Edgar Filing: EXXON MOBIL CORP

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

☐ 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 ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☑

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ 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 June 30, 2015
Common stock, without par value		4,169,448,719

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2015

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
Condensed Consolidated Statement of Income Three and six months ended June 30, 2015 and 2014	3
Condensed Consolidated Statement of Comprehensive Income Three and six months ended June 30, 2015 and 2014	4
Condensed Consolidated Balance Sheet As of June 30, 2015 and December 31, 2014	5

Condensed Consolidated Statement of Cash Flows Six months ended June 30, 2015 and 2014	6
Condensed Consolidated Statement of Changes in Equity Six months ended June 30, 2015 and 2014	7
Notes to Condensed Consolidated Financial Statements	8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3. Quantitative and Qualitative Disclosures About Market Risk	22
Item 4. Controls and Procedures	22

PART II. OTHER INFORMATION
Item 1. Legal Proceedings	23
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 6. Exhibits	24
Signature	25
Index to Exhibits	26

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)

			Three Months Ended		Six Months Ended
			June 30,		June 30,
			2015	2014	2015	2014
Revenues and other income
	Sales and other operating revenue (1)		71,360	105,719	136,118	207,031
	Income from equity affiliates		2,081	3,312	4,342	7,420
	Other income		672	2,177	1,271	3,082
		Total revenues and other income	74,113	111,208	141,731	217,533
Costs and other deductions
	Crude oil and product purchases		37,312	62,210	70,010	120,076
	Production and manufacturing expenses		9,235	10,478	17,965	20,566
	Selling, general and administrative expenses		2,831	3,169	5,544	6,301
	Depreciation and depletion		4,451	4,285	8,751	8,477
	Exploration expenses, including dry holes		370	496	681	813
	Interest expense		85	64	173	130
	Sales-based taxes (1)		5,965	7,871	11,495	15,287
	Other taxes and duties		6,910	8,484	13,523	16,505
		Total costs and other deductions	67,159	97,057	128,142	188,155
Income before income taxes			6,954	14,151	13,589	29,378
	Income taxes		2,692	5,034	4,252	10,891
Net income including noncontrolling interests			4,262	9,117	9,337	18,487
	Net income attributable to noncontrolling interests		72	337	207	607
Net income attributable to ExxonMobil			4,190	8,780	9,130	17,880


Earnings per common share (dollars)			1.00	2.05	2.17	4.15

Earnings per common share - assuming dilution (dollars)			1.00	2.05	2.17	4.15


Dividends per common share (dollars)			0.73	0.69	1.42	1.32


(1) Sales-based taxes included in sales and other
		operating revenue	5,965	7,871	11,495	15,287

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(millions of dollars)

				Three Months Ended		Six Months Ended
				June 30,		June 30,
				2015	2014	2015	2014

Net income including noncontrolling interests				4,262	9,117	9,337	18,487
Other comprehensive income (net of income taxes)
	Foreign exchange translation adjustment			997	1,628	(4,356)	842
	Adjustment for foreign exchange translation (gain)/loss
			included in net income	-	81	-	163
	Postretirement benefits reserves adjustment
			(excluding amortization)	(186)	(92)	627	(176)
	Amortization and settlement of postretirement benefits reserves
			adjustment included in net periodic benefit costs	357	313	708	629
	Unrealized change in fair value of stock investments			17	18	19	(36)
	Realized (gain)/loss from stock investments included in
			net income	4	-	12	-
		Total other comprehensive income		1,189	1,948	(2,990)	1,422
Comprehensive income including noncontrolling interests				5,451	11,065	6,347	19,909
	Comprehensive income attributable to
			noncontrolling interests	159	556	(247)	615
Comprehensive income attributable to ExxonMobil				5,292	10,509	6,594	19,294

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)

				June 30,	Dec. 31,
				2015	2014
Assets
	Current assets
		Cash and cash equivalents		4,343	4,616
		Cash and cash equivalents – restricted		35	42
		Notes and accounts receivable – net		25,957	28,009
		Inventories
			Crude oil, products and merchandise	12,299	12,384
			Materials and supplies	4,364	4,294
		Other current assets		4,649	3,565
			Total current assets	51,647	52,910
	Investments, advances and long-term receivables			34,162	35,239
	Property, plant and equipment – net			253,653	252,668
	Other assets, including intangibles – net			8,798	8,676
			Total assets	348,260	349,493

