xom-20200930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐ 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 incorporation or organization)						(I.R.S. Employer Identification Number)

5959 Las Colinas Boulevard, Irving, Texas 75039-2298

(Address of principal executive offices) (Zip Code)

(972) 940-6000

(Registrant's telephone number, including area code)

_______________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange
on Which Registered

Common Stock, without par value

XOM

New York Stock Exchange

0.142% Notes due 2024

XOM24B

New York Stock Exchange

0.524% Notes due 2028

XOM28

New York Stock Exchange

0.835% Notes due 2032

XOM32

New York Stock Exchange

1.408% Notes due 2039

XOM39A

New York Stock Exchange

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 every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

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


Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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

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, 2020
Common stock, without par value						4,228,234,114

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2020

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Statement of Income Three and nine months ended September 30, 2020 and 2019			3

Condensed Consolidated Statement of Comprehensive Income Three and nine months ended September 30, 2020 and 2019			4

Condensed Consolidated Balance Sheet As of September 30, 2020 and December 31, 2019			5

Condensed Consolidated Statement of Cash Flows Nine months ended September 30, 2020 and 2019			6

Condensed Consolidated Statement of Changes in Equity Three months ended September 30, 2020 and 2019			7

Condensed Consolidated Statement of Changes in Equity Nine months ended September 30, 2020 and 2019			8

Notes to Condensed Consolidated Financial Statements			9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			20

Item 3. Quantitative and Qualitative Disclosures About Market Risk			30

Item 4. Controls and Procedures			30


PART II. OTHER INFORMATION

Item 1. Legal Proceedings			31

Item 1A. Risk Factors			31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32

Item 6. Exhibits			32

Index to Exhibits			33

Signature			34

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)
	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Revenues and other income
Sales and other operating revenue	45,425	63,422	132,836	192,559
Income from equity affiliates	517	1,196	1,395	4,264
Other income	257	431	731	942
Total revenues and other income	46,199	65,049	134,962	197,765
Costs and other deductions
Crude oil and product purchases	23,950	35,290	70,102	109,033
Production and manufacturing expenses	7,103	8,848	22,295	27,340
Selling, general and administrative expenses	2,444	2,753	7,432	8,350
Depreciation and depletion	4,983	4,873	15,718	14,075
Exploration expenses, including dry holes	188	299	690	912
Non-service pension and postretirement benefit expense	272	357	812	1,028
Interest expense	279	232	845	629
Other taxes and duties	7,352	7,676	19,338	22,756
Total costs and other deductions	46,571	60,328	137,232	184,123
Income (Loss) before income taxes	(372)	4,721	(2,270)	13,642
Income taxes	337	1,474	378	4,598
Net income (loss) including noncontrolling interests	(709)	3,247	(2,648)	9,044
Net income (loss) attributable to noncontrolling interests	(29)	77	(278)	394
Net income (loss) attributable to ExxonMobil	(680)	3,170	(2,370)	8,650

Earnings (Loss) per common share (dollars)	(0.15)	0.75	(0.55)	2.03

Earnings (Loss) per common share - assuming dilution (dollars)	(0.15)	0.75	(0.55)	2.03

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(millions of dollars)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Net income (loss) including noncontrolling interests	(709)	3,247	(2,648)	9,044
Other comprehensive income (loss) (net of income taxes)
Foreign exchange translation adjustment	1,469	(1,424)	(1,305)	(75)
Adjustment for foreign exchange translation (gain)/loss included in net income	14	—	14	—
Postretirement benefits reserves adjustment (excluding amortization)	(140)	103	(189)	43
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	206	186	613	512
Total other comprehensive income (loss)	1,549	(1,135)	(867)	480
Comprehensive income (loss) including noncontrolling interests	840	2,112	(3,515)	9,524
Comprehensive income (loss) attributable to noncontrolling interests	92	14	(449)	587
Comprehensive income (loss) attributable to ExxonMobil	748	2,098	(3,066)	8,937

