Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 119

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 119
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 finance lease obligations) was primarily a level 2 measurement. Derivative instruments The company’s size, strong capital structure and the complementary nature of its business segments reduce the company’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the company uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Consolidated statement of income on a net basis in the line "Revenues" and in the Consolidated statement of cash flows in "Cash flows from (used in) operating activities". The company’s commodity derivatives are not accounted for under hedge accounting.Credit risk associated with the company’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The company maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity. At December 31, the net notional long/(short) position of derivative instruments was: thousands of barrels2024 2023 Crude4,260 (4,450)Products(371)(490)Realized and unrealized gain or (loss) on derivative instruments recognized in the Consolidated statement of income is included in the following line on a before-tax basis: millions of Canadian dollars2024 2023 2022 Revenues(69)(5)148 The estimated fair value of derivative instruments, and the related hierarchy level for the fair value measurement were as follows:At December 31, 2024millions of Canadian dollars Fair valueEffect ofcounterpartynettingEffect ofcollateralnettingNetcarryingvalue Level 1Level 2Level 3TotalAssets     Derivative assets (a)38 21 — 59 (38)— 21  Liabilities     Derivative liabilities (b)52 30 — 82 (38)(14)30 (a)Included in the Consolidated balance sheet line: "Materials, supplies and prepaid expenses", "Accounts receivable - net" and "Other assets, including intangibles - net".(b)Included in the Consolidated balance sheet line: "Accounts payable and accrued liabilities" and "Other long-term obligations".

95

At December 31, 2023millions of Canadian dollarsFair valueEffect ofcounterpartynettingEffect ofcollateralnetting NetcarryingvalueLevel 1Level 2Level 3Total