BP 2009 Annual Report Download - page 151

24. Financial instruments and financial risk factors continued
BP Annual Report and Accounts 2009
Notes on financial statements
Financial statements
149
There are amounts included within finance debt that we show in the table below as due within one year to reflect the earliest contractual
repayment dates but that are expected to be repaid over the maximum long-term maturity profiles of the contracts as described in Note 32.
US Industrial Revenue/Municipal Bonds of $2,895 million (2008 $3,166 million) with earliest contractual repayment dates within one year
have expected repayment dates ranging from 1 to 33 years (2008 1 to 40 years). The bondholders typically have the option to tender these
bonds for repayment on interest reset dates; however, any bonds that are tendered are usually remarketed and BP has not experienced any
significant repurchases. BP considers these bonds to represent long-term funding when internally assessing the maturity profile of its finance
debt. Similar treatment is applied for loans associated with long-term gas supply contracts totalling $1,622 million (2008 $1,806 million) that
mature within eight years.
The table also shows the timing of cash outflows relating to trade and other payables and accruals.
$ million
2009 2008
Trade and Trade and
other Finance other Finance
payables Accruals debt payables Accruals debt
Within one year 31,413 6,202 9,790 30,598 6,743 16,670
1 to 2 years 1,059 231 6,861 402 359 5,934
2 to 3 years 1,089 106 5,359 898 77 3,419
3 to 4 years 566 78 5,528 902 72 2,647
4 to 5 years 67 49 3,151 223 67 5,072
5 to 10 years 85 163 5,723 53 164 1,316
Over 10 years 46 76 1,150 64 45 1,050
34,325 6,905 37,562 33,140 7,527 36,108
The group manages liquidity risk associated with derivative contracts, other than derivative hedging instruments, based on the expected maturities of
both derivative assets and liabilities as indicated in Note 31. Management does not currently anticipate any cash flows that could be of a significantly
different amount, or could occur earlier than the expected maturity analysis provided.
The table below shows cash outflows for derivative hedging instruments based upon contractual payment dates. The amounts reflect the
maturity profile of the fair value liability where the instruments will be settled net, and the gross settlement amount where the pay leg of a
derivative will be settled separately from the receive leg, as in the case of cross-currency interest rate swaps hedging non-US dollar finance debt.
The swaps are with high investment-grade counterparties and therefore the settlement day risk exposure is considered to be negligible. Not shown
in the table are the gross settlement amounts for the receive leg of derivatives that are settled separately from the pay leg, which amount to $7,999
million at 31 December 2009 (2008 $8,545 million) to be received on the same day as the related cash outflows.
$ million
2009 2008
Within one year 2,826 3,426
1 to 2 years 1,395 3,024
2 to 3 years 1,669 1,037
3 to 4 years 1,349 1,731
4 to 5 years 1,104 1,389
5 to 10 years 322 129
8,665 10,736
The group has issued third-party guarantees, as described above under credit risk. These amounts represent the maximum exposure of the group,
substantially all of which could be called within one year.