Enhanced Investments - Financial Portal

Published: 2020-11-04


	IMPERIAL OIL LIMITED



Consolidated statement of income (U.S. GAAP, unaudited)

								Nine Months
					Third Quarter		to September 30
millions of Canadian dollars									2020	2019		2020		2019
Revenues and other income
			Revenues (a)	5,937	8,687			16,267	25,880
			Investment and other income (note 4)		18	49	88	99
Total revenues and other income				5,955	8,736			16,355	25,979

Expenses
			Exploration		2	4	6	42
			Purchases of crude oil and products (b)	3,634	5,399			9,975	15,956
			Production and manufacturing (c) (note 13)	1,246	1,601			4,098	4,911
			Selling and general (c)		150	217	499	666
			Federal excise tax and fuel charge		470	486		1,290	1,343
			Depreciation and depletion (note 13)		409	419		1,295	1,201
			Non-service pension and postretirement benefit		31	36	91	108
			Financing (d) (note 7)		10	20	46	71
Total expenses				5,952	8,182			17,300	24,298

Income (loss) before income taxes					3	554		(945)	1,681

Income taxes					-	130		(234)			(248)

Net income (loss)					3	424		(711)	1,929

Per share information (Canadian dollars)
Net income (loss) per common share - basic (note 11)					-					0.56	(0.97)		2.51
Net income (loss) per common share - diluted (note 11)					-					0.56	(0.97)		2.51
(a)			Amounts from related parties included in revenues.						1,216	2,313	3,699		6,269
(b)			Amounts to related parties included in purchases of crude oil and products.		627	717		1,762			2,353
(c) Amounts to related parties included in production and manufacturing,
					107	157	428	479
			and selling and general expenses.
(d) Amounts to related parties included in financing, (note 7).					12	23	50	75
The information in the notes to consolidated financial statements is an integral part of these statements.

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	IMPERIAL OIL LIMITED


									Consolidated statement of comprehensive income (U.S. GAAP, unaudited)

								Nine Months
					Third Quarter		to September 30
millions of Canadian dollars									2020	2019	2020	2019
Net income (loss)					3	424			(711)	1,929

Other comprehensive income (loss), net of income taxes
			Postretirement benefits liability adjustment (excluding amortization)		-	-			(114)	18

			Amortization of postretirement benefits liability adjustment
				included in net periodic benefit costs		34	28		102	83
Total other comprehensive income (loss)					34	28		(12)	101

Comprehensive income (loss)					37	452			(723)	2,030
The information in the notes to consolidated financial statements is an integral part of these statements.

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	IMPERIAL OIL LIMITED



Consolidated balance sheet (U.S. GAAP, unaudited)

				As at		As at
				Sept 30 Dec 31
millions of Canadian dollars				2020		2019
Assets
Current assets
			Cash	817		1,718
			Accounts receivable, less estimated doubtful accounts (a) (note 5)	1,732		2,699
			Inventories of crude oil and products	1,088		1,296
			Materials, supplies and prepaid expenses	764	616
Total current assets				4,401		6,329
Investments and long-term receivables (b) (note 5)				771	891
Property, plant and equipment,				55,463		54,868
			less accumulated depreciation and depletion	(21,881)		(20,665)
Property, plant and equipment, net				33,582		34,203
Goodwill (note 13)				166	186
Other assets, including intangibles, net				462	578
Total assets				39,382		42,187

Liabilities
Current liabilities
			Notes and loans payable (c)	227	229
			Accounts payable and accrued liabilities (a) (note 9)	3,229		4,260
			Income taxes payable	-	106
Total current liabilities				3,456		4,595
Long-term debt (d) (note 8)				4,962		4,961
Other long-term obligations (note 9)				3,713		3,637
Deferred income tax liabilities				4,459		4,718
Total liabilities				16,590		17,911

Shareholders' equity
Common shares at stated value (e) (note 11)				1,357		1,375
Earnings reinvested				23,358		24,812
Accumulated other comprehensive income (loss) (note 12)				(1,923)		(1,911)
Total shareholders' equity				22,792		24,276

