FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 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 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 X 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 March 31, 1997 _______________________________ ________________________________ Common stock, without par value 2,483,023,116 -1- EXXON CORPORATION FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997 TABLE OF CONTENTS Page Number ______ PART I. FINANCIAL INFORMATION Item 1. Financial Statements Condensed Consolidated Statement of Income 3 Three months ended March 31, 1997 and 1996 Condensed Consolidated Balance Sheet 4 As of March 31, 1997 and December 31, 1996 Condensed Consolidated Statement of Cash Flows 5 Three months ended March 31, 1997 and 1996 Notes to Condensed Consolidated Financial Statements 6-8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 9-12 PART II. OTHER INFORMATION Item 2. Changes in Securities 13 Item 5. Other Information 14 Item 6. Exhibits and Reports on Form 8-K 15 Signature 16 Index to Exhibits 17 -2- PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS EXXON CORPORATION CONDENSED CONSOLIDATED STATEMENT OF INCOME (millions of dollars)
Three Months Ended March 31, __________________ 1997 1996 ____ ____ REVENUE Sales and other operating revenue, including excise taxes $33,105 $30,474 Earnings from equity interests and other revenue 485 731 _______ _______ Total revenue 33,590 31,205 _______ _______ COSTS AND OTHER DEDUCTIONS Crude oil and product purchases 14,509 12,597 Operating expenses 3,241 3,288 Selling, general and administrative expenses 1,879 1,936 Depreciation and depletion 1,365 1,372 Exploration expenses, including dry holes 165 140 Interest expense 72 76 Excise taxes 3,549 3,310 Other taxes and duties 5,193 5,506 Income applicable to minority and preferred interests 99 139 _______ _______ Total costs and other deductions 30,072 28,364 _______ _______ INCOME BEFORE INCOME TAXES 3,518 2,841 Income taxes 1,343 956 _______ _______ NET INCOME $ 2,175 $ 1,885 ======= ======= Net income per common share* $ 0.87 $ 0.76 Dividends per common share* $ 0.395 $ 0.375 Average number common shares outstanding (millions)* 2,483.8 2,483.9
Net income per share computed as income less dividends on preferred stock divided by the weighted average number of common shares outstanding. * Prior year amounts restated to reflect two-for-one stock split effective March 14, 1997. -3- EXXON CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET (millions of dollars)
March 31, Dec. 31, 1997 1996 _______ _______ ASSETS Current assets Cash and cash equivalents $ 5,263 $ 2,951 Other marketable securities 19 18 Notes and accounts receivable - net 10,347 10,499 Inventories Crude oil, products and merchandise 4,293 4,501 Materials and supplies 771 784 Prepaid taxes and expenses 1,075 1,157 _______ _______ Total current assets 21,768 19,910 Property, plant and equipment - net 65,493 66,607 Investments and other assets 8,386 9,010 _______ _______ TOTAL ASSETS $95,647 $95,527 ======= ======= LIABILITIES Current liabilities Notes and loans payable $ 2,617 $ 2,510 Accounts payable and accrued liabilities 13,860 14,510 Income taxes payable 2,652 2,485 _______ _______ Total current liabilities 19,129 19,505 Long-term debt 7,223 7,236 Annuity reserves, deferred credits and other liabilities 25,625 25,244 _______ _______ TOTAL LIABILITIES 51,977 51,985 _______ _______ SHAREHOLDERS' EQUITY Preferred stock, without par value: Authorized: 200 million shares Outstanding: 5 million shares at Mar. 31, 1997 284 5 million shares at Dec. 31, 1996 303 Guaranteed LESOP obligation (345) (345) Common stock, without par value: Authorized: 3,000 million shares Issued: 2,984 million shares at Mar. 31, 1997 2,322 See note 3 for shares at Dec. 31, 1996 2,822 Earnings reinvested 48,978 57,156 Cumulative foreign exchange translation adjustment 229 1,126 Common stock held in treasury: 501 million shares at Mar. 31, 1997 (7,798) 1,142 million shares at Dec. 31, 1996 (17,520) _______ _______ TOTAL SHAREHOLDERS' EQUITY 43,670 43,542 _______ _______ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $95,647 $95,527 ======= =======
The number of shares of common stock issued and outstanding at March 31, 1997 and December 31, 1996 (restated to reflect two-for-one stock split effective March 14, 1997) were 2,483,023,116 and 2,483,492,968, respectively. -4- EXXON CORPORATION CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (millions of dollars)