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)
	September 30, 2020	December 31, 2019
Assets
Current assets
Cash and cash equivalents	8,832	3,089
Notes and accounts receivable – net	19,974	26,966
Inventories
Crude oil, products and merchandise	13,162	14,010
Materials and supplies	4,723	4,518
Other current assets	2,002	1,469
Total current assets	48,693	50,052
Investments, advances and long-term receivables	43,609	43,164
Property, plant and equipment – net	250,496	253,018
Other assets, including intangibles – net	15,245	16,363
Total assets	358,043	362,597

Liabilities
Current liabilities
Notes and loans payable	21,911	20,578
Accounts payable and accrued liabilities	33,340	41,831
Income taxes payable	1,217	1,580
Total current liabilities	56,468	63,989
Long-term debt	46,888	26,342
Postretirement benefits reserves	22,097	22,304
Deferred income tax liabilities	24,467	25,620
Long-term obligations to equity companies	3,486	3,988
Other long-term obligations	20,025	21,416
Total liabilities	173,431	163,659

Commitments and contingencies (Note 3)

Equity
Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued)	15,997	15,637
Earnings reinvested	407,728	421,341
Accumulated other comprehensive income	(20,189)	(19,493)
Common stock held in treasury
(3,791 million shares at September 30, 2020 and 3,785 million shares at December 31, 2019)	(226,136)	(225,835)
ExxonMobil share of equity	177,400	191,650
Noncontrolling interests	7,212	7,288
Total equity	184,612	198,938
Total liabilities and equity	358,043	362,597

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
	Nine Months Ended September 30,
	2020	2019
Cash flows from operating activities
Net income (loss) including noncontrolling interests	(2,648)	9,044
Depreciation and depletion	15,718	14,075
Noncash inventory adjustment - lower of cost or market	61	—
Changes in operational working capital, excluding cash and debt	(1,539)	2,564
All other items – net	(929)	(2,319)
Net cash provided by operating activities	10,663	23,364

Cash flows from investing activities
Additions to property, plant and equipment	(13,653)	(17,657)
Proceeds associated with sales of subsidiaries, property, plant and
equipment, and sales and returns of investments	229	600
Additional investments and advances	(3,443)	(2,532)
Other investing activities including collection of advances	1,710	769
Net cash used in investing activities	(15,157)	(18,820)

Cash flows from financing activities
Additions to long-term debt	23,186	7,019
Reductions in long-term debt	(4)	—
Reductions in short-term debt	(1,651)	(3,836)
Additions/(reductions) in commercial paper, and debt with three months or less maturity (1)	139	6,139
Contingent consideration payments	(21)	—
Cash dividends to ExxonMobil shareholders	(11,150)	(10,936)
Cash dividends to noncontrolling interests	(137)	(157)
Changes in noncontrolling interests	511	30
Common stock acquired	(305)	(421)
Net cash used in financing activities	10,568	(2,162)
Effects of exchange rate changes on cash	(331)	(73)
Increase/(decrease) in cash and cash equivalents	5,743	2,309
Cash and cash equivalents at beginning of period	3,089	3,042
Cash and cash equivalents at end of period	8,832	5,351

Supplemental Disclosures
Income taxes paid	2,341	5,259
Cash interest paid
Included in cash flows from operating activities	726	515
Capitalized, included in cash flows from investing activities	516	540
Total cash interest paid	1,242	1,055

(1) Includes a net addition of commercial paper with a maturity of over three months of $6.4 billion in 2020 and $3.1 billion in 2019. The gross amount of commercial paper with a maturity of over three months issued was $28.8 billion in 2020 and $13.4 billion in 2019, while the gross amount repaid was $22.4 billion in 2020 and $10.3 billion in 2019.

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)
	ExxonMobil Share of Equity
	Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
Balance as of June 30, 2019	15,639	419,913	(18,205)	(225,970)	191,377	7,088	198,465
Amortization of stock-based awards	156	—	—	—	156	—	156
Other	—	—	—	—	—	228	228
Net income (loss) for the period	—	3,170	—	—	3,170	77	3,247
Dividends - common shares	—	(3,716)	—	—	(3,716)	(57)	(3,773)
Other comprehensive income (loss)	—	—	(1,072)	—	(1,072)	(63)	(1,135)
Acquisitions, at cost	—	—	—	—	—	(79)	(79)
Dispositions	—	—	—	—	—	—	—
Balance as of September 30, 2019	15,795	419,367	(19,277)	(225,970)	189,915	7,194	197,109

