UNITED STATES  

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 11‑K

 

 

 

For the fiscal year ended December 31, 2014

 

 

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.

 

Contributions

 

The Plan permits participant contributions that range from 6% to 20% of each participant’s eligible pay. The Company matches only the minimum 6% contribution in an amount equal to 7% 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% upon the earliest of completion of 3 years of vesting service, reaching age 65 while employed, or upon death while an employee.

 

Forfeitures

 

During 2014, 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 6.

 

Under the terms of its trust agreement, the Plan engaged in an authorized form of security lending activities during the years ended December 31, 2014 and 2013.  In accordance with the Savings Plan Securities Lending Agreement with The Northern Trust Company, the market value of the collateral held is required to be at least 102% of the market value of securities lent or at least 105% if the collateral held and securities lent are denominated in different currencies.  The fair value of U.S. Government securities on loan was $18 million and $96 million, at December 31, 2014 and 2013, respectively.  The securities on loan are reflected in the Statements of Net Assets Available for Benefits and the Schedule of Assets (Held At End Of Year) at December 31, 2014 and 2013.  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 and 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, 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 Statement 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 administrative expenses which include brokerage fees on purchases and sales of ExxonMobil common stock and 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 2014, 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.  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 May 19, 2011, 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. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2012.

 

Note 5:  Investments

 

The following presents investments that represent 5 percent or more of the Plan's net assets available for benefits.

EXXONMOBIL SAVINGS PLAN

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

Note 5:  Investments (continued)

 

During 2014, the Plan's investments (including gains and losses on investments bought and sold, as well as held during the year) depreciated in value by $709 million as follows:

  

 

Note 6:  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 6:  Fair Value Measurements (continued)

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

2)   For fixed income assets, fair value is based on observable inputs of comparable market transactions.

3)   For securities lending collateral fund investments, fair value is based on observable inputs of comparable market transactions.

4)   For investments in common and preferred stocks held in the form of units in common collective trusts that are redeemable daily at the unit value, including the measurement date, the unit value is treated as a Level 2 input.  The fair value of the underlying securities owned by the common collective trusts is based on observable quoted prices on an active exchange which are Level 1 inputs.

5)   For investments in debt securities and fixed income assets held in the form of units in common collective trusts that are redeemable daily at the unit value, including the measurement date, the unit value is treated as a Level 2 input.

6)   For short term investments held in the form of units in common collective trusts that are redeemable daily at the unit value, including the measurement date, the unit value is treated as a Level 2 input.

 

The investments discussed in the Fair Value Measurements table footnotes (3), (4), (5) and (6) above are net asset value funds.

 

 

EXXONMOBIL SAVINGS PLAN

 

 

NOTES TO FINANCIAL STATEMENTS

 

 

 

Note 6:  Fair Value Measurements (continued)

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

2)   For fixed income assets, fair value is based on observable inputs of comparable market transactions.

3)   For securities lending collateral fund investments, fair value is based on observable inputs of comparable market transactions.

4)   For investments in common and preferred stocks held in the form of units in common collective trusts that are redeemable daily at the unit value, including the measurement date, the unit value is treated as a Level 2 input.  The fair value of the underlying securities owned by the common collective trusts is based on observable quoted prices on an active exchange which are Level 1 inputs.

5)   For investments in debt securities and fixed income assets held in the form of units in common collective trusts that are redeemable daily at the unit value, including the measurement date, the unit value is treated as a Level 2 input.

6)   For short term investments held in the form of units in common collective trusts that are redeemable daily at the unit value, including the measurement date, the unit value is treated as a Level 2 input.

 

The investments discussed in the Fair Value Measurements table footnotes (3), (4), (5) and (6) above are net asset value funds.