BP 2010 Annual Report Download - page 199

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Notesonnancialstatements
Financial statements
35.Financedebt
 $million
    2010   2009
     Current Non-current Total Current Non-current Total
Borrowings   8,312 30,017 38,329 9,018 25,020 34,038
Netobligationsundernanceleases   117 693 810  91 498 589
      8,429 30,710 39,139  9,109 25,518 34,627
Disposaldeposits   6,197 – 6,197  – – –
        14,626 30,710 45,336 9,109 25,518 34,627
 
Currentnancedebtincludestheportionoflong-termdebtthatwillmatureinthenext12months,amountingto$6,976million(2009$3,965million).
Depositsfordisposaltransactionsexpectedtocompletein2011of$6,197million(2009nil)arealsoincluded.Thisdebtwillbeconsideredextinguishedon
completionofthetransactions.
CurrentnancedebtalsoincludesUSIndustrialRevenue/Municipalbondsof$379million(2009$2,895million)withearliestcontractualrepayment
dateswithinoneyear,andthe2009balanceincluded$1,622millionforloansassociatedwithlong-termgassupplycontractsbackedbygaspre-paidbonds.
Thebondholderstypicallyhavetheoptiontotenderthesebondsforrepaymentoninterestresetdateswithanybondsthataretenderedbeingremarketed.
Thereductionincurrentnancedebtin2010attributabletosuchbondslargelyreectstheunsuccessfulremarketingofthebondsduringtheyear.BPhas
repaid$2,460millionofUSIndustrialRevenue/Municipalbondsandat31December2010eitherheldorhadretiredthebonds.Alloftheoutstandingbonds
associatedwithlong-termgassupplycontracts,amountingto$1,527millionwereheldbyBPwiththeliabilitynowrecordedwithinotherpayablesonthe
balancesheetandthebondsrecordedwithinothercurrentinvestments.
At31December2010$790million(2009$113million)ofnancedebtwassecuredbythepledgingofassets,and$4,780millionwassecuredin
connectionwithdepositsreceivedrelatingtocertaindisposaltransactionsexpectedtocompletein2011(2009nil).Inaddition,inconnectionwith
$4,588million(2009nil)ofnancedebt,BPhasenteredintocrudeoilsalescontractsinrespectofoilproducedfromcertaineldsinoffshoreAngolaand
Azerbaijantoprovidesecuritytothelendingbanks.Theremainderofnancedebtwasunsecured.
Thefollowingtableshows,bymajorcurrency,thegroup’snancedebtat31Decemberandtheweightedaverageinterestratesachievedatthose
datesthroughacombinationofborrowingsandderivativenancialinstrumentsenteredintotomanageinterestrateandcurrencyexposures.Thedisposal
depositsnotedaboveareexcludedfromthisanalysis.
   Fixed rate debt Floating rate debt Total
         Weighted
Weighted average Weighted
average time for average
interest which rate interest
rate is xed Amount rate Amount Amount
% Years $ million % $ million $ million
2010
USdollar    4 5 14,797 1 21,076 35,873
Euro     4 3 53 2 2,988 3,041
Othercurrencies   6 18 140 4 85 225
        14,990 24,149 39,139
          2009
USdollar    4 4 12,525 1 20,566 33,091
Euro     4 2 63 2 1,199 1,262
Othercurrencies   6 14 171 3 103 274
          12,759  21,868 34,627

TheEurodebtnotswappedtoUSdollarisnaturallyhedgedfortheforeigncurrencyriskbyholdingequivalentEurocashandcashequivalentamounts.
Finance leases
Thegroupusesnanceleasestoacquireproperty,plantandequipment.Theseleaseshavetermsofrenewalbutnopurchaseoptionsandescalation
clauses.Renewalsareattheoptionofthelessee.Futureminimumleasepaymentsundernanceleasesaresetoutbelow.
 $million
         2010 2009
Futureminimumleasepaymentspayablewithin
 1year        153 109
 2to5years       535 329
 Thereafter       438 407
 1,126 845
Lessnancecharges       316 256
Netobligations       810 589
Ofwhich–payablewithin1year      117 91
   –payablewithin2to5years       404 202
   –payablethereafter       289 296
 
BPAnnualReportandForm20-F2010 197