Three Months Ended March 31, __________________ 1997 1996 _______ _______ CASH FLOWS FROM OPERATING ACTIVITIES Net income $2,175 $1,885 Depreciation and depletion 1,365 1,372 Changes in operational working capital, excluding cash and debt (127) 528 All other items - net 1,101 292 _______ _______ Net Cash Provided By Operating Activities 4,514 4,077 _______ _______ CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions and additions to property, plant and equipment (1,481) (1,413) Sales of subsidiaries and property, plant and equipment 55 27 Other investing activities - net 332 353 _______ _______ Net Cash Used In Investing Activities (1,094) (1,033) _______ _______ NET CASH GENERATION BEFORE FINANCING ACTIVITIES 3,420 3,044 _______ _______ CASH FLOWS FROM FINANCING ACTIVITIES Additions to long-term debt 175 302 Reductions in long-term debt (58) (267) Additions/(reductions) in short-term debt - net (33) 28 Cash dividends to Exxon shareholders (986) (940) Cash dividends to minority interests (75) (87) Additions/(reductions) to minority interests and sales/(redemptions) of affiliate preferred stock 4 2 Acquisitions of Exxon shares - net (166) (52) _______ _______ Net Cash Used In Financing Activities (1,139) (1,014) _______ _______ Effects Of Exchange Rate Changes On Cash 31 (15) _______ _______ Increase/(Decrease) In Cash And Cash Equivalents 2,312 2,015 Cash And Cash Equivalents At Beginning Of Period 2,951 1,508 _______ _______ CASH AND CASH EQUIVALENTS AT END OF PERIOD $5,263 $3,523 ======= ======= SUPPLEMENTAL DISCLOSURES Income taxes paid $ 703 $ 210 Cash interest paid $ 154 $ 183
-5- EXXON 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 S.E.C. in the corporation's 1996 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. Earnings per Share In February 1997, the Financial Accounting Standards Board released Standard No. 128, "Earnings per Share" which must be adopted for both interim and annual periods ending after December 15, 1997, with earlier application not permitted. Based on preliminary estimates, basic earnings per share defined by the standard is consistent with current reporting of net income per common share. The difference between basic and diluted earnings per share is expected to be insignificant. 3. Capital On February 26, 1997, the company's Board of Directors approved a two- for-one stock split to Common Stock shareholders of record on March 14, 1997 and canceled 321,000,000 shares (pre-split basis) of Common Stock without par value held by the corporation as treasury shares. These canceled shares were returned to the status of authorized but unissued shares. The treasury stock account was credited for $9,869 million, the Common Stock account charged for $500 million and the retained earnings account charged for $9,369 million to cancel these treasury shares. On March 14, 1997, the authorized Common Stock was increased from two billion shares without par value to three billion shares without par value and the issued shares were split on a two-for-one basis. Since canceled treasury shares were returned to the status of authorized but unissued shares and used to partially accomplish the two-for-one stock split, the restated number of Common Stock shares issued (on a post-split basis) at December 31, 1996 is not meaningful. The number of shares of Common Stock issued and outstanding as of December 31, 1996 and 1995, restated to reflect the two-for-one stock split, were 2,483,492,968 and 2,483,543,658, respectively. Earnings per share for the years ended December 31, 1996, 1995 and 1994, restated for the effect of the two-for-one stock split, are $3.01, $2.59, and $2.04, respectively. 4. Litigation and Other Contingencies A number of lawsuits, including class actions, were brought in various courts against Exxon Corporation and certain of its subsidiaries relating to the accidental release of crude oil from the tanker Exxon Valdez in 1989. Essentially all of these lawsuits have now been resolved or are subject to appeal. -6- EXXON CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS On September 24, 1996, the United States District Court for the District of Alaska entered a judgment in the amount of $5.058 billion in the Exxon Valdez civil trial that began in May 1994. The District Court awarded approximately $19.6 million in compensatory damages to fisher plaintiffs, $38 million