BP 2011 Annual Report Download - page 240

238 BP Annual Report and Form 20-F 2011
Notes on financial statements
37. Pensions and other post-retirement benefits continued
$ million
2011
UK
pension
plans
US
pension
plans
US other post-
retirement
benefit
plans
Other
plans Total
Analysis of the amount charged to profit before interest and taxation
Current service costa383 280 53 133 849
Past service cost –184 – 7 191
Settlement, curtailment and special termination benefits 3 – – 40 43
Payments to defined contribution plans 5199 –41 245
Total operating chargeb391 663 53 221 1,328
Analysis of the amount credited (charged) to other finance expense
Expected return on plan assets 1,799 518 –185 2,502
Interest on plan liabilities (1,263) (369) (163) (444) (2,239)
Other finance income (expense) 536 149 (163) (259) 263
Analysis of the amount recognized in other comprehensive income
Actual return less expected return on pension plan assets (1,990) 10 (1) (61) (2,042)
Change in assumptions underlying the present value of the plan liabilities (2,680) (512) 39 (642) (3,795)
Experience gains and losses arising on the plan liabilities (84) (102) 89 (26) (123)
Actuarial (loss) gain recognized in other comprehensive income (4,754) (604) 127 (729) (5,960)
Movements in benefit obligation during the year
Benefit obligation at 1 January 22,363 7,988 3,157 8,404 41,912
Exchange adjustments (137) – – (326) (463)
Current service costa383 280 53 133 849
Past service cost –184 – 7 191
Interest cost 1,263 369 163 444 2,239
Curtailment – – – (1) (1)
Settlement – – – 4 4
Special termination benefitsc3 – – 37 40
Contributions by plan participantsd33 – – 10 43
Benefit payments (funded plans)e(993) (750) (3) (226) (1,972)
Benefit payments (unfunded plans)e(4) (68) (181) (405) (658)
Disposals – – – (20) (20)
Actuarial loss (gain) on obligation 2,764 614 (128) 668 3,918
Benefit obligation at 31 Decembera f 25,675 8,617 3,061 8,729 46,082
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 24,280 6,649 83,294 34,231
Exchange adjustments 29 – – (123) (94)
Expected return on plan assetsa g 1,799 518 –185 2,502
Contributions by plan participantsd33 – – 10 43
Contributions by employers (funded plans) 429 777 –223 1,429
Benefit payments (funded plans)e(993) (750) (3) (226) (1,972)
Disposals – – – (16) (16)
Actuarial gain (loss) on plan assetsg(1,990) 10 (1) (61) (2,042)
Fair value of plan assets at 31 December 23,587 7,204 43,286 34,081
Deficit at 31 December (2,088) (1,413) (3,057) (5,443) (12,001)
Represented by
Asset recognized – – – 17 17
Liability recognized (2,088) (1,413) (3,057) (5,460) (12,018)
(2,088) (1,413) (3,057) (5,443) (12,001)
The surplus (deficit) may be analysed between funded and unfunded plans as follows
Funded (1,852) (784) (41) (492) (3,169)
Unfunded (236) (629) (3,016) (4,951) (8,832)
(2,088) (1,413) (3,057) (5,443) (12,001)
The defined benefit obligation may be analysed between funded and unfunded
plans as follows
Funded (25,439) (7,988) (45) (3,778) (37,250)
Unfunded (236) (629) (3,016) (4,951) (8,832)
(25,675) (8,617) (3,061) (8,729) (46,082)
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 benefits are generally included in current service cost and the
costs of administering our other post-retirement benefit plans are included in the benefit obligation.
b
Included within production and manufacturing expenses and distribution and administration expenses.
c
The charge for special termination benefits 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 sacrifice arrangements.
e
The benefit payments amount shown above comprises $2,576 million benefits plus $54 million of plan expenses incurred in the administration of the benefit.
f
The benefit obligation for other plans includes $3,909 million for the German plan, which is largely unfunded.
g
The 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.