parties of $582 million (2020 - $384 million).
[3]Investments and long-term receivables included amounts from related parties of $301 million (2020 - $313 million).
[4]Notes and loans payable included amounts to related parties of $75 million (2020 - $111 million).
[5]Long-term debt included amounts to related parties of $4,447 million (2020 - $4,447 million).
[6]Number of common shares authorized and outstanding were 1,100 million and 705 million, respectively (2020 - 1,100 million and 734 million, respectively).

Consolidated balance sheet (Par

Consolidated balance sheet (Parenthetical) - CAD ($) $ in MillionsJun. 30, 2021Dec. 31, 2020
Amounts receivable (payable) from (to) related parties $ 582 $ 384
Common shares authorized1,100,000,000 1,100,000,000
Common shares outstanding705,000,000 734,000,000
Investments and Long Term Receivables
Due from related parties $ 301 $ 313
Long-term debt
Due to related parties4,447 4,447
Notes and loans payable
Due to related parties, current $ 75 $ 111

Consolidated statement of share

Consolidated statement of shareholders' equity - CAD ($) $ in MillionsTotalCommon shares at stated value (note 9)Earnings reinvestedAccumulated other comprehensive income (loss) (note 10)
At beginning of period at Dec. 31, 2019 $ 1,375 $ 24,812 $ (1,911)
Net income (loss) for the period $ (714)(714)
Share purchases at stated value(18)
Share purchases in excess of stated value(256)
Dividends declared(324)
Other comprehensive income (loss)(46)(46)
At end of period at Jun. 30, 202022,916 1,357 23,516 (1,957)
At beginning of period at Dec. 31, 20191,375 24,812 (1,911)
Share purchases at stated value(18)
At end of period at Dec. 31, 202021,418 1,357 22,050 (1,989)
At beginning of period at Mar. 31, 20201,357 24,204 (1,991)
Net income (loss) for the period(526)(526)
Share purchases at stated value
Share purchases in excess of stated value
Dividends declared(162)
Other comprehensive income (loss)34 34
At end of period at Jun. 30, 202022,916 1,357 23,516 (1,957)
Cumulative effect of accounting change(2)
Cumulative effect of accounting change22,050
At beginning of period at Dec. 31, 202021,418 1,357 22,050 (1,989)
Net income (loss) for the period758 758
Share purchases at stated value(55)
Share purchases in excess of stated value(1,116)
Dividends declared(356)
Other comprehensive income (loss)120 120
At end of period at Jun. 30, 202120,769 1,302 21,336 (1,869)
At beginning of period at Mar. 31, 20211,357 22,281 (1,902)
Net income (loss) for the period366 366
Share purchases at stated value(55)
Share purchases in excess of stated value(1,116)
Dividends declared(195)
Other comprehensive income (loss)33 33
At end of period at Jun. 30, 202120,769 $ 1,302 21,336 $ (1,869)
Cumulative effect of accounting change $ 21,336

Consolidated statement of cash

Consolidated statement of cash flows - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Operating activities
Net income (loss) $ 366 $ (526) $ 758 $ (714)
Adjustments for non-cash items:
Depreciation and depletion450 413 944 866
Impairment of intangible assets (note 11) 20
(Gain) loss on asset sales (note 3)(24)(10)(27)(17)
Inventory write-down to current market value (note 11) (281)
Deferred income taxes and other76 (242)136 (199)
Changes in operating assets and liabilities:
Accounts receivable(775)(310)(1,244)833
Inventories, materials, supplies and prepaid expenses58 117 (101)(82)
Income taxes payable21 (2)42 (106)
Accounts payable and accrued liabilities655 (46)1,239 (1,074)
All other items - net[1]25 71 150 80
Cash flows from (used in) operating activities852 (816)1,897 (393)
Investing activities
Additions to property, plant and equipment(241)(205)(408)(515)
Proceeds from asset sales (note 3)35 40 42 49
Loans to equity companies - net(1)(7)12 (14)
Cash flows from (used in) investing activities(207)(172)(354)(480)
Financing activities
Short-term debt - net0 0 (36)0
Reduction in finance lease obligations (note 6)(4)(5)(8)(12)
Dividends paid(161)(162)(323)(326)
Common shares purchased (note 9)(1,171)0 (1,171)(274)
Cash flows from (used in) financing activities(1,336)(167)(1,538)(612)
Increase (decrease) in cash(691)(1,155)5 (1,485)
Cash at beginning of period1,467 1,388 771 1,718
Cash at end of period[2] $ 776 $ 233 $ 776 $ 233
[1]Included contributions to registered pension plans. (42) (41) (70) (100)
[2]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 Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Included contributions to registered pension plans $ (42) $ (41) $ (70) $ (100)
Income taxes (paid) refunded27 1 28 (152)
Interest (paid), net of capitalization $ (14) $ (17) $ (27) $ (36)

Basis of financial statement pr

Basis of financial statement preparation6 Months Ended
Jun. 30, 2021
Basis of financial statement preparation1. 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 2020 annual report on Form 10-K. The company’s exploration and production activities are accounted for under the “successful efforts” method. The results for the six months ended June 30, 2021, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated.

