Income Tax Expense (Benefit)

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

USD $ in millions

 
12 months ended Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Federal 1,456  1,073  1,791  1,547  1,224 
Non-U.S. 14,755  22,115  25,650  28,849  21,093 
U.S. tax on non-U.S. operations 37  89  15  46 
State (499) 397  602  480  340 
Current 15,717  23,622  28,132  30,891  22,703 
Federal 900  (116) 1,097  1,577  49 
Non-U.S. 1,398  757  1,816  (1,417) (1,191)
Deferred, net 2,298  641  2,913  160  (1,142)
Income tax expense 18,015  24,263  31,045  31,051  21,561 

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 2012 to 2013 and from 2013 to 2014.
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 declined from 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 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 2012 to 2013 and from 2013 to 2014.

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Effective Income Tax Rate (EITR)

Exxon Mobil Corp., effective income tax rate (EITR) reconciliation

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Theoretical U.S. tax rate 35.00% 35.00% 35.00% 35.00% 35.00%
Effective income tax rate 41.00% 48.00% 44.00% 46.00% 45.00%

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

Item Description The company
Effective income tax rate A ratio calculated by dividing the reported amount of income tax expense attributable to continuing operations for the period by GAAP-basis pretax income from continuing operations. Exxon Mobil Corp.'s effective income tax rate increased from 2012 to 2013 but then declined significantly from 2013 to 2014.

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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, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Pension and other postretirement benefits 8,140  6,573  8,041  7,930  5,634 
Asset retirement obligations 6,162  6,083  5,826  5,302  4,461 
Tax loss carryforwards 4,099  3,393  2,989  3,166  3,243 
Other assets 6,446  6,246  6,135  7,079  6,070 
Deferred tax assets, gross 24,847  22,295  22,991  23,477  19,408 
Asset valuation allowances (2,570) (2,491) (1,615) (1,304) (1,183)
Deferred tax assets, net 22,277  19,804  21,376  22,173  18,225 
Property, plant and equipment (51,643) (50,884) (48,720) (45,951) (42,657)
Other liabilities (4,359) (3,474) (3,680) (4,281) (4,278)
Deferred tax liabilities (56,002) (54,358) (52,400) (50,232) (46,935)
Net deferred tax assets (liabilities) (33,725) (34,554) (31,024) (28,059) (28,710)

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 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
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 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
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 2012 to 2013 but then slightly increased from 2013 to 2014.

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Deferred Tax Assets and Liabilities, Classification

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

USD $ in millions

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Current deferred tax assets (included in Other current assets) 2,001  3,575  3,540  4,549  3,359 
Noncurrent deferred tax assets (included in Other assets, including intangibles, net) 3,955  2,822  3,269  4,218  3,527 
Current deferred tax liabilities (included in Accounts payable and accrued liabilities) 451  421  263  208  446 
Noncurrent deferred income tax liabilities 39,230  40,530  37,570  36,618  35,150 

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 2012 to 2013 but then declined significantly from 2013 to 2014.
Noncurrent deferred tax assets (included in 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 in Other assets, including intangibles, net) declined from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
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 2012 to 2013 and from 2013 to 2014.
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 2012 to 2013 but then slightly declined from 2013 to 2014.

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Analyst Adjustments: Removal of Deferred Taxes

