BP 2008 Annual Report Download - page 200

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Financial statements
BP Annual Report and Accounts 2008
Parent company financial statements of BP p.l.c.
6. Pensions continued
$ million
2008 2007 2006
Expected Expected Expected
long-term Market long-term Market long-term Market
rate of value rate of value rate of value
return % $ million return % $ million return % $ million
Equities 8.0 13,106 8.0 22,869 7.5 22,256
Bonds 6.3 2,610 4.4 4,456 4.7 3,305
Property 6.5 932 6.5 1,173 6.5 1,274
Cash 2.9 282 5.6 913 3.8 334
7.5 16,930 7.4 29,411 7.0 27,169
Present value of plan liabilities 15,414 22,146 21,507
Surplus in the plan 1,516 7,265 5,662
$ million
2008 2007 2006
Analysis of the amount charged to operating profit
Current service cost 434 473 411
Past service cost 75 (74)
Settlement, curtailment and special termination benefits 29 35 –
Total operating charge 470 513 337
Analysis of the amount credited (charged) to other finance income
Expected return on pension plan assets 1,969 1,927 1,593
Interest on pension plan liabilities (1,146) (1,108) (918)
Other finance income 823 819 675
Analysis of the amount recognized in the statement of total recognized gains and losses
Actual return less expected return on pension plan assets (6,533) 404 1,252
Change in assumptions underlying the present value of the plan liabilities 1,476 751 79
Experience gains and losses arising on the plan liabilities (65) (457) (211)
Actuarial (loss) gain recognized in statement of total recognized gains and losses (5,122) 698 1,120
2008 2007
Movements in benefit obligations during the year
Benefit obligation at 1 January 22,146 21,507
Exchange adjustment (5,929) 363
Current service cost 434 473
Past service cost 75
Interest cost 1,147 1,108
Curtailment –(7)
Settlement (3) (3)
Special termination benefits 32 45
Contributions by plan participants 41 41
Benefit payments (funded plans) (1,048) (998)
Benefit payments (unfunded plans) (2) (3)
Disposals –(91)
Actuarial gain on obligation (1,411) (294)
Benefit obligation at 31 December 15,414 22,146
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 29,411 27,169
Exchange adjustment (6,916) 452
Expected return on plan assets 1,969 1,927
Contributions by plan participants 41 41
Contributions by employers (funded plans) 6507
Benefit payments (funded plans) (1,048) (998)
Disposals –(91)
Actuarial (loss) gain on plan assets (6,533) 404
Fair value of plan assets at 31 Decembera16,930 29,411
Surplus (deficit) at 31 December 1,516 7,265
aReflects $16,887 million of assets held in the BP Pension Fund (2007 $29,372 million) and $43 million held in the BP Global Pension Trust (2007 $39 million).
199