Miscellaneous financial information |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Miscellaneous financial information | Miscellaneous financial information LIFO inventory In 2025, net income included an after-tax gain of $61 million (2024 - $61 million gain, 2023 - $5 million gain) attributable to the effect of changes in last-in, first-out (LIFO) inventories. The replacement cost of inventories was estimated to exceed their LIFO carrying values at December 31, 2025 by about $1.5 billion (2024 - $2.0 billion). Inventories of crude oil and products at year-end consisted of the following:
Research and development Research expenditures are mainly spent on developing technologies to improve bitumen recovery, reduce costs and reduce the environmental impact of upstream operations, including technologies to reduce greenhouse gas emissions intensity, supporting environmental and process improvements in the refineries, as well as accessing ExxonMobil’s research worldwide. The company has scientific research agreements with affiliates of ExxonMobil, which provide for technical and engineering work to be performed by all parties, the exchange of technical information and the assignment and licensing of patents, and patent rights. These agreements provide mutual access to scientific and operating data related to nearly every phase of the petroleum and petrochemical operations of the parties. Net research and development costs charged to expenses in 2025 were $134 million (2024 - $118 million, 2023 - $84 million). These costs are included in expenses due to the uncertainty of future benefits. Accounts payable and accrued liabilities “Accounts payable and accrued liabilities” included accrued taxes other than income taxes of $393 million at December 31, 2025 (2024 - $524 million), dividends payable of $350 million at December 31, 2025 (2024 - $307 million) and other miscellaneous current liabilities of $1,151 million at December 31, 2025 (2024 - $739 million). Government assistance ASC 832 "Government Assistance" requires disclosure of certain types of government assistance not otherwise covered by authoritative accounting guidance. The company receives allowances from governments in the form of emission credits as a result of performing better than facility level expectations for emission targets and records these at a nominal amount, generally in "Inventories of crude oil and products" on the Consolidated balance sheet. During 2024 and 2025, government assistance was immaterial to the company’s financial results. Restructuring charges On September 29, 2025, the company announced restructuring plans to improve its performance by centralizing additional corporate and technical activities in global business and technology centres. The restructuring plans include a program of targeted workforce reductions. The program, which is expected to be substantially completed by the end of 2027, involves involuntary employee separations. In the third quarter of 2025, the company recorded charges of $330 million, before-tax, consisting primarily of restructuring costs associated with announced workforce reduction programs. These costs are captured in "" on the Consolidated statement of income and reported in the Corporate and other segment. The following table summarizes the reserves and charges related to the workforce reduction program, which are recorded in "Accounts payable and accrued liabilities" and "Other long-term obligations" on the Consolidated balance sheet.
Calgary Imperial Campus In the third quarter of 2025, the Corporate and other segment included a non-cash impairment charge of $406 million, before-tax, in conjunction with the company signing an agreement to sell the Calgary Imperial Campus. The impairment was reflected in "Depreciation and depletion (includes impairments)" on the Consolidated statement of income and in "Property, plant and equipment, less accumulated depreciation and depletion" on the Consolidated balance sheet. The transaction closed in the fourth quarter of 2025. Norman Wells In the fourth quarter of 2025, the company accelerated the end of field life of the Norman Wells asset, resulting in a $421 million expense, before-tax, reported in the Upstream segment. The expense consisted of a non-cash impairment charge of $142 million, reflected in "Depreciation and depletion (includes impairments)" on the Consolidated statement of income and in "Property, plant and equipment, less accumulated depreciation and depletion" on the Consolidated balance sheet, and a one-time charge of $279 million related to contractual obligations associated with the end of field life acceleration, reflected in "Production and manufacturing" on the Consolidated statement of income.
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