UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2003
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to________
Commission File Number 1-2256
EXXON MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
NEW JERSEY 13-5409005
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
5959 Las Colinas Boulevard, Irving, Texas 75039-2298
(Address of principal executive offices) (Zip Code)
(972) 444-1000
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). 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 September 30, 2003
Common stock, without par value 6,609,799,513
EXXON MOBIL CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2003
TABLE OF CONTENTS
Page
Number
PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
Condensed Consolidated Statement of Income
3
Three and nine months ended September 30, 2003 and 2002
Condensed Consolidated Balance Sheet
4
As of September 30, 2003 and December 31, 2002
Condensed Consolidated Statement of Cash Flows
5
Nine months ended September 30, 2003 and 2002
Notes to Condensed Consolidated Financial Statements
6-17
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
18-23
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
24
Item 4.
Controls and Procedures
24
PART II. OTHER INFORMATION
Item 1.
Legal Proceedings
24-25
Item 6.
Exhibits and Reports on Form 8-K
25-26
Signature
27
Index to Exhibits
28
-2-
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)
Three Months Ended | Nine Months Ended | |||
September 30, | September 30, |
REVENUE | 2003 | 2002 | 2003 | 2002 | ||||||||
Sales and other operating revenue, | ||||||||||||
including excise taxes | $ | 58,760 | $ | 53,194 | $ | 175,115 | $ | 145,758 | ||||
Earnings from equity interests and other revenue | 1,081 | 904 | 5,671 | 2,537 | ||||||||
Total revenue | 59,841 | 54,098 | 180,786 | 148,295 | ||||||||
COSTS AND OTHER DEDUCTIONS | ||||||||||||
Crude oil and product purchases | 27,230 | 25,246 | 79,535 | 65,883 | ||||||||
Operating expenses | 5,320 | 4,774 | 15,980 | 12,758 | ||||||||
Selling, general and administrative expenses | 3,246 | 2,730 | 9,688 | 9,177 | ||||||||
Depreciation and depletion | 2,203 | 2,178 | 6,554 | 6,179 | ||||||||
Exploration expenses, including dry holes | 227 | 162 | 556 | 609 | ||||||||
Merger related expenses | 0 | 129 | 0 | 253 | ||||||||
Interest expense | 41 | 51 | 153 | 190 | ||||||||
Excise taxes | 5,900 | 5,783 | 17,627 | 16,224 | ||||||||
Other taxes and duties | 9,611 | 8,485 | 27,531 | 24,821 | ||||||||
Income applicable to minority and preferred interests | 101 | 76 | 574 | 108 | ||||||||
Total costs and other deductions | 53,879 | 49,614 | 158,198 | 136,202 | ||||||||
INCOME BEFORE INCOME TAXES | 5,962 | 4,484 | 22,588 | 12,093 | ||||||||
Income taxes | 2,312 | 1,855 | 8,278 | 4,772 | ||||||||
INCOME FROM CONTINUING OPERATIONS | 3,650 | 2,629 | 14,310 | 7,321 | ||||||||
Discontinued operations, net of income tax | 0 | 11 | 0 | 49 | ||||||||
Cumulative effect of accounting change, | ||||||||||||
net of income tax | 0 | 0 | 550 | 0 | ||||||||
NET INCOME | $ | 3,650 | $ | 2,640 | $ | 14,860 | $ | 7,370 | ||||
NET INCOME PER COMMON SHARE (DOLLARS) | ||||||||||||
Income from continuing operations | $ | 0.55 | $ | 0.39 | $ | 2.15 | $ | 1.08 | ||||
Discontinued operations, net of income tax | 0.00 | 0.00 | 0.00 | 0.01 | ||||||||
Cumulative effect of accounting change, | ||||||||||||
net of income tax | 0.00 | 0.00 | 0.08 | 0.00 | ||||||||
Net income | $ | 0.55 | $ | 0.39 | $ | 2.23 | $ | 1.09 | ||||
NET INCOME PER COMMON SHARE - ASSUMING DILUTION (DOLLARS) | ||||||||||||
Income from continuing operations | $ | 0.55 | $ | 0.39 | $ | 2.14 | $ | 1.07 | ||||