in prejudgment interest on the compensatory damages and $5 billion in punitive damages to a class composed of all persons and entities who asserted claims for punitive damages from the corporation as a result of the Exxon Valdez grounding. The District Court also ordered that these awards shall bear interest from and after entry of the judgment. The District Court stayed execution on the judgment pending appeal based on a $6.75 billion letter of credit posted by the corporation. Exxon has appealed the judgment. The corporation continues to believe that the punitive damages in this case are unwarranted and that the judgment should be set aside or substantially reduced by the appellate courts. The ultimate cost to the corporation from the lawsuits arising from the Exxon Valdez grounding is not possible to predict and may not be resolved for a number of years. German and Dutch affiliated companies are the concessionaires of a natural gas field subject to a treaty between the governments of Germany and the Netherlands under which the gas reserves in an undefined border or common area are to be shared equally. Entitlement to the reserves is determined by calculating the amount of gas which can be recovered from this area. Based on the final reserve determination, the German affiliate has received more gas than its entitlement. Arbitration proceedings, as provided in the agreements, have been underway to determine the manner of resolving the issues between the German and Dutch affiliated companies. On July 8, 1996, an interim ruling was issued establishing a provisional compensation payment for the excess gas received. Additional compensation, if any, remains subject to further arbitration proceedings or negotiation. Other substantive matters remain outstanding, including recovery of royalties paid on such excess gas and the taxes payable on the final compensation amount. The net financial impact on the corporation is not possible to predict at this time given these outstanding issues. However, the ultimate outcome is not expected to have a materially adverse effect upon the corporation's consolidated financial condition or operations. The U.S. Tax Court has decided the issue with respect to the pricing of crude oil purchased from Saudi Arabia for the years 1979-1981 in favor of the corporation. This decision is subject to appeal. Certain other issues for the years 1979-1982 remain pending before the Tax Court. The ultimate resolution of these issues is not expected to have a materially adverse effect upon the corporation's operations or financial condition. Claims for substantial amounts have been made against Exxon and certain of its consolidated subsidiaries in other pending lawsuits, the outcome of which is not expected to have a materially adverse effect upon the corporation's financial condition or operations. -7- EXXON CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The corporation and certain of its consolidated subsidiaries are directly and indirectly contingently liable for amounts similar to those at the prior year-end relating to guarantees for notes, loans and performance under contracts, including guarantees of non-U.S. excise taxes and customs duties of other companies, entered into as a normal business practice, under reciprocal arrangements. 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. -8- EXXON CORPORATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FUNCTIONAL EARNINGS SUMMARY First Quarter _________________ 1997 1996 _______ _______ (millions of dollars) Petroleum and natural gas Exploration and production United States $ 554 $ 419 Non-U.S. 890 1,004 Refining and marketing United States 57 (16) Non-U.S. 297 190 _______ _______ Total petroleum and natural gas 1,798 1,597 Chemicals United States 192 153 Non-U.S. 118 134 Other operations 128 117 Corporate and financing (61) (116) _______ _______ NET INCOME $2,175 $1,885 ======= ======= FIRST QUARTER 1997 COMPARED WITH FIRST QUARTER 1996 Exxon Corporation estimated first quarter 1997 net income at $2,175 million, up 15 percent from $1,885 million in first quarter of 1996. Net income for the prior year's quarter included $125 million in non- recurring credits. Excluding these credits, the increase was $415 million or 24 percent. On a per share basis, net income was $0.87 in the first quarter of 1997 compared to $0.76 in the prior year's quarter. These per share amounts reflect the two-for-one stock