BP 2007 Annual Report Download - page 130

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128
18 Finance costs
$ million
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2007 2006 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Bank loans and overdrafts 89 130 44
Other loans 1,302 1,020 828
Finance leases 42 46 38
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Interest payable 1,433 1,196 910
Capitalized at 5.70% (2006 5.25% and 2005 4.25%)a(323) (478) (351)
Early redemption of borrowings and finance leases ––57
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1,110 718 616
aTax relief on capitalized interest is $81 million (2006 $182 million and 2005 $123 million).
19 Other finance income and expense
$ million
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2007 2006 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Interest on pension and other post-retirement benefit plan liabilities 2,203 1,940 2,022
Expected return on pension and other post-retirement benefit plan assets (2,855) (2,410) (2,138)
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Interest net of expected return on plan assets (652) (470) (116)
Unwinding of discount on provisions 283 245 201
Unwinding of discount on deferred consideration for acquisition of investment in TNK-BP –23 57
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(369) (202) 142
Innovene operations ––3
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Continuing operations (369) (202) 145
20 Taxation
$ million
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Tax on profit 2007 2006 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Current tax
Charge for the year 10,006 11,199 10,511
Adjustment in respect of prior years (171) 442 (977)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
9,835 11,641 9,534
Innovene operations –159 (910)
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Continuing operations 9,835 11,800 8,624
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Deferred tax
Origination and reversal of temporary differences in the current year 671 1,771 349
Adjustment in respect of prior years (64) (1,240) (450)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
607 531 (101)
Innovene operations ––950
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Continuing operations 607 531 849
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Tax on profit from continuing operations 10,442 12,331 9,473
Tax on profit from continuing operations may be analysed as follows:
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Current tax charge
UK 2,067 2,657 880
Overseas 7,768 9,143 7,744
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
9,835 11,800 8,624
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Deferred tax charge
UK 216 500 (489)
Overseas 391 31 1,338
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
607 531 849
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Total
UK 2,283 3,157 391
Overseas 8,159 9,174 9,082
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
10,442 12,331 9,473