UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-Q

 

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2012

or

 

¨  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________to________

 

Commission File Number 1-2256

 

EXXON MOBIL CORPORATION

(Exact name of registrant as specified in its charter)

 

      NEW JERSEY                                                                           13-5409005

(State or other jurisdiction of                                                                                     (I.R.S. Employer

incorporation or organization)                                                                               Identification Number

 

5959 Las Colinas Boulevard, Irving, Texas                                        75039-2298

(Address of principal executive offices)                                                                         (Zip Code)

 

(972) 444-1000

(Registrant's telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No ¨ 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes x  No ¨     

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

x

Accelerated filer

¨

  

Non-accelerated filer

¨

 

Smaller reporting company

¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨    No x  

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

                                Class                                                     Outstanding as of September 30, 2012

Common stock, without par value                                                   4,559,342,639

 

 


 

 

 

EXXON MOBIL CORPORATION

 

FORM 10-Q

 

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30,  2012

 

TABLE OF CONTENTS

 

 

 

 

 

Page

Number

                    PART I.  FINANCIAL INFORMATION

 

 

 

 

Item 1.       Financial Statements

 

 

 

     Condensed Consolidated Statement of Income

Three and nine months ended September 30, 2012 and 2011

 

3

 

     Condensed Consolidated Statement of Comprehensive Income

Three and nine months ended September 30, 2012 and 2011

 

4

 

     Condensed Consolidated Balance Sheet

As of September 30, 2012 and December 31, 2011

5

 

 

 

 

     Condensed Consolidated Statement of Cash Flows

          Nine months ended September 30, 2012 and 2011

 

6

 

     Condensed Consolidated Statement of Changes in Equity

          Nine months ended September 30, 2012 and 2011

 

7

 

     Notes to Condensed Consolidated Financial Statements

 

8

 

Item 2.       Management's Discussion and Analysis of Financial

                     Condition and Results of Operations

 

16

 

Item 3.       Quantitative and Qualitative Disclosures About Market Risk

 

21

 

Item 4.       Controls and Procedures

 

21

 

 

 

 

                  PART II.  OTHER INFORMATION

 

 

 

 

Item 1.       Legal Proceedings

 

22

 

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds

 

23

 

Item 6.       Exhibits

 

23

 

Signature

 

24

 

Index to Exhibits

 

25

 

       


-2-

 


 

 

 

PART I.  FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 1.  Financial Statements

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

 

2012 

 

 

2011 

 

 

2012 

 

 

2011 

REVENUES AND OTHER INCOME

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenue (1) 

 

$

111,554 

 

$

120,475 

 

$

343,488 

 

$

351,120 

Income from equity affiliates

 

 

3,386 

 

 

3,915 

 

 

11,247 

 

 

11,462 

Other income

 

 

766 

 

 

940 

 

 

12,387 

 

 

2,238 

 

Total revenues and other income

 

 

115,706 

 

 

125,330 

 

 

367,122 

 

 

364,820 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND OTHER DEDUCTIONS

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil and product purchases

 

 

65,180 

 

 

69,289 

 

 

201,349 

 

 

199,233 

Production and manufacturing expenses

 

 

9,128 

 

 

10,199 

 

 

28,765 

 

 

30,041 

Selling, general and administrative expenses

 

 

3,468 

 

 

3,764 

 

 

10,555 

 

 

11,072 

Depreciation and depletion

 

 

4,037 

 

 

3,866 

 

 

11,778 

 

 

11,508 

Exploration expenses, including dry holes

 

 

494 

 

 

728 

 

 

1,388 

 

 

1,654 

Interest expense

 

 

59 

 

 

98 

 

 

216 

 

 

172 

Sales-based taxes (1) 

 

 

8,137 

 

 

8,484 

 

 

24,657 

 

 

25,013 

Other taxes and duties

 

 

7,883 

 

 

10,222 

 

 

27,388 

 

 

29,911 

 

Total costs and other deductions

 

 

98,386 

 

 

106,650 

 

 

306,096 

 

 

308,604 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

17,320 

 

 

18,680 

 

 

61,026 

 

 

56,216 

 

Income taxes

 

 

7,394 

 

 

8,009 

 

 

23,647 

 

 

23,734 

Net income including noncontrolling interests

 

 

9,926 

 

 

10,671 

 

 

37,379 

 

 

32,482 

 

Net income attributable to noncontrolling interests

 

 

356 

 

 

341 

 

 

2,449 

 

 

822 

Net income attributable to ExxonMobil

 

$

9,570 

 

$

10,330 

 

$

34,930 

 

$

31,660 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (dollars)

 

$

2.09 

 

$

2.13 

 

$

7.50 

 

$

6.46 

  

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share - assuming dilution (dollars)

 

$

2.09 

 

$

2.13 

 

$

7.50 

 

$

6.45 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per common share (dollars) 

 

$

0.57 

 

$

0.47 

 

$

1.61 

 

$

1.38 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Sales-based taxes included in sales and other

 

 

 

 

 

 

 

 

 

 

 

 

 

operating revenue

 

$

8,137 

 

$

8,484 

 

$

24,657 

 

$

25,013 

 

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.


-3-

 


 

 

 

EXXON MOBIL CORPORATION

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

9,926 

 

$

10,671 

 

$

37,379 

 

$

32,482 

 

 

Other comprehensive income (net of income taxes)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation adjustment

 

 

1,620 

 

 

(3,336)

 

 

1,298 

 

 

(1,224)

 

 

 

Adjustment for foreign exchange translation (gain)/loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 included in net income

 

 

(119)

 

 

 

 

(4,354)

 

 

 

 

 

Postretirement benefits reserves adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(excluding amortization)

 

 

(224)

 

 

272 

 

 

(404)

 

 

(293)

 

 

 

Amortization and settlement of postretirement benefits reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

adjustment included in net periodic benefit costs

 

 

454 

 

 

298 

 

 

2,083 

 

 

929 

 

 

 

Change in fair value of cash flow hedges

 

 

 

 

14 

 

 

 

 

24 

 

 

 

Realized (gain)/loss from settled cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

included in net income

 

 

 

 

(17)

 

 

 

 

(50)

 

 

 

 

Total other comprehensive income

 

 

1,731 

 

 

(2,769)

 

 

(1,377)

 

 

(614)

 

 

Comprehensive income including noncontrolling interests

 

 

11,657 

 

 

7,902 

 

 

36,002 

 

 

31,868 

 

 

 

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

noncontrolling interests

 

 

541 

 

 

101 

 

 

1,062 

 

 

713 

 

 

Comprehensive income attributable to ExxonMobil

 

$

11,116 

 

$

7,801 

 

$

34,940 

 

$

31,155 

 

 

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.


