Income Tax Expense (Benefit)

Exxon Mobil Corp., income tax expense (benefit), continuing operations

USD $ in millions

 
12 months ended Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Federal 1,073  1,791  1,547  1,224  (838)
Non-U.S. 22,115  25,650  28,849  21,093  15,830 
U.S. tax on non-U.S. operations 37  89  15  46  32 
State 397  602  480  340  110 
Current 23,622  28,132  30,891  22,703  15,134 
Federal (116) 1,097  1,577  49  650 
Non-U.S. 757  1,816  (1,417) (1,191) (665)
Deferred, net 641  2,913  160  (1,142) (15)
Income tax expense 24,263  31,045  31,051  21,561  15,119 

Source: Based on data from Exxon Mobil Corp. Annual Reports

Item Description The company
Current The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations. Exxon Mobil Corp.'s current declined from 2011 to 2012 and from 2012 to 2013.
Deferred, net The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Exxon Mobil Corp.'s deferred, net increased from 2011 to 2012 but then slightly declined from 2012 to 2013 not reaching 2011 level.
Income tax expense The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to pretax income (loss) from continuing operations; income tax expense (benefit) may include interest and penalties on tax uncertainties based on the entity's accounting policy. Exxon Mobil Corp.'s income tax expense declined from 2011 to 2012 and from 2012 to 2013.

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Components of Deferred Tax Assets and Liabilities

Exxon Mobil Corp., components of deferred tax assets and liabilities

USD $ in millions

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Pension and other postretirement benefits 6,573  8,041  7,930  5,634  5,442 
Asset retirement obligations 6,083  5,826  5,302  4,461  3,978 
Tax loss carryforwards 3,393  2,989  3,166  3,243  3,693 
Other assets 6,246  6,135  7,079  6,070  4,700 
Deferred tax assets, gross 22,295  22,991  23,477  19,408  17,813 
Asset valuation allowances (2,491) (1,615) (1,304) (1,183) (1,495)
Deferred tax assets, net 19,804  21,376  22,173  18,225  16,318 
Property, plant and equipment (50,884) (48,720) (45,951) (42,657) (29,931)
Other liabilities (3,474) (3,680) (4,281) (4,278) (4,102)
Deferred tax liabilities (54,358) (52,400) (50,232) (46,935) (34,033)
Net deferred tax assets (liabilities) (34,554) (31,024) (28,059) (28,710) (17,715)

Source: Based on data from Exxon Mobil Corp. Annual Reports

Item Description The company
Deferred tax assets, gross The sum of the tax effects as of the balance sheet date of the amounts of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws (before the valuation allowance, if any, to reduce such sum amount to net realizable value). Includes any tax benefit realized in deferred tax assets for significant impacts of tax planning strategies. Exxon Mobil Corp.'s deferred tax assets, gross declined from 2011 to 2012 and from 2012 to 2013.
Deferred tax assets, net The aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; net of deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Exxon Mobil Corp.'s deferred tax assets, net declined from 2011 to 2012 and from 2012 to 2013.
Net deferred tax assets (liabilities) For entities that net deferred tax assets and tax liabilities, represents the unclassified net amount of deferred tax assets and liabilities as of the balance sheet date, which result from applying the applicable enacted tax rate to net temporary differences and carryforwards pertaining to assets or liabilities. A temporary difference is a difference between the tax basis of an asset or liability and its carrying amount in the financial statements prepared in accordance with generally accepted accounting principles that will reverse in ensuing periods. Exxon Mobil Corp.'s net deferred tax assets (liabilities) declined from 2011 to 2012 and from 2012 to 2013.

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Deferred Tax Assets and Liabilities, Classification

Exxon Mobil Corp., deferred tax assets and liabilities, classification

USD $ in millions

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Current deferred tax assets (included in other current assets) 3,575  3,540  4,549  3,359  3,322 
Noncurrent deferred tax assets (included on other assets, including intangibles, net) 2,822  3,269  4,218  3,527  2,263 
Current deferred tax liabilities (included in accounts payable and accrued liabilities) 421  263  208  446  152 
Noncurrent deferred income tax liabilities 40,530  37,570  36,618  35,150  23,148 

Source: Based on data from Exxon Mobil Corp. Annual Reports

Item Description The company
Current deferred tax assets (included in other current assets) The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset. Exxon Mobil Corp.'s current deferred tax assets (included in other current assets) declined from 2011 to 2012 but then slightly increased from 2012 to 2013.
Noncurrent deferred tax assets (included on other assets, including intangibles, net) The noncurrent portion as of the balance sheet date of the aggregate carrying amount of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after the valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Exxon Mobil Corp.'s noncurrent deferred tax assets (included on other assets, including intangibles, net) declined from 2011 to 2012 and from 2012 to 2013.
Current deferred tax liabilities (included in accounts payable and accrued liabilities) Represents the current portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A current taxable temporary difference is a difference between the tax basis and the carrying amount of a current asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Exxon Mobil Corp.'s current deferred tax liabilities (included in accounts payable and accrued liabilities) increased from 2011 to 2012 and from 2012 to 2013.
Noncurrent deferred income tax liabilities Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Exxon Mobil Corp.'s noncurrent deferred income tax liabilities increased from 2011 to 2012 and from 2012 to 2013.

