Exxon Mobil Corp. (XOM)

Income Tax Expense (Benefit)

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

USD $ in millions

12 months ended	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Federal	1,791	1,547	1,224	(838)	3,005
Non-U.S.	25,650	28,849	21,093	15,830	31,377
U.S. tax on non-U.S. operations	89	15	46	32	230
State	602	480	340	110	461
Current	28,132	30,891	22,703	15,134	35,073
Federal	1,097	1,577	49	650	168
Non-U.S.	1,816	(1,417)	(1,191)	(665)	1,289
Deferred, net	2,913	160	(1,142)	(15)	1,457
Income tax expense	31,045	31,051	21,561	15,119	36,530

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 increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
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 2010 to 2011 and from 2011 to 2012.
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 increased from 2010 to 2011 but then slightly declined from 2011 to 2012.

Components of Deferred Tax Assets and Liabilities

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

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Pension and other postretirement benefits	8,041	7,930	5,634	5,442	6,275
Asset retirement obligations	5,826	5,302	4,461	3,978	1,837
Tax loss carryforwards	2,989	3,166	3,243	3,693	2,850
Other assets	6,135	7,079	6,070	4,700	3,437
Deferred tax assets, gross	22,991	23,477	19,408	17,813	14,399
Asset valuation allowances	(1,615)	(1,304)	(1,183)	(1,495)	(1,264)
Deferred tax assets, net	21,376	22,173	18,225	16,318	13,135
Property, plant and equipment	(48,720)	(45,951)	(42,657)	(29,931)	(25,608)
Other liabilities	(3,680)	(4,281)	(4,278)	(4,102)	(3,589)
Deferred tax liabilities	(52,400)	(50,232)	(46,935)	(34,033)	(29,197)
Net deferred tax assets (liabilities)	(31,024)	(28,059)	(28,710)	(17,715)	(16,062)

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 increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
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 increased from 2010 to 2011 but then slightly declined from 2011 to 2012.
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) increased from 2010 to 2011 but then declined significantly from 2011 to 2012.

Deferred Tax Assets and Liabilities, Classification

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

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Current deferred tax assets (included in other current assets)	3,540	4,549	3,359	3,322	2,097
Noncurrent deferred tax assets (included on other assets, including intangibles, net)	3,269	4,218	3,527	2,263	1,725
Current deferred tax liabilities (included in accounts payable and accrued liabilities)	263	208	446	152	158
Noncurrent deferred income tax liabilities	37,570	36,618	35,150	23,148	19,726

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) increased from 2010 to 2011 but then slightly declined from 2011 to 2012 not reaching 2010 level.
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) increased from 2010 to 2011 but then declined significantly from 2011 to 2012.
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) declined from 2010 to 2011 but then slightly increased from 2011 to 2012.
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 2010 to 2011 and from 2011 to 2012.

Analyst Adjustments: Removal of Deferred Taxes

Exxon Mobil Corp., adjustments to financial data

USD $ in millions

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Adjustment to Current Assets
Current assets (as reported)	64,460	72,963	58,984	55,235	72,266
Less: Current deferred tax assets, net	3,540	4,549	3,359	3,322	2,097
Current assets (adjusted)	60,920	68,414	55,625	51,913	70,169
Adjustment to Total Assets
Total assets (as reported)	333,795	331,052	302,510	233,323	228,052
Less: Current deferred tax assets, net	3,540	4,549	3,359	3,322	2,097
Less: Noncurrent deferred tax assets, net	3,269	4,218	3,527	2,263	1,725
Total assets (adjusted)	326,986	322,285	295,624	227,738	224,230
Adjustment to Current Liabilities
Current liabilities (as reported)	64,139	77,505	62,633	52,061	49,100
Less: Current deferred tax liabilities, net	263	208	446	152	158
Current liabilities (adjusted)	63,876	77,297	62,187	51,909	48,942
Adjustment to Total Liabilities
Total liabilities (as reported)	162,135	170,308	149,831	117,931	110,529
Less: Current deferred tax liabilities, net	263	208	446	152	158
Less: Noncurrent deferred tax liabilities, net	37,570	36,618	35,150	23,148	19,726
Total liabilities (adjusted)	124,302	133,482	114,235	94,631	90,645
Adjustment to Total ExxonMobil Share Of Equity
Total ExxonMobil share of equity (as reported)	165,863	154,396	146,839	110,569	112,965
Less: Current deferred tax assets, net	3,540	4,549	3,359	3,322	2,097
Less: Noncurrent deferred tax assets, net	3,269	4,218	3,527	2,263	1,725
Add: Current deferred tax liabilities, net	263	208	446	152	158
Add: Noncurrent deferred tax liabilities, net	37,570	36,618	35,150	23,148	19,726
Total ExxonMobil share of equity (adjusted)	196,887	182,455	175,549	128,284	129,027
Adjustment to Net Income Attributable To ExxonMobil
Net income attributable to ExxonMobil (as reported)	44,880	41,060	30,460	19,280	45,220
Add: Deferred income tax expense (benefit)	2,913	160	(1,142)	(15)	1,457
Net income attributable to ExxonMobil (adjusted)	47,793	41,220	29,318	19,265	46,677

