BP 2013 Annual Report Download - page 241

Non-operating items
Non-operating items are charges and credits arising in consolidated entities and in TNK-BP and Rosneft that are included in the financial statements
and that BP discloses separately because it considers such disclosures to be meaningful and relevant to investors. They are items that management
considers not to be part of underlying business operations and are disclosed in order to enable investors to understand better and evaluate the group’s
reported financial performance. An analysis of non-operating items is shown in the table below.
$ million
2013 2012 2011
Upstream
Impairment and gain (loss) on sale of businesses and fixed assets (802) 3,638 2,131
Environmental and other provisions (20) (48) (27)
Restructuring, integration and rationalization costs –––
Fair value gain (loss) on embedded derivatives 459 347 191
Othera(1,001) (748) (1,165)
(1,364) 3,189 1,130
Downstream
Impairment and gain (loss) on sale of businesses and fixed assets (348) (2,934) (332)
Environmental and other provisions (134) (171) (221)
Restructuring, integration and rationalization costs (15) (32) (4)
Fair value gain (loss) on embedded derivatives –––
Other (38) (35) (45)
(535) (3,172) (602)
TNK-BP
Impairment and gain (loss) on sale of businesses and fixed assets 12,500 (55) –
Environmental and other provisions –(83) –
Restructuring, integration and rationalization costs –––
Fair value gain (loss) on embedded derivatives –––
Otherb–384 –
12,500 246 –
Rosneft
Impairment and gain (loss) on sale of businesses and fixed assets (35) ––
Environmental and other provisions (10) ––
Restructuring, integration and rationalization costs –––
Fair value gain (loss) on embedded derivatives –––
Other –––
(45) ––
Other businesses and corporate
Impairment and gain (loss) on sale of businesses and fixed assets (196) (282) 275
Environmental and other provisions (241) (261) (220)
Restructuring, integration and rationalization costs (3) (15) (39)
Fair value gain (loss) on embedded derivativesc–– (123)
Otherd19 (240) (715)
(421) (798) (822)
Gulf of Mexico oil spill response (430) (4,995) 3,800
Total before interest and taxation 9,705 (5,530) 3,506
Finance costse(39) (19) (58)
Taxation credit (charge)f867 251 (1,253)
Total after taxation 10,533 (5,298) 2,195
a2013 included $845 million relating to the value ascribed to block BM-CAL-13 offshore Brazil, following the acquisition of upstream assets from Devon Energy in 2011, which was written off as a result
of the Pitanga exploration well not encountering commercial quantities of oil or gas. 2012 included a charge of $370 million relating to onerous gas marketing and trading contracts and $308 million
relating to exploration expense associated with our US natural gas assets (2011 $395 million). 2011 included a charge of $700 million associated with the termination of the agreement to sell our 60%
interest in Pan American Energy LLC to Bridas Corporation.
b2012 included dividend income from TNK-BP of $709 million and a charge of $325 million to settle disputes with AAR.
cRelates to an embedded derivative arising from a financing arrangement.
d2012 included charges of $244 million relating to our exit from the solar business (2011 $717 million).
eFinance costs relate to the Gulf of Mexico oil spill. See Financial statements – Note 2 for further details.
fFor the Gulf of Mexico oil spill and certain impairment losses, disposal gains and fair value gains and losses on embedded derivatives, tax is based on statutory rates, except for non-deductible items.
For other items reported for consolidated subsidiaries, tax is calculated using the group’s discrete quarterly effective tax rate (adjusted for the items noted above, equity-accounted earnings and certain
deferred tax adjustments relating to changes in UK taxation). Non-operating items reported within the equity-accounted earnings of TNK-BP and Rosneft are reported net of tax.
Additional disclosures
BP Annual Report and Form 20-F 2013 237