Exxon 2010 Annual Report Download - page 38

Frequently Used Terms
Listed below are definitions of several of ExxonMobil’s key business and financial performance measures and other terms. These definitions are
provided to facilitate understanding of the terms and their calculation.
CASH FLOW FROM OPERATIONS AND ASSET SALES
Cash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds from sales
of subsidiaries, investments, and property, plant and equipment from the Summary Statement of Cash Flows. This cash flow
is the total sources of cash from both operating the Corporation’s assets and from the divesting of assets. The Corporation
employs a long-standing and regular disciplined review process to ensure that all assets are contributing to the Corporation’s
strategic objectives. Assets are divested when they are no longer meeting these objectives or are worth considerably more to
others. Because of the regular nature of this activity, we believe it is useful for investors to consider sales proceeds together
with cash provided by operating activities when evaluating cash available for investment in the business and financing activities,
including shareholder distributions.
(millions of dollars) 2010 2009 2008
Net cash provided by operating activities 48,413 28,438 59,725
Sales of subsidiaries, investments and property, plant and equipment 3,261 1,545 5,985
Cash flow from operations and asset sales 51,674 29,983 65,710
CAPITAL EMPLOYED
Capital employed is a measure of net investment. When viewed from the perspective of how the capital is used by the
businesses, it includes ExxonMobil’s net share of property, plant and equipment and other assets less liabilities, excluding
both short-term and long-term debt. When viewed from the perspective of the sources of capital employed in total for the
Corporation, it includes ExxonMobil’s share of total debt and equity. Both of these views include ExxonMobil’s share of
amounts applicable to equity companies, which the Corporation believes should be included to provide a more comprehensive
measure of capital employed.
(millions of dollars) 2010 2009 2008
Business Uses: Asset and Liability Perspective
Total assets 302,510 233,323 228,052
Less liabilities and noncontrolling interests share of assets and liabilities
Total current liabilities excluding notes and loans payable
(59,846) (49,585)(46,700)
Total long-term liabilities excluding long-term debt
(74,971) (58,741)(54,404)
Noncontrolling interests share of assets and liabilities
(6,532) (5,642)(6,044)
Add ExxonMobil share of debt-financed equity-company net assets
4,875 5,043 4,798
Total capital employed 166,036 124,398 125,702
Total Corporate Sources: Debt and Equity Perspective
Notes and loans payable 2,787 2,476 2,400
Long-term debt
12,227 7,129 7,025
ExxonMobil share of equity
146,839 110,569 112,965
Less noncontrolling interests share of total debt
(692) (819)(1,486)
Add ExxonMobil share of equity-company debt
4,875 5,043 4,798
Total capital employed 166,036 124,398 125,702
CAPITAL AND EXPLORATION EXPENDITURES (Capex)
Capital and exploration expenditures are the combined total of additions at cost to property, plant and equipment and
exploration expenses on a before-tax basis from the Summary Statement of Income. ExxonMobil’s Capex includes its share
of similar costs for equity companies. Capex excludes depreciation on the cost of exploration support equipment and facilities
recorded to property, plant and equipment when acquired. While ExxonMobil’s management is responsible for all investments
and elements of net income, particular focus is placed on managing the controllable aspects of this group of expenditures.
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EXXON฀MOBIL฀CORPORATION฀ •฀ 2010฀SUMMARY฀ANNUAL฀REPORT