Adjusted Ratios: Removal of Deferred Taxes (Summary)

Exxon Mobil Corp., adjusted ratios

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Current Ratio
Reported current ratio	1.01	0.94	0.94	1.06	1.47
Adjusted current ratio	0.95	0.89	0.89	1.00	1.43
Net Profit Margin
Reported net profit margin	9.90%	8.79%	8.23%	6.39%	9.84%
Adjusted net profit margin	10.55%	8.83%	7.92%	6.39%	10.16%
Total Asset Turnover
Reported total asset turnover	1.36	1.41	1.22	1.29	2.02
Adjusted total asset turnover	1.39	1.45	1.25	1.32	2.05
Financial Leverage
Reported financial leverage	2.01	2.14	2.06	2.11	2.02
Adjusted financial leverage	1.66	1.77	1.68	1.78	1.74
Return on Equity (ROE)
Reported ROE	27.06%	26.59%	20.74%	17.44%	40.03%
Adjusted ROE	24.27%	22.59%	16.70%	15.02%	36.18%
Return on Assets (ROA)
Reported ROA	13.45%	12.40%	10.07%	8.26%	19.83%
Adjusted ROA	14.62%	12.79%	9.92%	8.46%	20.82%

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 deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.
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 2010 to 2011 and from 2011 to 2012.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Exxon Mobil Corp.'s adjusted total asset turnover improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.
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 increased from 2010 to 2011 but then declined significantly from 2011 to 2012.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity.	Exxon Mobil Corp.'s adjusted ROE improved from 2010 to 2011 and from 2011 to 2012.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Exxon Mobil Corp.'s adjusted ROA improved from 2010 to 2011 and from 2011 to 2012.

Adjusted Current Ratio

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Current assets (USD $ in millions)	64,460	72,963	58,984	55,235	72,266
Current liabilities (USD $ in millions)	64,139	77,505	62,633	52,061	49,100

Current ratio¹	1.01	0.94	0.94	1.06	1.47
Adjusted for Deferred Taxes
Adjusted current assets (USD $ in millions)	60,920	68,414	55,625	51,913	70,169
Adjusted current liabilities (USD $ in millions)	63,876	77,297	62,187	51,909	48,942

Adjusted current ratio²	0.95	0.89	0.89	1.00	1.43

2012 Calculations

¹ Current ratio = Current assets ÷ Current liabilities
= 64,460 ÷ 64,139 = 1.01

² Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 60,920 ÷ 63,876 = 0.95

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 deteriorated from 2010 to 2011 but then improved from 2011 to 2012 exceeding 2010 level.

Adjusted Net Profit Margin

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Net income attributable to ExxonMobil (USD $ in millions)	44,880	41,060	30,460	19,280	45,220
Sales and other operating revenue (USD $ in millions)	453,123	467,029	370,125	301,500	459,579

Net profit margin¹	9.90%	8.79%	8.23%	6.39%	9.84%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions)	47,793	41,220	29,318	19,265	46,677
Sales and other operating revenue (USD $ in millions)	453,123	467,029	370,125	301,500	459,579

Adjusted net profit margin²	10.55%	8.83%	7.92%	6.39%	10.16%

2012 Calculations

¹ Net profit margin = 100 × Net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 44,880 ÷ 453,123 = 9.90%

² Adjusted net profit margin = 100 × Adjusted net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 47,793 ÷ 453,123 = 10.55%

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 2010 to 2011 and from 2011 to 2012.