Balance as of June 30, 2020	15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153
Amortization of stock-based awards	187	—	—	—	187	—	187
Other	(2)	—	—	—	(2)	194	192
Net income (loss) for the period	—	(680)	—	—	(680)	(29)	(709)
Dividends - common shares	—	(3,716)	—	—	(3,716)	(44)	(3,760)
Other comprehensive income (loss)	—	—	1,428	—	1,428	121	1,549
Acquisitions, at cost	—	—	—	—	—	—	—
Dispositions	—	—	—	—	—	—	—
Balance as of September 30, 2020	15,997	407,728	(20,189)	(226,136)	177,400	7,212	184,612


	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019
Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
	(millions of shares)			(millions of shares)
Balance as of June 30	8,019	(3,791)	4,228	8,019	(3,788)	4,231
Acquisitions	—	—	—	—	—	—
Dispositions	—	—	—	—	—	—
Balance as of September 30	8,019	(3,791)	4,228	8,019	(3,788)	4,231

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)
	ExxonMobil Share of Equity
	Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
Balance as of December 31, 2018	15,258	421,653	(19,564)	(225,553)	191,794	6,734	198,528
Amortization of stock-based awards	545	—	—	—	545	—	545
Other	(8)	—	—	—	(8)	275	267
Net income (loss) for the period	—	8,650	—	—	8,650	394	9,044
Dividends - common shares	—	(10,936)	—	—	(10,936)	(157)	(11,093)
Other comprehensive income (loss)	—	—	287	—	287	193	480
Acquisitions, at cost	—	—	—	(421)	(421)	(245)	(666)
Dispositions	—	—	—	4	4	—	4
Balance as of September 30, 2019	15,795	419,367	(19,277)	(225,970)	189,915	7,194	197,109

Balance as of December 31, 2019	15,637	421,341	(19,493)	(225,835)	191,650	7,288	198,938
Amortization of stock-based awards	545	—	—	—	545	—	545
Other	(185)	—	—	—	(185)	574	389
Net income (loss) for the period	—	(2,370)	—	—	(2,370)	(278)	(2,648)
Dividends - common shares	—	(11,150)	—	—	(11,150)	(137)	(11,287)
Cumulative effect of accounting change	—	(93)	—	—	(93)	(1)	(94)
Other comprehensive income (loss)	—	—	(696)	—	(696)	(171)	(867)
Acquisitions, at cost	—	—	—	(305)	(305)	(63)	(368)
Dispositions	—	—	—	4	4	—	4
Balance as of September 30, 2020	15,997	407,728	(20,189)	(226,136)	177,400	7,212	184,612


	Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019
Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
	(millions of shares)			(millions of shares)
Balance as of December 31	8,019	(3,785)	4,234	8,019	(3,782)	4,237
Acquisitions	—	(6)	(6)	—	(6)	(6)
Dispositions	—	—	—	—	—	—
Balance as of September 30	8,019	(3,791)	4,228	8,019	(3,788)	4,231

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

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 2019 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. Prior data has been reclassified in certain cases to conform to the current presentation basis.

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

2. Miscellaneous Financial Information

During the first quarter of 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects. On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products. This reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil and petrochemical products. During the second and third quarters, the effects of COVID-19 continued to have a negative impact on the world’s major economies and demand for our products. Market conditions continue to reflect considerable uncertainty as consumer and business activity has exhibited some degree of recovery, but remains lower when compared to prior periods as a result of the pandemic.

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The Corporation's results for the third quarter of 2020 included a before-tax credit of $153 million, included in "Crude oil and product purchases" on the Statement of Income, as rising commodity prices resulted in the reversal of the charge against the book value of inventories as of the second quarter. This adjustment, together with a market adjustment to inventory for equity companies included in "Income from equity affiliates," resulted in a $113 million after-tax credit to earnings (excluding noncontrolling interests) in the third quarter. At year-end, any required adjustment to write down the book value of inventories to their market value is considered permanent and is incorporated into the LIFO carrying value of the inventory.