Total liabilities and shareholders' equity				39,382		42,187
(a)			Accounts receivable, less estimated doubtful accounts included net amounts receivable from related parties of $240 million (2019 - $1,007 million).
(b)			Investments and long-term receivables included amounts from related parties of $313 million (2019 - $296 million).
(c)			Notes and loans payable included amounts to related parties of $111 million (2019 - $111 million).
(d)			Long-term debt included amounts to related parties of $4,447 million (2019 - $4,447 million).
(e)			Number of common shares authorized and outstanding were 1,100 million and 734 million, respectively (2019 - 1,100 million and 744 million, respectively).
The information in the notes to consolidated financial statements is an integral part of these statements.
Approved by the directors November 4, 2020 /s/ Bradley W. Corson
							/s/ Daniel E. Lyons
Chairman, president and
							Senior vice-president,
chief executive officer							finance and administration, and controller

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	IMPERIAL OIL LIMITED


Consolidated statement of shareholders' equity (U.S. GAAP, unaudited)

									Nine Months
			Third Quarter			to September
						30	millions of Canadian dollars			2020	2019	2020	2019
Common shares at stated value (note 11)
At beginning of period			1,357	1,410				1,375	1,446
Share purchases at stated value			-	(19)		(18)			(55)
At end of period			1,357	1,391				1,357	1,391

Earnings reinvested
At beginning of period			23,516	25,056	24,812	24,560
Net income (loss) for the period			3	424				(711)	1,929
Share purchases in excess of stated value			-	(324)				(256)	(1,017)
Dividends declared			(161)	(166)				(485)	(482)
Cumulative effect of accounting change (note 5)			-	-		(2)	-
At end of period			23,358	24,990	23,358	24,990

Accumulated other comprehensive income (loss) (note 12)
At beginning of period			(1,957)	(1,444)	(1,911)	(1,517)
Other comprehensive income (loss)			34	28		(12)			101
At end of period			(1,923)	(1,416)	(1,923)	(1,416)

Shareholders' equity at end of period			22,792	24,965	22,792	24,965
The information in the notes to consolidated financial statements is an integral part of these statements.

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	IMPERIAL OIL LIMITED



Consolidated statement of cash flows (U.S. GAAP, unaudited)

								Nine Months
Inflow (outflow)				Third Quarter		to September 30
millions of Canadian dollars									2020	2019	2020		2019
Operating activities
Net income (loss)					3	424		(711)	1,929
Adjustments for non-cash items:
			Depreciation and depletion		409	419		1,275	1,201
			Impairment of intangible assets (note 13)		-	-	20	-
			(Gain) loss on asset sales (note 4)		(11)	(28)	(28)	(34)
			Deferred income taxes and other		(11)	116		(210)			(359)
Changes in operating assets and liabilities:
			Accounts receivable		134	250	967				(355)
			Inventories, materials, supplies and prepaid expenses		142	264	60	243
			Income taxes payable		-	8		(106)	(29)
			Accounts payable and accrued liabilities		66	(82)		(1,008)	646
All other items - net (b)					143	5	223	163
Cash flows from (used in) operating activities					875	1,376		482	3,405

Investing activities
Additions to property, plant and equipment									(142)	(417)	(657)	(1,242)
Proceeds from asset sales (note 4)					19	30	68	66
Loans to equity companies - net					(2)	(26)	(16)				(129)
Cash flows from (used in) investing activities									(125)	(413)	(605)	(1,305)

Financing activities
Reduction in finance lease obligations (note 8)					(4)	(7)	(16)	(20)
Dividends paid									(162)	(169)	(488)		(465)
Common shares purchased (note 11)					-					(343)	(274)	(1,072)
Cash flows from (used in) financing activities									(166)	(519)	(778)	(1,557)

Increase (decrease) in cash					584	444		(901)	543
Cash at beginning of period					233	1,087			1,718	988
Cash at end of period (a)					817	1,531		817	1,531
(a)			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.
(b)			Included contributions to registered pension plans.		(59)	(57)		(159)	(155)

Income taxes (paid) refunded.					107	35	(45)	84
Interest (paid), net of capitalization.*					(10)	(20)	(46)	(71)
*Note: restated 2019
The information in the notes to consolidated financial statements is an integral part of these statements.