Business segments

Business segments6 Months Ended
Jun. 30, 2021
Business segments2. Business segments
Second Quarter Upstream Downstream Chemical
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) 2,616 908 5,015 2,587 376 171
Intersegment sales 1,312 262 788 124 79 27
Investment and other income (note 3) 6 10 28 27 1 1
3,934 1,180 5,831 2,738 456 199
Expenses
Exploration 2 3 - - - -
Purchases of crude oil and products (note 11) 2,044 512 4,760 1,896 240 119
Production and manufacturing 1,166 884 357 343 46 46
Selling and general - - 142 135 22 21
Federal excise tax and fuel charge - - 465 369 - -
Depreciation and depletion (note 11) 399 363 39 40 5 4
Non-service - - - - - -
Financing (note 5) - - - - - -
Total expenses 3,611 1,762 5,763 2,783 313 190
Income (loss) before income taxes 323 (582) 68 (45) 143 9
Income taxes 76 (138) 8 (13) 34 2
Net income (loss) 247 (444) 60 (32) 109 7
Cash flows from (used in) operating activities 595 (968) 136 88 111 46
Capital and exploration expenditures (b) 130 145 120 51 2 2
Second Quarter Corporate and other Eliminations Consolidated
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) - - - - 8,007 3,666
Intersegment sales - - (2,179) (413) - -
Investment and other income (note 3) 5 6 - - 40 44
5 6 (2,179) (413) 8,047 3,710
Expenses
Exploration - - - - 2 3
Purchases of crude oil and products (note 11) - - (2,177) (412) 4,867 2,115
Production and manufacturing - - - - 1,569 1,273
Selling and general 38 28 (2) (1) 200 183
Federal excise tax and fuel charge - - - - 465 369
Depreciation and depletion (note 11) 7 6 - - 450 413
Non-service 10 30 - - 10 30
Financing (note 5) 13 17 - - 13 17
Total expenses 68 81 (2,179) (413) 7,576 4,403
Income (loss) before income taxes (63) (75) - - 471 (693)
Income taxes (13) (18) - - 105 (167)
Net income (loss) (50) (57) - - 366 (526)
Cash flows from (used in) operating activities 10 1 - 17 852 (816)
Capital and exploration expenditures (b) 7 9 - - 259 207
(a) Included export sales to the United States of $1,544 million (2020 - $739 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.
Six Months to June 30 Upstream Downstream Chemical
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) 4,758 2,560 9,542 7,383 699 387
Intersegment sales 2,663 984 1,561 692 132 71
Investment and other income (note 3) 6 10 33 42 1 1
7,427 3,554 11,136 8,117 832 459
Expenses
Exploration 4 4 - - - -
Purchases of crude oil and products (note 11) 3,878 2,162 8,780 5,665 449 259
Production and manufacturing 2,275 1,992 683 751 96 109
Selling and general - - 275 316 47 46
Federal excise tax and fuel charge - - 869 820 - -
Depreciation and depletion (note 11) 844 780 78 86 9 8
Non-service - - - - - -
Financing (note 5) 1 - - - - -
Total expenses 7,002 4,938 10,685 7,638 601 422
Income (loss) before income taxes 425 (1,384) 451 479 231 37
Income tax expense (benefit) 99 (332) 99 109 55 9
Net income (loss) 326 (1,052) 352 370 176 28
Cash flows from (used in) operating activities 1,126 (504) 598 110 173 43
Capital and exploration expenditures (b) 215 376 188 127 4 11
Total assets as at June 30 (note 11) 31,931 33,591 5,352 4,683 481 404
Six Months to June 30 Corporate and other Eliminations Consolidated
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) - - - - 14,999 10,330
Intersegment sales - - (4,356) (1,747) - -
Investment and other income (note 3) 6 17 - - 46 70
6 17 (4,356) (1,747) 15,045 10,400
Expenses
Exploration - - - - 4 4
Purchases of crude oil and products (note 11) - - (4,353) (1,745) 8,754 6,341
Production and manufacturing - - - - 3,054 2,852
Selling and general 70 (11) (3) (2) 389 349
Federal excise tax and fuel charge - - - - 869 820
Depreciation and depletion (note 11) 13 12 - - 944 886
Non-service 21 60 - - 21 60
Financing (note 5) 26 36 - - 27 36
Total expenses 130 97 (4,356) (1,747) 14,062 11,348
Income (loss) before income taxes (124) (80) - - 983 (948)
Income tax expense (benefit) (28) (20) - - 225 (234)
Net income (loss) (96) (60) - - 758 (714)
Cash flows from (used in) operating activities - (42) - - 1,897 (393)
Capital and exploration expenditures (b) 15 24 - - 422 538
Total assets as at June 30 (note 11) 1,606 1,088 (431) (266) 38,939 39,500
(a) Included export sales to the United States of $3,113 million (2020 - $2,112 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 income6 Months Ended
Jun. 30, 2021
Investment and other income3. Investment and other income Investment and other income included gains and losses on asset sales as follows:
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Proceeds from asset sales 35 40 42 49
Book value of asset sales 11 30 15 32
Gain (loss) on asset sales, before tax 24 10 27 17
Gain (loss) on asset sales, after tax 22 9 24 15

Employee retirement benefits

Employee retirement benefits6 Months Ended
Jun. 30, 2021
Employee retirement benefits4. Employee retirement benefits The components of net benefit cost were as follows:
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Pension benefits:
Current service cost 81 77 162 153
Interest cost 68 77 136 154
Expected return on plan assets (107 ) (98 ) (214 ) (196 )
Amortization of prior service cost 4 3 8 7
Amortization of actuarial loss (gain) 36 39 72 77
Net periodic benefit cost 82 98 164 195
Other postretirement benefits:
Current service cost 7 6 14 12
Interest cost 5 6 11 12
Amortization of actuarial loss (gain) 4 3 8 6
Net periodic benefit cost 16 15 33 30

Financing Costs

Financing Costs6 Months Ended
Jun. 30, 2021
Financing Costs5. Financing costs
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Debt-related interest 20 26 41 60
Capitalized interest (7 ) (9 ) (15 ) (24 )
Net interest expense 13 17 26 36
Other interest - - 1 -
Total financing 13 17 27 36 In May 2021, the company extended the maturity date of two of its existing committed short-term lines of credit to May 2023 credit to June 2022

