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

Notes on financial statements37. Pensions and other post-retirement benefits continuedUKpensionplansUSpensionplansUS other postretirementbenefitplansTotalAnalysis of the amount charged to profit before interest and taxationCurrent service cost a 383 280 53 133 849Past service cost – 184 – 7 191Settlement, curtailment and special termination benefits 3 – – 40 43Payments to defined contribution plans 5 199 – 41 245Total operating charge b 391 663 53 221 1,328Analysis of the amount credited (charged) to other finance expenseExpected return on plan assets 1,799 518 – 185 2,502Interest on plan liabilities (1,263) (369) (163) (444) (2,239)Other finance income (expense) 536 149 (163) (259) 263Analysis of the amount recognized in other comprehensive incomeActual 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 yearBenefit obligation at 1 January 22,363 7,988 3,157 8,404 41,912Exchange adjustments (137) – – (326) (463)Current service cost a 383 280 53 133 849Past service cost – 184 – 7 191Interest cost 1,263 369 163 444 2,239Curtailment – – – (1) (1)Settlement – – – 4 4Special termination benefits c 3 – – 37 40Contributions by plan participants d 33 – – 10 43Benefit 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 3,918Benefit obligation at 31 December a f 25,675 8,617 3,061 8,729 46,082Movements in fair value of plan assets during the yearFair value of plan assets at 1 January 24,280 6,649 8 3,294 34,231Exchange adjustments 29 – – (123) (94)Expected return on plan assets a g 1,799 518 – 185 2,502Contributions by plan participants d 33 – – 10 43Contributions by employers (funded plans) 429 777 – 223 1,429Benefit payments (funded plans) e (993) (750) (3) (226) (1,972)Disposals – – – (16) (16)Actuarial gain (loss) on plan assets g (1,990) 10 (1) (61) (2,042)Fair value of plan assets at 31 December 23,587 7,204 4 3,286 34,081Deficit at 31 December (2,088) (1,413) (3,057) (5,443) (12,001)Represented byAsset recognized – – – 17 17Liability 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 followsFunded (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 unfundedplans as followsFunded (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)aThe 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 thecosts of administering our other post-retirement benefit plans are included in the benefit obligation.bIncluded within production and manufacturing expenses and distribution and administration expenses.cThe charge for special termination benefits represents the increased liability arising as a result of early retirements occurring as part of restructuring programmes.dMost of the contributions made by plan participants after 1 January 2010 into UK pension plans were made under salary sacrifice arrangements.eThe benefit payments amount shown above comprises $2,576 million benefits plus $54 million of plan expenses incurred in the administration of the benefit.fThe benefit obligation for other plans includes $3,909 million for the German plan, which is largely unfunded.gThe actual return on plan assets is made up of the sum of the expected return on plan assets and the actuarial gain on plan assets as disclosed above.Otherplans$ million2011238 BP Annual Report and Form 20-F 2011