BP 2012 Annual Report Download - page 227

Current finance debt on the group balance sheet at 31 December 2012 includes $632 million (2011 $30 million) in respect of cash deposits received for
disposals expected to complete in 2013, which will be considered extinguished on completion of the transactions. This amount is excluded from the
table below.
The table also shows the timing of cash outflows relating to trade and other payables and accruals.
$ million
2012 2011
Trade and
other
payables Accruals
Finance
debt
Interest
relating to
finance debt
Trade and
other
payablesaAccruals
Finance
debt
Interest
relating to
finance debt
Within one year 43,001 6,810 9,398 893 47,678 5,933 9,013 1,011
1 to 2 years 893 134 5,906 755 1,605 137 7,094 772
2 to 3 years 385 79 5,902 634 569 55 6,703 608
3 to 4 years 318 52 6,024 510 449 26 5,019 468
4 to 5 years 52 48 5,797 388 259 49 4,278 356
5 to 10 years 24 84 14,790 885 31 82 11,574 806
Over 10 years 33 51 348 50 72 39 502 71
44,706 7,258 48,165 4,115 50,663 6,321 44,183 4,092
aTrade and other payables at 31 December 2011 included the Gulf of Mexico oil spill trust fund liability amounting to $4,884 million which was payable within one year.
The group manages liquidity risk associated with derivative contracts, other than derivative hedging instruments, based on the expected maturitiesof
both derivative assets and liabilities as indicated in Note 33. 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 $8,620 million at 31 December
2012 (2011 $9,099 million) to be received on the same day as the related cash outflows. Also not shown are the expected cash outflows under the
Rosneft share purchase agreements described in Note 33, nor the related expected cash inflows for the sale of our 50% interest in TNK-BP.
$ million
2012 2011
Within one year 1,356 1,738
1 to 2 years 1,107 1,372
2 to 3 years 295 1,115
3 to 4 years 1,261 298
4 to 5 years 2,577 1,262
5 to 10 years 1,903 3,459
8,499 9,244
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.
27. Other investments
$ million
2012 2011
Current Non-current Current Non-current
Equity investments – listed – 1,182 – 876
– unlisted – 249 – 252
Repurchased gas pre-paid bonds 303 686 288 989
Other 16 585 – 516
319 2,702 288 2,633
Equity investments have no fixed maturity date or coupon rate, and are classified as available-for-sale financial assets. As such they are recorded atfair
value with the gain or loss arising as a result of changes in fair value recorded in other comprehensive income. Accumulated fair value changes are
recycled to the income statement on disposal, or when the investment is impaired.
The fair value of listed investments has been determined by reference to quoted market bid prices and as such are in level 1 of the fair value hierarchy.
Unlisted investments are stated at cost less accumulated impairment losses.
The most significant listed investment is the group’s 1.25% stake in Rosneft which had a fair value of $1,179 million at 31 December 2012 (2011
$873 million). The fair value gain arising on revaluation of this investment during 2012 has been recorded within other comprehensive income.
In 2012, impairment losses of $6 million were recognized relating to unlisted investments (2011 $12 million and 2010 nil); there were no impairment
losses relating to listed investments in 2012, 2011 or 2010.
Financial statements 225
BP Annual Report and Form 20-F 2012
Financial statements
26. Financial instruments and financial risk factors continued