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Analyst Adjustments: Removal of Deferred Taxes

Exxon Mobil Corp., adjustments to financial data

USD $ in millions

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Adjustment to Current Assets
Current assets (as reported) 59,308  64,460  72,963  58,984  55,235 
Less: Current deferred tax assets, net 3,575  3,540  4,549  3,359  3,322 
Current assets (adjusted) 55,733  60,920  68,414  55,625  51,913 
Adjustment to Total Assets
Total assets (as reported) 346,808  333,795  331,052  302,510  233,323 
Less: Current deferred tax assets, net 3,575  3,540  4,549  3,359  3,322 
Less: Noncurrent deferred tax assets, net 2,822  3,269  4,218  3,527  2,263 
Total assets (adjusted) 340,411  326,986  322,285  295,624  227,738 
Adjustment to Current Liabilities
Current liabilities (as reported) 71,724  64,139  77,505  62,633  52,061 
Less: Current deferred tax liabilities, net 421  263  208  446  152 
Current liabilities (adjusted) 71,303  63,876  77,297  62,187  51,909 
Adjustment to Total Liabilities
Total liabilities (as reported) 166,313  162,135  170,308  149,831  117,931 
Less: Current deferred tax liabilities, net 421  263  208  446  152 
Less: Noncurrent deferred tax liabilities, net 40,530  37,570  36,618  35,150  23,148 
Total liabilities (adjusted) 125,362  124,302  133,482  114,235  94,631 
Adjustment to Total ExxonMobil Share Of Equity
Total ExxonMobil share of equity (as reported) 174,003  165,863  154,396  146,839  110,569 
Less: Current deferred tax assets, net 3,575  3,540  4,549  3,359  3,322 
Less: Noncurrent deferred tax assets, net 2,822  3,269  4,218  3,527  2,263 
Add: Current deferred tax liabilities, net 421  263  208  446  152 
Add: Noncurrent deferred tax liabilities, net 40,530  37,570  36,618  35,150  23,148 
Total ExxonMobil share of equity (adjusted) 208,557  196,887  182,455  175,549  128,284 
Adjustment to Net Income Attributable To ExxonMobil
Net income attributable to ExxonMobil (as reported) 32,580  44,880  41,060  30,460  19,280 
Add: Deferred income tax expense (benefit) 641  2,913  160  (1,142) (15)
Net income attributable to ExxonMobil (adjusted) 33,221  47,793  41,220  29,318  19,265 

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Adjusted Ratios: Removal of Deferred Taxes (Summary)

Exxon Mobil Corp., adjusted ratios

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
Current Ratio
Reported current ratio 0.83 1.01 0.94 0.94 1.06
Adjusted current ratio 0.78 0.95 0.89 0.89 1.00
Net Profit Margin
Reported net profit margin 7.74% 9.90% 8.79% 8.23% 6.39%
Adjusted net profit margin 7.89% 10.55% 8.83% 7.92% 6.39%
Total Asset Turnover
Reported total asset turnover 1.21 1.36 1.41 1.22 1.29
Adjusted total asset turnover 1.24 1.39 1.45 1.25 1.32
Financial Leverage
Reported financial leverage 1.99 2.01 2.14 2.06 2.11
Adjusted financial leverage 1.63 1.66 1.77 1.68 1.78
Return on Equity (ROE)
Reported ROE 18.72% 27.06% 26.59% 20.74% 17.44%
Adjusted ROE 15.93% 24.27% 22.59% 16.70% 15.02%
Return on Assets (ROA)
Reported ROA 9.39% 13.45% 12.40% 10.07% 8.26%
Adjusted ROA 9.76% 14.62% 12.79% 9.92% 8.46%
Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Exxon Mobil Corp.'s adjusted current ratio improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Exxon Mobil Corp.'s adjusted net profit margin improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Exxon Mobil Corp.'s adjusted total asset turnover deteriorated from 2011 to 2012 and from 2012 to 2013.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Exxon Mobil Corp.'s adjusted financial leverage declined from 2011 to 2012 and from 2012 to 2013.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. Exxon Mobil Corp.'s adjusted ROE improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Exxon Mobil Corp.'s adjusted ROA improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

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Adjusted Current Ratio

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
As Reported
Current assets (USD $ in millions) 59,308  64,460  72,963  58,984  55,235 
Current liabilities (USD $ in millions) 71,724  64,139  77,505  62,633  52,061 
Current ratio1 0.83 1.01 0.94 0.94 1.06
Adjusted for Deferred Taxes
Adjusted current assets (USD $ in millions) 55,733  60,920  68,414  55,625  51,913 
Adjusted current liabilities (USD $ in millions) 71,303  63,876  77,297  62,187  51,909 
Adjusted current ratio2 0.78 0.95 0.89 0.89 1.00