-4-

 


 

 

 

EXXON MOBIL CORPORATION

 

CONDENSED CONSOLIDATED BALANCE SHEET

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sept. 30,

 

Dec. 31,

 

 

 

 

 

2012 

 

2011 

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

13,055 

 

$

12,664 

 

 

Cash and cash equivalents – restricted

 

 

206 

 

 

404 

 

 

Notes and accounts receivable – net

 

 

36,635 

 

 

38,642 

 

 

Inventories

 

 

 

 

 

 

 

 

 

Crude oil, products and merchandise

 

 

13,010 

 

 

11,665 

 

 

 

Materials and supplies

 

 

3,565 

 

 

3,359 

 

 

Other current assets

 

 

5,667 

 

 

6,229 

 

 

 

Total current assets

 

 

72,138 

 

 

72,963 

 

Investments, advances and long-term receivables

 

 

35,105 

 

 

34,333 

 

Property, plant and equipment – net

 

 

220,330 

 

 

214,664 

 

Other assets, including intangibles – net

 

 

7,618 

 

 

9,092 

 

 

 

Total assets

 

$

335,191 

 

$

331,052 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Notes and loans payable

 

$

3,496 

 

$

7,711 

 

 

Accounts payable and accrued liabilities

 

 

53,516 

 

 

57,067 

 

 

Income taxes payable

 

 

13,049 

 

 

12,727 

 

 

 

Total current liabilities

 

 

70,061 

 

 

77,505 

 

Long-term debt

 

 

8,928 

 

 

9,322 

 

Postretirement benefits reserves

 

 

21,652 

 

 

24,994 

 

Deferred income tax liabilities

 

 

37,642 

 

 

36,618 

 

Other long-term obligations

 

 

24,553 

 

 

21,869 

 

 

 

Total liabilities

 

 

162,836 

 

 

170,308 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (Note 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Common stock, without par value:

 

 

 

 

 

 

 

 

Authorized:   9,000 million shares

 

 

 

 

 

 

 

 

Issued:         8,019 million shares

 

 

9,645 

 

 

9,512 

 

Earnings reinvested

 

 

358,369 

 

 

330,939 

 

Accumulated other comprehensive income

 

 

(9,113)

 

 

(9,123)

 

Common stock held in treasury:

 

 

 

 

 

 

 

 

3,460 million shares at September 30, 2012

 

 

(192,188)

 

 

 

 

 

3,285 million shares at December 31, 2011

 

 

 

 

 

(176,932)

 

 

 

ExxonMobil share of equity

 

 

166,713 

 

 

154,396 

 

Noncontrolling interests

 

 

5,642 

 

 

6,348 

 

 

 

Total equity

 

 

172,355 

 

 

160,744 

 

 

 

Total liabilities and equity

 

$

335,191 

 

$

331,052 

 

 

The number of shares of common stock issued and outstanding at September 30, 2012 and December 31, 2011 were 4,559,342,639 and 4,733,948,268, respectively.

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.


-5-

 


 

 

 

EXXON MOBIL CORPORATION

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

2012 

 

2011 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

$

37,379 

 

$

32,482 

 

 

Depreciation and depletion

 

 

11,778 

 

 

11,508 

 

 

Changes in operational working capital, excluding cash and debt

 

 

3,119 

 

 

2,154 

 

 

Net (gain) on asset sales

 

 

(11,693)

 

 

(1,269)

 

 

All other items – net

 

 

2,363 

 

 

(281)

 

 

 

 

Net cash provided by operating activities

 

 

42,946 

 

 

44,594 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Additions to property, plant and equipment

 

 

(24,214)

 

 

(22,341)

 

 

Proceeds associated with sales of subsidiaries, property, plant and

 

 

 

 

 

 

 

 

 

equipment, and sales and returns of investments

 

 

6,850 

 

 

4,246 

 

 

Additional investments and advances

 

 

(768)

 

 

(3,122)

 

 

Additions to marketable securities

 

 

 

 

(1,754)

 

 

Sales of marketable securities

 

 

 

 

1,674 

 

 

Other investing activities – net

 

 

1,533 

 

 

1,144 

 

 

 

 

Net cash used in investing activities

 

 

(16,599)

 

 

(20,153)

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Additions to long-term debt

 

 

597 

 

 

457 

 

 

Reductions in long-term debt

 

 

(15)

 

 

(236)

 

 

Additions/(reductions) in short-term debt – net

 

 

(3,506)

 

 

1,414 

 

 

Cash dividends to ExxonMobil shareholders

 

 

(7,500)

 

 

(6,773)

 

 

Cash dividends to noncontrolling interests

 

 

(287)

 

 

(264)

 

 

Changes in noncontrolling interests

 

 

198 

 

 

(12)

 

 

Tax benefits related to stock-based awards

 

 

 

 

220 

 

 

Common stock acquired

 

 

(15,814)

 

 

(16,633)

 

 

Common stock sold

 

 

184 

 

 

616 

 

 

 

 

Net cash used in financing activities

 

 

(26,143)

 

 

(21,211)

 

 

 

 

 

 

 

 

 

 

 

 

Effects of exchange rate changes on cash

 

 

187 

 

 

(33)

 

Increase/(decrease) in cash and cash equivalents

 

 

391 

 

 

3,197 

 

Cash and cash equivalents at beginning of period

 

 

12,664 

 

 

7,825 

 

Cash and cash equivalents at end of period

 

$

13,055 

 

$

11,022 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES

 

 

 

 

 

 

 

 

Income taxes paid

 

$

17,895 

 

$

20,349 

 

 

Cash interest paid

 

$

387 

 

$

390 

 

 

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.


-6-

 


 

 

 

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ExxonMobil Share of Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

Common

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compre-

 

Stock

 

ExxonMobil

 

Non-

 

 

 

 

 

 

Common

 

Earnings

 

hensive

 

Held in

 

Share of

 

controlling

 

Total

 

 

 

Stock

 

Reinvested

 

Income

 

Treasury

 

Equity

 

Interests

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2010

 

$

9,371 

 

$

298,899 

 

$

(4,823)

 

$

(156,608)

 

$

146,839 

 

$

5,840 

 

$

152,679 

Amortization of stock-based awards

 

 

572 

 

 

 

 

 

 

 

 

572 

 

 

 

 

572 

Tax benefits related to stock-based awards

159 

 

 

 

 

 

 

 

 

159 

 

 

 

 

159 

Other

 

 

(596)

 

 

 

 

 

 

 

 

(596)

 

 

(4)

 

 

(600)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

 

 

 

 

31,660 

 

 

 

 

 

 

31,660 

 

 

822 

 

 

32,482 

Dividends – common shares

 

 

 

 

(6,773)

 

 

 

 

 

 

(6,773)

 

 

(264)

 

 

(7,037)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

(505)

 

 

 

 

(505)

 

 

(109)

 

 