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	IMPERIAL OIL LIMITED


Notes to consolidated financial statements (unaudited) 1. Basis of financial statement preparation

These unaudited consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (GAAP) and follow the same accounting policies and methods of computation as, and should be read in conjunction with, the most recent annual consolidated financial statements filed with the U.S. Securities and Exchange Commission (SEC) in the
			company’s 2019 annual
report on Form 10-K. In the opinion of the company, 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
company’s exploration and production activities are accounted for under the "successful efforts" method.
The results for the nine months ended September 30, 2020, are not necessarily indicative of the operations to be expected for the full year. All amounts are in Canadian dollars unless otherwise indicated. 2. Accounting changes Effective January 1, 2020, Imperial adopted the Financial Accounting Standards
			Board’s update, Financial
Instruments - Credit Losses (Topic 326), as amended. The standard requires a valuation allowance for credit losses be recognized for certain financial assets that reflects the current expected credit loss over the
				asset’s
contractual life. The valuation allowance considers the risk of loss, even if remote and considers past events, current conditions and expectations of the future. The standard did not have a material impact on the company
					’s financial statements.

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	IMPERIAL OIL LIMITED


3. Business segments

Third Quarter								Upstream		Downstream					Chemical
millions of Canadian dollars		2020								2019	2020	2019	2020				2019
Revenues and other income
			Revenues (a)					1,651		2,185	4,061	6,266		225	236
			Intersegment sales	658		913	321	314	43	61
			Investment and other income (note 4)	(6)		7	24	32	-	1
									2,303		3,105	4,406	6,612		268	298
Expenses
			Exploration	2		4	-	-	-	-
			Purchases of crude oil and products					1,176		1,376	3,322	5,142		157	167
			Production and manufacturing (note 13)	863								1,087	335	460	48	54
			Selling and general	-		-	140	191	23	23
			Federal excise tax and fuel charge	-		-	470	486	-	-
			Depreciation and depletion (note 13)	361		364	37	45	5	4
			Non-service pension and postretirement benefit
		-		-	-	-	-	-
			Financing (note 7)	-		-	-	-	-	-
Total expenses								2,402		2,831	4,304	6,324		233	248
Income (loss) before income taxes		(99)		274	102	288	35	50
Income taxes		(25)		65	25	67	8	12
Net income (loss)		(74)		209	77	221	27	38
Cash flows from (used in) operating activities		526		392	333	900	32	75
Capital and exploration expenditures (b)		78		302	50	124	4	4


Third Quarter								Corporate and other	Eliminations			Consolidated
millions of Canadian dollars		2020								2019	2020	2019	2020				2019
Revenues and other income
			Revenues (a)	-		-	-	-			5,937	8,687
			Intersegment sales	-		-	(1,022)	(1,288)		-	-
			Investment and other income (note 4)	-		9	-	-	18	49
					-		9	(1,022)	(1,288)				5,955	8,736
Expenses
			Exploration	-		-	-	-	2	4
			Purchases of crude oil and products	-		-	(1,021)	(1,286)				3,634	5,399
			Production and manufacturing (note 13)	-		-	-	-			1,246	1,601
			Selling and general	(12)		5	(1)	(2)	150	217
			Federal excise tax and fuel charge	-		-	-	-	470	486
			Depreciation and depletion (note 13)	6		6	-	-	409	419
			Non-service pension and postretirement benefit
		31		36	-	-	31	36
			Financing (note 7)	10		20	-	-	10	20
Total expenses		35		67	(1,022)	(1,288)				5,952	8,182
Income (loss) before income taxes		(35)		(58)	-	-	3	554
Income taxes		(8)		(14)	-	-	-	130
Net income (loss)		(27)		(44)	-	-	3	424
Cash flows from (used in) operating activities		(16)		9	-	-	875	1,376
Capital and exploration expenditures (b)		9		12	-	-	141	442

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	IMPERIAL OIL LIMITED


(a) Included export sales to the United States of $1,227 million (2019 - $1,807 million). Export sales to the United States were recorded
in all operating segments, with the largest effects in the Upstream segment.
(b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions
to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits.

