UNITED STATES  

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 11‑K

 

 

 

For the fiscal year ended December 31, 2017

 

 

OR

 

 

 

For the transition period from __________ to ___________

 

 

Commission file number 1-2256

 

 

 

EXXONMOBIL SAVINGS PLAN

 

 

 

EXXON MOBIL CORPORATION

 

5959 Las Colinas Boulevard

 

Irving, Texas 75039-2298

 

 

  

EXXONMOBIL SAVINGS PLAN

 

 

 

TABLE OF CONTENTS

 

 

 

 

EXXONMOBIL SAVINGS PLAN

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

 

Note 1:  Description of the Plan

 

General

 

Active participants in the ExxonMobil Savings Plan ("Plan") are eligible employees of Exxon Mobil Corporation ("ExxonMobil" or the “Company") and certain affiliated employers.  The terms and conditions of the Plan are contained in the ExxonMobil Benefit Plans Common Provisions document, the ExxonMobil Savings Plan document, and the ExxonMobil Savings Trust document (collectively, the "Plan Document").  The Plan is an "employee pension benefit plan" described in Section 3(2) of the Employee Retirement Income Security Act of 1974 ("ERISA"), a "defined contribution plan" described in Section 3(34) of ERISA, and a non-leveraged Employee Stock Ownership Plan. The notes to the financial statements give a general description of the Plan. Participants should refer to the Plan Document for a more complete discussion of the Plan's provisions.

 

Contributions

 

The Plan permits participant contributions that range from 6 percent to 20 percent of each participant’s eligible pay. The Company matches only the minimum 6 percent contribution in an amount equal to 7 percent of a participant’s eligible pay.

 

Employees who are at least age 50 during the plan year and who maximize the combination of their regular pretax and Roth contributions may elect to make additional contributions. 

 

Vesting

 

Participants are immediately vested in their contributions and all earnings.  Company contributions vest at 100 percent upon the earliest of completion of 3 years of vesting service, reaching age 65 while employed, or death while an employee.

 

Forfeitures

 

During 2017, employer contributions totaling $1 million were forfeited by terminating employees and used to offset employer contributions.

 

Other Plan Provisions

 

Other Plan provisions including eligibility, enrollment, participation, forfeiture, loans, benefit payments (including withdrawals and distributions), and investment options are described in the Plan Document.

 

Plan Termination

 

The Company may terminate or amend the Plan at any time.  In the event of termination, the net assets of the Plan will be distributed in accordance with ERISA.

 

EXXONMOBIL SAVINGS PLAN

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

Note 2:  Summary of Significant Accounting Policies

 

Basis of Accounting

 

The financial statements of the Plan are presented on the accrual basis.  Benefit payments are reported when paid.

 

Investment Valuation and Income Recognition

 

Investments are stated at fair value as described in Note 5.

 

Under the terms of its trust agreement, the Plan engaged in an authorized form of security lending activities during the years ended December 31, 2017 and 2016.  In accordance with the Savings Plan Securities Lending Agreement with The Northern Trust Company, the market value of the collateral held at the time of trade execution is required to be at least 102 percent of the market value of securities on loan or at least 105 percent if the collateral held and securities on loan are denominated in different currencies.  The fair value of U.S. Government securities on loan was $0 million and $47 million, at December 31, 2017 and 2016, respectively.  The securities on loan are reflected in the Statements of Net Assets Available for Benefits at December 31, 2017 and 2016 and the Schedule of Assets (Held At End Of Year). The value of cash collateral obtained and reinvested in short term investments is reflected as a liability on the Plan’s financial statements.

 

Purchases and sales of securities are recorded on a trade-date basis.  Dividends are recorded on the ex-dividend date.

 

Net appreciation / depreciation in the current value of investments includes realized gains and losses on investments sold or disposed of during the year and unrealized gains and losses on investments held at year end.

 

Transfers-in at fair value include participant-initiated rollovers of certain distributions from other tax-qualified plans into the Plan.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets available for benefits, liabilities and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of changes in net assets available for benefits during the reporting period.  Actual results could differ from those estimates.

 

Risks and Uncertainties

 

The Plan participants invest in various investment options offered by the Plan.  Investments in these Plan-offered options are subject to various risks, such as interest rate, market value, and credit risks.  Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the Statements of Net Assets Available for Benefits.

 

 

EXXONMOBIL SAVINGS PLAN

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

Note 2:  Summary of Significant Accounting Policies (continued)

 

Expenses

 

Investment income from all sources is stated net of brokerage fees on purchases and sales of ExxonMobil common stock, administrative expenses and investment management fees.  Fees for delivery of checks that are expedited upon request by participants are charged to the participant’s account.  All other administrative fees are paid by the Company.  Administrative expenses are recorded when incurred.