(614)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions, at cost

 

 

 

 

 

 

 

 

(16,633)

 

 

(16,633)

 

 

(12)

 

 

(16,645)

Dispositions

 

 

 

 

 

 

 

 

1,216 

 

 

1,216 

 

 

 

 

1,216 

Balance as of September 30, 2011

 

$

9,506 

 

$

323,786 

 

$

(5,328)

 

$

(172,025)

 

$

155,939 

 

$

6,273 

 

$

162,212 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2011

 

$

9,512 

 

$

330,939 

 

$

(9,123)

 

$

(176,932)

 

$

154,396 

 

$

6,348 

 

$

160,744 

Amortization of stock-based awards

 

 

618 

 

 

 

 

 

 

 

 

618 

 

 

 

 

618 

Tax benefits related to stock-based awards

 

 

252 

 

 

 

 

 

 

 

 

252 

 

 

 

 

252 

Other

 

 

(737)

 

 

 

 

 

 

 

 

(737)

 

 

(1,450)

 

 

(2,187)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income for the period

 

 

 

 

34,930 

 

 

 

 

 

 

34,930 

 

 

2,449 

 

 

37,379 

Dividends – common shares

 

 

 

 

(7,500)

 

 

 

 

 

 

(7,500)

 

 

(287)

 

 

(7,787)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

 

 

 

 

10 

 

 

 

 

10 

 

 

(1,387)

 

 

(1,377)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions, at cost

 

 

 

 

 

 

 

 

(15,814)

 

 

(15,814)

 

 

(31)

 

 

(15,845)

Dispositions

 

 

 

 

 

 

 

 

558 

 

 

558 

 

 

 

 

558 

Balance as of September 30, 2012

 

$

9,645 

 

$

358,369 

 

$

(9,113)

 

$

(192,188)

 

$

166,713 

 

$

5,642 

 

$

172,355 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2012

 

 

 

 

Nine Months Ended September 30, 2011

 

 

 

 

 

 

Held in

 

 

 

 

 

 

 

 

 

 

Held in

 

 

 

Common Stock Share Activity

 

Issued

 

Treasury

 

Outstanding

 

 

 

 

Issued

 

Treasury

 

Outstanding

 

 

(millions of shares)

 

 

 

 

(millions of shares)

Balance as of December 31

 

 

8,019 

 

 

(3,285)

 

 

4,734 

 

 

 

 

 

8,019 

 

 

(3,040)

 

 

4,979 

 

Acquisitions

 

 

 

 

(185)

 

 

(185)

 

 

 

 

 

 

 

(209)

 

 

(209)

 

Dispositions

 

 

 

 

10 

 

 

10 

 

 

 

 

 

 

 

23 

 

 

23 

Balance as of September 30

 

 

8,019 

 

 

(3,460)

 

 

4,559 

 

 

 

 

 

8,019 

 

 

(3,226)

 

 

4,793 

 

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.


-7-

 


 

 

 

EXXON MOBIL CORPORATION

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

1.     Basis of Financial Statement Preparation

 

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2011 Annual Report on Form 10-K.  In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein.  All such adjustments are of a normal recurring nature.  The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

 

2.     Litigation and Other Contingencies

 

Litigation

 

A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.

 

On June 30, 2011, a state district court jury in Baltimore County, Maryland returned a verdict against Exxon Mobil Corporation in Allison, et al v. Exxon Mobil Corporation, a case involving an accidental 26,000 gallon gasoline leak at a suburban Baltimore service station. The verdict included approximately $497 million in compensatory damages and approximately $1.0 billion in punitive damages in a finding that ExxonMobil fraudulently misled the plaintiff-residents about the events leading up to the leak, the leak's discovery, and the nature and extent of any groundwater contamination. ExxonMobil believes the verdict is not justified by the evidence and that the amount of the compensatory award is grossly excessive and the imposition of punitive damages is improper and unconstitutional. The trial court denied a post-trial motion that ExxonMobil filed to overturn the punitive damages verdict and entered a final judgment in the amount of $1,488 million. ExxonMobil has appealed the verdict and judgment. The appeal is pending before the Maryland Court of Appeals. In an earlier trial involving the same leak and different plaintiffs, the jury awarded compensatory damages but rejected the plaintiffs' punitive damages claims. Those plaintiffs did not appeal the jury's denial of punitive damages. On February 9, 2012, the Maryland Court of Special Appeals reversed in part and affirmed in part the trial court's decision on compensatory damages in that case. The Maryland Court of Appeals granted writs of certiorari to both parties in response to their separate petitions seeking reversals of portions of the Court of Special Appeals' decision. The appeals in both of these cases were consolidated before the Maryland Court of Appeals and arguments were held on November 5, 2012.  The ultimate outcome of all of this litigation is not expected to have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.

 

Other Contingencies

 

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2012, for guarantees relating to notes, loans and performance under contracts. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.


-8-

 


 

 

 

 

 

 

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

Other

 

 

 

 

 

 

 

 

 

 

Company

 

Third Party

 

 

 

 

 

 

 

 

 

 

Obligations (1) 

 

Obligations

 

Total

 

 

 

 

 

 

 

(millions of dollars)

 

 

 

Guarantees

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt-related

 

$

2,224 

 

$

56 

 

$

2,280 

 

 

 

 

Other

 

 

3,243 

 

 

4,211 

 

 

7,454 

 

 

 

 

 

Total

 

$

5,467 

 

$

4,267 

 

$

9,734 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) ExxonMobil share

 

 

 

 

 

 

 

 

 

 

 

 

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition. The Corporation's outstanding unconditional purchase obligations at September 30, 2012, were similar to those at the prior year-end period. Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.

 

The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations.  Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

 

In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007 a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project.  The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture.  ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.  ExxonMobil’s remaining net book investment in Cerro Negro producing assets is about $750 million.

 

On September 6, 2007, affiliates of ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID) invoking ICSID jurisdiction under Venezuela’s Investment Law and the Netherlands-Venezuela Bilateral Investment Treaty. The ICSID Tribunal issued a decision on June 10, 2010, finding that it had jurisdiction to proceed on the basis of the Netherlands-Venezuela Bilateral Investment Treaty. The ICSID arbitration proceeding is continuing and a hearing on the merits was held in February 2012.  At this time, the net impact of these matters on the Corporation’s consolidated financial results cannot be reasonably estimated. Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.

 

An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award.  The Contractors have appealed that judgment. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition. 