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	IMPERIAL OIL LIMITED



Nine Months to September 30								Upstream		Downstream					Chemical
millions of Canadian dollars		2020								2019	2020	2019	2020				2019
Revenues and other income
			Revenues (a)					4,211		7,012	11,444	18,115		612	753
			Intersegment sales					1,642		2,977	1,013	1,249		114	181
			Investment and other income (note 4)	4		11	66	61	1	1
									5,857	10,000		12,523	19,425		727	935
Expenses
			Exploration	6		42	-	-	-	-
			Purchases of crude oil and products					3,338		4,764	8,987	15,062		416	531
			Production and manufacturing (note 13)					2,855		3,414	1,086	1,315		157	182
			Selling and general	-		-	456	571	69	67
			Federal excise tax and fuel charge	-		-							1,290	1,343		-	-
			Depreciation and depletion (note 13)					1,141		1,036	123	137	13	11
			Non-service pension and postretirement benefit
		-		-	-	-	-	-
			Financing (note 7)	-		-	-	-	-	-
Total expenses								7,340		9,256	11,942	18,428		655	791
Income (loss) before income taxes								(1,483)	744	581	997	72	144
Income tax expense (benefit)		(357)								(508)	134	261	17	34
Net income (loss)								(1,126)		1,252	447	736	55	110
Cash flows from (used in) operating activities		22								1,257	443	2,055		75	175
Capital and exploration expenditures (b)		454		975	177	364	15	27
Total assets as at September 30 (note 13)								32,941	35,066									4,590	4,433	417	423


Nine Months to September 30								Corporate and other	Eliminations			Consolidated
millions of Canadian dollars		2020								2019	2020	2019	2020				2019
Revenues and other income
			Revenues (a)	-		-	-	-	16,267	25,880
			Intersegment sales	-		-	(2,769)	(4,407)		-	-
			Investment and other income (note 4)	17		26	-	-	88	99
					17		26	(2,769)	(4,407)	16,355	25,979
Expenses
			Exploration	-		-	-	-	6	42
			Purchases of crude oil and products	-		-	(2,766)	(4,401)				9,975	15,956
			Production and manufacturing (note 13)	-		-	-	-			4,098	4,911
			Selling and general	(23)		34	(3)	(6)	499	666
			Federal excise tax and fuel charge	-		-	-	-			1,290	1,343
			Depreciation and depletion (note 13)	18		17	-	-			1,295	1,201
			Non-service pension and postretirement benefit
		91		108	-	-	91	108
			Financing (note 7)	46		71	-	-	46	71
Total expenses		132		230	(2,769)	(4,407)	17,300	24,298
Income (loss) before income taxes		(115)								(204)	-	-			(945)	1,681
Income tax expense (benefit)		(28)		(35)	-	-			(234)				(248)
Net income (loss)		(87)								(169)	-	-			(711)	1,929
Cash flows from (used in) operating activities		(58)		(82)	-	-	482	3,405
Capital and exploration expenditures (b)		33		34	-	-	679	1,400
Total assets as at September 30 (note 13)								1,679		2,298	(245)	(313)	39,382	41,907

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	IMPERIAL OIL LIMITED


(a) Included export sales to the United States of $3,339 million (2019 - $5,623 million). Export sales to the United States were recorded
in all operating segments, with the largest effects in the Upstream segment.
(b) Capital and exploration expenditures (CAPEX) include exploration expenses, additions to property, plant and equipment, additions
to finance leases, additional investments and acquisitions. CAPEX excludes the purchase of carbon emission credits.