Primarily as a result of declines in prices for crude oil and other petrochemical products in 2020 and a significant decline in its market capitalization at the end of the first quarter, the Corporation recognized after-tax impairment charges of $884 million in the nine months ended September 30, 2020. These charges included goodwill impairments of $562 million in Upstream, Downstream, and Chemical reporting units and other impairment charges of $322 million, mainly in the Upstream segment. Fair value of the goodwill reporting units primarily reflected market-based estimates of historical EBITDA multiples at the end of the first quarter. Other impairment charges, mainly related to the Corporation’s investment in an Upstream equity company, reflect a write down to estimated fair value based on third party price outlooks, internal estimates of future volumes and costs, and estimates of discount rates for similar properties. Charges related to goodwill and asset impairments are included in “Depreciation and depletion” on the Statement of Income and charges related to equity method investments are included in “Income from equity affiliates.”

3. 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.

Other Contingencies. The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2020, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. 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.


		As of September 30, 2020
		Equity Company Obligations (1)	Other Third-Party Obligations	Total
		(millions of dollars)
Guarantees
	Debt-related	968	120	1,088
	Other	690	4,806	5,496
	Total	1,658	4,926	6,584

(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 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 Venezuelan nationalization decree issued in February 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil 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. 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 collected awards of $908 million in an arbitration against PdVSA under the rules of the International Chamber of Commerce in respect of an indemnity related to the Cerro Negro Project and $260 million in an arbitration for compensation due for the La Ceiba Project and for export curtailments at the Cerro Negro Project under rules of International Centre for Settlement of Investment Disputes (ICSID). An ICSID arbitration award relating to the Cerro Negro Project’s expropriation ($1.4 billion) was annulled based on a determination that a prior Tribunal failed to adequately explain why the cap on damages in the indemnity owed by PdVSA did not affect or limit the amount owed for the expropriation of the Cerro Negro Project. ExxonMobil filed a new claim seeking to restore the original award of damages for the Cerro Negro Project with ICSID on September 26, 2018.

The net impact of this matter 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 appealed that judgment to the Court of Appeal, Abuja Judicial Division. On July 22, 2016, the Court of Appeal upheld the decision of the lower court setting aside the award. On October 21, 2016, the Contractors appealed the decision to the Supreme Court of Nigeria. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. Following dismissal by this court, the Contractors appealed to the Nigerian Court of Appeal in June 2016. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York (SDNY) to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. NNPC moved to dismiss the lawsuit. On September 4, 2019, the SDNY dismissed the Contractors’ petition to recognize and enforce the Erha arbitration award. The Contractors filed a notice of appeal in the Second Circuit on October 2, 2019. 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.

4. Other Comprehensive Income Information


ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Post-retirement Benefits Reserves Adjustment	Total
	(millions of dollars)

Balance as of December 31, 2018	(13,881)	(5,683)	(19,564)
Current period change excluding amounts reclassified from accumulated other comprehensive income	(252)	48	(204)
Amounts reclassified from accumulated other comprehensive income	—	491	491
Total change in accumulated other comprehensive income	(252)	539	287
Balance as of September 30, 2019	(14,133)	(5,144)	(19,277)

Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	(1,125)	(172)	(1,297)
Amounts reclassified from accumulated other comprehensive income	14	587	601
Total change in accumulated other comprehensive income	(1,111)	415	(696)
Balance as of September 30, 2020	(13,557)	(6,632)	(20,189)

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) of $(159) million, net of taxes.


Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense)	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Foreign exchange translation gain/(loss) included in net income (Statement of Income line: Other income)	(14)	—	(14)	—
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs
(Statement of Income line: Non-service pension and postretirement benefit expense)	(268)	(236)	(790)	(664)


Income Tax (Expense)/Credit For Components of Other Comprehensive Income	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Foreign exchange translation adjustment	57	1	72	1
Postretirement benefits reserves adjustment (excluding amortization)	74	(56)	64	(36)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(62)	(50)	(177)	(152)
Total	69	(105)	(41)	(187)

5. Earnings Per Share


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Earnings per common share
Net income (loss) attributable to ExxonMobil (millions of dollars)	(680)	3,170	(2,370)	8,650
Weighted average number of common shares outstanding (millions of shares)	4,271	4,271	4,270	4,270
Earnings (Loss) per common share (dollars) (1)	(0.15)	0.75	(0.55)	2.03
Dividends paid per common share (dollars)	0.87	0.87	2.61	2.56

(1) The calculation of earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown.