-9-

 


 

 

 

3.     Other Comprehensive Income Information

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ExxonMobil Share of Accumulated

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative

 

Post-

 

Unrealized

 

 

 

 

 

 

 

 

Foreign

 

retirement

 

Change in

 

 

 

 

 

 

 

 

Exchange

 

Benefits

 

Fair Value

 

 

 

 

 

 

 

 

Translation

 

Reserves

 

on Cash

 

 

 

 

 

 

 

 

Adjustment

 

Adjustment

 

Flow Hedges

 

Total

 

 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2010

 

$

 5,011 

 

$

 (9,889) 

 

$

 55 

 

$

 (4,823) 

 

Current period change excluding amounts reclassified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from accumulated other comprehensive income

 

 

 (1,110) 

 

 

 (252) 

 

 

 24 

 

 

 (1,338) 

 

Amounts reclassified from accumulated other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

comprehensive income

 

 

 - 

 

 

 883 

 

 

 (50) 

 

 

 833 

 

Total change in accumulated other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income

 

 

 (1,110) 

 

 

 631 

 

 

 (26) 

 

 

 (505) 

 

Balance as of September 30, 2011

 

$

 3,901 

 

$

 (9,258) 

 

$

 29 

 

$

 (5,328) 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2011

 

$

 4,168 

 

$

 (13,291) 

 

$

 - 

 

$

 (9,123) 

 

Current period change excluding amounts reclassified

 

 

 

 

 

 

 

 

 

 

 

 

 

 

from accumulated other comprehensive income

 

 

 1,159 

 

 

 (351) 

 

 

 - 

 

 

 808 

 

Amounts reclassified from accumulated other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

comprehensive income

 

 

 (2,603) 

 

 

 1,805 

 

 

 - 

 

 

 (798) 

 

Total change in accumulated other comprehensive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

income

 

 

 (1,444) 

 

 

 1,454 

 

 

 - 

 

 

 10 

 

Balance as of September 30, 2012

 

$

 2,724 

 

$

 (11,837) 

 

$

 - 

 

$

 (9,113) 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

(millions of dollars)

 

Income Tax (Expense)/Credit For

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation adjustment

 

$

 (55) 

 

$

 121 

 

$

 (92) 

 

$

 34 

 

Postretirement benefits reserves adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement benefits reserves adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(excluding amortization)

 

 

 100 

 

 

 (111) 

 

 

 190 

 

 

 126 

 

 

Amortization and settlement of postretirement benefits reserves

 

 

 

 

 

 

 

 

 

 

 

 

 

 

adjustment included in net periodic benefit costs

 

 

 (200) 

 

 

 (132) 

 

 

 (1,132) 

 

 

 (433) 

 

Unrealized change in fair value on cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of cash flow hedges

 

 

 - 

 

 

 (9) 

 

 

 - 

 

 

 (14) 

 

  

Realized (gain)/loss from settled cash flow hedges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

included in net income

 

 

 - 

 

 

 11 

 

 

 - 

 

 

 31 

 

Total

 

$

 (155) 

 

$

 (120) 

 

$

 (1,034) 

 

$

 (256) 


-10-

 


 

 

 

4.     Earnings Per Share

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to ExxonMobil (millions of dollars)

 

$

9,570 

 

$

10,330 

 

$

34,930 

 

$

31,660 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

outstanding (millions of shares)

 

 

4,597 

 

 

4,839 

 

 

4,657 

 

 

4,902 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (dollars)

 

$

2.09 

 

$

2.13 

 

$

7.50 

 

$

6.46 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share - assuming dilution

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to ExxonMobil (millions of dollars)

 

$

9,570 

 

$

10,330 

 

$

34,930 

 

$

31,660 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

outstanding (millions of shares)

 

 

4,597 

 

 

4,839 

 

 

4,657 

 

 

4,902 

 

 

 

    Effect of employee stock-based awards

 

 

 - 

 

 

 

 

 - 

 

 

 

Weighted average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

outstanding - assuming dilution

 

 

4,597 

 

 

4,843 

 

 

4,657 

 

 

4,908 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- assuming dilution (dollars)

 

$

2.09 

 

$

2.13 

 

$

7.50 

 

$

6.45 


-11-

 


 

 

 

5.     Pension and Other Postretirement Benefits

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

 

(millions of dollars)

 

Pension Benefits - U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of net benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

 173 

 

$

 148 

 

$

 489 

 

$

 397 

 

 

 

Interest cost

 

 

 205 

 

 

 198 

 

 

 615 

 

 

 594 

 

 

 

Expected return on plan assets

 

 

 (196) 

 

 

 (192) 

 

 

 (590) 

 

 

 (577) 

 

 

 

Amortization of actuarial loss/(gain) and prior

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

service cost

 

 

 146 

 

 

 123 

 

 

 436 

 

 

 370 

 

 

 

Net pension enhancement and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

curtailment/settlement cost

 

 

 123 

 

 

 64 

 

 

 369 

 

 

 266 

 

 

 

Net benefit cost

 

$

 451 

 

$

 341 

 

$

 1,319 

 

$

 1,050 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits - Non-U.S.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of net benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

 156 

 

$

 147 

 

$

 490 

 

$

 432 

 

 

 

Interest cost

 

 

 279 

 

 

 317 

 

 

 859 

 

 

 956 

 

 

 

Expected return on plan assets

 

 

 (269) 

 

 

 (293) 

 

 

 (831) 

 

 

 (879) 

 

 

 

Amortization of actuarial loss/(gain) and prior

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

service cost

 

 

 228 

 

 

 189 

 

 

 719 

 

 

 566 

 

 

 

Net pension enhancement and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

curtailment/settlement cost (1)

 

 

 109 

 

 

 7 

 

 

 1,538 

 

 

 7 

 

 

 

Net benefit cost

 

$

 503 

 

$

 367 

 

$

 2,775 

 

$

 1,082 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Postretirement Benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Components of net benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

 31 

 

$

 30 

 

$

 100 

 

$

 94 

 

 

 

Interest cost

 

 

 89 

 

 

 96 

 

 

 293 

 

 

 300 

 

 

 

Expected return on plan assets

 

 

 (9) 

 

 

 (10) 

 

 

 (30) 

 

 

 (32) 

 

 

 

Amortization of actuarial loss/(gain) and prior

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

service cost

 

 

 48 

 

 

 47 

 

 

 156 

 

 

 153 

 

 

 

Net benefit cost

 

$

 159 

 

$

 163 

 

$

 519 

 

$

 515 

 

(1)   Non-U.S. net pension enhancement and curtailment/settlement cost for the nine months ended September 30, 2012, includes $1,420 million (on a consolidated‑company, before‑tax basis) of accumulated other comprehensive income for the postretirement benefit reserves adjustment that was recycled into earnings and included in the Japan restructuring gain reported in “Other income” (See Note 9).