Adjusted Total Asset Turnover

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Sales and other operating revenue (USD $ in millions)	453,123	467,029	370,125	301,500	459,579
Total assets (USD $ in millions)	333,795	331,052	302,510	233,323	228,052

Total asset turnover¹	1.36	1.41	1.22	1.29	2.02
Adjusted for Deferred Taxes
Sales and other operating revenue (USD $ in millions)	453,123	467,029	370,125	301,500	459,579
Adjusted total assets (USD $ in millions)	326,986	322,285	295,624	227,738	224,230

Adjusted total asset turnover²	1.39	1.45	1.25	1.32	2.05

2012 Calculations

¹ Total asset turnover = Sales and other operating revenue ÷ Total assets
= 453,123 ÷ 333,795 = 1.36

² Adjusted total asset turnover = Sales and other operating revenue ÷ Adjusted total assets
= 453,123 ÷ 326,986 = 1.39

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 improved from 2010 to 2011 but then slightly deteriorated from 2011 to 2012.

Adjusted Financial Leverage

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Total assets (USD $ in millions)	333,795	331,052	302,510	233,323	228,052
Total ExxonMobil share of equity (USD $ in millions)	165,863	154,396	146,839	110,569	112,965

Financial leverage¹	2.01	2.14	2.06	2.11	2.02
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions)	326,986	322,285	295,624	227,738	224,230
Adjusted total ExxonMobil share of equity (USD $ in millions)	196,887	182,455	175,549	128,284	129,027

Adjusted financial leverage²	1.66	1.77	1.68	1.78	1.74

2012 Calculations

¹ Financial leverage = Total assets ÷ Total ExxonMobil share of equity
= 333,795 ÷ 165,863 = 2.01

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ExxonMobil share of equity
= 326,986 ÷ 196,887 = 1.66

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 increased from 2010 to 2011 but then declined significantly from 2011 to 2012.

Adjusted Return On Equity (ROE)

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Net income attributable to ExxonMobil (USD $ in millions)	44,880	41,060	30,460	19,280	45,220
Total ExxonMobil share of equity (USD $ in millions)	165,863	154,396	146,839	110,569	112,965

ROE¹	27.06%	26.59%	20.74%	17.44%	40.03%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions)	47,793	41,220	29,318	19,265	46,677
Adjusted total ExxonMobil share of equity (USD $ in millions)	196,887	182,455	175,549	128,284	129,027

Adjusted ROE²	24.27%	22.59%	16.70%	15.02%	36.18%

2012 Calculations

¹ ROE = 100 × Net income attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × 44,880 ÷ 165,863 = 27.06%

² Adjusted ROE = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total ExxonMobil share of equity
= 100 × 47,793 ÷ 196,887 = 24.27%

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 2010 to 2011 and from 2011 to 2012.

Adjusted Return On Assets (ROA)

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
As Reported
Net income attributable to ExxonMobil (USD $ in millions)	44,880	41,060	30,460	19,280	45,220
Total assets (USD $ in millions)	333,795	331,052	302,510	233,323	228,052

ROA¹	13.45%	12.40%	10.07%	8.26%	19.83%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions)	47,793	41,220	29,318	19,265	46,677
Adjusted total assets (USD $ in millions)	326,986	322,285	295,624	227,738	224,230

Adjusted ROA²	14.62%	12.79%	9.92%	8.46%	20.82%

2012 Calculations

¹ ROA = 100 × Net income attributable to ExxonMobil ÷ Total assets
= 100 × 44,880 ÷ 333,795 = 13.45%

² Adjusted ROA = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total assets
= 100 × 47,793 ÷ 326,986 = 14.62%

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 2010 to 2011 and from 2011 to 2012.