split, effective March 14, 1997. Revenue for the first quarter of 1997 totaled $33,590 million, while revenue in the prior year's quarter was $31,205 million. Exxon's net income of $2.2 billion was up $290 million or 15 percent, as earnings in all major operating segments improved relative to last year's first quarter. Earnings excluding non-recurring items were the highest quarterly total in Exxon's history. Crude oil and natural gas prices were stronger on average than the prior year, although they weakened during the quarter. While Exxon's liquids production was below the first quarter of 1996, it increased versus the fourth quarter reflecting production build-up from several new developments. Gas sales declined from 1996's first quarter, primarily due to unseasonably warm weather in Europe. Petroleum product sales increased in all major geographic areas to the highest first quarter level since 1980. Industry margins remained depressed but improved from the first quarter of 1996 as a result of declining supply costs. Chemicals earnings improved as a result of record first quarter sales. Industry margins strengthened over the quarter, but on average were roughly the same as the prior year. Coal and copper production were at record first quarter levels. Exxon's financial condition remains strong. During the quarter, the Corporation announced a two-for-one stock split and a planned increase in share repurchases. -9- EXXON CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OTHER COMMENTS ON FIRST QUARTER COMPARISON Exploration and production earnings benefited from crude oil prices that were on average about $3.00 per barrel higher than the prior year. However, by the end of the quarter crude oil prices had weakened, falling back to levels of the year ago period. Similarly, U.S. natural gas prices were higher on average than last year, but softened substantially over the course of the quarter in response to mild weather conditions. Unfavorable foreign exchange effects were partially offset by lower producing expenses. Liquids production was 1,629 kbd (thousand barrels per day) compared to 1,683 kbd in the first quarter of 1996. Increased production from Canadian heavy crude operations and new developments in the North Sea was offset by the near term effect of a revised production sharing agreement in Malaysia and lower volumes in the U.S. Relative to the second half of 1996, crude oil production rose 2 percent. Worldwide natural gas production of 7,563 mcfd (million cubic feet per day) was down 767 mcfd from the first quarter of last year principally as a result of unseasonably warm weather and correspondingly lower demand, particularly in Europe. Earnings from U.S. exploration and production were $554 million, up from $419 million in the first quarter of 1996. Outside the U.S., earnings from exploration and production were $890 million versus $879 million in 1996, after excluding non-recurring credits of $125 million in first quarter 1996. Petroleum product sales of 5,291 kbd grew 142 kbd from last year, and reached the highest level in 17 years. Sales volumes increased in all major geographic areas. Refinery throughput also rose over the prior year's quarter, despite higher scheduled maintenance activity. Industry refining margins were up from the very weak first quarter of 1996 as a result of declining supply costs. Unfavorable foreign exchange effects partially offset these improvements. In the U.S., refining and marketing operations earned $57 million in the first quarter compared to a loss of $16 million in the year ago period. Earnings from refining and marketing operations outside the U.S. of $297 million were up from $190 million in last year's first quarter. Worldwide chemical earnings were $310 million, an increase from $287 million in the first quarter 1996, as a result of record quarterly sales volumes. Prime product sales of 4,102 kt (thousand metric tons) were up 5 percent from the year ago period. Although margins rose over the course of the quarter, they were similar on average to 1996's first quarter as higher product prices were offset by higher feedstock costs and unfavorable foreign exchange effects. Earnings from other operations, including coal, minerals and power, totaled $128 million, an increase from $117 million in the first quarter 1996. First quarter copper and coal production from continuing operations were at record levels. Corporate and financing