BP 2015 Annual Report Download - page 135

8. Taxation – continued
The recognition of deferred tax assets of $1,067 million (2014 $1,467 million), in entities which have suffered a loss in either the current or preceding
period, is supported by forecasts which indicate that sufficient future taxable profits will be available to utilize such assets.
A summary of temporary differences, unused tax credits and unused tax losses for which deferred tax has not been recognized is shown in the table
below.
$ billion
At 31 December 2015 2014
Unused US state tax lossesa9.6 9.0
Unused tax losses – other jurisdictionsb2.1 2.1
Unused tax credits 20.4 20.1
of which – arising in the UKc17.5 18.0
– arising in the USd2.8 2.0
Deductible temporary differencese23.2 17.9
Taxable temporary differences associated with investments in subsidiaries and equity-accounted entities 3.9 1.0
aOf the gross unused tax losses on which no deferred tax is recognized, $9.6 billion relates to US state taxes which expire in the period 2016-2035 with applicable tax rates ranging from 5% to 12%. An
amendment has been made to the comparative amount.
bThe majority of the unused tax losses have no fixed expiry date.
cThe UK unused tax credits arise predominantly in overseas branches of UK entities based in jurisdictions with high tax rates. No deferred tax asset has been recognized on these tax credits as they are
unlikely to have value in the future; UK taxes on these overseas branches are largely mitigated by double tax relief on the overseas tax. These tax credits have no fixed expiry date.
dThe US unused tax credits expire in the period 2016-2025.
ePrimarily comprises fixed asset temporary differences. Substantially all of the temporary differences have no expiry date.
$ million
Impact of previously unrecognized deferred tax or write-down of deferred tax assets on current year charge 2015 2014 2013
Current tax benefit relating to the utilization of previously unrecognized tax credits and losses 123 171 216
Deferred tax benefit relating to the recognition of previously unrecognized tax credits and losses –– 178
Deferred tax expense arising from the write-down of a previously recognized deferred tax asset 768 153 –
9. Dividends
The quarterly dividend expected to be paid on 24 March 2016 in respect of the fourth quarter 2015 is 10 cents per ordinary share ($0.60 per American
Depositary Share (ADS)). The corresponding amount in sterling will be announced on 14 March 2016. A scrip dividend alternative is available, allowing
shareholders to elect to receive their dividend in the form of new ordinary shares and ADS holders in the form of new ADSs.
Pence per share Cents per share $ million
2015 2014 2013 2015 2014 2013 2015 2014 2013
Dividends announced and paid in cash
Preference shares 222
Ordinary shares
March 6.6699 5.7065 6.0013 10.00 9.50 9.00 1,708 1,426 1,621
June 6.5295 5.8071 5.8342 10.00 9.75 9.00 1,691 1,572 1,399
September 6.5488 5.9593 5.7630 10.00 9.75 9.00 1,717 1,122 1,245
December 6.6342 6.3769 5.8008 10.00 10.00 9.50 1,541 1,728 1,174
26.3824 23.8498 23.3993 40.00 39.00 36.50 6,659 5,850 5,441
Dividend announced, payable in March 2016 10.00 1,841
The details of the scrip dividends issued are shown in the table below.
2015 2014 2013
Number of shares issued (thousand) 102,810 165,644 202,124
Value of shares issued ($ million) 642 1,318 1,470
The financial statements for the year ended 31 December 2015 do not reflect the dividend announced on 2 February 2016 and expected to be paid in
March 2016; this will be treated as an appropriation of profit in the year ended 31 December 2016.
10. Earnings per ordinary share
Cents per share
2015 2014 2013
Basic earnings per share (35.39) 20.55 123.87
Diluted earnings per share (35.39) 20.42 123.12
Basic earnings per ordinary share amounts are calculated by dividing the profit (loss) for the year attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the year. The average number of shares outstanding includes certain shares that will be issuable
in the future under employee share-based payment plans and excludes treasury shares, which includes shares held by the Employee Share Ownership
Plan trusts (ESOPs).
For the diluted earnings per share calculation, the weighted average number of shares outstanding during the year is adjusted for the average number
of shares that are potentially issuable in connection with employee share-based payment plans using the treasury stock method. If the inclusion of
potentially issuable shares would decrease loss per share, the potentially issuable shares are excluded from the weighted average number of shares
outstanding used to calculate diluted earnings per share. A dilutive effect relating to potentially issuable shares has not been included, therefore, in the
calculation of diluted earnings per share for 2015.
BP Annual Report and Form 20-F 2015 131
Financial statements