BP 2009 Annual Report Download - page 166

BP Annual Report and Accounts 2009
Notes on financial statements
35. Pensions and other post-retirement benefits continued
a
b
c
d
e
164
$ million
2009
US other post-
UK US retirement
pension pension benefit Other
plans plans plans plans Total
Analysis of the amount charged to profit before interest and taxation
Current service costa311 243 48 117 719
Past service cost – – (22) 1 (21)
Settlement, curtailment and special termination benefits 37 – – 53 90
Payments to defined contribution plans – 205 – 28 233
Total operating chargeb348 448 26 199 1,021
Analysis of the amount credited (charged) to other finance expense
Expected return on plan assets 1,426 405 1 147 1,979
Interest on plan liabilities (1,112) (456) (183) (420) (2,171)
Other finance income (expense) 314 (51) (182) (273) (192)
Analysis of the amount recognized in other comprehensive income
Actual return less expected return on pension plan assets 1,761 617 2 169 2,549
Change in assumptions underlying the present value of the plan liabilities (2,217) (501) (50) (42) (2,810)
Experience gains and losses arising on the plan liabilities (141) (229) 71 (122) (421)
Actuarial (loss) gain recognized in other comprehensive income (597) (113) 23 5 (682)
Movements in benefit obligation during the year
Benefit obligation at 1 January 16,655 7,534 3,003 7,655 34,847
Exchange adjustments 1,896 – – 363 2,259
Current service costa311 243 48 117 719
Past service cost – – (22) 1 (21)
Interest cost 1,112 456 183 420 2,171
Curtailment – – – 11 11
Settlement – – – (3) (3)
Special termination benefitsc37 – – 45 82
Contributions by plan participants 37 – – 10 47
Benefit payments (funded plans)d(977) (1,371) (4) (209) (2,561)
Benefit payments (unfunded plans)d(4) (73) (191) (399) (667)
Disposals – – – (42) (42)
Actuarial (gain) loss on obligation 2,358 730 (21) 164 3,231
Benefit obligation at 31 Decemberae 21,425 7,519 2,996 8,133 40,073
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 18,239 5,377 13 2,525 26,154
Exchange adjustments 2,054 – – 242 2,296
Expected return on plan assetsaf 1,426 405 1 147 1,979
Contributions by plan participants 37 – – 10 47
Contributions by employers (funded plans) 9 795 – 204 1,008
Benefit payments (funded plans)d(977) (1,371) (4) (209) (2,561)
Disposals – – – (19) (19)
Actuarial gain on plan assetsf1,761 617 2 169 2,549
Fair value of plan assets at 31 December 22,549 5,823 12 3,069 31,453
Surplus (deficit) at 31 December 1,124 (1,696) (2,984) (5,064) (8,620)
Represented by
Asset recognized 1,290 – – 100 1,390
Liability recognized (166) (1,696) (2,984) (5,164) (10,010)
1,124 (1,696) (2,984) (5,064) (8,620)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 1,287 (1,280) (33) (164) (190)
Unfunded (163) (416) (2,951) (4,900) (8,430)
1,124 (1,696) (2,984) (5,064) (8,620)
The defined benefit obligation may be analysed between funded and unfunded plans
as follows
Funded (21,262) (7,103) (45) (3,233) (31,643)
Unfunded (163) (416) (2,951) (4,900) (8,430)
(21,425) (7,519) (2,996) (8,133) (40,073)
The costs of managing the plan’s investments are treated as being part of the investment return, the costs of administering our pension plan benefits are generally included in current service cost
and the costs of administering our other post-retirement benefit plans are included in the benefit obligation.
Included within production and manufacturing expenses and distribution and administration expenses.
The charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
The benefit payments amount shown above comprises $3,174 million benefits plus $54 million of plan expenses incurred in the administration of the benefit.
The benefit obligation for other plans includes $3,880 million for the German plan, which is largely unfunded.
fThe actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain on plan assets as disclosed above.
At 31 December 2009, reimbursement balances due from or to other companies in respect of pensions amounted to $443 million reimbursement
assets (2008 $455 million) and $14 million reimbursement liabilities (2008 $61 million). These balances are not included as part of the pension liability,
but are reflected elsewhere in the group balance sheet.