Liabilities
	Current liabilities
		Notes and loans payable		14,409	17,468
		Accounts payable and accrued liabilities		39,914	42,227
		Income taxes payable		4,049	4,938
			Total current liabilities	58,372	64,633
	Long-term debt			19,431	11,653
	Postretirement benefits reserves			25,039	25,802
	Deferred income tax liabilities			39,419	39,230
	Long-term obligations to equity companies			5,487	5,325
	Other long-term obligations			21,514	21,786
			Total liabilities	169,262	168,429

Commitments and contingencies (Note 3)

Equity
	Common stock without par value
		(9,000 million shares authorized, 8,019 million shares issued)		11,224	10,792
	Earnings reinvested			411,538	408,384
	Accumulated other comprehensive income			(21,493)	(18,957)
	Common stock held in treasury
		(3,850 million shares at June 30, 2015 and
		3,818 million shares at December 31, 2014)		(228,601)	(225,820)
			ExxonMobil share of equity	172,668	174,399
	Noncontrolling interests			6,330	6,665
			Total equity	178,998	181,064
			Total liabilities and equity	348,260	349,493

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)

				Six Months Ended
				June 30,
				2015	2014
Cash flows from operating activities
	Net income including noncontrolling interests			9,337	18,487
	Depreciation and depletion			8,751	8,477
	Changes in operational working capital, excluding cash and debt			(1,533)	3
	All other items – net			235	(1,662)
			Net cash provided by operating activities	16,790	25,305

Cash flows from investing activities
	Additions to property, plant and equipment			(13,953)	(15,870)
	Proceeds associated with sales of subsidiaries, property, plant and
		equipment, and sales and returns of investments		1,113	3,667
	Additional investments and advances			(363)	(678)
	Other investing activities – net			360	2,398
			Net cash used in investing activities	(12,843)	(10,483)

Cash flows from financing activities
	Additions to long-term debt			8,000	5,500
	Reductions in long-term debt			(13)	-
	Additions/(reductions) in short-term debt – net			(414)	(489)
	Additions/(reductions) in debt with three months or less maturity			(2,773)	(5,747)
	Cash dividends to ExxonMobil shareholders			(5,976)	(5,698)
	Cash dividends to noncontrolling interests			(88)	(131)
	Tax benefits related to stock-based awards			-	7
	Common stock acquired			(2,784)	(6,863)
	Common stock sold			-	9
			Net cash used in financing activities	(4,048)	(13,412)
Effects of exchange rate changes on cash				(172)	29
Increase/(decrease) in cash and cash equivalents				(273)	1,439
Cash and cash equivalents at beginning of period				4,616	4,644
Cash and cash equivalents at end of period				4,343	6,083

Supplemental Disclosures
	Income taxes paid			4,072	10,366
	Cash interest paid			263	174

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

	EXXON MOBIL CORPORATION
	CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
	(millions of dollars)

			ExxonMobil Share of Equity
							Accumulated
								Other		Common
								Compre-		Stock		ExxonMobil		Non-
			Common		Earnings			hensive		Held in		Share of		controlling		Total
			Stock		Reinvested			Income		Treasury		Equity		Interests		Equity

Balance as of December 31, 2013				10,077		387,432			(10,725)		(212,781)		174,003		6,492		180,495
	Amortization of stock-based awards			402		-			-		-		402		-		402
	Tax benefits related to stock-based
		awards		7		-			-		-		7		-		7
	Other			1		-			-		-		1		-		1
	Net income for the period			-		17,880			-		-		17,880		607		18,487
	Dividends – common shares			-		(5,698)			-		-		(5,698)		(131)		(5,829)
	Other comprehensive income			-		-			1,414		-		1,414		8		1,422
	Acquisitions, at cost			-		-			-		(6,863)		(6,863)		-		(6,863)
	Dispositions			-		-			-		9		9		-		9
Balance as of June 30, 2014				10,487		399,614			(9,311)		(219,635)		181,155		6,976		188,131