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	IMPERIAL OIL LIMITED


4. Investment and other income

Investment and other income included gains and losses on asset sales as follows:
										Nine Months
					Third Quarter			to September 30
millions of Canadian dollars				2020	2019		2020	2019
Proceeds from asset sales				19	30		68	66
Book value of asset sales				8	2		40	32
Gain (loss) on asset sales, before tax				11	28		28	34
Gain (loss) on asset sales, after tax				10	25		25	31
5. Allowance for current expected credit loss (CECL) Effective January 1, 2020, the company adopted the Financial Accounting Standards
					Board’s update,
Financial Instruments									– Credit Losses (Topic 326), as amended. The standard requires a valuation allowance
for credit losses be recognized for certain financial assets that reflects the current expected credit loss over the
asset’s contractual life. The valuation allowance considers the risk of loss, even if remote, and considers
past events, current conditions and reasonable and supportable forecasts. The standard requires this expected loss methodology for trade receivables, certain other financial assets and off-balance-sheet credit exposures. The cumulative effect adjustment related to the adoption of this standard reduced
							“Earnings
reinvested” in Shareholders’ equity by $2 million. The company is exposed to credit losses primarily through sales of petroleum products, crude oil, natural gas liquids and natural gas, as well as loans to equity companies and joint venture receivables. A
							counterparty’s
ability to pay is assessed through a credit review process that considers payment terms, the						counterparty’s
established credit rating or the										company’s assessment of the counterparty’s credit worthiness, contract terms,
and other risks. The company can require prepayment or collateral to mitigate certain credit risks. The company groups financial assets into portfolios that share similar risk characteristics for purposes of determining the allowance for credit losses. Each reporting period, the company assesses whether a significant change in credit loss or risk has occurred. Among the quantitative and qualitative factors considered are historical financial data, current conditions, industry and country risk, current credit ratings and the quality of third-party guarantees secured from the counterparty. Financial assets are written off in whole, or in part, when practical recovery efforts have been exhausted and no reasonable expectation of recovery exists. Subsequent recoveries of amounts previously written off are recognized in earnings. The company manages receivable portfolios using past due balances as a key credit quality indicator. The company recognizes a credit allowance for off-balance-sheet credit exposures as a liability on the balance sheet, separate from the allowance for credit losses related to recognized financial assets. These exposures could include unfunded loans to equity companies and financial guarantees that cannot be cancelled unilaterally by the company. In 2020, the COVID-19 pandemic spread rapidly through most areas of the world resulting in economic uncertainty, global financial market volatility, and negative effects in the credit markets. The company has considered these effects, along with the significantly lower balances of trade receivables at the end of the quarter, in its estimate of credit losses and concluded no material adjustment to credit allowances in the quarter was required. At September 30, 2020, the
											company’s evaluation of financial assets under Financial
Instruments			– Credit Losses (Topic 326), as amended included $1,400 million of accounts receivable, net of
allowances of $4 million, and investments and long-term receivables of $327 million. The company has determined that, at this time, no credit allowance is required for investments and long-term receivables, and for off-balance-sheet credit exposures.

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	IMPERIAL OIL LIMITED


6. Employee retirement benefits

The components of net benefit cost were as follows:
								Nine Months
				Third Quarter			to September 30
millions of Canadian dollars								2020	2019	2020		2019
Pension benefits:
			Current service cost	76	57	229	171
			Interest cost	77	81	231	243
			Expected return on plan assets	(97)	(87)		(293)			(262)
			Amortization of prior service cost	4	-	11	-
			Amortization of actuarial loss (gain)	38	37	115	112
			Net periodic benefit cost	98	88	293	264

Other postretirement benefits:
			Current service cost	6	4	18	12
			Interest cost	6	5	18	16
			Amortization of actuarial loss (gain)	3	-	9	(1)
			Net periodic benefit cost	15	9	45	27
7. Financing costs
							Nine Months
				Third Quarter		to September 30
millions of Canadian dollars								2020	2019		2020		2019
Debt-related interest				19	32	79	105
Capitalized interest				(9)	(12)	(33)	(34)
Net interest expense				10	20	46	71
Other interest				-	-	-	-
Total financing				10	20	46	71
During the second quarter of 2020, in addition to existing credit facilities of $500 million, the company entered into a $500 million committed short-term line of credit to May 2021, and a $300 million committed short-term line of credit to June 2021. The company has not drawn on any of its credit facilities. 8. Long-term debt
							As at			As at
							Sept 30	Dec 31
millions of Canadian dollars							2020				2019
Long-term debt							4,447				4,447
Finance leases							515		514
Total long-term debt							4,962				4,961