Long-term debt

Long-term debt6 Months Ended
Jun. 30, 2021
Long-term debt6. Long-term debt
millions of Canadian dollars As at 2021 As at
Long-term debt 4,447 4,447
Finance leases 618 510
Total long-term debt 5,065 4,957

Other long-term obligations

Other long-term obligations6 Months Ended
Jun. 30, 2021
Other long-term obligations7. Other long-term obligations
millions of Canadian dollars As at 2021 As at
Employee retirement benefits (a) 2,023 2,105
Asset retirement obligations and other environmental liabilities (b) 1,699 1,676
Share-based incentive compensation liabilities 84 45
Operating lease liability (c) 96 95
Other obligations 159 179
Total other long-term obligations 4,061 4,100
(a) Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2020 - $58 million).
(b) Total asset retirement obligations and other environmental liabilities also included $100 million in current liabilities (2020 - $100 million).
(c) Total operating lease liability also included $82 million in current liabilities (2020 - $97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $4 million (2020 - $27 million).

Financial and derivative instru

Financial and derivative instruments6 Months Ended
Jun. 30, 2021
Financial and derivative instruments8. 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 June 30, 2021 and December 31, 2020, 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. The net notional long/(short) position of derivative instruments was:
(thousands of barrels) As at 2021 As at
Crude (710 ) (800 )
Products (160 ) (390 ) Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Revenues (9 ) (9 ) (9 ) (8 )
Purchases of crude oil and products (19 ) (52 ) (33 ) (18 )
Total (28 ) (61 ) (42 ) (26 ) The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows:
millions of Canadian dollars
At June 30, 2021
Fair value Effect of Effect of Net
Level 1 Level 2 Level 3 Total
Assets
Derivative assets (a) 6 - - 6 (6 ) - -
Liabilities
Derivative liabilities (b) 8 - - 8 (6 ) (2 ) -
(a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.
millions of Canadian dollars
At December 31, 2020
Fair value Effect of Effect of Net
Level 1 Level 2 Level 3 Total
Assets
Derivative assets (a) 2 - - 2 (2 ) - -
Liabilities
Derivative liabilities (b) 12 - - 12 (2 ) (10 ) -
(a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”. At June 30, 2021 and December 31, 2020, respectively, the company had $8 million and $5 million of collateral under a master netting arrangement not offset against the derivatives on the Consolidated balance sheet in “Accounts receivable - net”, primarily related to initial margin requirements.

Common shares

Common shares6 Months Ended
Jun. 30, 2021
Common shares9. Common shares
thousands of shares As of 2021 As of
Authorized 1,100,000 1,100,000
Common shares outstanding 704,578 734,077 The 12-month 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
Balance as at December 31, 2019 743,902 1,375
Issued under employee share-based awards 7 -
Purchases at stated value (9,832 ) (18 )
Balance as at December 31, 2020 734,077 1,357
Issued under employee share-based awards - -
Purchases at stated value (29,499 ) (55 )
Balance as at June 30, 2021 704,578 1,302 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:
Second Quarter Six Months
2021 2020 2021 2020
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 )
Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5
Net income (loss) per common share (dollars) 0.51 (0.72 ) 1.04 (0.97 )
Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 )
Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5
Effect of employee share-based awards (millions of shares) (a) 1.7 - 1.7 -
Weighted average number of common shares outstanding, assuming dilution (millions of shares) 725.8 734.1 730.8 736.5
Net income (loss) per common share (dollars) 0.50 (0.72 ) 1.04 (0.97 )
Dividends per common share - declared (dollars) 0.27 0.22 0.49 0.44
(a) For Second Quarter 2020 and Six Months to June 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 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) information6 Months Ended
Jun. 30, 2021
Other comprehensive income (loss) information10. Other comprehensive income (loss) information Changes in accumulated other comprehensive income (loss):
millions of Canadian dollars 2021 2020
Balance at January 1 (1,989 ) (1,911 )
Postretirement benefits liability adjustment:
Current period change excluding amounts reclassified from accumulated other comprehensive income 54 (114 )
Amounts reclassified from accumulated other comprehensive income 66 68
Balance at June 30 (1,869 ) (1,957 ) Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (44 ) (45 ) (88 ) (90 )
(a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost, (note 4). Income tax expense (credit) for components of other comprehensive income (loss):
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Postretirement benefits liability adjustments:
Postretirement benefits liability adjustment (excluding amortization) - - 17 (37 )
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost 11 11 22 22
Total 11 11 39 (15 )

Miscellaneous financial informa

Miscellaneous financial information6 Months Ended
Jun. 30, 2021
Miscellaneous financial information11. Miscellaneous financial information At March 31, 2021, due to the termination of transportation services agreements related to a third-party pipeline project, the company recognized a liability of $62 million, previously reported as a contingent liability in Note 10 of Imperial’s Form 10-K. 10-K In the first quarter of 2020, a non-cash non-cash In the first quarter of 2020, with the change in economic conditions and the reduction in the company’s market capitalization, the company assessed its goodwill balances for impairment and recognized a non-cash

Business segments (Tables)