Balance as of December 31, 2014				10,792		408,384			(18,957)		(225,820)		174,399		6,665		181,064
	Amortization of stock-based awards			429		-			-		-		429		-		429
	Tax benefits related to stock-based
		awards		6		-			-		-		6		-		6
	Other			(3)		-			-		-		(3)		-		(3)
	Net income for the period			-		9,130			-		-		9,130		207		9,337
	Dividends – common shares			-		(5,976)			-		-		(5,976)		(88)		(6,064)
	Other comprehensive income			-		-			(2,536)		-		(2,536)		(454)		(2,990)
	Acquisitions, at cost			-		-			-		(2,784)		(2,784)		-		(2,784)
	Dispositions			-		-			-		3		3		-		3
Balance as of June 30, 2015				11,224		411,538			(21,493)		(228,601)		172,668		6,330		178,998



			Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
					Held in									Held in
	Common Stock Share Activity		Issued		Treasury			Outstanding				Issued		Treasury		Outstanding
			(millions of shares)									(millions of shares)

	Balance as of December 31			8,019		(3,818)			4,201				8,019		(3,684)		4,335
		Acquisitions		-		(32)			(32)				-		(70)		(70)
		Dispositions		-		-			-				-		-		-
	Balance as of June 30			8,019		(3,850)			4,169				8,019		(3,754)		4,265

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Financial Statement Preparation

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2014 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. Prior data has been reclassified in certain cases to conform to the current presentation basis.

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

2. Recently Issued Accounting Standard

In May 2014, the Financial Accounting Standards Board issued a new standard, Revenue from Contracts with Customers. The standard establishes a single revenue recognition model for all contracts with customers, eliminates industry specific requirements, and expands disclosure requirements. The standard is expected to be adopted beginning January 1, 2018. ExxonMobil is evaluating the standard and its effect on the Corporation’s financial statements.

3. Litigation and Other Contingencies

Litigation

A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.

Other Contingencies

The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 2015, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

As of June 30, 2015

Equity

Other

Company

Third Party

Obligations (1)

Obligations

Total

(millions of dollars)

Guarantees

Debt-related

124

Other

3,015

4,151

7,166

Total

3,101

4,189

7,290

(1) ExxonMobil share

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition. The Corporation's outstanding unconditional purchase obligations at June 30, 2015, were similar to those at the prior year-end period. Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.

The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture. ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.

On September 6, 2007, affiliates of ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID). The ICSID Tribunal issued a decision on June 10, 2010, finding that it had jurisdiction to proceed on the basis of the Netherlands-Venezuela Bilateral Investment Treaty. On October 9, 2014, the ICSID Tribunal issued its final award finding in favor of the ExxonMobil affiliates and awarding $1.6 billion as of the date of expropriation, June 27, 2007, and interest from that date at 3.25% compounded annually until the date of payment in full. The Tribunal also noted that one of the Cerro Negro Project agreements provides a mechanism to prevent double recovery between the ICSID award and all or part of an earlier award of $908 million to an ExxonMobil affiliate, Mobil Cerro Negro, Ltd., against PdVSA and a PdVSA affiliate, PdVSA CN, in an arbitration under the rules of the International Chamber of Commerce (ICC).

On June 12, 2015, the Tribunal rejected in its entirety Venezuela’s October 23, 2014, application to revise the ICSID award. The Tribunal also lifted the associated stay of enforcement that had been entered upon the filing of the application to revise.

Still pending is Venezuela’s February 2, 2015, application to ICSID seeking annulment of the ICSID award. That application alleges that, in issuing the ICSID award, the Tribunal exceeded its powers, failed to state reasons on which the ICSID award was based, and departed from a fundamental rule of procedure. A separate stay of the ICSID award was entered following the filing of the annulment application. On July 7, 2015, the ICSID Committee considering the annulment application heard arguments from the parties on whether to lift the stay of the award associated with that application. On July 28, 2015, the Committee issued an order that would lift the stay of enforcement unless, within 30 days, Venezuela delivers a commitment to pay the award if the application to annul is denied. In that event, the ICSID Committee would require, as a condition to the lifting of the stay, that the ExxonMobil affiliates give a commitment within 15 days that any attempt to enforce the ICSID award will take full account of the requirement in the award to avoid double recovery of amounts received under the ICC award.

The United States District Court for the Southern District of New York entered judgment on the ICSID award on October 10, 2014. Motions filed by Venezuela to vacate that judgment on procedural grounds and to modify the judgment by reducing the rate of interest to be paid on the ICSID award from the entry of the court’s judgment, until the date of payment, were denied on February 13, 2015, and March 4, 2015, respectively. On March 9, 2015, Venezuela filed a notice of appeal of the court’s actions on the two motions.