expenses of $61 million compared with $116 million in the first quarter of last year, reflecting lower interest and tax-related expenses. On February 26, 1997, the company's Board of Directors approved a two-for- one stock split to Common Stock shareholders of record on March 14, 1997 and canceled 321,000,000 shares (pre-split basis) of Common Stock without par value held by the corporation as treasury shares. -10- EXXON CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS OTHER COMMENTS ON FIRST QUARTER COMPARISON These canceled shares were returned to the status of authorized but unissued shares. On March 14, 1997, the authorized Common Stock was increased from two billion shares without par value to three billion shares without par value and the issued shares were split on a two-for-one basis. Net cash generation before financing activities was $3,420 million in the first three months of 1997 versus $3,044 million in the same period last year. Operating activities provided net cash of $4,514 million, an increase of $437 million from 1996's first three months, influenced by higher net income and an insurance related settlement. Investing activities used net cash of $1,094 million, about the same level as the prior year period. Net cash used in financing activities was $1,139 million in the first quarter of 1997 versus $1,014 million in the same quarter last year. During the first quarter of 1997, Exxon purchased 5.3 million shares of its Common Stock for the treasury at a cost of $279 million. From April 1 through April 18, an additional 2.7 million shares of Common Stock were purchased for the treasury at a cost of $138 million, representing a continuation of purchases to offset shares issued in connection with the company's benefit plans and programs, as well as the increased share repurchases announced on March 25, 1997. Purchases are made in open market and negotiated transactions and may be discontinued at any time. Capital and exploration expenditures totaled $1,790 million in the first quarter 1997 versus $1,991 million in the first quarter of 1996. Total capital and exploration activity in 1997 should be at similar levels to 1996, as attractive investment opportunities continue to be developed in each of the major business segments. Total debt of $9.8 billion at March 31, 1997 increased $0.1 billion from year-end 1996. The corporation's debt to total capital ratio was 17.8 percent at the end of the first quarter of 1997, similar to year-end 1996. Over the twelve months ended March 31, 1997, return on average shareholders' equity was 18.4 percent. Return on average capital employed, which includes debt, was 15.1 percent over the same time period. Although the corporation issues long-term debt from time to time and maintains a revolving commercial paper program, internally generated funds cover the majority of its financial requirements. Litigation and other contingencies are discussed in note 4 to the unaudited condensed consolidated financial statements. There are no events or uncertainties known to management beyond those already included in reported financial information that would indicate a material change in future operating results or future financial condition. 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. -11- EXXON CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SPECIAL ITEMS First Quarter _______________ 1997 1996 ____ ____ (millions of dollars) EXPLORATION & PRODUCTION ________________________ Non-U.S. Tax related - $125 ____ ____ TOTAL - $125 ==== ==== -12- PART II - OTHER INFORMATION EXXON CORPORATION FOR THE QUARTER ENDED MARCH 31, 1997 Item 2. Changes in Securities ______________________________ In accordance with the registrant's 1997 Nonemployee Director Restricted Stock Plan, each incumbent nonemployee director (9 persons) was granted 1600 shares (post-split basis) of restricted Common Stock on January 31, 1997. These grants are exempt from registration under bonus stock interpretations such as the "no-action" letter to Pacific Telesis _______________ Group (June 30, 1992). _____ -13- EXXON CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997 Item 5. Other Information SELECTED FINANCIAL DATA This selected financial data from Item 6 of the registrant's Annual Report on Form 10-K for 1996 has been restated to reflect the two-for-one stock split effective March 14, 1997. Restated data elements are marked with an asterisk (*).
