BP 2011 Annual Report Download - page 292

PC8 BP Annual Report and Form 20-F 2011
Parent company financial statements of BP p.l.c.
The parent company financial statements of BP p.l.c. on pages PC1 – PC14 do not form part of BP’s Annual Report on Form 20-F as filed with the SEC.
6. Pensions continued
$ million
2011 2010
Analysis of the amount charged to operating profit
Current service costa380 381
Settlement, curtailment and special termination benefitsb321
Payments to defined contribution plans 51
Total operating chargec388 403
Analysis of the amount credited (charged) to other finance income
Expected return on pension plan assets 1,773 1,486
Interest on pension plan liabilities (1,240) (1,098)
Other finance income 533 388
Analysis of the amount recognized in the statement of total recognized gains and losses
Actual return less expected return on pension plan assets (1,976) 1,479
Change in assumptions underlying the present value of the plan liabilities (2,710) (1,034)
Experience gains and losses arising on the plan liabilities (84) 12
Actuarial (loss) gain recognized in statement of total recognized gains and losses (4,770) 457
$ million
2011 2010
Movements in benefit obligation during the year
Benefit obligation at 1 January 20,742 19,882
Exchange adjustment (204) (775)
Current service costa380 381
Interest cost 1,240 1,098
Transfers of plans from other group companiesd1,671 –
Disposals –(43)
Special termination benefits 321
Contributions by plan participants 33 38
Benefit payments (funded plans)e(980) (879)
Benefit payments (unfunded plans)e(4) (3)
Actuarial loss on obligation 2,794 1,022
Benefit obligation at 31 December 25,675 20,742
Movements in fair value of plan assets during the year
Fair value of plan assets at 1 January 22,612 20,953
Exchange adjustment (41) (819)
Expected return on plan assetsa f 1,773 1,486
Contributions by plan participantsg33 38
Contributions by employers (funded plans) 423 397
Transfers of plans from other group companiesd1,743 –
Disposals –(43)
Benefit payments (funded plans)e(980) (879)
Actuarial gain (loss) on plan assetsf(1,976) 1,479
Fair value of plan assets at 31 Decemberh23,587 22,612
Surplus (deficit) at 31 December (2,088) 1,870
a The costs of managing the plan’s investments are treated as being part of the investment return, the costs of administering our pensions plan benefits are included in current service cost.
b The charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.
c Included within production and manufacturing expenses and distribution and administration expenses.
d Transfer of the Burmah Castrol Pension Fund and the Lubricants UK Limited pension plan.
e The benefit payments amount shown above comprises $965 million benefits plus $15 million of plan expenses incurred in the administration of the benefit.
f The actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain or loss on plan assets as disclosed above.
g The contributions by plan participants for the UK are mostly comprised of contributions made under salary sacrifice arrangements.
h Reflects $23,482 million of assets held in the BP Pension Fund (2010 $22,516 million) and $75 million held in the BP Global Pension Trust (2010 $68 million), with $30 million representing the company’s
share of Merchant Navy Officers Pension Fund (2010 $28 million).