Business segments (Tables)6 Months Ended
Jun. 30, 2021
Business SegmentsSecond Quarter Upstream Downstream Chemical
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) 2,616 908 5,015 2,587 376 171
Intersegment sales 1,312 262 788 124 79 27
Investment and other income (note 3) 6 10 28 27 1 1
3,934 1,180 5,831 2,738 456 199
Expenses
Exploration 2 3 - - - -
Purchases of crude oil and products (note 11) 2,044 512 4,760 1,896 240 119
Production and manufacturing 1,166 884 357 343 46 46
Selling and general - - 142 135 22 21
Federal excise tax and fuel charge - - 465 369 - -
Depreciation and depletion (note 11) 399 363 39 40 5 4
Non-service - - - - - -
Financing (note 5) - - - - - -
Total expenses 3,611 1,762 5,763 2,783 313 190
Income (loss) before income taxes 323 (582) 68 (45) 143 9
Income taxes 76 (138) 8 (13) 34 2
Net income (loss) 247 (444) 60 (32) 109 7
Cash flows from (used in) operating activities 595 (968) 136 88 111 46
Capital and exploration expenditures (b) 130 145 120 51 2 2
Second Quarter Corporate and other Eliminations Consolidated
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) - - - - 8,007 3,666
Intersegment sales - - (2,179) (413) - -
Investment and other income (note 3) 5 6 - - 40 44
5 6 (2,179) (413) 8,047 3,710
Expenses
Exploration - - - - 2 3
Purchases of crude oil and products (note 11) - - (2,177) (412) 4,867 2,115
Production and manufacturing - - - - 1,569 1,273
Selling and general 38 28 (2) (1) 200 183
Federal excise tax and fuel charge - - - - 465 369
Depreciation and depletion (note 11) 7 6 - - 450 413
Non-service 10 30 - - 10 30
Financing (note 5) 13 17 - - 13 17
Total expenses 68 81 (2,179) (413) 7,576 4,403
Income (loss) before income taxes (63) (75) - - 471 (693)
Income taxes (13) (18) - - 105 (167)
Net income (loss) (50) (57) - - 366 (526)
Cash flows from (used in) operating activities 10 1 - 17 852 (816)
Capital and exploration expenditures (b) 7 9 - - 259 207
(a) Included export sales to the United States of $1,544 million (2020 - $739 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.
Six Months to June 30 Upstream Downstream Chemical
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) 4,758 2,560 9,542 7,383 699 387
Intersegment sales 2,663 984 1,561 692 132 71
Investment and other income (note 3) 6 10 33 42 1 1
7,427 3,554 11,136 8,117 832 459
Expenses
Exploration 4 4 - - - -
Purchases of crude oil and products (note 11) 3,878 2,162 8,780 5,665 449 259
Production and manufacturing 2,275 1,992 683 751 96 109
Selling and general - - 275 316 47 46
Federal excise tax and fuel charge - - 869 820 - -
Depreciation and depletion (note 11) 844 780 78 86 9 8
Non-service - - - - - -
Financing (note 5) 1 - - - - -
Total expenses 7,002 4,938 10,685 7,638 601 422
Income (loss) before income taxes 425 (1,384) 451 479 231 37
Income tax expense (benefit) 99 (332) 99 109 55 9
Net income (loss) 326 (1,052) 352 370 176 28
Cash flows from (used in) operating activities 1,126 (504) 598 110 173 43
Capital and exploration expenditures (b) 215 376 188 127 4 11
Total assets as at June 30 (note 11) 31,931 33,591 5,352 4,683 481 404
Six Months to June 30 Corporate and other Eliminations Consolidated
millions of Canadian dollars 2021 2020 2021 2020 2021 2020
Revenues and other income
Revenues (a) - - - - 14,999 10,330
Intersegment sales - - (4,356) (1,747) - -
Investment and other income (note 3) 6 17 - - 46 70
6 17 (4,356) (1,747) 15,045 10,400
Expenses
Exploration - - - - 4 4
Purchases of crude oil and products (note 11) - - (4,353) (1,745) 8,754 6,341
Production and manufacturing - - - - 3,054 2,852
Selling and general 70 (11) (3) (2) 389 349
Federal excise tax and fuel charge - - - - 869 820
Depreciation and depletion (note 11) 13 12 - - 944 886
Non-service 21 60 - - 21 60
Financing (note 5) 26 36 - - 27 36
Total expenses 130 97 (4,356) (1,747) 14,062 11,348
Income (loss) before income taxes (124) (80) - - 983 (948)
Income tax expense (benefit) (28) (20) - - 225 (234)
Net income (loss) (96) (60) - - 758 (714)
Cash flows from (used in) operating activities - (42) - - 1,897 (393)
Capital and exploration expenditures (b) 15 24 - - 422 538
Total assets as at June 30 (note 11) 1,606 1,088 (431) (266) 38,939 39,500
(a) Included export sales to the United States of $3,113 million (2020 - $2,112 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)6 Months Ended
Jun. 30, 2021
Gains and Losses on Asset SalesInvestment and other income included gains and losses on asset sales as follows:
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Proceeds from asset sales 35 40 42 49
Book value of asset sales 11 30 15 32
Gain (loss) on asset sales, before tax 24 10 27 17
Gain (loss) on asset sales, after tax 22 9 24 15

Employee retirement benefits (T

Employee retirement benefits (Tables)6 Months Ended
Jun. 30, 2021
Schedule of Net Benefit CostsThe components of net benefit cost were as follows:
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Pension benefits:
Current service cost 81 77 162 153
Interest cost 68 77 136 154
Expected return on plan assets (107 ) (98 ) (214 ) (196 )
Amortization of prior service cost 4 3 8 7
Amortization of actuarial loss (gain) 36 39 72 77
Net periodic benefit cost 82 98 164 195
Other postretirement benefits:
Current service cost 7 6 14 12
Interest cost 5 6 11 12
Amortization of actuarial loss (gain) 4 3 8 6
Net periodic benefit cost 16 15 33 30

Financing Costs (Tables)

Financing Costs (Tables)6 Months Ended
Jun. 30, 2021
Financing costsSecond Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Debt-related interest 20 26 41 60
Capitalized interest (7 ) (9 ) (15 ) (24 )
Net interest expense 13 17 26 36
Other interest - - 1 -
Total financing 13 17 27 36

Long-term debt (Tables)

