BP 2014 Annual Report Download - page 213

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
2014 2013 2012
Upstream
Impairment and gain (loss) on sale of businesses and fixed assetsa(6,576) (802) 3,638
Environmental and other provisions (60) (20) (48)
Restructuring, integration and rationalization costs (100) ––
Fair value gain (loss) on embedded derivatives 430 459 347
Otherb8(1,001) (748)
(6,298) (1,364) 3,189
Downstream
Impairment and gain (loss) on sale of businesses and fixed assetsa(1,190) (348) (2,934)
Environmental and other provisions (133) (134) (171)
Restructuring, integration and rationalization costs (165) (15) (32)
Fair value gain (loss) on embedded derivatives –––
Other (82) (38) (35)
(1,570) (535) (3,172)
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 –––
Otherc–– 384
–12,500 246
Rosneft
Impairment and gain (loss) on sale of businesses and fixed assets 225 (35) –
Environmental and other provisions –(10) –
Restructuring, integration and rationalization costs –––
Fair value gain (loss) on embedded derivatives –––
Other –––
225 (45) –
Other businesses and corporate
Impairment and gain (loss) on sale of businesses and fixed assetsa(304) (196) (282)
Environmental and other provisions (180) (241) (261)
Restructuring, integration and rationalization costs (176) (3) (15)
Fair value gain (loss) on embedded derivatives –––
Otherd(10) 19 (240)
(670) (421) (798)
Gulf of Mexico oil spill response (781) (430) (4,995)
Total before interest and taxation (9,094) 9,705 (5,530)
Finance costse(38) (39) (19)
Taxation credit (charge)f4,512 867 251
Total after taxation (4,620) 10,533 (5,298)
aSee Financial statements – Note 3 for further information on impairments.
b2014 included a $395-million write-off relating to Block KG D6 in India. 2013 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.
c2012 included dividend income from TNK-BP of $709 million and a charge of $325 million to settle disputes with Alfa, Access and Renova.
d2012 included charges of $244 million relating to our exit from the solar business.
eFinance costs relate to the Gulf of Mexico oil spill. See Financial statements – Note 2 for further details.
fFrom 2014, tax is based on statutory rates except for non-deductible or non-taxable items. For earlier periods tax for the Gulf of Mexico oil spill and certain impairment losses, disposal gains and fair
value gains and losses on embedded derivatives, 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). For dividends received from
TNK-BP in 2012, there is no tax arising. Non-operating items reported within the equity-accounted earnings of Rosneft and TNK-BP are reported net of income tax.
Additional disclosures
*Defined on page 252. BP Annual Report and Form 20-F 2014 209