-12-

 


 

 

 

6.     Financial Instruments

 

The fair value of financial instruments is determined by reference to observable market data and other valuation techniques as appropriate.  The only category of financial instruments where the difference between fair value and recorded book value is notable is long-term debt.  The estimated fair value of total long-term debt, including capitalized lease obligations, was $9.5 billion at September 30, 2012, and $9.8 billion at December 31, 2011, as compared to recorded book values of $8.9 billion at September 30, 2012, and $9.3 billion at December 31, 2011.  The fair value of long-term debt by hierarchy level at September 30, 2012, is shown below:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30, 2012

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

 

 

 

 

 

 

(millions of dollars)

 

 

 

 

Long-term debt fair value

 

 

$ 6,594

 

 

$ 2,609

 

 

$ 322

 

 

$ 9,525

 

 

 

The fair value hierarchy for long-term debt is primarily Level 1 and represents quoted prices in active markets. Level 2 includes debt whose fair value is based upon a publicly available index.  The Level 3 amount is primarily capitalized leases whose value is typically determined through the use of present value and specific contract terms.


-13-

 


 

 

 

7.     Disclosures about Segments and Related Information

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

 

 

September 30,

 

September 30,

 

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

(millions of dollars)

 

EARNINGS AFTER INCOME TAX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

633 

 

$

1,184 

 

$

2,321 

 

$

3,912 

 

 

 

Non-U.S.

 

 

5,340 

 

 

7,210 

 

 

19,812 

 

 

21,698 

 

 

Downstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

1,441 

 

 

810 

 

 

2,878 

 

 

2,238 

 

 

 

Non-U.S. (1)

 

 

1,749 

 

 

769 

 

 

8,544 

 

 

1,796 

 

 

Chemical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

565 

 

 

538 

 

 

1,492 

 

 

1,832 

 

 

 

Non-U.S. (1)

 

 

225 

 

 

465 

 

 

1,448 

 

 

2,008 

 

 

All other

 

 

(383)

 

 

(646)

 

 

(1,565)

 

 

(1,824)

 

 

Corporate total

 

$

9,570 

 

$

10,330 

 

$

34,930 

 

$

31,660 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Nine months ended September 30, 2012, includes the gain associated with the Japan restructuring (See Note 9)

 

 

of $5.3 billion in the non-U.S. Downstream and $0.6 billion in the non-U.S. Chemical segments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SALES AND OTHER OPERATING REVENUE (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

2,830 

 

$

3,686 

 

$

8,404 

 

$

10,601 

 

 

 

Non-U.S.

 

 

7,208 

 

 

7,101 

 

 

22,163 

 

 

24,684 

 

 

Downstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

31,621 

 

 

31,329 

 

 

92,991 

 

 

90,904 

 

 

 

Non-U.S.

 

 

60,763 

 

 

67,591 

 

 

190,590 

 

 

192,742 

 

 

Chemical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

3,493 

 

 

4,053 

 

 

11,167 

 

 

11,829 

 

 

 

Non-U.S.

 

 

5,634 

 

 

6,711 

 

 

18,157 

 

 

20,345 

 

 

All other

 

 

 

 

 

 

16 

 

 

15 

 

 

Corporate total

 

$

111,554 

 

$

120,475 

 

$

343,488 

 

$

351,120 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2)

Includes sales-based taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTERSEGMENT REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,935 

 

$

2,232 

 

$

6,538 

 

$

7,189 

 

 

 

Non-U.S.

 

 

11,105 

 

 

12,527 

 

 

35,171 

 

 

37,705 

 

 

Downstream

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

5,422 

 

 

4,426 

 

 

16,214 

 

 

14,071 

 

 

 

Non-U.S.

 

 

15,309 

 

 

17,854 

 

 

47,215 

 

 

53,987 

 

 

Chemical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

3,301 

 

 

2,884 

 

 

9,429 

 

 

9,202 

 

 

 

Non-U.S.

 

 

2,292 

 

 

2,960 

 

 

7,565 

 

 

8,095 

 

 

All other

 

 

75 

 

 

66 

 

 

212 

 

 

192 

 

 

8.     Accounting for Suspended Exploratory Well Costs

 

For the category of exploratory well costs at year-end 2011 that were suspended more than one year, a total of $95 million was expensed in the first nine months of 2012.

 

 


-14-

 


 

 

 

9.     Japan Restructuring

 

On June 1, 2012, the Corporation completed the restructuring of its Downstream and Chemical holdings in Japan. Under the restructuring, TonenGeneral Sekiyu K. K. (TG), a consolidated subsidiary owned 50 percent by the Corporation, purchased for $3.9 billion the Corporation’s shares of a wholly-owned affiliate in Japan, EMG Marketing Godo Kaisha (previously known as ExxonMobil Yugen Kaisha), which resulted in TG acquiring approximately 200 million of its shares owned by the Corporation along with other assets. As a result of the restructuring, the Corporation’s effective ownership of TG was reduced to approximately 22 percent and a net gain of $6.5 billion was recognized.  The gain is included in “Other income” partially offset by amounts included in “Income tax expense” and “Net income attributable to noncontrolling interests.”

The gain includes $1.9 billion of the Corporation’s share of other comprehensive income recycled into earnings (see note 3 below).  The gain also includes remeasurement of TG’s shares that the Corporation continues to own to $0.7 billion, based on TG’s share price on the Tokyo Stock Exchange.  The Corporation accounts for its remaining investment using the equity method.

Summarized balance sheet for the Japan entities subject to the restructuring follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(millions of dollars)

 

 

Assets

 

 

 

 

 

 

Current assets (1)

 

$

6,391 

 

 

 

Net property, plant and equipment

 

 

4,700 

 

 

 

Other assets

 

 

989 

 

 

Total assets

 

$

12,080 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Current liabilities (2)

 

$

7,398 

 

 

 

Long-term debt

 

 

22 

 

 

 

Postretirement benefits reserves

 

 

2,066 

 

 

 

Other long-term obligations

 

 

826 

 

 

Total liabilities

 

$

10,312 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

ExxonMobil share of equity (3)

 

$

(256)

 

 

 

Noncontrolling interests

 

 

2,024 

 

 

Total equity

 

$

1,768 

 

 

Total liabilities and equity

 

$

12,080 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)     The aggregate replacement cost of inventories exceeded the LIFO carrying values by $2.4 billion at June 1, 2012.

(2)     On June 1, 2012, Japan’s unused credit lines for short-term financing were $1.0 billion.

(3)     The accumulated other comprehensive income associated with the Japan restructuring was recycled into earnings. At June 1, 2012,  ExxonMobil’s share of accumulated other comprehensive income was a benefit of $1.9 billion, including $2.5 billion related to cumulative translation adjustments offset by $0.6 billion related to postretirement benefits reserves adjustments.       


-15-

 


 

 

 

EXXON MOBIL CORPORATION

 

Item 2.       Management's Discussion and Analysis of Financial Condition and Results of Operations

 

FUNCTIONAL EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

First Nine Months

Earnings (U.S. GAAP)

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

(millions of dollars)

Upstream

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

633 

 

$

1,184 

 

$

2,321 

 

$

3,912 

 

Non-U.S.