6. Pension and Other Postretirement Benefits


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Components of net benefit cost
Pension Benefits - U.S.
Service cost	245	208	712	563
Interest cost	177	192	531	574
Expected return on plan assets	(178)	(143)	(528)	(427)
Amortization of actuarial loss/(gain) and prior service cost	79	77	237	233
Net pension enhancement and curtailment/settlement cost	52	54	156	161
Net benefit cost	375	388	1,108	1,104

Pension Benefits - Non-U.S.
Service cost	178	136	524	413
Interest cost	165	189	488	573
Expected return on plan assets	(226)	(192)	(664)	(581)
Amortization of actuarial loss/(gain) and prior service cost	124	102	358	260
Net benefit cost	241	235	706	665

Other Postretirement Benefits
Service cost	45	38	134	104
Interest cost	70	79	208	237
Expected return on plan assets	(4)	(4)	(13)	(12)
Amortization of actuarial loss/(gain) and prior service cost	13	3	39	10
Net benefit cost	124	116	368	339

7. Financial Instruments and Derivatives

Financial Instruments. The estimated fair value of financial instruments at September 30, 2020, and December 31, 2019, and the related hierarchy level for the fair value measurement is as follows:


		At September 30, 2020
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	637	121	—	758	(571)	(80)	—	107
	Advances to/receivables
	from equity companies (2)(7)	—	3,152	6,081	9,233	—	—	(193)	9,040
	Other long-term
	financial assets (3)	1,197	—	915	2,112	—	—	130	2,242
Liabilities
	Derivative liabilities (4)	817	91	—	908	(571)	(259)	—	78
	Long-term debt (5)	49,153	149	4	49,306	—	—	(4,031)	45,275
	Long-term obligations
	to equity companies (7)	—	—	3,685	3,685	—	—	(199)	3,486
	Other long-term
	financial liabilities (6)	—	—	1,073	1,073	—	—	11	1,084


		At December 31, 2019
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	533	102	—	635	(463)	(70)	—	102
	Advances to/receivables
	from equity companies (2)(7)	—	1,941	6,729	8,670	—	—	(128)	8,542
	Other long-term
	financial assets (3)	1,145	—	974	2,119	—	—	44	2,163
Liabilities
	Derivative liabilities (4)	568	70	—	638	(463)	(105)	—	70
	Long-term debt (5)	25,652	134	3	25,789	—	—	(1,117)	24,672
	Long-term obligations
	to equity companies (7)	—	—	4,245	4,245	—	—	(257)	3,988
	Other long-term
	financial liabilities (6)	—	—	1,042	1,042	—	—	16	1,058

(1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles, net

(2) Included in the Balance Sheet line: Investments, advances and long-term receivables

(3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles, net

(4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations

(5) Excluding finance lease obligations

(6) Included in the Balance Sheet line: Other long-term obligations

(7) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.

At September 30, 2020, the Corporation had $462 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

Long-term debt. The increase in the estimated fair value and book value of long-term debt reflects the Corporation's issuance of new debt securities during 2020. The carrying value of these debt securities as of September 30, 2020, is below:


Issuance Date	Description of Notes	Carrying Value
(millions of dollars)
March 2020
	2.992% Notes due 2025	1,500
	3.294% Notes due 2027	1,000
	3.482% Notes due 2030	2,000
	4.227% Notes due 2040	1,250
	4.327% Notes due 2050	2,750
April 2020
	1.571% Notes due 2023	2,750
	2.992% Notes due 2025 (1)	1,310
	2.610% Notes due 2030	2,000
	4.227% Notes due 2040 (1)	842
	3.452% Notes due 2051	2,750
June 2020 (2)
	0.142% Notes due 2024	1,756
	0.524% Notes due 2028	1,171
	0.835% Notes due 2032	1,171
	1.408% Notes due 2039	1,171

	Total	23,421

(1) Includes premiums of $152 million.

(2) Euro-denominated.

The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of September 30, 2020, the Corporation has designated $5.3 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business. The net in