Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 61

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 61
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 the definition used for capital employed, and excludes the cost of financing. Capital employed is a non-GAAP financial measure and is disclosed and reconciled above. The company has consistently applied its ROCE definition for many years and views it as one of the best measures of historical capital productivity in a capital-intensive, long-term industry. Additional measures, which are more cash flow based, are used to make investment decisions. 

Components of return on average capital employed 

millions of Canadian dollars2024 2023 2022 From the Consolidated statement of incomeNet income (loss)4,790 4,889 7,340 Financing (after-tax) including Imperial’s share of equity companies43 66 55 Net income (loss) excluding financing4,833 4,955 7,395 Average capital employed26,942 26,484 26,762 Return on average capital employed (percent) – corporate total17.9 18.7 27.6 

Cash flows from (used in) operating activities and asset sales 

Cash flows from operating activities and asset sales is a non-GAAP financial measure that is the sum of the net cash provided by operating activities and proceeds from asset sales reported in the Consolidated statement of cash flows. This cash flow reflects the total sources of cash both from operating the company’s assets and from the divesting of assets. The most directly comparable financial measure that is disclosed in the financial statements is cash flows from (used in) operating activities within the company’s Consolidated statement of cash flows. The company employs a long-standing and regular disciplined review process to ensure that assets are contributing to the company’s strategic objectives. Assets are divested when they no longer meet these objectives or are worth considerably more to others. Because of the regular nature of this activity, the company believes 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. 

Reconciliation of cash flows from (used in) operating activities and asset sales 

millions of Canadian dollars2024 2023 2022 From the Consolidated statement of cash flows Cash flows from (used in) operating activities5,981 3,734 10,482 Proceeds from asset sales25 86 904 Total cash flows from (used in) operating activities and asset sales6,006 3,820 11,386 

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Operating costs 

Operating costs is