Discontinued operations, net of income tax | 0.00 | 0.00 | 0.00 | 0.01 | ||||||||
Cumulative effect of accounting change, | ||||||||||||
net of income tax | 0.00 | 0.00 | 0.08 | 0.00 | ||||||||
Net income | $ | 0.55 | $ | 0.39 | $ | 2.22 | $ | 1.08 | ||||
DIVIDENDS PER COMMON SHARE (DOLLARS) | $ | 0.25 | $ | 0.23 | $ | 0.73 | $ | 0.69 |
-3-
EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)
Sept. 30, | Dec 31, | |||
2003 | 2002 |
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 11,015 | $ | 7,229 | ||||
Notes and accounts receivable - net | 20,248 | 21,163 | ||||||
Inventories | ||||||||
Crude oil, products and merchandise | 8,475 | 6,827 | ||||||
Materials and supplies | 1,282 | 1,241 | ||||||
Prepaid taxes and expenses | 1,938 | 1,831 | ||||||
Total current assets | 42,958 | 38,291 | ||||||
Property, plant and equipment - net | 101,192 | 94,940 | ||||||
Investments and other assets | 22,837 | 19,413 | ||||||
TOTAL ASSETS | $ | 166,987 | $ | 152,644 | ||||
LIABILITIES | ||||||||
Current liabilities | ||||||||
Notes and loans payable | $ | 4,004 | $ | 4,093 | ||||
Accounts payable and accrued liabilities | 27,731 | 25,186 | ||||||
Income taxes payable | 6,906 | 3,896 | ||||||
Total current liabilities | 38,641 | 33,175 | ||||||
Long-term debt | 5,615 | 6,655 | ||||||
Deferred income tax liability | 17,716 | 16,484 | ||||||
Other long-term liabilities | 21,251 | 21,733 | ||||||
TOTAL LIABILITIES | 83,223 | 78,047 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Benefit plan related balances | (342 | ) | (450 | ) | ||||
Common stock, without par value: | ||||||||
Authorized: 9,000 million shares | ||||||||
Issued: 8,019 million shares | 4,100 | 4,217 | ||||||
Earnings reinvested | 110,955 | 100,961 | ||||||
Accumulated other nonowner changes in equity | ||||||||
Cumulative foreign exchange translation adjustment | (447 | ) | (3,015 | ) | ||||
Minimum pension liability adjustment | (2,960 | ) | (2,960 | ) | ||||
Unrealized gains/(losses) on stock investments | 146 | (79 | ) | |||||
Common stock held in treasury: | ||||||||
1,410 million shares at September 30, 2003 | (27,688 | ) | ||||||
1,319 million shares at December 31, 2002 | (24,077 | ) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 83,764 | 74,597 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 166,987 | $ | 152,644 |
The number of shares of common stock issued and outstanding at September 30, 2003 and
December 31, 2002 were 6,609,799,513 and 6,700,074,272, respectively.
-4-
EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
Nine Months Ended | ||
September 30, |
2003 | 2002 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | 14,860 | $ | 7,370 | ||||
Depreciation and depletion | 6,554 | 6,179 | ||||||
Changes in operational working capital, excluding cash and debt | 4,507 | 2,510 | ||||||
All other items - net | (4,222 | ) | 130 | |||||
Net cash provided by operating activities | 21,699 | 16,189 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (9,305 | ) | (8,147 | ) | ||||
Sales of subsidiaries, investments, and property, plant and equipment | 1,821 | 1,059 | ||||||
Other investing activities - net | (222 | ) | (437 | ) | ||||
Net cash used in investing activities | (7,706 | ) | (7,525 | ) | ||||
NET CASH GENERATION BEFORE FINANCING ACTIVITIES | 13,993 | 8,664 | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Additions to long-term debt | 31 | 382 | ||||||
Reductions in long-term debt | (865 | ) | (208 | ) | ||||
Additions/(reductions) in short-term debt - net | (600 | ) | (463 | ) | ||||
Cash dividends to ExxonMobil shareholders | (4,866 |