BP Annual Report and Form 20-F 2011 - Company Reporting

Notes on financial statements37. Pensions and other post-retirement benefits continuedThe expected long-term rates of return and market values of the various categories of assets held by the defined benefit plans at 31 December are setout below. The market values shown include the effects of derivative financial instruments. The amounts classified as equities include investments incompanies listed on stock exchanges as well as unlisted investments. Movements in the value of plan assets during the year are shown in detail in thetable on page 238.2011 2010 2009Expectedlong-termrate ofreturnMarketvalueExpectedlong-termrate ofreturnMarketvalueExpectedlong-termrate ofreturnMarketvalue% $ million % $ million % $ millionUK pension plansEquities a 8.0 17,202 8.0 18,546 8.0 16,945Bonds 4.4 4,141 5.0 3,866 5.3 3,701Property/real estate 6.5 1,710 6.5 1,462 6.5 1,269Cash 1.7 534 1.4 406 1.1 6347.0 23,587 7.2 24,280 7.3 22,549US pension plansEquities a 9.0 5,034 9.1 5,058 9.0 4,326Bonds 4.0 2,022 4.5 1,419 4.8 1,218Property/real estate 8.0 4 8.0 7 8.0 8Cash 0.2 144 0.3 165 0.9 2717.4 7,204 8.0 6,649 8.0 5,823US other post-retirement benefit plansEquities – – – – 8.5 8Bonds – – – – 4.8 4Cash 0.2 4 0.3 8 – –0.2 4 0.3 8 7.6 12Other plansEquities 7.9 831 8.0 1,182 8.6 1,091Bonds 3.3 1,951 4.2 1,874 4.4 1,651Property/real estate 6.2 117 6.3 83 6.5 82Cash 2.2 387 2.7 155 2.0 2454.7 3,286 5.4 3,294 5.9 3,069aThe amounts classified as equities include investments in companies listed on stock exchanges as well as private equity investments which are substantially all unlisted. The market value of private equityinvestments at 31 December 2011 was $4,099 million (2010 $3,348 million and 2009 $2,956 million). The equity return assumption shown above is the weighted average of the assumed returns for listedand private equity investments in each fund. Comparative return assumptions for the US pension plans’ equities have been restated to reflect this. Equity return assumptions previously disclosed reflectedthe assumption for listed equities only.236 BP Annual Report and Form 20-F 2011