Exxon Mobil Corp., adjustments to financial data

USD $ in millions

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Adjustment to Current Assets
Current assets (as reported) 52,910  59,308  64,460  72,963  58,984 
Less: Current deferred tax assets, net 2,001  3,575  3,540  4,549  3,359 
Current assets (adjusted) 50,909  55,733  60,920  68,414  55,625 
Adjustment to Total Assets
Total assets (as reported) 349,493  346,808  333,795  331,052  302,510 
Less: Current deferred tax assets, net 2,001  3,575  3,540  4,549  3,359 
Less: Noncurrent deferred tax assets, net 3,955  2,822  3,269  4,218  3,527 
Total assets (adjusted) 343,537  340,411  326,986  322,285  295,624 
Adjustment to Current Liabilities
Current liabilities (as reported) 64,633  71,724  64,139  77,505  62,633 
Less: Current deferred tax liabilities, net 451  421  263  208  446 
Current liabilities (adjusted) 64,182  71,303  63,876  77,297  62,187 
Adjustment to Total Liabilities
Total liabilities (as reported) 168,429  166,313  162,135  170,308  149,831 
Less: Current deferred tax liabilities, net 451  421  263  208  446 
Less: Noncurrent deferred tax liabilities, net 39,230  40,530  37,570  36,618  35,150 
Total liabilities (adjusted) 128,748  125,362  124,302  133,482  114,235 
Adjustment to Total ExxonMobil Share Of Equity
Total ExxonMobil share of equity (as reported) 174,399  174,003  165,863  154,396  146,839 
Less: Net deferred tax assets (liabilities) (33,725) (34,554) (31,024) (28,059) (28,710)
Total ExxonMobil share of equity (adjusted) 208,124  208,557  196,887  182,455  175,549 
Adjustment to Net Income Attributable To ExxonMobil
Net income attributable to ExxonMobil (as reported) 32,520  32,580  44,880  41,060  30,460 
Add: Deferred income tax expense (benefit) 2,298  641  2,913  160  (1,142)
Net income attributable to ExxonMobil (adjusted) 34,818  33,221  47,793  41,220  29,318 

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Adjusted Ratios: Removal of Deferred Taxes (Summary)

Exxon Mobil Corp., adjusted ratios

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Current Ratio
Reported current ratio 0.82 0.83 1.01 0.94 0.94
Adjusted current ratio 0.79 0.78 0.95 0.89 0.89
Net Profit Margin
Reported net profit margin 8.25% 7.74% 9.90% 8.79% 8.23%
Adjusted net profit margin 8.83% 7.89% 10.55% 8.83% 7.92%
Total Asset Turnover
Reported total asset turnover 1.13 1.21 1.36 1.41 1.22
Adjusted total asset turnover 1.15 1.24 1.39 1.45 1.25
Financial Leverage
Reported financial leverage 2.00 1.99 2.01 2.14 2.06
Adjusted financial leverage 1.65 1.63 1.66 1.77 1.68
Return on Equity (ROE)
Reported ROE 18.65% 18.72% 27.06% 26.59% 20.74%
Adjusted ROE 16.73% 15.93% 24.27% 22.59% 16.70%
Return on Assets (ROA)
Reported ROA 9.30% 9.39% 13.45% 12.40% 10.07%
Adjusted ROA 10.14% 9.76% 14.62% 12.79% 9.92%
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 2012 to 2013 but then slightly improved from 2013 to 2014.
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 deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.
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 2012 to 2013 and from 2013 to 2014.
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 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders' equity. Exxon Mobil Corp.'s adjusted ROE deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Exxon Mobil Corp.'s adjusted ROA deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

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Adjusted Current Ratio

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Current assets (USD $ in millions) 52,910  59,308  64,460  72,963  58,984 
Current liabilities (USD $ in millions) 64,633  71,724  64,139  77,505  62,633 
Current ratio1 0.82 0.83 1.01 0.94 0.94
Adjusted for Deferred Taxes
Adjusted current assets (USD $ in millions) 50,909  55,733  60,920  68,414  55,625 
Adjusted current liabilities (USD $ in millions) 64,182  71,303  63,876  77,297  62,187 
Adjusted current ratio2 0.79 0.78 0.95 0.89 0.89

2014 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 52,910 ÷ 64,633 = 0.82

2 Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 50,909 ÷ 64,182 = 0.79

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 2012 to 2013 but then slightly improved from 2013 to 2014.