2013 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 59,308 ÷ 71,724 = 0.83

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 55,733 ÷ 71,303 = 0.78

Ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Exxon Mobil Corp.'s adjusted current ratio improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

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Adjusted Net Profit Margin

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
As Reported
Net income attributable to ExxonMobil (USD $ in millions) 32,580  44,880  41,060  30,460  19,280 
Sales and other operating revenue (USD $ in millions) 420,836  453,123  467,029  370,125  301,500 
Net profit margin1 7.74% 9.90% 8.79% 8.23% 6.39%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions) 33,221  47,793  41,220  29,318  19,265 
Sales and other operating revenue (USD $ in millions) 420,836  453,123  467,029  370,125  301,500 
Adjusted net profit margin2 7.89% 10.55% 8.83% 7.92% 6.39%

2013 Calculations

1 Net profit margin = 100 × Net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 32,580 ÷ 420,836 = 7.74%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 33,221 ÷ 420,836 = 7.89%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Exxon Mobil Corp.'s adjusted net profit margin improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

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Adjusted Total Asset Turnover

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
As Reported
Sales and other operating revenue (USD $ in millions) 420,836  453,123  467,029  370,125  301,500 
Total assets (USD $ in millions) 346,808  333,795  331,052  302,510  233,323 
Total asset turnover1 1.21 1.36 1.41 1.22 1.29
Adjusted for Deferred Taxes
Sales and other operating revenue (USD $ in millions) 420,836  453,123  467,029  370,125  301,500 
Adjusted total assets (USD $ in millions) 340,411  326,986  322,285  295,624  227,738 
Adjusted total asset turnover2 1.24 1.39 1.45 1.25 1.32

2013 Calculations

1 Total asset turnover = Sales and other operating revenue ÷ Total assets
= 420,836 ÷ 346,808 = 1.21

2 Adjusted total asset turnover = Sales and other operating revenue ÷ Adjusted total assets
= 420,836 ÷ 340,411 = 1.24

Ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Exxon Mobil Corp.'s adjusted total asset turnover deteriorated from 2011 to 2012 and from 2012 to 2013.

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Adjusted Financial Leverage

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
As Reported
Total assets (USD $ in millions) 346,808  333,795  331,052  302,510  233,323 
Total ExxonMobil share of equity (USD $ in millions) 174,003  165,863  154,396  146,839  110,569 
Financial leverage1 1.99 2.01 2.14 2.06 2.11
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions) 340,411  326,986  322,285  295,624  227,738 
Adjusted total ExxonMobil share of equity (USD $ in millions) 208,557  196,887  182,455  175,549  128,284 
Adjusted financial leverage2 1.63 1.66 1.77 1.68 1.78

2013 Calculations

1 Financial leverage = Total assets ÷ Total ExxonMobil share of equity
= 346,808 ÷ 174,003 = 1.99

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ExxonMobil share of equity
= 340,411 ÷ 208,557 = 1.63

Ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Exxon Mobil Corp.'s adjusted financial leverage declined from 2011 to 2012 and from 2012 to 2013.

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Adjusted Return On Equity (ROE)

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
As Reported
Net income attributable to ExxonMobil (USD $ in millions) 32,580  44,880  41,060  30,460  19,280 
Total ExxonMobil share of equity (USD $ in millions) 174,003  165,863  154,396  146,839  110,569 
ROE1 18.72% 27.06% 26.59% 20.74% 17.44%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions) 33,221  47,793  41,220  29,318  19,265 
Adjusted total ExxonMobil share of equity (USD $ in millions) 208,557  196,887  182,455  175,549  128,284 
Adjusted ROE2 15.93% 24.27% 22.59% 16.70% 15.02%

2013 Calculations

1 ROE = 100 × Net income attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × 32,580 ÷ 174,003 = 18.72%

2 Adjusted ROE = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total ExxonMobil share of equity
= 100 × 33,221 ÷ 208,557 = 15.93%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. Exxon Mobil Corp.'s adjusted ROE improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

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Adjusted Return On Assets (ROA)

 
Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010 Dec 31, 2009
As Reported
Net income attributable to ExxonMobil (USD $ in millions) 32,580  44,880  41,060  30,460  19,280 
Total assets (USD $ in millions) 346,808  333,795  331,052  302,510  233,323 
ROA1 9.39% 13.45% 12.40% 10.07% 8.26%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions) 33,221  47,793  41,220  29,318  19,265 
Adjusted total assets (USD $ in millions) 340,411  326,986  322,285  295,624  227,738 
Adjusted ROA2 9.76% 14.62% 12.79% 9.92% 8.46%

2013 Calculations

1 ROA = 100 × Net income attributable to ExxonMobil ÷ Total assets
= 100 × 32,580 ÷ 346,808 = 9.39%

2 Adjusted ROA = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total assets
= 100 × 33,221 ÷ 340,411 = 9.76%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Exxon Mobil Corp.'s adjusted ROA improved from 2011 to 2012 but then deteriorated significantly from 2012 to 2013.

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