BP 2013 Annual Report Download - page 174

19. Financial instruments and financial risk factors – continued
settlement amounts (inflows) for the receive leg of derivatives that are settled separately from the pay leg, which amount to $12,222 million at
31 December 2013 (2012 $8,620 million) to be received on the same day as the related cash outflows.
$ million
2013 2012
Within one year 1,095 1,356
1 to 2 years 293 1,107
2 to 3 years 2,959 295
3 to 4 years 2,577 1,261
4 to 5 years 1,505 2,577
5 to 10 years 3,835 1,903
12,264 8,499
20. Other investments
$ million
2013 2012
Current Non-current Current Non-current
Equity investments – listed –3– 1,182
– unlisted – 288 – 251
Repurchased gas pre-paid bonds 276 408 303 686
Contingent consideration 186 292 ––
Other 5 574 16 585
467 1,565 319 2,704
At 31 December 2012 the group’s 1.25% stake in Rosneft was the most significant listed investment, with a fair value of $1,179 million.
BP entered into long-term gas supply contracts which are backed by gas pre-paid bonds. In 2010, BP was unsuccessful in the remarketing of these
bonds and repurchased them. The outstanding bonds associated with these long-term gas supply contracts held by BP are recorded within other
investments, with the related liability recorded within other payables on the balance sheet. The fair value of the gas pre-paid bonds is the same as the
carrying amount, as the bonds are based on floating rate interest with weekly market re-set, and as such are in level 1 of the fair value hierarchy.
At 31 December 2013 the group had contingent consideration receivable in respect of the disposal of the Devenick field, classified as an
available-for-sale financial asset.
Other non-current investments at 31 December 2013 include $574 million relating to life insurance policies (2012 $585 million). The life insurance
policies have been designated as financial assets at fair value through profit and loss and their valuation methodology is in level 3 of the fair value
hierarchy. Fair value losses of $4 million were recognized in the income statement (2012 $70 million gain and 2011 $21 million gain).
21. Inventories
$ million
2013 2012
Crude oil 10,190 9,123
Natural gas 235 187
Refined petroleum and petrochemical products 15,427 15,465
25,852 24,775
Supplies 2,735 2,428
28,587 27,203
Trading inventories 644 1,000
29,231 28,203
Cost of inventories expensed in the income statement 298,351 292,774
The inventory valuation at 31 December 2013 is stated net of a provision of $322 million (2012 $124 million) to write inventories down to their net
realizable value. The net charge to the income statement in the year in respect of inventory net realizable value provisions was $195 million
(2012 $28 million credit).
Trading inventories are valued using quoted benchmark bid prices adjusted as appropriate for location and quality differentials. As such they are
predominantly categorized within level 2 of the fair value hierarchy.
Inventories with a carrying amount of $227 million (2012 $64 million) have been pledged as security for certain of the group’s liabilities at
31 December 2013.
170 BP Annual Report and Form 20-F 2013