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Adjusted Net Profit Margin

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Net income attributable to ExxonMobil (USD $ in millions) 32,520  32,580  44,880  41,060  30,460 
Sales and other operating revenue (USD $ in millions) 394,105  420,836  453,123  467,029  370,125 
Net profit margin1 8.25% 7.74% 9.90% 8.79% 8.23%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions) 34,818  33,221  47,793  41,220  29,318 
Adjusted net profit margin2 8.83% 7.89% 10.55% 8.83% 7.92%

2014 Calculations

1 Net profit margin = 100 × Net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 32,520 ÷ 394,105 = 8.25%

2 Adjusted net profit margin = 100 × Adjusted net income attributable to ExxonMobil ÷ Sales and other operating revenue
= 100 × 34,818 ÷ 394,105 = 8.83%

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 deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

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Adjusted Total Asset Turnover

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Sales and other operating revenue (USD $ in millions) 394,105  420,836  453,123  467,029  370,125 
Total assets (USD $ in millions) 349,493  346,808  333,795  331,052  302,510 
Total asset turnover1 1.13 1.21 1.36 1.41 1.22
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions) 343,537  340,411  326,986  322,285  295,624 
Adjusted total asset turnover2 1.15 1.24 1.39 1.45 1.25

2014 Calculations

1 Total asset turnover = Sales and other operating revenue ÷ Total assets
= 394,105 ÷ 349,493 = 1.13

2 Adjusted total asset turnover = Sales and other operating revenue ÷ Adjusted total assets
= 394,105 ÷ 343,537 = 1.15

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 2012 to 2013 and from 2013 to 2014.

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Adjusted Financial Leverage

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Total assets (USD $ in millions) 349,493  346,808  333,795  331,052  302,510 
Total ExxonMobil share of equity (USD $ in millions) 174,399  174,003  165,863  154,396  146,839 
Financial leverage1 2.00 1.99 2.01 2.14 2.06
Adjusted for Deferred Taxes
Adjusted total assets (USD $ in millions) 343,537  340,411  326,986  322,285  295,624 
Adjusted total ExxonMobil share of equity (USD $ in millions) 208,124  208,557  196,887  182,455  175,549 
Adjusted financial leverage2 1.65 1.63 1.66 1.77 1.68

2014 Calculations

1 Financial leverage = Total assets ÷ Total ExxonMobil share of equity
= 349,493 ÷ 174,399 = 2.00

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ExxonMobil share of equity
= 343,537 ÷ 208,124 = 1.65

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 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 level.

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Adjusted Return On Equity (ROE)

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Net income attributable to ExxonMobil (USD $ in millions) 32,520  32,580  44,880  41,060  30,460 
Total ExxonMobil share of equity (USD $ in millions) 174,399  174,003  165,863  154,396  146,839 
ROE1 18.65% 18.72% 27.06% 26.59% 20.74%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions) 34,818  33,221  47,793  41,220  29,318 
Adjusted total ExxonMobil share of equity (USD $ in millions) 208,124  208,557  196,887  182,455  175,549 
Adjusted ROE2 16.73% 15.93% 24.27% 22.59% 16.70%

2014 Calculations

1 ROE = 100 × Net income attributable to ExxonMobil ÷ Total ExxonMobil share of equity
= 100 × 32,520 ÷ 174,399 = 18.65%

2 Adjusted ROE = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total ExxonMobil share of equity
= 100 × 34,818 ÷ 208,124 = 16.73%

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 deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

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Adjusted Return On Assets (ROA)

 
Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
As Reported
Net income attributable to ExxonMobil (USD $ in millions) 32,520  32,580  44,880  41,060  30,460 
Total assets (USD $ in millions) 349,493  346,808  333,795  331,052  302,510 
ROA1 9.30% 9.39% 13.45% 12.40% 10.07%
Adjusted for Deferred Taxes
Adjusted net income attributable to ExxonMobil (USD $ in millions) 34,818  33,221  47,793  41,220  29,318 
Adjusted total assets (USD $ in millions) 343,537  340,411  326,986  322,285  295,624 
Adjusted ROA2 10.14% 9.76% 14.62% 12.79% 9.92%

2014 Calculations

1 ROA = 100 × Net income attributable to ExxonMobil ÷ Total assets
= 100 × 32,520 ÷ 349,493 = 9.30%

2 Adjusted ROA = 100 × Adjusted net income attributable to ExxonMobil ÷ Adjusted total assets
= 100 × 34,818 ÷ 343,537 = 10.14%

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 deteriorated from 2012 to 2013 but then slightly improved from 2013 to 2014.

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