BP 2007 Annual Report Download - page 157

BP ANNUAL REPORT AND ACCOUNTS 2007 155
38 Pensions and other post-retirement benefits continued
$ million
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2006
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US
UK US other post-
pension pension retirement
Analysis of the amount charged to profit before interest and taxation plans plans benefit plans Other plans Total
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Current service costa432 216 42 139 829
Past service cost (74) 38 – 39 3
Settlement, curtailment and special termination benefits 4 – – 227 231
Payments to defined contribution plans – 161 – 16 177
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Total operating chargeb362 415 42 421 1,240
Analysis of the amount credited (charged) to other finance expense
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Expected return on plan assets 1,711 564 2 133 2,410
Interest on plan liabilities (1,006) (423) (186) (325) (1,940)
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Other finance income (expense) 705 141 (184) (192) 470
Analysis of the amount recognized in the statement of recognized income
and expense
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Actual return less expected return on pension plan assets 1,305 521 – 141 1,967
Change in assumptions underlying the present value of the plan liabilities 114 195 111 352 772
Experience gains and losses arising on the plan liabilities (24) 17 80 (197) (124)
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Actuarial gain recognized in statement of recognized income and expense 1,395 733 191 296 2,615
Movements in benefit obligation during the year
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Benefit obligation at 1 January 20,063 7,900 3,478 7,414 38,855
Exchange adjustments 2,748 – – 632 3,380
Current service cost 432 216 42 139 829
Past service cost (74) 38 – 39 3
Interest cost 1,006 423 186 325 1,940
Curtailment (20) – – – (20)
Settlement (22) – – – (22)
Special termination benefitsc46 – – 227 273
Contributions by plan participants 38 – – 5 43
Benefit payments (funded plans)d(981) (615) (4) (149) (1,749)
Benefit payments (unfunded plans)d– (37) (211) (321) (569)
Acquisitions –– ––
Disposals 143 (18) – (7) 118
Actuarial gain on obligation (90) (212) (191) (155) (648)
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Benefit obligation at 31 December 23,289 7,695 3,300 8,149 42,433
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Movements in fair value of plan assets during the year
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Fair value of plan assets at 1 January 23,282 7,317 28 2,280 32,907
Exchange adjustments 3,325 – – 122 3,447
Expected return on plan assetsa, e 1,711 564 2 133 2,410
Contributions by plan participants 38 – – 5 43
Contributions by employers (funded plans) 438 181 – 136 755
Benefit payments (funded plans)d(981) (615) (4) (149) (1,749)
Acquisitions –– ––
Disposals 143 (13) – – 130
Actuarial gain on plan assetse1,305 521 – 141 1,967
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Fair value of plan assets at 31 December 29,261 7,955 26 2,668 39,910
Surplus (deficit) at 31 December 5,972 260 (3,274) (5,481) (2,523)
Represented by
Asset recognized 6,089 617 – 47 6,753
Liability recognized (117) (357) (3,274) (5,528) (9,276)
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5,972 260 (3,274) (5,481) (2,523)
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The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 6,089 601 (30) (379) 6,281
Unfunded (117) (341) (3,244) (5,102) (8,804)
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5,972 260 (3,274) (5,481) (2,523)
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The defined benefit obligation may be analysed between funded and unfunded plans
as follows
Funded (23,172) (7,354) (56) (3,047) (33,629)
Unfunded (117) (341) (3,244) (5,102) (8,804)
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(23,289) (7,695) (3,300) (8,149) (42,433)
aThe costs of managing the fund’s investments are treated as being part of the investment return, the costs of administering our pensions fund benefits are generally
included in current service cost and the costs of administering our other post-retirement benefits are included in the benefit obligation.
bIncluded within production and manufacturing expenses and distribution and administration expenses.
cThe charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of a restructuring programme in the UK
and Europe.
dThe benefit payments amount shown above comprises $2,266 million benefits plus $52 million of fund expenses incurred in the administration of the benefit.
eThe actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain on plan assets as disclosed above.
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