BP 2010 Annual Report Download - page 209


Notesonnancialstatements
Financial statements
38.Pensionsandotherpost-retirementbenetscontinued
 $million
          2009
           USotherpost- 
         UK US retirement 
         pension pension benet Other
         plans plans plans plans Total
Analysisoftheamountchargedtoprotbeforeinterestandtaxation
Currentservicecosta    311 243 48 117 719
Pastservicecost    – – (22) 1 (21)
Settlement,curtailmentandspecialterminationbenets    37 – – 53 90
Paymentstodenedcontributionplans    – 205 – 28 233
Totaloperatingchargeb    348 448 26 199 1,021
Analysisoftheamountcredited(charged)toothernanceexpense
Expectedreturnonplanassets    1,426 405 1 147 1,979
Interestonplanliabilities    (1,112) (456) (183) (420) (2,171)
Othernanceincome(expense)    314 (51) (182) (273) (192)
Analysisoftheamountrecognizedinothercomprehensiveincome
Actualreturnlessexpectedreturnonpensionplanassets    1,761 617 2 169 2,549
Changeinassumptionsunderlyingthepresentvalueoftheplanliabilities   (2,217) (501) (50) (42) (2,810)
Experiencegainsandlossesarisingontheplanliabilities    (141) (229) 71 (122) (421)
Actuarial(loss)gainrecognizedinothercomprehensiveincome   (597) (113) 23 5 (682)
Movementsinbenetobligationduringtheyear
Benetobligationat1January    16,655 7,534 3,003 7,655 34,847
Exchangeadjustments    1,896 – – 363 2,259
Currentservicecosta    311 243 48 117 719
Pastservicecost    – – (22) 1 (21)
Interestcost    1,112 456 183 420 2,171
Curtailment    – – – 11 11
Settlement     – – – (3) (3)
Specialterminationbenetsc    37 – – 45 82
Contributionsbyplanparticipants    37 – – 10 47
Benetpayments(fundedplans)d    (977) (1,371) (4) (209) (2,561)
Benetpayments(unfundedplans)d    (4) (73) (191) (399) (667)
Disposals     – – – (42) (42)
Actuarial(gain)lossonobligation    2,358 730 (21) 164 3,231
Benetobligationat31Decemberae    21,425 7,519 2,996 8,133 40,073
Movementsinfairvalueofplanassetsduringtheyear
Fairvalueofplanassetsat1January    18,239 5,377 13 2,525 26,154
Exchangeadjustments    2,054 – – 242 2,296
Expectedreturnonplanassetsaf    1,426 405 1 147 1,979
Contributionsbyplanparticipants    37 – – 10 47
Contributionsbyemployers(fundedplans)    9 795 – 204 1,008
Benetpayments(fundedplans)d    (977) (1,371) (4) (209) (2,561)
Disposals     – – – (19) (19)
Actuarialgainonplanassetsf    1,761 617 2 169 2,549
Fairvalueofplanassetsat31December    22,549 5,823 12 3,069 31,453
Surplus(decit)at31December    1,124 (1,696) (2,984) (5,064) (8,620)
Representedby
 Assetrecognized    1,290 – – 100 1,390
 Liabilityrecognized    (166) (1,696) (2,984) (5,164) (10,010)
       1,124 (1,696) (2,984) (5,064) (8,620)
Thesurplus(decit)maybeanalysedbetweenfundedandunfundedplansasfollows
 Funded     1,287 (1,280) (33) (164) (190)
 Unfunded    (163) (416) (2,951) (4,900) (8,430)
       1,124 (1,696) (2,984) (5,064) (8,620)
Thedenedbenetobligationmaybeanalysedbetweenfundedandunfundedplans
 asfollows
 Funded     (21,262) (7,103) (45) (3,233) (31,643)
 Unfunded    (163) (416) (2,951) (4,900) (8,430)
       (21,425) (7,519) (2,996) (8,133) (40,073)

a
Thecostsofmanagingtheplan’sinvestmentsaretreatedasbeingpartoftheinvestmentreturn,thecostsofadministeringourpensionplanbenetsaregenerallyincludedincurrentservicecostandthe
costsofadministeringourotherpost-retirementbenetplansareincludedinthebenetobligation.
bIncludedwithinproductionandmanufacturingexpensesanddistributionandadministrationexpenses.
cThechargeforspecialterminationbenetsrepresentstheincreasedliabilityarisingasaresultofearlyretirementsoccurringaspartofrestructuringprogrammes.
dThebenetpaymentsamountshownabovecomprises$3,174millionbenetsplus$54millionofplanexpensesincurredintheadministrationofthebenet.
eThebenetobligationforotherplansincludes$3,880millionfortheGermanplan,whichislargelyunfunded.
f The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.
BPAnnualReportandForm20-F2010 207