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	IMPERIAL OIL LIMITED


9. Other long-term obligations
			As at	As at
				Sept 30	Dec 31
millions of Canadian dollars			2020			2019
Employee retirement benefits (a)			1,965			1,822
Asset retirement obligations and other environmental liabilities (b)			1,388			1,388
Share-based incentive compensation liabilities			33			65
Operating lease liability (c)			95			143
Other obligations			232			219
Total other long-term obligations			3,713			3,637
(a) Total recorded employee retirement benefits obligations also included $58 million in current liabilities (2019 - $58 million). (b) Total asset retirement obligations and other environmental liabilities also included $124 million in current liabilities (2019 - $124
million).
(c) Total operating lease liability also included $95 million in current liabilities (2019 - $115 million).						In addition to the total operating
lease liability, additional undiscounted commitments for leases not yet commenced totalled $27 million (2019 - $6 million).
10. Financial and derivative instruments Financial instruments

The fair value of the							company’s financial instruments is determined by reference to various market data and
other appropriate valuation techniques. There are no material differences between the fair value of the company’s financial instruments and the recorded carrying value. At September 30, 2020 and December 31, 2019 the fair value of long-term debt ($4,447 million, excluding finance lease obligations) was primarily a level 2 measurement.

Derivative instruments

The	company’s size, strong capital structure and the complementary nature of the Upstream, Downstream
and Chemical businesses reduce the									company’s enterprise-wide risk from changes in commodity prices and
currency exchange rates. In addition, the company uses commodity-based contracts, including derivative instruments to manage commodity price risk. The company does not designate derivative instruments as a hedge for hedge accounting purposes.

Credit risk associated with the
										company’s derivative position is mitigated by several factors, including the use
of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

At September 30, 2020, the carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $2 million, gross liabilities of $3 million and collateral receivable of $6 million, with the net effects reflected in
								“Accounts receivable, less estimated doubtful accounts” on the Consolidated balance
sheet. At December 31, 2019 the carrying values of derivative instruments on the Consolidated balance sheet were gross assets of $0 million, gross liabilities of $2 million and collateral receivable of $6 million.

At September 30, 2020, the net notional forward long / (short) position of derivative instruments was 200,000 barrels for crude and (780,000) barrels for products. At December 31, 2019, the net notional forward long / (short) position of derivative instruments was (590,000) barrels for crude and 0 barrels for products.

Realized and unrealized gain or (loss) on derivative instruments recognized on the Consolidated statement of income is included in the following lines on a before-tax basis:


								Nine Months
												Third Quarter	to September 30
millions of Canadian dollars											2020	2019	2020	2019
Revenues						1	-	(7)	(2)
Purchases of crude oil and products						-	1	(18)	(5)
Total						1	1	(25)	(7)

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	IMPERIAL OIL LIMITED


11. Common shares
				As of	As of
					Sept 30	Dec 31
thousands of shares				2020	2019
Authorized				1,100,000	1,100,000
Common shares outstanding				734,077	743,902
The current 12-month limited normal course issuer bid program came into effect on June 29, 2020 and is used primarily to eliminate dilution from shares issued in conjunction with Imperial's restricted stock unit plan. The program enables the company to purchase up to a maximum of 50,000 common shares, which includes shares purchased under the normal course issuer bid and from Exxon Mobil Corporation concurrent with, but outside of the normal course issuer bid. As in the past, Exxon Mobil Corporation has advised the company that it intends to participate to maintain its ownership percentage at approximately 69.6 percent.

The excess of the purchase cost over the stated value of shares purchased has been recorded as a distribution of earnings reinvested.