Long-term debt (Tables)6 Months Ended
Jun. 30, 2021
Long-Term Debtmillions of Canadian dollars As at 2021 As at
Long-term debt 4,447 4,447
Finance leases 618 510
Total long-term debt 5,065 4,957

Other long-term obligations (Ta

Other long-term obligations (Tables)6 Months Ended
Jun. 30, 2021
Other Long-Term Obligationsmillions of Canadian dollars As at 2021 As at
Employee retirement benefits (a) 2,023 2,105
Asset retirement obligations and other environmental liabilities (b) 1,699 1,676
Share-based incentive compensation liabilities 84 45
Operating lease liability (c) 96 95
Other obligations 159 179
Total other long-term obligations 4,061 4,100
(a) Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2020 - $58 million).
(b) Total asset retirement obligations and other environmental liabilities also included $100 million in current liabilities (2020 - $100 million).
(c) Total operating lease liability also included $82 million in current liabilities (2020 - $97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $4 million (2020 - $27 million).

Financial and derivative inst_2

Financial and derivative instruments (Tables)6 Months Ended
Jun. 30, 2021
Schedule of Net Long Short Position Of Derivative InstrumentsThe net notional long/(short) position of derivative instruments was:
(thousands of barrels) As at 2021 As at
Crude (710 ) (800 )
Products (160 ) (390 )
Summary of Realized and Unrealized Gain or (Loss) on Derivative InstrumentsRealized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following lines on a before-tax
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Revenues (9 ) (9 ) (9 ) (8 )
Purchases of crude oil and products (19 ) (52 ) (33 ) (18 )
Total (28 ) (61 ) (42 ) (26 )
Summary of estimated fair value of financial instrumentsThe estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement is as follows:
millions of Canadian dollars
At June 30, 2021
Fair value Effect of Effect of Net
Level 1 Level 2 Level 3 Total
Assets
Derivative assets (a) 6 - - 6 (6 ) - -
Liabilities
Derivative liabilities (b) 8 - - 8 (6 ) (2 ) -
(a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.
millions of Canadian dollars
At December 31, 2020
Fair value Effect of Effect of Net
Level 1 Level 2 Level 3 Total
Assets
Derivative assets (a) 2 - - 2 (2 ) - -
Liabilities
Derivative liabilities (b) 12 - - 12 (2 ) (10 ) -
(a) Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
(b) Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.

Common shares (Tables)

Common shares (Tables)6 Months Ended
Jun. 30, 2021
Summary of Common Sharesthousands of shares As of 2021 As of
Authorized 1,100,000 1,100,000
Common shares outstanding 704,578 734,077
Common Share ActivitiesThe company’s common share activities are summarized below:
Thousands of Millions of
Balance as at December 31, 2019 743,902 1,375
Issued under employee share-based awards 7 -
Purchases at stated value (9,832 ) (18 )
Balance as at December 31, 2020 734,077 1,357
Issued under employee share-based awards - -
Purchases at stated value (29,499 ) (55 )
Balance as at June 30, 2021 704,578 1,302
Calculation of Basic and Diluted Earnings Per ShareThe 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:
Second Quarter Six Months
2021 2020 2021 2020
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 )
Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5
Net income (loss) per common share (dollars) 0.51 (0.72 ) 1.04 (0.97 )
Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars) 366 (526 ) 758 (714 )
Weighted average number of common shares outstanding (millions of shares) 724.1 734.1 729.1 736.5
Effect of employee share-based awards (millions of shares) (a) 1.7 - 1.7 -
Weighted average number of common shares outstanding, assuming dilution (millions of shares) 725.8 734.1 730.8 736.5
Net income (loss) per common share (dollars) 0.50 (0.72 ) 1.04 (0.97 )
Dividends per common share - declared (dollars) 0.27 0.22 0.49 0.44
(a) For Second Quarter 2020 and Six Months to June 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 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)6 Months Ended
Jun. 30, 2021
Changes in Accumulated Other Comprehensive Income (Loss)Changes in accumulated other comprehensive income (loss):
millions of Canadian dollars 2021 2020
Balance at January 1 (1,989 ) (1,911 )
Postretirement benefits liability adjustment:
Current period change excluding amounts reclassified from accumulated other comprehensive income 54 (114 )
Amounts reclassified from accumulated other comprehensive income 66 68
Balance at June 30 (1,869 ) (1,957 )
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) - Before-Tax Income (Expense)Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost (a) (44 ) (45 ) (88 ) (90 )
(a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost, (note 4).
Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss)Income tax expense (credit) for components of other comprehensive income (loss):
Second Quarter Six Months
millions of Canadian dollars 2021 2020 2021 2020
Postretirement benefits liability adjustments:
Postretirement benefits liability adjustment (excluding amortization) - - 17 (37 )
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost 11 11 22 22
Total 11 11 39 (15 )

Business Segments (Detail)

