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 311 243 48 117 719Past service cost – – (22) 1 (21)Settlement, curtailment and special termination benefits 37 – – 53 90Payments to defined contribution plans – 205 – 28 233Total operating charge b 348 448 26 199 1,021Analysis of the amount credited (charged) to other finance expenseExpected return on plan assets 1,426 405 1 147 1,979Interest on plan liabilities (1,112) (456) (183) (420) (2,171)Other finance income (expense) 314 (51) (182) (273) (192)Analysis of the amount recognized in other comprehensive incomeActual return less expected return on pension plan assets 1,761 617 2 169 2,549Change in assumptions underlying the present value of the plan liabilities (2,217) (501) (50) (42) (2,810)Experience gains and losses arising on the plan liabilities (141) (229) 71 (122) (421)Actuarial (loss) gain recognized in other comprehensive income (597) (113) 23 5 (682)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.At 31 December 2011, reimbursement balances due from or to other companies in respect of pensions amounted to $546 million reimbursement assets(2010 $483 million) and $13 million reimbursement liabilities (2010 $13 million). These balances are not included as part of the pension surpluses anddeficits, but are reflected within other receivables and other payables in the group balance sheet.Otherplans$ million2009$ million2011 2010 2009 2008 2007History of surplus (deficit) and of experience gains and lossesBenefit obligation at 31 December 46,082 41,912 40,073 34,847 43,100Fair value of plan assets at 31 December 34,081 34,231 31,453 26,154 42,799Deficit (12,001) (7,681) (8,620) (8,693) (301)Experience losses on plan liabilities (123) (94) (421) (178) (200)Actual return less expected return on pension plan assets (2,042) 2,037 2,549 (10,253) 302Actual return on plan assets 460 4,261 4,528 (7,331) 3,157Actuarial (loss) gain recognized in other comprehensive income (5,960) (320) (682) (8,430) 1,717Cumulative amount recognized in other comprehensive income (9,902) (3,942) (3,622) (2,940) 5,490Estimated future benefit paymentsThe expected benefit payments, which reflect expected future service as appropriate, but exclude plan expenses, up until 2021 are as follows:UKpensionplansUSpensionplansUS other postretirementbenefitplansTotal2012 998 743 181 619 2,5412013 1,031 756 183 588 2,5582014 1,068 766 186 592 2,6122015 1,109 778 188 583 2,6582016 1,154 776 190 567 2,6872017-2021 6,476 3,721 955 2,728 13,880Otherplans$ million240 BP Annual Report and Form 20-F 2011