BP 2010 Annual Report Download - page 208

Notesonnancialstatements
38.Pensionsandotherpost-retirementbenetscontinued
 $million
  2010
          US other post-
      UKUS retirement
pension pension benet Other
         plansplans plansplansTotal
Analysisoftheamountchargedtoprot(loss)beforeinterestandtaxation
Currentservicecosta 393 241 48 120 802
Pastservicecost    – – – 3 3
Settlement,curtailmentandspecialterminationbenets    24 – – 161 185
Paymentstodenedcontributionplans    1 187 – 35 223
Totaloperatingchargeb 418 428 48 319 1,213
Analysisoftheamountcredited(charged)toothernanceexpense
Expectedreturnonplanassets    1,580 465 1 178 2,224
Interestonplanliabilities    (1,183) (396) (169) (429) (2,177)
Othernanceincome(expense)    397 69 (168) (251) 47
Analysisoftheamountrecognizedinothercomprehensiveincome
Actualreturnlessexpectedreturnonpensionplanassets    1,577 425 (1) 36 2,037
Changeinassumptionsunderlyingthepresentvalueoftheplanliabilities   (1,144) (498) (132) (489) (2,263)
Experiencegainsandlossesarisingontheplanliabilities    12 (167) (8) 69 (94)
Actuarial(loss)gainrecognizedinothercomprehensiveincome   445 (240) (141) (384) (320)
Movementsinbenetobligationduringtheyear
Benetobligationat1January    21,425 7,519 2,996 8,133 40,073
Exchangeadjustments    (835) – – (269) (1,104)
Currentservicecosta 393 241 48 120 802
Pastservicecost    – – – 3 3
Interestcost    1,183 396 169 429 2,177
Curtailment    – – – 4 4
Settlement    11 – – 18 29
Specialterminationbenetsc 13 – – 139 152
Contributionsbyplanparticipantsd 39 – – 13 52
Benetpayments(fundedplans)e (952) (758) (4) (192) (1,906)
Benetpayments(unfundedplans)e (3) (75) (192) (387) (657)
Acquisitions    – – – 2 2
Disposals     (43) – – (29) (72)
Actuariallossonobligation    1,132 665 140 420 2,357
Benetobligationat31Decemberaf 22,363 7,988 3,157 8,404 41,912
Movementsinfairvalueofplanassetsduringtheyear
Fairvalueofplanassetsat1January    22,549 5,823 12 3,069 31,453
Exchangeadjustments    (881) – – 29 (852)
Expectedreturnonplanassetsag 1,580 465 1 178 2,224
Contributionsbyplanparticipantsd 39 – – 13 52
Contributionsbyemployers(fundedplans)    411 694 – 187 1,292
Benetpayments(fundedplans)e (952) (758) (4) (192) (1,906)
Acquisitions    – – – 2 2
Disposals     (43) – – (28) (71)
Actuarialgain(loss)onplanassetsg 1,577 425 (1) 36 2,037
Fairvalueofplanassetsat31December    24,280 6,649 8 3,294 34,231
Surplus(decit)at31December    1,917 (1,339) (3,149) (5,110) (7,681)
Representedby
 Assetrecognized    2,120 – – 56 2,176
 Liabilityrecognized    (203) (1,339) (3,149) (5,166) (9,857)
 1,917 (1,339) (3,149) (5,110) (7,681)
Thesurplus(decit)maybeanalysedbetweenfundedandunfundedplansasfollows
 Funded     2,115 (838) (39) (223) 1,015
 Unfunded    (198) (501) (3,110) (4,887) (8,696)
     1,917 (1,339) (3,149) (5,110) (7,681)
Thedenedbenetobligationmaybeanalysedbetweenfundedandunfundedplans
 asfollows
 Funded     (22,165) (7,487) (47) (3,517) (33,216)
 Unfunded    (198) (501) (3,110) (4,887) (8,696)
 (22,363) (7,988) (3,157) (8,404) (41,912)

a
Thecostsofmanagingtheplan’sinvestmentsaretreatedasbeingpartoftheinvestmentreturn,thecostsofadministeringourpensionplanbenetsaregenerallyincludedincurrentservicecostandthe
costsofadministeringourotherpost-retirementbenetplansareincludedinthebenetobligation.
bIncludedwithinproductionandmanufacturingexpensesanddistributionandadministrationexpenses.
cThechargeforspecialterminationbenetsrepresentstheincreasedliabilityarisingasaresultofearlyretirementsoccurringaspartofrestructuringprogrammes.
dMostofthecontributionsmadebyplanparticipantsafter1January2010intoUKpensionplansweremadeundersalarysacrice.
eThebenetpaymentsamountshownabovecomprises$2,507millionbenetsplus$56millionofplanexpensesincurredintheadministrationofthebenet.
fThebenetobligationforotherplansincludes$3,871millionfortheGermanplan,whichislargelyunfunded.
gTheactualreturnonplanassetsismadeupofthesumoftheexpectedreturnonplanassetsandtheactuarialgainonplanassetsasdisclosedabove.
206BPAnnualReportandForm20-F2010