Business Segments (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020Dec. 31, 2020
Revenues and other income
Revenues[1] $ 8,007 [2] $ 3,666 [2] $ 14,999 [3] $ 10,330 [3]
Intersegment sales
Investment and other income (note 3)40 44 46 70
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME8,047 3,710 15,045 10,400
Expenses
Exploration2 3 4 4
Purchases of crude oil and products (note 11)[4]4,867 2,115 8,754 6,341
Production and manufacturing[5]1,569 1,273 3,054 2,852
Selling and general[5]200 183 389 349
Federal excise tax and fuel charge465 369 869 820
Depreciation and depletion (note 11)450 413 944 886
Non-service pension and postretirement benefit10 30 21 60
Financing (note 5)[6]13 17 27 36
Total expenses7,576 4,403 14,062 11,348
Income (loss) before income taxes471 (693)983 (948)
Income tax expense (benefit)105 (167)225 (234)
Net income (loss)366 (526)758 (714)
Cash flows from (used in) operating activities852 (816)1,897 (393)
Capital and exploration expenditures[7]259 207 422 538
Total assets as at June 30 (note 11)38,939 39,500 38,939 39,500 $ 38,031
Consolidation, Eliminations
Revenues and other income
Revenues [2] [2] [3] [3]
Intersegment sales(2,179)(413)(4,356)(1,747)
Investment and other income (note 3)
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME(2,179)(413)(4,356)(1,747)
Expenses
Exploration
Purchases of crude oil and products (note 11)(2,177)(412)(4,353)(1,745)
Production and manufacturing
Selling and general(2)(1)(3)(2)
Federal excise tax and fuel charge
Depreciation and depletion (note 11)
Non-service pension and postretirement benefit
Financing (note 5)
Total expenses(2,179)(413)(4,356)(1,747)
Income (loss) before income taxes
Income tax expense (benefit) 0 0
Net income (loss)
Cash flows from (used in) operating activities 17
Capital and exploration expenditures[7]
Total assets as at June 30 (note 11)(431)(266)(431)(266)
Upstream
Revenues and other income
Revenues2,616 [2]908 [2]4,758 [3]2,560 [3]
Intersegment sales1,312 262 2,663 984
Investment and other income (note 3)6 10 6 10
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME3,934 1,180 7,427 3,554
Expenses
Exploration2 3 4 4
Purchases of crude oil and products (note 11)2,044 512 3,878 2,162
Production and manufacturing1,166 884 2,275 1,992
Selling and general
Federal excise tax and fuel charge
Depreciation and depletion (note 11)399 363 844 780
Non-service pension and postretirement benefit
Financing (note 5) 1
Total expenses3,611 1,762 7,002 4,938
Income (loss) before income taxes323 (582)425 (1,384)
Income tax expense (benefit)76 (138)99 (332)
Net income (loss)247 (444)326 (1,052)
Cash flows from (used in) operating activities595 (968)1,126 (504)
Capital and exploration expenditures[7]130 145 215 376
Total assets as at June 30 (note 11)31,931 33,591 31,931 33,591
Downstream
Revenues and other income
Revenues5,015 [2]2,587 [2]9,542 [3]7,383 [3]
Intersegment sales788 124 1,561 692
Investment and other income (note 3)28 27 33 42
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME5,831 2,738 11,136 8,117
Expenses
Exploration
Purchases of crude oil and products (note 11)4,760 1,896 8,780 5,665
Production and manufacturing357 343 683 751
Selling and general142 135 275 316
Federal excise tax and fuel charge465 369 869 820
Depreciation and depletion (note 11)39 40 78 86
Non-service pension and postretirement benefit
Financing (note 5)
Total expenses5,763 2,783 10,685 7,638
Income (loss) before income taxes68 (45)451 479
Income tax expense (benefit)8 (13)99 109
Net income (loss)60 (32)352 370
Cash flows from (used in) operating activities136 88 598 110
Capital and exploration expenditures[7]120 51 188 127
Total assets as at June 30 (note 11)5,352 4,683 5,352 4,683
Chemical
Revenues and other income
Revenues376 [2]171 [2]699 [3]387 [3]
Intersegment sales79 27 132 71
Investment and other income (note 3)1 1 1 1
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME456 199 832 459
Expenses
Exploration
Purchases of crude oil and products (note 11)240 119 449 259
Production and manufacturing46 46 96 109
Selling and general22 21 47 46
Federal excise tax and fuel charge
Depreciation and depletion (note 11)5 4 9 8
Non-service pension and postretirement benefit
Financing (note 5)
Total expenses313 190 601 422
Income (loss) before income taxes143 9 231 37
Income tax expense (benefit)34 2 55 9
Net income (loss)109 7 176 28
Cash flows from (used in) operating activities111 46 173 43
Capital and exploration expenditures[7]2 2 4 11
Total assets as at June 30 (note 11)481 404 481 404
Corporate and Other
Revenues and other income
Revenues [2] [2] [3] [3]
Intersegment sales
Investment and other income (note 3)5 6 6 17
TOTAL OPERATING REVENUES, INTERSEGMENT SALES, INVESTMENT AND OTHER INCOME5 6 6 17
Expenses
Exploration
Purchases of crude oil and products (note 11)
Production and manufacturing
Selling and general38 28 70 (11)
Federal excise tax and fuel charge
Depreciation and depletion (note 11)7 6 13 12
Non-service pension and postretirement benefit10 30 21 60
Financing (note 5)13 17 26 36
Total expenses68 81 130 97
Income (loss) before income taxes(63)(75)(124)(80)
Income tax expense (benefit)(13)(18)(28)(20)
Net income (loss)(50)(57)(96)(60)
Cash flows from (used in) operating activities10 1 (42)
Capital and exploration expenditures[7]7 9 15 24
Total assets as at June 30 (note 11) $ 1,606 $ 1,088 $ 1,606 $ 1,088
[1]Amounts from related parties included in revenues. 1,405 747 2,913 2,483
[2]Included export sales to the United States of $1,544 million (2020 - $739 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 $3,113 million (2020 - $2,112 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. 666 396 1,181 1,135
[5] Amounts to related parties included in production and manufacturing, and selling and general expenses. 106 138 222 321
[6]Amounts to related parties included in financing, (note 5). 10 14 21 38
[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 Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
United States Exports
Segment Reporting Information [Line Items]
Operating revenues $ 1,544 $ 739 $ 3,113 $ 2,112

Gains and Losses on Asset Sales

Gains and Losses on Asset Sales (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Investment And Other Income [Line Items]
Proceeds from asset sales $ 35 $ 40 $ 42 $ 49
Book value of asset sales11 30 15 32
Gain (loss) on asset sales, before tax24 10 27 17
Gain (loss) on asset sales, after tax $ 22 $ 9 $ 24 $ 15