The District Court’s judgment on the ICSID award is currently stayed until such time as ICSID’s stay of the award entered following Venezuela’s filing of its application to annul has been lifted. The net impact of these matters on the Corporation’s consolidated financial results cannot be reasonably estimated. Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.

An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award. The Contractors have appealed that judgment. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition.

4. Other Comprehensive Income Information

			Cumulative	Post-
			Foreign	retirement	Unrealized
			Exchange	Benefits	Change in
ExxonMobil Share of Accumulated Other			Translation	Reserves	Stock
Comprehensive Income			Adjustment	Adjustment	Investments	Total
		(millions of dollars)

Balance as of December 31, 2013			(846)	(9,879)	-	(10,725)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income		849	(168)	(36)	645
Amounts reclassified from accumulated other
	comprehensive income		163	606	-	769
Total change in accumulated other comprehensive income			1,012	438	(36)	1,414
Balance as of June 30, 2014			166	(9,441)	(36)	(9,311)

Balance as of December 31, 2014			(5,952)	(12,945)	(60)	(18,957)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income		(3,873)	620	19	(3,234)
Amounts reclassified from accumulated other
	comprehensive income		-	686	12	698
Total change in accumulated other comprehensive income			(3,873)	1,306	31	(2,536)
Balance as of June 30, 2015			(9,825)	(11,639)	(29)	(21,493)


				Three Months Ended		Six Months Ended
Amounts Reclassified Out of Accumulated Other				June 30,		June 30,
Comprehensive Income - Before-tax Income/(Expense)				2015	2014	2015	2014
			(millions of dollars)

Foreign exchange translation gain/(loss) included in net income
	(Statement of Income line: Other income)			-	(81)	-	(163)
Amortization and settlement of postretirement benefits reserves
	adjustment included in net periodic benefit costs (1)			(507)	(434)	(1,018)	(885)
Realized change in fair value of stock investments included in
		net income (Statement of Income line: Other income)		(6)	-	(18)	-

(1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 6 – Pension and Other Postretirement Benefits for additional details.)

			Three Months Ended		Six Months Ended
Income Tax (Expense)/Credit For			June 30,		June 30,
Components of Other Comprehensive Income			2015	2014	2015	2014
		(millions of dollars)

Foreign exchange translation adjustment			(25)	61	65	29
Postretirement benefits reserves adjustment
	(excluding amortization)		75	27	(302)	77
Amortization and settlement of postretirement benefits reserves
	adjustment included in net periodic benefit costs		(150)	(121)	(310)	(256)
Unrealized change in fair value of stock investments			(10)	(10)	(11)	19
Realized change in fair value of stock investments
	included in net income		(2)	-	(6)	-
Total			(112)	(43)	(564)	(131)

5. Earnings Per Share

		Three Months Ended		Six Months Ended
		June 30,		June 30,
		2015	2014	2015	2014

Earnings per common share
Net income attributable to ExxonMobil (millions of dollars)		4,190	8,780	9,130	17,880

Weighted average number of common shares
	outstanding (millions of shares)	4,200	4,297	4,205	4,312

Earnings per common share (dollars) (1)		1.00	2.05	2.17	4.15

(1) The calculation of earnings per common share and earnings per common share – assuming dilution are the same in each period shown.

6. Pension and Other Postretirement Benefits

					Three Months Ended		Six Months Ended
					June 30,		June 30,
					2015	2014	2015	2014

				(millions of dollars)
Components of net benefit cost
	Pension Benefits - U.S.
		Service cost			199	182	394	359
		Interest cost			197	201	393	403
		Expected return on plan assets			(207)	(200)	(414)	(400)
		Amortization of actuarial loss/(gain) and prior
			service cost		136	104	274	208
		Net pension enhancement and
			curtailment/settlement cost		117	113	234	225
		Net benefit cost			442	400	881	795

	Pension Benefits - Non-U.S.
		Service cost			172	154	348	304
		Interest cost			212	289	430	574
		Expected return on plan assets			(273)	(301)	(551)	(599)
		Amortization of actuarial loss/(gain) and prior
			service cost		208	189	419	381
		Net benefit cost			319	331	646	660

	Other Postretirement Benefits
		Service cost			48	38	85	75
		Interest cost			83	112	173	204
		Expected return on plan assets			(7)	(11)	(14)	(20)
		Amortization of actuarial loss/(gain) and prior