 

Note 3:  Related Party and Party in Interest Transactions

 

During 2017, certain Plan investments were units of various funds managed by The Northern Trust Company.  The Northern Trust Company also provided custodial services to the Plan and acted as securities lending agent during the plan year and, therefore, purchases and sales of these investments qualified as party in interest transactions.  The Plan holds Exxon Mobil Corporation common stock.  Exxon Mobil Corporation is the employer of Plan participants and is the Plan sponsor, and any transactions in Exxon Mobil Corporation common stock qualify as party in interest transactions. In 2017, the Plan entered into a short-term, interest-free, and unsecured loan agreement with Exxon Mobil Corporation to provide liquidity to the Plan, if needed, to fund ordinary operating expenses such as benefit payments. All amounts drawn under the loan agreement were repaid as of December 31, 2017. The lending of money from Exxon Mobil Corporation to the Plan qualifies as a party in interest transaction.

 

Notes receivable from participants (participant loans) also qualify as party in interest transactions.

 

Note 4:  Tax Status

 

The Internal Revenue Service has determined and informed the Plan administrators by a letter dated August 7, 2017, that the Plan and related trust are designed in accordance with the applicable sections of the Internal Revenue Code (“IRC”).  The Plan has been amended since receiving the determination letter.  The Plan administrators and legal counsel believe the Plan is currently designed and is being operated in compliance with the applicable requirements of the IRC.  The Plan is subject to audit by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.

  

Note 5:  Fair Value Measurements

 

The authoritative guidance for fair value measurements provides a framework for measuring fair value. The framework establishes a three-level fair value hierarchy based on the nature of the information used to measure fair value.  The terms “Level 1” and “Level 2” are accounting terms that refer to different methods of valuing assets.  The terms do not represent the relative risk or credit quality of an investment.  The fair value hierarchies for the Plan assets are not a measure of the ability of the Plan to meet Plan benefit obligations.

 

The following tables set forth by level, within the fair value hierarchy, the Plan's assets at fair value:

EXXONMOBIL SAVINGS PLAN

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

 

Note 5:  Fair Value Measurements (continued)

(1)    For ExxonMobil common stock, fair value is based on observable quoted prices on an active exchange.

(2)    For U.S. government securities, fair value is based on observable inputs of comparable market transactions.

(3)    Investments in common and preferred stocks held in the form of units in common collective trusts are redeemable daily at the unit value, including the measurement date. The fair value of the underlying securities owned by the common collective trusts is based on observable quoted prices on an active exchange.

(4)    Investments in debt securities and fixed income assets held in the form of units in common collective trusts are redeemable daily at the unit value, including the measurement date.

(5)    Short term investments held in the form of units in common collective trusts are redeemable daily at the unit value, including the measurement date.

 

* Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts in the Statements of Net Assets.

EXXONMOBIL SAVINGS PLAN

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

 

Note 5:  Fair Value Measurements (continued)

(1)    For ExxonMobil common stock, fair value is based on observable quoted prices on an active exchange.

(2)    For U.S. government securities and corporate debt securities, fair value is based on observable inputs of comparable market transactions.

(3)    Investments in common and preferred stocks held in the form of units in common collective trusts are redeemable daily at the unit value, including the measurement date. The fair value of the underlying securities owned by the common collective trusts is based on observable quoted prices on an active exchange.

(4)    Investments in debt securities and fixed income assets held in the form of units in common collective trusts are redeemable daily at the unit value, including the measurement date.

(5)    Short term investments held in the form of units in common collective trusts are redeemable daily at the unit value, including the measurement date.

 

* Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts in the Statements of Net Assets.

 

Report of Independent Registered Public Accounting Firm

 

To  the Administrator and Plan Participants of the  ExxonMobil Savings Plan  

 

Opinion on the Financial Statements

 

We have audited the accompanying statements of net assets available for benefits of the ExxonMobil Savings Plan (the “Plan”) as of December 31, 2017 and 2016 and the related statement of changes in net assets available for benefits for the year ended December 31, 2017, including the related notes (collectively referred to as the “financial statements”).  In our opinion, the financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2017 and 2016, and the changes in net assets available for benefits for the year ended December 31, 2017 in conformity with accounting principles generally accepted in the United States of America. 

 

Basis for Opinion

 

These financial statements are the responsibility of the Plan’s management.  Our responsibility is to express an opinion on the Plan’s financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Plan in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits of these financial statements in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

Supplemental Information

 

The supplemental Schedule of Assets (Held At End Of Year) as of December 31, 2017 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements.  The supplemental schedule  is the responsibility of the Plan’s management.  Our audit procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974.  In our opinion, the supplemental schedule is fairly stated, in all material respects, in relation to the financial statements as a whole.

 

 

/s/ PricewaterhouseCoopers LLP

Houston, Texas

June 14, 2018

 

We have served as the Plan’s auditor since at least 1994. We have not determined the specific year we began serving as auditor of the Plan.

  

SIGNATURE

 

 

 

The Plan.  Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Savings Plan) have duly caused this Annual Report to be signed by the undersigned hereunto duly authorized.

 

 

 

EXHIBIT INDEX

 

 

 

EXHIBIT