Components of Net Periodic Bene

Components of Net Periodic Benefit Cost (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Pension benefits
Current service cost $ 81 $ 77 $ 162 $ 153
Interest cost68 77 136 154
Expected return on plan assets(107)(98)(214)(196)
Amortization of prior service cost4 3 8 7
Amortization of actuarial loss (gain)36 39 72 77
Net periodic benefit cost82 98 164 195
Other postretirement benefits
Current service cost7 6 14 12
Interest cost5 6 11 12
Amortization of actuarial loss (gain)4 3 8 6
Net periodic benefit cost $ 16 $ 15 $ 33 $ 30

Financing Costs (Detail)

Financing Costs (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Debt-related interest $ 20 $ 26 $ 41 $ 60
Capitalized interest(7)(9)(15)(24)
Net interest expense13 17 26 36
Other interest0 0 1 0
Total financing[1] $ 13 $ 17 $ 27 $ 36
[1]Amounts to related parties included in financing, (note 5). 10 14 21 38

Financing Costs - Additional In

Financing Costs - Additional Information (Detail) - CAD ($) $ in Millions1 Months Ended
Jun. 30, 2021May 31, 2021
Line of Credit Facility [Line Items]
Interest bearing loan, maximum borrowing capacity $ 1,300
Line Of Credit Facility Due May Two Thousand And Twenty Three [Member]
Line of Credit Facility [Line Items]
Debt instrument, maturity dateMay 31,
2023
Interest bearing loan, maximum borrowing capacity $ 750
Short Term Line Of Credit Facility Due June Two Thousand And Twenty Two [Member]
Line of Credit Facility [Line Items]
Debt instrument, maturity dateJun. 30,
2022
Interest bearing loan, maximum borrowing capacity $ 300

Long-Term Debt (Detail)

Long-Term Debt (Detail) - CAD ($) $ in MillionsJun. 30, 2021Dec. 31, 2020
Debt Instrument [Line Items]
Long-term debt $ 4,447 $ 4,447
Finance leases618 510
Total long-term debt[1] $ 5,065 $ 4,957
[1]Long-term debt included amounts to related parties of $4,447 million (2020 - $4,447 million).

Other Long-Term Obligations (De

Other Long-Term Obligations (Detail) - CAD ($) $ in MillionsJun. 30, 2021Dec. 31, 2020
Schedule of Other Liabilities [Line Items]
Employee retirement benefits[1] $ 2,023 $ 2,105
Asset retirement obligations and other environmental liabilities[2]1,699 1,676
Share-based incentive compensation liabilities84 45
Operating lease liability[3]96 95
Other obligations159 179
Total other long-term obligations $ 4,061 $ 4,100
[1]Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2020 - $58 million).
[2]Total asset retirement obligations and other environmental liabilities also included $100 million in current liabilities (2020 - $100 million).
[3]Total operating lease liability also included $82 million in current liabilities (2020 - $97 million). In addition to the total operating lease liability, additional undiscounted commitments for leases not yet commenced totalled $4 million (2020 - $27 million).

Other Long-Term Obligations (Pa

Other Long-Term Obligations (Parenthetical) (Detail) - CAD ($) $ in Millions6 Months Ended12 Months Ended
Jun. 30, 2021Dec. 31, 2020
Schedule of Other Liabilities [Line Items]
Employee retirement benefit obligations in current liabilities $ 58 $ 58
Asset retirement obligations and other environmental liabilities in current liabilities100 100
Undiscounted Commitments4 27
Accounts Payable and Accrued Liabilities [Member]
Schedule of Other Liabilities [Line Items]
Lease liability due within one year, Operating leases $ 82 $ 97

Financial and derivative inst_3

Financial and derivative instruments - Summary of net notional long/(short) position of derivative instruments (Detail) - bbl bbl in ThousandsJun. 30, 2021Dec. 31, 2020
Crude barrels [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Volume(710)(800)
Products barrels [Member]
Derivative [Line Items]
Derivative, Nonmonetary Notional Amount, Volume(160)(390)

Summary of Realized and Unreali

Summary of Realized and Unrealized Gain or (Loss) on Derivative Instruments (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Financial Instruments And Derivatives [Line Items]
Revenues $ (9) $ (9) $ (9) $ (8)
Purchases of crude oil and products(19)(52)(33)(18)
Total $ (28) $ (61) $ (42) $ (26)

Financial and derivative inst_4

Financial and derivative instruments - Summary of estimated fair value of financial instruments (Detail) - CAD ($) $ in MillionsJun. 30, 2021Dec. 31, 2020
Derivative Asset [Abstract]
Derivative Asset[1] $ 6 $ 2
Derivative Liability [Abstract]
Derivative liabilities[2]8 12
Effect of counterparty netting [Member]
Derivative Asset [Abstract]
Derivative Asset[1](6)(2)
Derivative Liability [Abstract]
Derivative liabilities[2](6)(2)
Derivative fair value of derivative amount effect of collateral netting [Member]
Derivative Asset [Abstract]
Derivative Asset[1]
Derivative Liability [Abstract]
Derivative liabilities[2](2)(10)
Fair Value, Inputs, Level 1 [Member]
Derivative Asset [Abstract]
Derivative Asset[1]6 2
Derivative Liability [Abstract]
Derivative liabilities[2]8 12
Fair Value, Inputs, Level 2 [Member]
Derivative Asset [Abstract]
Derivative Asset[1]
Derivative Liability [Abstract]
Derivative liabilities[2]
Fair Value, Inputs, Level 3 [Member]
Derivative Asset [Abstract]
Derivative Asset[1]
Derivative Liability [Abstract]
Derivative liabilities[2]
[1]Included in the Consolidated balance sheet line: “Materials, supplies and prepaid expenses”.
[2]Included in the Consolidated balance sheet line: “Accounts payable and accrued liabilities”.

