BP 2015 Annual Report Download - page 147

23. Pensions and other post-retirement benefits – continued
$ million
2015
UK US Eurozone Other Total
Analysis of the amount charged to profit (loss) before interest and taxation
Current service costa485 371 96 96 1,048
Past service costb12 (27) 47 (7) 25
Settlement – – (1) (3) (4)
Operating charge relating to defined benefit plans 497 344 142 86 1,069
Payments to defined contribution plans 31 205 8 41 285
Total operating charge 528 549 150 127 1,354
Interest income on plan assetsa(1,124) (289) (37) (55) (1,505)
Interest on plan liabilities 1,146 423 151 91 1,811
Other finance expense 22 134 114 36 306
Analysis of the amount recognized in other comprehensive income
Actual asset return less interest income on plan assets 315 (139) 25 33 234
Change in financial assumptions underlying the present value of the plan liabilities 2,054 607 592 213 3,466
Change in demographic assumptions underlying the present value of the plan liabilities –6015 –75
Experience gains and losses arising on the plan liabilities 336 (48) 47 29 364
Remeasurements recognized in other comprehensive income 2,705 480 679 275 4,139
Movements in benefit obligation during the year
Benefit obligation at 1 January 32,416 11,875 8,327 2,638 55,256
Exchange adjustments (1,451) – (843) (294) (2,588)
Operating charge relating to defined benefit plans 497 344 142 86 1,069
Interest cost 1,146 423 151 91 1,811
Contributions by plan participantsc32 – 2 5 39
Benefit payments (funded plans)d(1,269) (1,124) (81) (178) (2,652)
Benefit payments (unfunded plans)d(7) (256) (306) (26) (595)
Acquisitions –––99
Reclassified as assets held for sale – – (98) – (98)
Remeasurements (2,390) (619) (654) (242) (3,905)
Benefit obligation at 31 Decemberae 28,974 10,643 6,640 2,089 48,346
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 31,773 8,355 1,973 1,735 43,836
Exchange adjustments (1,506) – (205) (186) (1,897)
Interest income on plan assetsa1,124 289 37 55 1,505
Contributions by plan participantsc32 – 2 5 39
Contributions by employers (funded plans) 754 129 123 60 1,066
Benefit payments (funded plans)d(1,269) (1,124) (81) (178) (2,652)
Acquisitions –––77
Remeasurementsf315 (139) 25 33 234
Fair value of plan assets at 31 Decemberg31,223 7,510 1,874 1,531 42,138
Surplus (deficit) at 31 December 2,249 (3,133) (4,766) (558) (6,208)
Represented by
Asset recognized 2,516 66 25 40 2,647
Liability recognized (267) (3,199) (4,791) (598) (8,855)
2,249 (3,133) (4,766) (558) (6,208)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded 2,506 49 (254) (187) 2,114
Unfunded (257) (3,182) (4,512) (371) (8,322)
2,249 (3,133) (4,766) (558) (6,208)
The defined benefit obligation may be analysed between funded and unfunded
plans as follows
Funded (28,717) (7,461) (2,128) (1,718) (40,024)
Unfunded (257) (3,182) (4,512) (371) (8,322)
(28,974) (10,643) (6,640) (2,089) (48,346)
aThe costs of managing plan investments are offset against the investment return, the costs of administering pension plan benefits are generally included in current service cost and the costs of
administering other post-retirement benefit plans are included in the benefit obligation.
bPast service costs have arisen from restructuring programmes and represent a combination of credits as a result of the curtailment in the pension arrangements of a number of employees mostly in the
US and Trinidad and charges for special termination benefits representing the increased liability arising as a result of early retirements mostly in the UK and Eurozone.
cMost of the contributions made by plan participants into UK pension plans were made under salary sacrifice.
dThe benefit payments amount shown above comprises $3,128 million benefits and $57 million settlements, plus $62 million of plan expenses incurred in the administration of the benefit.
eThe benefit obligation for the US is made up of $8,061 million for pension liabilities and $2,582 million for other post-retirement benefit liabilities (which are unfunded and are primarily retiree medical
liabilities). The benefit obligation for the Eurozone includes $4,151 million for pension liabilities in Germany which is largely unfunded.
fThe actual return on plan assets is made up of the sum of the interest income on plan assets and the remeasurement of plan assets as disclosed above.
gThe fair value of plan assets includes borrowings related to the LDI programme as described on page 142.
BP Annual Report and Form 20-F 2015 143
Financial statements