 

 

5,340 

 

 

7,210 

 

 

19,812 

 

 

21,698 

Downstream

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

1,441 

 

 

810 

 

 

2,878 

 

 

2,238 

 

Non-U.S.

 

 

1,749 

 

 

769 

 

 

8,544 

 

 

1,796 

Chemical

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

565 

 

 

538 

 

 

1,492 

 

 

1,832 

 

Non-U.S.

 

 

225 

 

 

465 

 

 

1,448 

 

 

2,008 

Corporate and financing

 

 

(383)

 

 

(646)

 

 

(1,565)

 

 

(1,824)

Net Income attributable to ExxonMobil (U.S. GAAP)

 

$

9,570 

 

$

10,330 

 

$

34,930 

 

$

31,660 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (dollars)

 

$

2.09 

 

$

2.13 

 

$

7.50 

 

$

6.46 

Earnings per common share - assuming

 

 

 

 

 

 

 

 

 

 

 

 

 

dilution (dollars)

 

$

2.09 

 

$

2.13 

 

$

7.50 

 

$

6.45 

 

References in this discussion to total corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the income statement.  Unless otherwise indicated, references to earnings, special items, Upstream, Downstream, Chemical and Corporate and Financing segment earnings, and earnings per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.

 

 

REVIEW OF THIRD QUARTER 2012 RESULTS

 

ExxonMobil results for the third quarter of 2012 reflect our ongoing commitment to help deliver the energy needed to underpin economic recovery and growth while maintaining our strong focus on safety and environmental performance.

 

Third quarter 2012 earnings were $9.6 billion, down 7 percent from the third quarter of 2011.

 

Capital and exploration expenditures were $9.2 billion in the third quarter of 2012.

 

The Corporation distributed $7.6 billion to shareholders in the third quarter through dividends and share purchases to reduce shares outstanding.

 

                _______________________________________________________________________

 

Earnings of $34,930 million in the first nine months of 2012 increased $3,270 million from 2011. 

 

Earnings per share – assuming dilution increased 16 percent to $7.50. 


-16-

 


 

 

 

 

 

 

 

 

Third Quarter

 

First Nine Months

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

(millions of dollars)

Upstream earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

633 

 

$

1,184 

 

$

2,321 

 

$

3,912 

 

Non-U.S.

 

 

5,340 

 

 

7,210 

 

 

19,812 

 

 

21,698 

 

 

Total

 

$

5,973 

 

$

8,394 

 

$

22,133 

 

$

25,610 

 

Upstream earnings were $5,973 million in the third quarter of 2012, down $2,421 million from the third quarter of 2011.  Production volume and mix effects reduced earnings by $700 million.  Lower liquids and natural gas realizations decreased earnings by $130 million.  All other items, including the absence of prior year asset sales ($1.0 billion), unfavorable tax items and foreign exchange impacts, decreased earnings by a total of $1.6 billion.

 

On an oil-equivalent basis, production decreased 7.5 percent from the third quarter of 2011.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production decreased 2.9 percent.

 

Liquids production totaled 2,116 kbd (thousands of barrels per day), down 133 kbd from the third quarter of 2011.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was down 3.1 percent, as field decline was partially offset by project ramp-up in Angola and Nigeria.

 

Third quarter natural gas production was 11,061 mcfd (millions of cubic feet per day), down 1,136 mcfd from 2011.  Excluding the impacts of entitlement volumes and divestments, natural gas production was down 2.7 percent, due primarily to field decline.

 

Earnings from U.S. Upstream operations were $633 million, $551 million lower than the third quarter of 2011.  Non-U.S. Upstream earnings were $5,340 million, down $1,870 million from the prior year.

                _______________________________________________________________________

 

Upstream earnings for the first nine months of 2012 were $22,133 million, down $3,477 million from 2011.  Production volume and mix effects decreased earnings by $1.9 billion.  Liquids and natural gas realizations decreased earnings by $80 million.  All other items, including higher operating expenses and unfavorable tax effects, reduced earnings by $1.5 billion.

 

On an oil-equivalent basis, production was down 6.2 percent compared to the same period in 2011.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was down 1.6 percent.

 

Liquids production of 2,179 kbd decreased 153 kbd compared with 2011.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was down 1.8 percent, as field decline was partly offset by project ramp-up in Angola and Nigeria.

 

Natural gas production of 12,249 mcfd decreased 739 mcfd from 2011.  Excluding the impacts of entitlement volumes and divestments, natural gas production was down 1.3 percent, as field decline was partially offset by higher demand and lower downtime.

 

Earnings from U.S. Upstream operations for 2012 were $2,321 million, down $1,591 million from 2011.  Earnings outside the U.S. were $19,812 million, down $1,886 million.

 

 

 

 

 

 

Third Quarter

 

First Nine Months

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

(millions of dollars)

Downstream earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

1,441 

 

$

810 

 

$

2,878 

 

$

2,238 

 

Non-U.S.

 

 

1,749 

 

 

769 

 

 

8,544 

 

 

1,796 

 

 

Total

 

$

3,190 

 

$

1,579 

 

$

11,422 

 

$

4,034 


-17-

 


 

 

 

 

Downstream earnings were $3,190 million in the third quarter of 2012, up $1,611 million from the third quarter of 2011.  Downstream margins, mainly refining, increased earnings by $850 million, while volume and mix effects were essentially flat.  All other items, including higher gains on asset sales of $360 million, favorable foreign exchange effects, and lower operating expenses, increased earnings by $780 million.  Petroleum product sales of 6,105 kbd were 453 kbd lower than last year's third quarter due mainly to divestments and the Japan restructuring.

 

Earnings from the U.S. Downstream were $1,441 million, up $631 million from the third quarter of 2011.  Non-U.S. Downstream earnings of $1,749 million were $980 million higher than last year.        

                _______________________________________________________________________

 

Downstream earnings of $11,422 million in the first nine months of 2012 increased $7,388 million from 2011.  Higher refining margins increased earnings by $1.4 billion, while volume and mix effects increased earnings by $140 million.  All other items increased earnings by $5.8 billion due primarily to a $5.3 billion gain associated with the Japan restructuring and other divestment gains.  Petroleum product sales of 6,197 kbd decreased 189 kbd from 2011 due mainly to divestments and the Japan restructuring.

  

U.S. Downstream earnings were $2,878 million, up $640 million from 2011.  Non-U.S. Downstream earnings were $8,544 million, an increase of $6,748 million from last year.

 

 

 

 

 

 

Third Quarter

 

First Nine Months

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

(millions of dollars)

Chemical earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

565 

 

$

538 

 

$

1,492 

 

$

1,832 

 

Non-U.S.

