BP 2013 Annual Report Download - page 149

3. Business combinations
BP undertook a number of minor business combinations in 2013 and 2012 for a total consideration of $67 million and $116 million in cash respectively.
In 2011, BP undertook a number of business combinations with total consideration paid in cash amounting to $11.3 billion, offset by cash acquired of
$0.4 billion. The fair value of contingent consideration payable amounted to $0.1 billion. BP acquired from Reliance Industries Limited (Reliance) a 30%
interest in 21 oil and gas production-sharing agreements (PSAs) operated by Reliance in India for $7,026 million. In addition, we completed the final part
of the transaction with Devon Energy (Devon) for the acquisition of Devon’s equity stake in a number of assets in Brazil for consideration of $3.6 billion
and BP’s Alternative Energy business acquired Companhia Nacional de Açúcar e Álcool (CNAA) in Brazil for consideration of $0.7 billion. There were a
number of other individually insignificant business combinations.
4. Non-current assets held for sale
There were no assets or associated liabilities classified as held for sale as at 31 December 2013. The disposal of the assets and associated liabilities
classified as held for sale at 31 December 2012 completed during 2013.
Impairment losses amounting to $186 million (2012 $2,594 million) were recognized relating to certain assets that were classified as held for sale at
31 December 2012, of which $137 million related to the Carson refinery and associated assets. See Note 5 for further information.
Non-current assets classified as held for sale are not depreciated. It is estimated that the benefit arising from the absence of depreciation for the assets
held for sale at 31 December 2012 until their disposal in 2013 amounted to approximately $201 million (2012 $435 million). In addition, profits of
approximately $738 million (2012 $731 million) were not recognized as a result of the discontinuance of equity accounting for our interest in TNK-BP.
Non-current assets held for sale at 31 December 2012
At 31 December 2012 assets classified as held for sale included property, plant and equipment of $3,663 million, investments in associates of $12,322
million and inventories of $2,377 million.
Within the Upstream segment, BP’s interests in the BP-operated Maclure, Harding and Devenick fields and non-operated interests in the Brae complex
of fields and the Braemar field in the central North Sea were classified as held for sale. In the Downstream segment, the Texas City refinery and
related assets, and the southern part of the US West Coast fuels value chain, including the Carson refinery, were classified as held for sale at
31 December 2012. BP’s investment in TNK-BP was classified as an asset held for sale at 31 December 2012. All of the assets classified as held for
sale at 31 December 2012 were sold during 2013. See Notes 5 and 6 for further information.
5. Disposals and impairment
The following amounts were recognized in the income statement in respect of disposals and impairments.
$ million
2013 2012 2011
Gains on sale of businesses and fixed assets
Upstream 371 6,504 3,477
Downstream 214 152 319
TNK-BP 12,500 ––
Other businesses and corporate 30 41 336
13,115 6,697 4,132
$ million
2013 2012 2011
Losses on sale of businesses and fixed assets
Upstream 144 109 49
Downstream 78 195 52
Other businesses and corporate 863
230 310 104
Impairment losses
Upstream 1,255 3,046 1,443
Downstream 484 2,892 599
Other businesses and corporate 218 320 58
1,957 6,258 2,100
Impairment reversals
Upstream (226) (289) (146)
Downstream –(1) –
Other businesses and corporate –(3) –
(226) (293) (146)
Impairment and losses on sale of businesses and fixed assets 1,961 6,275 2,058
Financial statements
BP Annual Report and Form 20-F 2013 145