The company's common share activities are summarized below:
								Thousands of	Millions of
				shares	dollars
Balance as at December 31, 2018				782,565	1,446
Issued under employee share-based awards				1	-
Purchases at stated value				(38,664)	(71)
Balance as at December 31, 2019				743,902	1,375
Issued under employee share-based awards				-	-
Purchases at stated value				(9,825)	(18)
Balance as at September 30, 2020				734,077	1,357

The following table provides the calculation of basic and diluted earnings per common share and the dividends declared by the company on its outstanding common shares:
											Nine Months
								Third Quarter		to September 30
								2020	2019					2020	2019
Net income (loss) per common share - basic
Net income (loss) (millions of Canadian dollars)								3	424					(711)	1,929
Weighted average number of common shares outstanding (millions of shares)							734.1	757.8					735.7	767.6
Net income (loss) per common share (dollars)								-	0.56					(0.97)	2.51
												Net income (loss) per common share - diluted
Net income (loss) (millions of Canadian dollars)								3	424					(711)	1,929
Weighted average number of common shares outstanding (millions of shares)							734.1	757.8					735.7	767.6
Effect of employee share-based awards (millions of shares) (a)								2.2	2.5					-	2.4
Weighted average number of common shares outstanding,
			assuming dilution (millions of shares)				736.3	760.3					735.7	770.0
Net income (loss) per common share (dollars)								-	0.56					(0.97)	2.51
Dividends per common share - declared (dollars)							0.22	0.22					0.66	0.63
(a) For Nine Months to September 30, 2020, the Net income (loss) per common share							– diluted excludes the effect of 2.1 million
employee share-based awards. Share-based awards have the potential to dilute basic earnings per share in the future.

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	IMPERIAL OIL LIMITED


12. Other comprehensive income (loss) information

Changes in accumulated other comprehensive income (loss):

millions of Canadian dollars							2020	2019
Balance at January 1						(1,911)	(1,517)
Postretirement benefits liability adjustment:
			Current period change excluding amounts reclassified
				from accumulated other comprehensive income				(114)	18
			Amounts reclassified from accumulated other comprehensive income			102	83
Balance at September 30						(1,923)	(1,416)

Amounts reclassified out of accumulated other comprehensive income (loss) - before-tax income (expense):

								Nine Months
									Third Quarter	to September 30
millions of Canadian dollars								2020	2019		2020	2019
Amortization of postretirement benefits liability adjustment
			included in net periodic benefit cost (a)	(45)	(37)		(135)	(111)
(a) This accumulated other comprehensive income component is included in the computation of net periodic benefit cost, (note 6).

Income tax expense (credit) for components of other comprehensive income (loss):

								Nine Months
									Third Quarter	to September 30
millions of Canadian dollars								2020	2019		2020	2019
Postretirement benefits liability adjustments:
			Postretirement benefits liability adjustment (excluding amortization)	-	-	(37)	7
			Amortization of postretirement benefits liability adjustment
				included in net periodic benefit cost	11	9	33	28
Total				11	9	(4)	35
13. Miscellaneous financial information In the second quarter of 2020, the Government of Canada implemented the Canada Emergency Wage Subsidy (CEWS) as part of its COVID-19 Economic Response Plan. The
								program’s intent is to help sustain
employment levels by providing expense relief to companies during the pandemic. The company qualified for these wage subsidies which are recognized throughout the year when received. The relief provided under this program, about $120 million (before tax) year-to-date, including the
									company’s proportionate share of a joint
venture, is recognized as a reduction to expense and is included in the Consolidated statement of income, primarily as part of
										“Production and manufacturing”.
As disclosed in
										Imperial’s 2019 Form 10-K, goodwill is tested for impairment annually or more frequently if
events or circumstances indicate it might be impaired. 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 goodwill impairment charge of $20 million in the company’s Upstream segment. The goodwill impairment is reflected in “Depreciation and depletion” on the Consolidated statement of income and
	“Goodwill” on the Consolidated balance sheet. The remaining balance
of goodwill is associated with the Downstream segment.

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