BP 2011 Annual Report Download - page 241

Financial statements
BP Annual Report and Form 20-F 2011 239
Notes on financial statements
37. Pensions and other post-retirement benefits continued
$ million
2010
UK
pension
plans
US
pension
plans
US other post-
retirement
benefit
plans
Other
plans Total
Analysis of the amount charged to profit before interest and taxation
Current service costa393 241 48 120 802
Past service cost – – – 3 3
Settlement, curtailment and special termination benefits 24 – – 161 185
Payments to defined contribution plans 1187 –35 223
Total operating chargeb418 428 48 319 1,213
Analysis of the amount credited (charged) to other finance expense
Expected return on plan assets 1,580 465 1178 2,224
Interest on plan liabilities (1,183) (396) (169) (429) (2,177)
Other finance income (expense) 397 69 (168) (251) 47
Analysis of the amount recognized in other comprehensive income
Actual return less expected return on pension plan assets 1,577 425 (1) 36 2,037
Change in assumptions underlying the present value of the plan liabilities (1,144) (498) (132) (489) (2,263)
Experience gains and losses arising on the plan liabilities 12 (167) (8) 69 (94)
Actuarial (loss) gain recognized in other comprehensive income 445 (240) (141) (384) (320)
Movements in benefit obligation during the year
Benefit obligation at 1 January 21,425 7,519 2,996 8,133 40,073
Exchange adjustments (835) – – (269) (1,104)
Current service costa393 241 48 120 802
Past service cost – – – 3 3
Interest cost 1,183 396 169 429 2,177
Curtailment – – – 4 4
Settlement 11 – – 18 29
Special termination benefitsc13 – – 139 152
Contributions by plan participantsd39 – – 13 52
Benefit payments (funded plans)e(952) (758) (4) (192) (1,906)
Benefit payments (unfunded plans)e(3) (75) (192) (387) (657)
Acquisitions – – – 2 2
Disposals (43) – – (29) (72)
Actuarial (gain) loss on obligation 1,132 665 140 420 2,357
Benefit obligation at 31 Decembera f 22,363 7,988 3,157 8,404 41,912
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 22,549 5,823 12 3,069 31,453
Exchange adjustments (881) – – 29 (852)
Expected return on plan assetsa g 1,580 465 1178 2,224
Contributions by plan participantsd39 – – 13 52
Contributions by employers (funded plans) 411 694 –187 1,292
Benefit payments (funded plans)e(952) (758) (4) (192) (1,906)
Acquisitions – – – 2 2
Disposals (43) – – (28) (71)
Actuarial gain (loss) on plan assetsg1,577 425 (1) 36 2,037
Fair value of plan assets at 31 December 24,280 6,649 83,294 34,231
Surplus (deficit) at 31 December 1,917 (1,339) (3,149) (5,110) (7,681)
Represented by
Asset recognized 2,120 – – 56 2,176
Liability recognized (203) (1,339) (3,149) (5,166) (9,857)
1,917 (1,339) (3,149) (5,110) (7,681)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 2,115 (838) (39) (223) 1,015
Unfunded (198) (501) (3,110) (4,887) (8,696)
1,917 (1,339) (3,149) (5,110) (7,681)
The defined benefit obligation may be analysed between funded and unfunded
plans as follows
Funded (22,165) (7,487) (47) (3,517) (33,216)
Unfunded (198) (501) (3,110) (4,887) (8,696)
(22,363) (7,988) (3,157) (8,404) (41,912)
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 benefits are generally included in current service cost and the
costs of administering our other post-retirement benefit plans are included in the benefit obligation.
b
Included within production and manufacturing expenses and distribution and administration expenses.
c
The charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
d
Most of the contributions made by plan participants after 1 January 2010 into UK pension plans were made under salary sacrifice arrangements.
e
The benefit payments amount shown above comprises $2,507 million benefits plus $56 million of plan expenses incurred in the administration of the benefit.
f
The benefit obligation for other plans includes $3,871 million for the German plan, which is largely unfunded.
g
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.