BP 2010 Annual Report Download - page 170

Notesonnancialstatements
7.Segmentalanalysiscontinued
 $million
  2010
Other Gulf of Consolidation
Exploration Rening businesses Mexico adjustment
and and and oil spill and Total
Bybusiness Production Marketing corporate response eliminations group
Segmentrevenues
Salesandotheroperatingrevenues   66,266 266,751 3,328 – (39,238) 297,107
Less:salesbetweenbusinesses   (37,049) (1,358) (831) – 39,238 –
Thirdpartysalesandotheroperatingrevenues   29,217 265,393 2,497 – – 297,107
Equity-accountedearnings   3,979 755 23 – – 4,757
Interestrevenues   83 46 109 – – 238
Segmentresults
Replacementcostprot(loss)beforeinterestandtaxation   30,886 5,555 (1,516) (40,858) 447 (5,486)
Inventoryholdinggainsa 84 1,684 16 – – 1,784
Prot(loss)beforeinterestandtaxation   30,970 7,239 (1,500) (40,858) 447 (3,702)
Financecosts   (1,170)
Netnanceincomerelatingtopensionsandother
 post-retirementbenets 47
Lossbeforetaxation        (4,825)
Otherincomestatementitems
Depreciation,depletionandamortization   8,616 2,258 290 – – 11,164
Impairmentlosses   1,259 144 113 – – 1,516
Impairmentreversals   – 141 7 – – 148
Fairvaluelossonembeddedderivatives   309 – – – – 309
Chargesforprovisions,netofwrite-backofunusedprovisions,
 includingchangeindiscountrate   303 275 206 30,266 – 31,050
Segmentassets
Equity-accountedinvestments   17,738 7,043 840 – – 25,621
Additionstonon-currentassets   20,113 4,030 1,226 – – 25,369
 Additionstootherinvestments  20
 Elementofacquisitionsnotrelatedtonon-currentassets
 Additionstodecommissioningasset  (1,972)
Capitalexpenditureandacquisitions   17,753 4,029 1,234 – – 23,016

a
InventoryholdinggainsandlossesrepresentthedifferencebetweenthecostofsalescalculatedusingtheaveragecosttoBPofsuppliesacquiredduringtheperiodandthecostofsalescalculated
ontherst-inrst-out(FIFO)methodafteradjustingforanychangesinprovisionswherethenetrealizablevalueoftheinventoryislowerthanitscost.UndertheFIFOmethod,whichweuseforIFRS
reporting,thecostofinventorychargedtotheincomestatementisbasedonitshistoriccostofpurchase,ormanufacture,ratherthanitsreplacementcost.Involatileenergymarkets,thiscanhavea
signicantdistortingeffectonreportedincome.Theamountsdisclosedrepresentthedifferencebetweenthecharge(totheincomestatement)forinventoryonaFIFObasis(afteradjustingforanyrelated
movementsinnetrealizablevalueprovisions)andthechargethatwouldhavearisenifanaveragecostofsupplieswasusedfortheperiod.Forthispurpose,theaveragecostofsuppliesduringtheperiod
isprincipallycalculatedonamonthlybasisbydividingthetotalcostofinventoryacquiredintheperiodbythenumberofbarrelsacquired.Theamountsdisclosedarenotseparatelyreectedinthenancial
statementsasagainorloss.Noadjustmentismadeinrespectofthecostofinventoriesheldaspartofatradingpositionandcertainothertemporaryinventorypositions.
(401)
168BPAnnualReportandForm20-F2010