 

 

225 

 

 

465 

 

 

1,448 

 

 

2,008 

 

 

Total

 

$

790 

 

$

1,003 

 

$

2,940 

 

$

3,840 

 

Chemical earnings of $790 million in the third quarter of 2012 were $213 million lower than the third quarter of 2011.  Lower margins decreased earnings by $150 million.  All other items, mainly unfavorable foreign exchange effects, decreased earnings by $60 million.  Third quarter prime product sales of 5,947 kt (thousands of metric tons) were 285 kt lower than last year's third quarter due mainly to the Japan restructuring.

                _______________________________________________________________________

 

Chemical earnings of $2,940 million for the first nine months of 2012 were $900 million lower than 2011.  Margins decreased earnings by $920 million.  Volume and mix effects lowered earnings by $60 million.  All other items increased earnings by $80 million, as a $630 million gain associated with the Japan restructuring was mostly offset by unfavorable foreign exchange effects and higher operating expenses.  Prime product sales of 18,256 kt were down 479 kt from 2011.

 

 

 

 

Third Quarter

 

First Nine Months

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and financing earnings

 

$

(383)

 

$

(646)

 

$

(1,565)

 

$

(1,824)

 

Corporate and financing expenses were $383 million for the third quarter of 2012, down $263 million from the third quarter of 2011, due mainly to favorable tax items.

                _______________________________________________________________________

 

Corporate and financing expenses were $1,565 million for the first nine months of 2012, down $259 million from 2011 due primarily to the Japan restructuring.


-18-

 


 

 

 

 

LIQUIDITY AND CAPITAL RESOURCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

First Nine Months

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

(millions of dollars)

Net cash provided by/(used in)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

 

$

42,946 

 

$

44,594 

 

Investing activities

 

 

 

 

 

 

 

 

(16,599)

 

 

(20,153)

 

Financing activities

 

 

 

 

 

 

 

 

(26,143)

 

 

(21,211)

Effect of exchange rate changes

 

 

 

 

 

 

 

 

187 

 

 

(33)

Increase/(decrease) in cash and cash equivalents

 

 

 

 

 

 

 

$

391 

 

$

3,197 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (at end of period)

 

 

 

 

 

 

 

$

13,055 

 

$

11,022 

Cash and cash equivalents – restricted (at end of period)

 

 

 

 

 

 

 

 

206 

 

 

233 

Total cash and cash equivalents (at end of period)

 

 

 

 

 

 

 

$

13,261 

 

$

11,255 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from operations and asset sales

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities (U.S. GAAP)

 

$

13,442 

 

$

14,849 

 

$

42,946 

 

$

44,594 

 

Proceeds associated with sales of subsidiaries, property,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

plant & equipment, and sales and returns of investments

 

 

607 

 

 

1,408 

 

 

6,850 

 

 

4,246 

 

Cash flow from operations and asset sales

 

$

14,049 

 

$

16,257 

 

$

49,796 

 

$

48,840 

 

Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider asset sales proceeds together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities.

  

Total cash and cash equivalents of $13.3 billion at the end of the third quarter of 2012 compared to $11.3 billion at the end of the third quarter of 2011.

 

Cash provided by operating activities totaled $42.9 billion for the first nine months of 2012, $1.6 billion lower than 2011. The major source of funds was net income including noncontrolling interests of $37.4 billion, an increase of $4.9 billion from the prior year period.  The adjustment for the noncash provision of $11.8 billion for depreciation and depletion was essentially flat with 2011.  Changes in operational working capital added to cash flows in both periods.  These items were partially offset by the net gain on asset sales of $11.7 billion in 2012 and $1.3 billion in 2011.  For additional details, see the Condensed Consolidated Statement of Cash Flows on page 6.

 

Investing activities for the first nine months of 2012 used net cash of $16.6 billion, a decrease of $3.6 billion compared to the prior year.  Spending for additions to property, plant and equipment increased $1.9 billion to $24.2 billion.  Proceeds from asset sales of $6.9 billion, increased $2.6 billion reflecting the impact of the Japan restructuring.  Additional investment and advances decreased by $2.4 billion to $0.8 billion.

 

Cash flow from operations and asset sales in the third quarter of 2012 of $14.0 billion, including asset sales of $0.6 billion, decreased $2.2 billion from the comparable 2011 period.  Cash flow from operations and asset sales in the first nine months of 2012 of $49.8 billion, including asset sales of $6.9 billion, increased $1.0 billion from the comparable 2011 period.

 

Net cash used in financing activities of $26.1 billion in the first nine months of 2012 was $4.9 billion higher than 2011, reflecting the maturing of the deferred interest debentures in 2012 and the absence of 2011 net short-term debt issuance.

 

During the third quarter of 2012, Exxon Mobil Corporation purchased 58 million shares of its common stock for the treasury at a gross cost of $5.1 billion.  These purchases included $5 billion to reduce the number of shares outstanding with the balance used to acquire shares in conjunction with the company’s benefit plans and programs.  Shares outstanding decreased from 4,616 million at the end of the second quarter to 4,559 million at the end of the third quarter 2012.  Purchases may be made in both the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.


-19-

 


 

 

 

 

The Corporation distributed to shareholders a total of $7.6 billion in the third quarter of 2012 through dividends and share purchases to reduce shares outstanding.

 

Total debt of $12.4 billion compared to $17.0 billion at year-end 2011.  The decrease is due to the maturing of the deferred interest debentures and the impact of divestments.   The Corporation's debt to total capital ratio was 6.7 percent at the end of the third quarter of 2012 compared to 9.6 percent at year-end 2011. 

 

Although the Corporation issues long-term debt from time to time and maintains a revolving commercial paper program, internally generated funds are expected to cover the majority of its net near-term financial requirements

 

The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.  Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses.  Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through acquisitions of assets or companies, and enters into such transactions from time to time.  Key criteria for evaluating acquisitions include potential for future growth and attractive current valuations.  Acquisitions may be made with cash, shares of the Corporation’s common stock, or both. 

 

Litigation and other contingencies are discussed in Note 2 to the unaudited condensed consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TAXES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

First Nine Months

 

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

$

7,394 

 

$

8,009 

 

$

23,647 

 

$

23,734 

 

 

Effective income tax rate

 

 

47 

%

 

47 

%

 

43 

%

 

46 

%

Sales-based taxes

 

 

8,137 

 

 

8,484 

 

 

24,657 

 

 

25,013 

 

All other taxes and duties

 

 

8,652 

 

 

11,084 

 

 

29,891 

 

 

32,575 

 

 

 

Total

 

$

24,183 

 

$

27,577 

 

$

78,195 

 

$

81,322 

 

 

Income, sales-based and all other taxes and duties totaled $24.2 billion for the third quarter of 2012, a decrease of $3.4 billion from 2011.  Income tax expense decreased by $0.6 billion to $7.4 billion reflecting the lower level of earnings.  The effective income tax rate was 47 percent in both periods.  Sales-based taxes and all other taxes and duties decreased by $2.8 billion to $16.8 billion reflecting the Japan restructuring.