Financial and derivative inst_5

Financial and derivative instruments - Additional Information (Detail) - CAD ($) $ in MillionsJun. 30, 2021Dec. 31, 2020
Financial Instruments And Derivatives [Line Items]
Long-term Debt, Fair Value $ 4,447 $ 4,447
Master netting arrangements [Member]
Financial Instruments And Derivatives [Line Items]
Derivative collateral receivable $ 8 $ 5

Common Shares - Additional Info

Common Shares - Additional Information (Detail) - sharesJun. 29, 2021Jun. 15, 2021Jun. 29, 2020Jun. 15, 2020Apr. 30, 2021
Class of Stock [Line Items]
Normal course issuer bid share repurchase shares authorized29,363,070
Exxon Mobil Corporation's ownership interest in Imperial69.60%
Normal course issuer bid share repurchase term, months12 months
Percent of total shares4.00%
Share Repurchase Program Dated June Twenty First Two Thousand Twenty One [Member]
Class of Stock [Line Items]
Normal course issuer bid share repurchase shares authorized35,583,671
Exxon Mobil Corporation's ownership interest in Imperial69.60%
Normal course issuer bid share repurchase term, months12 months
Percent of total shares5.00%

Summary of Common Shares (Detai

Summary of Common Shares (Detail) - sharesJun. 30, 2021Dec. 31, 2020
Class of Stock [Line Items]
Authorized1,100,000,000 1,100,000,000
Common shares outstanding704,578,000 734,077,000

Common Share Activities (Detail

Common Share Activities (Detail) - CAD ($) shares in Thousands, $ in Millions3 Months Ended6 Months Ended12 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020Dec. 31, 2020
Class of Stock [Line Items]
Common stock beginning balance, shares734,077
Common stock, ending balance, shares704,578 704,578 734,077
Common stock beginning balance, value[1] $ 1,357
Common stock, ending balance, value[1] $ 1,302 $ 1,302 $ 1,357
Common Stock
Class of Stock [Line Items]
Common stock beginning balance, shares734,077 743,902 743,902
Issued under employee share-based awards, shares 7
Purchases at stated value, shares(29,499)(9,832)
Common stock, ending balance, shares704,578 704,578 734,077
Common stock beginning balance, value $ 1,357 $ 1,375 $ 1,375
Issued under employee share-based awards, value
Purchases at stated value, value $ (55) (55) $ (18)(18)
Common stock, ending balance, value $ 1,302 $ 1,302 $ 1,357
[1]Number of common shares authorized and outstanding were 1,100 million and 705 million, respectively (2020 - 1,100 million and 734 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 Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars) $ 366 $ (526) $ 758 $ (714)
Weighted average number of common shares outstanding (millions of shares)724.1 734.1 729.1 736.5
Net income (loss) per common share (dollars) $ 0.51 $ (0.72) $ 1.04 $ (0.97)
Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars) $ 366 $ (526) $ 758 $ (714)
Weighted average number of common shares outstanding (millions of shares)724.1 734.1 729.1 736.5
Effect of employee share-based awards (millions of shares)[1]1.7 1.7
Weighted average number of common shares outstanding, assuming dilution (millions of shares)725.8 734.1 730.8 736.5
Net income (loss) per common share (dollars) $ 0.50 $ (0.72) $ 1.04 $ (0.97)
Dividends per common share - declared (dollars) $ 0.27 $ 0.22 $ 0.49 $ 0.44
[1]For Second Quarter 2020 and Six Months to June 30, 2020, the Net income (loss) per common share – diluted excludes the effect of 2.0 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 shares in Millions3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2020
Earnings Per Share [Abstract]
Effect of employee share-based awards excluded from computation2 2

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at January 1 $ (1,989) $ (1,911)
Current period change excluding amounts reclassified from accumulated other comprehensive income 54 (114)
Amounts reclassified from accumulated other comprehensive income33 34 66 68
Balance at June 30 $ (1,869) $ (1,957) $ (1,869) $ (1,957)

Amounts Reclassified Out of Acc

Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
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 $ (44) $ (45) $ (88) $ (90)

Income Tax Expense (Credit) for

Income Tax Expense (Credit) for Components of Other Comprehensive Income (Loss) (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Jun. 30, 2020Jun. 30, 2021Jun. 30, 2020
Accumulated Other Comprehensive Income (Loss) [Line Items]
Postretirement benefits liability adjustment (excluding amortization) $ 17 $ (37)
Amortization of postretirement benefits liability adjustment included in net periodic benefit cost11 11 22 22
Total $ 11 $ 11 $ 39 $ (15)

Miscellaneous Financial Infor_2

Miscellaneous Financial Information - Additional Information (Detail) - CAD ($) $ in Millions3 Months Ended6 Months Ended
Jun. 30, 2021Mar. 31, 2021Jun. 30, 2020Mar. 31, 2020Jun. 30, 2021Jun. 30, 2020Dec. 31, 2020
Additional Financial Information [Line Items]
Decrease in Long Term Purchase Commitment Amount $ 2,900
Inventory write-down to current market value $ (281) $ 281
Liabilities $ 18,170 $ 18,170 $ 16,613
Upstream [Member]
Additional Financial Information [Line Items]
Non-cash impairment of goodwill20
Inventory write-down to current market value229
Downstream [Member]
Additional Financial Information [Line Items]
Inventory write-down to current market value $ 52
Accounts payable and accrued liabilities
Additional Financial Information [Line Items]
Liabilities $ 62