BP 2015 Annual Report Download - page 163

31. Capital and reserves – continued
The pre-tax amounts of each component of other comprehensive income, and the related amounts of tax, are shown in the table below.
$ million
2015
Pre-tax Tax Net of tax
Items that may be reclassified subsequently to profit or loss
Currency translation differences (including recycling) (4,096) 197 (3,899)
Available-for-sale investments (including recycling) 1–1
Cash flow hedges (including recycling) 93 (20) 73
Share of items relating to equity-accounted entities, net of tax (814) – (814)
Other –8080
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other post-retirement benefit liability or asset 4,139 (1,397) 2,742
Share of items relating to equity-accounted entities, net of tax (1) – (1)
Other comprehensive income (678) (1,140) (1,818)
$ million
2014
Pre-tax Tax Netoftax
Items that may be reclassified subsequently to profit or loss
Currency translation differences (including recycling) (6,787) (178) (6,965)
Cash flow hedges (including recycling) (239) 36 (203)
Share of items relating to equity-accounted entities, net of tax (2,584) – (2,584)
Other – 289 289
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other post-retirement benefit liability or asset (4,590) 1,334 (3,256)
Share of items relating to equity-accounted entities, net of tax 4 – 4
Other comprehensive income (14,196) 1,481 (12,715)
$ million
2013
Pre-tax Tax Netoftax
Items that may be reclassified subsequently to profit or loss
Currency translation differences (including recycling) (1,586) (32) (1,618)
Available-for-sale investments (including recycling) (695) 10 (685)
Cash flow hedges (including recycling) (1,979) 194 (1,785)
Share of items relating to equity-accounted entities, net of tax (24) – (24)
Other – (25) (25)
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other post-retirement benefit liability or asset 4,764 (1,521) 3,243
Share of items relating to equity-accounted entities, net of tax 2 – 2
Other comprehensive income 482 (1,374) (892)
32. Contingent liabilities
Contingent liabilities related to the Gulf of Mexico oil spill
Details of contingent liabilities related to the Gulf of Mexico oil spill are set out in Note 2.
Contingent liabilities not related to the Gulf of Mexico oil spill
There were contingent liabilities at 31 December 2015 in respect of guarantees and indemnities entered into as part of the ordinary course of the
group’s business. No material losses are likely to arise from such contingent liabilities. Further information is included in Note 28.
In the normal course of the group’s business, legal proceedings are pending or may be brought against BP group entities arising out of current and past
operations, including matters related to commercial disputes, product liability, antitrust, commodities trading, premises-liability claims, consumer
protection, general environmental claims and allegations of exposures of third parties to toxic substances, such as lead pigment in paint, asbestos and
other chemicals. BP believes that the impact of these legal proceedings on the group‘s results of operations, liquidity or financial position will notbe
material.
With respect to lead pigment in paint in particular, Atlantic Richfield, a subsidiary of BP, has been named as a co-defendant in numerous lawsuits
brought in the US alleging injury to persons and property. Although it is not possible to predict the outcome of the legal proceedings, Atlantic Richfield
believes it has valid defences that render the incurrence of a liability remote; however, the amounts claimed and the costs of implementing the
remedies sought in the various cases could be substantial. The majority of the lawsuits have been abandoned or dismissed against Atlantic Richfield.
No lawsuit against Atlantic Richfield has been settled nor has Atlantic Richfield been subject to a final adverse judgment in any proceeding. Atlantic
Richfield intends to defend such actions vigorously.
The group files tax returns in many jurisdictions throughout the world. Various tax authorities are currently examining the group’s tax returns. Tax
returns contain matters that could be subject to differing interpretations of applicable tax laws and regulations and the resolution of tax positions
through negotiations with relevant tax authorities, or through litigation, can take several years to complete. While it is difficult to predict the ultimate
outcome in some cases, the group does not anticipate that there will be any material impact upon the group‘s results of operations, financial position
or liquidity.
Financial statements
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