BP 2009 Annual Report Download - page 203

BP Annual Report and Accounts 2009
Parent company financial statements of BP p.l.c.
Financial statements
201
6. Pensions continued
The market values of the various categories of asset held by the pension plan at 31 December are set out below.
The market value of pension assets at the end of 2009 is higher when compared with 2008 due to an increase in the market value of investments
when expressed in their local currencies and a further increase in value that arises from changes in exchange rates (increasing the reported value of
investments on consolidation when expressed in US dollars). Movements in the value of plan assets during the year are shown in detail below.
$ million
2009 2008 2007
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 16,148 8.0 13,106 8.0 22,869
Bonds 5.4 2,989 6.3 2,610 4.4 4,456
Property 6.5 1,221 6.5 932 6.5 1,173
Cash 1.1 595 2.9 282 5.6 913
7.4 20,953 7.5 16,930 7.4 29,411
Present value of plan liabilities 19,882 15,414 22,146
Surplus in the plan 1,071 1,516 7,265
$ million
2009 2008 2007
Analysis of the amount charged to operating profit
Current service costa300 434 473
Past service cost –7 5
Settlement, curtailment and special termination benefitsc34 29 35
Total operating chargeb334 470 513
Analysis of the amount credited (charged) to other finance income
Expected return on pension plan assets 1,339 1,969 1,927
Interest on pension plan liabilities (1,029) (1,146) (1,108)
Other finance income 310 823 819
Analysis of the amount recognized in the statement of total recognized gains and losses
Actual return less expected return on pension plan assets 1,634 (6,533) 404
Change in assumptions underlying the present value of the plan liabilities (2,073) 1,476 751
Experience gains and losses arising on the plan liabilities (146) (65) (457)
Actuarial (loss) gain recognized in statement of total recognized gains and losses (585) (5,122) 698
2009 2008
Movements in benefit obligation during the year
Benefit obligation at 1 January 15,414 22,146
Exchange adjustment 1,756 (5,929)
Current service costa300 434
Past service cost –7
Interest cost 1,029 1,147
Settlement –(3)
Special termination benefits 34 32
Contributions by plan participants 36 41
Benefit payments (funded plans)d(902) (1,048)
Benefit payments (unfunded plans)d(4) (2)
Actuarial loss (gain) on obligation 2,219 (1,411)
Benefit obligation at 31 December 19,882 15,414
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 16,930 29,411
Exchange adjustment 1,907 (6,916)
Expected return on plan assetsae 1,339 1,969
Contributions by plan participants 36 41
Contributions by employers (funded plans) 9 6
Benefit payments (funded plans)d(902) (1,048)
Actuarial gain (loss) on plan assetse1,634 (6,533)
Fair value of plan assets at 31 Decemberf20,953 16,930
Surplus at 31 December 1,071 1,516
aThe costs of managing the plan’s investments are treated as being part of the investment return, the costs of administering our pensions plan benefits are included in current service cost.
bIncluded within production and manufacturing expenses and distribution and administration expenses.
cThe charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
dThe benefit payments amount shown above comprises $890 million benefits plus $16 million of plan expenses incurred in the administration of the benefit.
eThe actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial loss on plan assets as disclosed above.
fReflects $20,895 million of assets held in the BP Pension Fund (2008 $16,887 million) and $58 million held in the BP Global Pension Trust (2008 $43 million).