                                ________________________________________________________________________

 

Income, sales-based and all other taxes and duties totaled $78.2 billion for the first nine months of 2012, a decrease of $3.1 billion from 2011.  Income tax expense decreased by $0.1 billion to $23.6 billion with the impact of higher earnings offset by the lower effective tax rate.  The effective income tax rate was 43 percent compared to 46 percent in the prior year due to a lower effective tax rate on divestments.  Sales-based and all other taxes decreased by $3.0 billion reflecting the Japan restructuring.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL AND EXPLORATION EXPENDITURES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

First Nine Months

 

 

 

 

2012 

 

2011 

 

2012 

 

2011 

 

 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream (including exploration expenses)

 

$

8,248 

 

$

7,752 

 

$

24,720 

 

$

24,088 

 

Downstream

 

 

583 

 

 

541 

 

 

1,591 

 

 

1,475 

 

Chemical

 

 

350 

 

 

321 

 

 

1,031 

 

 

1,122 

 

Other

 

 

 

 

 

 

14 

 

 

62 

 

 

Total

 

$

9,183 

 

$

8,620 

 

$

27,356 

 

$

26,747 

 

 

Capital and exploration expenditures in the third quarter of 2012 were $9.2 billion, up 7 percent from the third quarter of 2011.

                                ________________________________________________________________________

 

Capital and exploration expenditures were a record $27.4 billion for the first nine months of 2012, up 2 percent, as ExxonMobil continues pursuing opportunities to find and produce new supplies of oil and natural gas to meet global demand for energy.  The Corporation anticipates an investment profile of about $37 billion per year over the next five years.  Actual spending could vary depending on the progress of individual projects and property acquisitions.


-20-

 


 

 

 

FORWARD-LOOKING STATEMENTS

 

Statements relating to future plans, projections, events or conditions are forward-looking statements.  Actual results, including project plans, costs, timing, and capacities; capital and exploration expenditures; resource recoveries; and share purchase levels, could differ materially due to factors including: changes in oil or gas prices or other market or economic conditions affecting the oil and gas industry, including the scope and duration of economic recessions; the outcome of exploration and development efforts; changes in law or government regulation, including tax and environmental requirements; the outcome of commercial negotiations; changes in technical or operating conditions; and other factors discussed under the heading "Factors Affecting Future Results" in the “Investors” section of our website and in Item 1A of ExxonMobil's 2011 Form 10-K.  We assume no duty to update these statements as of any future date.

 

 

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

 

Information about market risks for the nine months ended September 30, 2012, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2011.

 

 

Item 4.  Controls and Procedures

 

As indicated in the certifications in Exhibit 31 of this report, the Corporation’s chief executive officer, principal financial officer and principal accounting officer have evaluated the Corporation’s disclosure controls and procedures as of September 30, 2012.  Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.  There were no changes during the Corporation’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.


-21-

 


 

 

 

PART II.  OTHER INFORMATION

 

Item 1.  Legal Proceedings

 

Regarding a matter previously reported in the Corporation’s 2010 Form 10-K involving the issuance of a notice of violation (NOV) and likely enforcement action by the Pennsylvania Department of Environmental Protection relating to the discharge of fluids at the Marquardt Well Site of XTO Energy Inc. (XTO) in Penn Township, Pennsylvania, on July 19, 2012, the United States Department of Justice (DOJ) and the United States Environmental Protection Agency (EPA) proposed a settlement with XTO for alleged violations of the Federal Water Pollution Control Act arising from the same event. As part of the possible settlement, EPA/DOJ is seeking in excess of $100,000 to resolve the alleged violations of federal law. 

 

Refer to the relevant portions of Note 2 of this Quarterly Report on Form 10-Q for further information on legal proceedings.


-22-

 


 

 

 

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

 

 

 

 

 

 

 

 

 

 

 

 

Issuer Purchase of Equity Securities for Quarter Ended September 30, 2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Number of

 

Maximum Number

 

 

 

 

 

 

 

 

Shares Purchased

 

Of Shares that May

 

 

 

 

Total Number

 

Average

 

as Part of Publicly

 

Yet Be Purchased

 

 

 

 

Of Shares

 

Price Paid

 

Announced Plans

 

Under the Plans or

Period

 

 

 

Purchased

 

per Share

 

or Programs

 

Programs

 

 

 

 

 

 

 

 

 

 

 

July,  2012

 

19,393,880 

 

$85.30

 

19,393,880 

 

 

 

 

 

 

 

 

 

 

 

 

 

August,  2012

 

21,837,573 

 

$87.79

 

21,837,573 

 

 

 

 

 

 

 

 

 

 

 

 

 

September,  2012

 

16,843,181 

 

$90.63

 

16,843,181 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

58,074,634 

 

$87.78

 

58,074,634 

 

(See Note 1)

 

Note 1 - On August 1, 2000, the Corporation announced its intention to resume purchases of shares of its common stock for the treasury both to offset shares issued in conjunction with company benefit plans and programs and to gradually reduce the number of shares outstanding.  The announcement did not specify an amount or expiration date.  The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases.  In its most recent earnings release dated November 1, 2012, the Corporation stated that fourth quarter 2012 share purchases to reduce shares outstanding are anticipated to equal $5 billion.  Purchases may be made in both the open market and through negotiated transactions, and purchases may be increased, decreased or discontinued at any time without prior notice.

 

 

Item 6.  Exhibits

 

Exhibit

 

Description

 

 

 

10(iii)(f.2)

 

Standing resolution for non-employee director restricted grants dated, September 26, 2007.

31.1

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer.

31.2

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Financial Officer.

31.3

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.

32.1

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer.

32.2

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Financial Officer.

32.3

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer.

101

 

Interactive Data Files.


-23-

 


 

 

 

EXXON MOBIL CORPORATION

 

SIGNATURE

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

                                                                                               

 

 

 

EXXON MOBIL CORPORATION

 

Date: November 6, 2012 

By:

/s/  Patrick T. Mulva

 

 

Name:

Patrick T. Mulva

 

 

Title:

Vice President, Controller and

 

 

 

Principal Accounting Officer

 

 

 

 


-24-

 


 

 

 

INDEX TO EXHIBITS

 

 

Exhibit

 

Description

 

 

 

10(iii)(f.2)

 

Standing resolution for non-employee director restricted grants dated September 26, 2007.

31.1

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer.

31.2

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Financial Officer.

31.3

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.

32.1

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer.

32.2

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Financial Officer.

32.3

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer.

101

 

Interactive Data Files.

 


-25-