1996 1995 1994 1993 1992 _______________________________________________ (millions of dollars, except per share amounts) Sales and other operating revenue Petroleum and natural gas $118,012 $107,749 $100,409 $ 98,808 $104,282 Chemicals 11,430 11,737 9,544 8,641 9,131 Other and eliminations 2,101 2,318 2,175 2,083 2,259 _______________________________________________ Total sales and other operating revenue $131,543 $121,804 $112,128 $109,532 $115,672 Earnings from equity interests and other revenue 2,706 2,116 1,776 1,679 1,434 _______________________________________________ Revenue $134,249 $123,920 $113,904 $111,211 $117,106 =============================================== Earnings Petroleum and natural gas Exploration and production $ 5,058 $ 3,412 $ 2,782 $ 3,313 $ 3,374 Refining and marketing 885 1,272 1,389 2,015 1,574 _______________________________________________ Total petroleum and natural gas $ 5,943 $ 4,684 $ 4,171 $ 5,328 $ 4,948 Chemicals 1,199 2,018 954 411 451 Other operations 433 479 409 138 254 Corporate and financing (65) (711) (434) (597) (843) _______________________________________________ Earnings before cumulative effect of accounting changes $ 7,510 $ 6,470 $ 5,100 $ 5,280 $ 4,810 Cumulative effect of accounting changes - - - - (40) _______________________________________________ Net income $ 7,510 $ 6,470 $ 5,100 $ 5,280 $ 4,770 =============================================== Net income per common share(*) $ 3.01 $ 2.59 $ 2.04 $ 2.10 $ 1.90 - - - before cumulative effect of accounting changes(*) $ 3.01 $ 2.59 $ 2.04 $ 2.10 $ 1.91 Cash dividends per common share(*) $ 1.560 $ 1.500 $ 1.455 $ 1.440 $ 1.415 Net income to average shareholders' equity(percent) 17.9 16.6 14.1 15.4 13.9 Net income to total revenue (percent) 5.6 5.2 4.5 4.7 4.1 Working capital $ 405 $ (1,418)$ (3,033)$ (3,731) $(3,239) Ratio of current assets to current liabilities 1.02 0.92 0.84 0.80 0.84 Total additions to property, plant and equipment $ 7,132 $ 7,201 $ 6,568 $ 6,919 $ 7,138 Property, plant and equipment, less allowances $ 66,607 $ 65,446 $ 63,425 $ 61,962 $ 61,799 Total assets $ 95,527 $ 91,296 $ 87,862 $ 84,145 $ 85,030 Exploration expenses,including dry holes $ 763 $ 693 $ 666 $ 648 $ 808 Research and development costs $ 520 $ 525 $ 558 $ 593 $ 624 Long-term debt $ 7,236 $ 7,778 $ 8,831 $ 8,506 $ 8,637 Total debt $ 9,746 $ 10,025 $ 12,689 $ 12,615 $ 13,424 Fixed charge coverage ratio 10.4 8.6 7.0 7.4 6.6 Debt to capital (percent) 17.7 19.0 24.3 25.3 26.8 Shareholders' equity at year-end $ 43,542 $ 40,436 $ 37,415 $ 34,792 $ 33,776 Shareholders' equity per common share(*) $ 17.53 $ 16.28 $ 15.07 $ 14.01 $ 13.60 Average number of common shares outstanding (millions)(*) 2,484 2,484 2,483 2,483 2,483 Number of registered shareholders at year-end (thousands) 610 603 608 622 629 Wages, salaries and employee benefits $ 5,710 $ 5,799 $ 5,881 $ 5,916 $ 5,985 Number of employees at year-end(thousands) 79 82 86 91 95
-14- EXXON CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997 Item 6. Exhibits and Reports on Form 8-K a) Exhibits Exhibit 3(i) - Registrant's Restated Certificate of Incorporation, as restated March 17, 1997. Exhibit 27 - Financial Data Schedule (included only in the electronic filing of this document). b) Reports on Form 8-K The registrant has not filed any reports on Form 8-K during the quarter. -15- EXXON CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997 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 CORPORATION Date: May 13, 1997 /s/ W. BRUCE COOK __________________________________________ W. Bruce Cook, Vice President, Controller and Principal Accounting Officer -16- EXXON CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997 INDEX TO EXHIBITS 3(i). Registrant's Restated Certificate of Incorporation, as restated March 17, 1997. -17-