Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

BP PLC, income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Charge for the year	4,444)	5,724)	6,632)	7,477)	6,766)
Adjustment in respect of prior years	48)	61)	252)	111)	(74)
Current tax	4,492)	5,785)	6,884)	7,588)	6,692)
Origination and reversal of temporary differences in the current year	(3,194)	529)	212)	5,664)	(8,157)
Adjustment in respect of prior years	(351)	149)	(103)	(515)	(36)
Deferred tax	(3,545)	678)	109)	5,149)	(8,193)
Tax charge (credit) on profit (loss)	947)	6,463)	6,993)	12,737)	(1,501)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Download chart

Item	Description	The company
Current tax	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	BP PLC current tax decreased from 2012 to 2013 and from 2013 to 2014.
Deferred tax	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	BP PLC deferred tax increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.
Tax charge (credit) on profit (loss)	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	BP PLC tax charge (credit) on profit (loss) decreased from 2012 to 2013 and from 2013 to 2014.

BP PLC, effective income tax rate (EITR) reconciliation

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
UK statutory corporation tax rate	21.00%	23.00%	24.00%	26.00%	28.00%
UK supplementary and overseas taxes at higher or lower rates	-11.00%	4.00%	11.00%	14.00%	-6.00%
Tax reported in equity-accounted entities	-14.00%	-2.00%	-5.00%	-3.00%	23.00%
Adjustments in respect of prior years	-6.00%	1.00%	1.00%	-1.00%	2.00%
Movement in deferred tax not recognized	17.00%	2.00%	2.00%	0.00%	0.00%
Current year losses unrelieved (prior year losses utilized)	0.00%	0.00%	0.00%	0.00%	1.00%
Tax incentives for investment	-10.00%	-2.00%	-2.00%	-1.00%	9.00%
Gulf of Mexico oil spill non-deductible costs	1.00%	0.00%	8.00%	0.00%	-30.00%
Permanent differences relating to disposals	-1.00%	-8.00%	0.00%	-2.00%	0.00%
Foreign exchange	10.00%	2.00%	-1.00%	1.00%	0.00%
Items not deductible for tax purposes	12.00%	1.00%	2.00%	0.00%	0.00%
Other	0.00%	0.00%	-3.00%	-1.00%	4.00%
Effective tax rate	19.00%	21.00%	37.00%	33.00%	31.00%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Download chart

Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	BP PLC effective tax rate decreased from 2012 to 2013 and from 2013 to 2014.

BP PLC, components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Pension plan and other post-retirement benefit plan deficits	2,761)	2,026)	3,389)	2,872)	2,155)
Decommissioning, environmental and other provisions	11,237)	11,301)	12,705)	14,565)	13,296)
Derivative financial instruments	575)	579)	281)	274)	298)
Tax credit	298)	888)	714)	2,549)	2,118)
Loss carry forward	3,848)	2,585)	2,209)	1,295)	943)
Other deductible temporary differences	1,204)	1,655)	2,032)	2,699)	4,126)
Deferred tax asset	19,923)	19,034)	21,330)	24,254)	22,936)
Depreciation	(29,062)	(31,551)	(31,839)	(33,038)	(27,309)
Pension plan surpluses	—)	(284)	—)	—)	(469)
Other taxable temporary differences	(2,445)	(3,653)	(3,681)	(5,683)	(5,538)
Deferred tax liability	(31,507)	(35,488)	(35,520)	(38,721)	(33,316)
Net deferred tax asset (liability)	(11,584)	(16,454)	(14,190)	(14,467)	(10,380)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Download chart

Item	Description	The company
Deferred tax asset	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	BP PLC deferred tax asset decreased from 2012 to 2013 but then slightly increased from 2013 to 2014.
Net deferred tax asset (liability)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	BP PLC net deferred tax asset (liability) decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

BP PLC, deferred tax assets and liabilities, classification

US$ in millions

		Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
	Deferred tax liabilities	2,309)	17,439)	15,064)	15,078)	10,908)
	Deferred tax assets	13,893)	985)	874)	611)	528)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Download chart

Item	Description	The company
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	BP PLC deferred tax liabilities increased from 2012 to 2013 but then decreased significantly from 2013 to 2014.
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	BP PLC deferred tax assets increased from 2012 to 2013 and from 2013 to 2014.

BP PLC, adjustments to financial statements

US$ in millions

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Adjustment to Total Assets
Total assets (as reported)	284,305)	305,690)	300,193)	293,068)	272,262)
Less: Noncurrent deferred tax assets, net	13,893)	985)	874)	611)	528)
Total assets (adjusted)	270,412)	304,705)	299,319)	292,457)	271,734)
Adjustment to Total Liabilities
Total liabilities (as reported)	171,663)	175,283)	180,573)	180,586)	176,371)
Less: Noncurrent deferred tax liabilities, net	2,309)	17,439)	15,064)	15,078)	10,908)
Total liabilities (adjusted)	169,354)	157,844)	165,509)	165,508)	165,463)
Adjustment to Total BP Shareholders’ Equity
Total BP shareholders’ equity (as reported)	111,441)	129,302)	118,414)	111,465)	94,987)
Less: Net deferred tax assets (liabilities)	(11,584)	(16,454)	(14,190)	(14,467)	(10,380)
Total BP shareholders’ equity (adjusted)	123,025)	145,756)	132,604)	125,932)	105,367)
Adjustment to Profit (loss) For The Year Attributable To BP Shareholders
Profit (loss) for the year attributable to BP shareholders (as reported)	3,780)	23,451)	11,582)	25,700)	(3,719)
Add: Deferred income tax expense (benefit)	(3,545)	678)	109)	5,149)	(8,193)
Profit (loss) for the year attributable to BP shareholders (adjusted)	235)	24,129)	11,691)	30,849)	(11,912)

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

BP PLC, Financial Data: Reported vs. Adjusted

Download chart

BP PLC, adjusted financial ratios

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
Net Profit Margin
Reported net profit margin	1.07%	6.19%	3.08%	6.84%	-1.25%
Adjusted net profit margin	0.07%	6.36%	3.11%	8.22%	-4.01%
Total Asset Turnover
Reported total asset turnover	1.24	1.24	1.25	1.28	1.09
Adjusted total asset turnover	1.31	1.24	1.25	1.28	1.09
Financial Leverage
Reported financial leverage	2.55	2.36	2.54	2.63	2.87
Adjusted financial leverage	2.20	2.09	2.26	2.32	2.58
Return on Equity (ROE)
Reported ROE	3.39%	18.14%	9.78%	23.06%	-3.92%
Adjusted ROE	0.19%	16.55%	8.82%	24.50%	-11.31%
Return on Assets (ROA)
Reported ROA	1.33%	7.67%	3.86%	8.77%	-1.37%
Adjusted ROA	0.09%	7.92%	3.91%	10.55%	-4.38%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	BP PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	BP PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	BP PLC adjusted financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	BP PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	BP PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

BP PLC, Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit (loss) for the year attributable to BP shareholders	3,780)	23,451)	11,582)	25,700)	(3,719)
Sales and other operating revenues	353,568)	379,136)	375,580)	375,517)	297,107)
Profitability Ratio
Net profit margin¹	1.07%	6.19%	3.08%	6.84%	-1.25%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders	235)	24,129)	11,691)	30,849)	(11,912)
Sales and other operating revenues	353,568)	379,136)	375,580)	375,517)	297,107)
Profitability Ratio
Adjusted net profit margin²	0.07%	6.36%	3.11%	8.22%	-4.01%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Net profit margin = 100 × Profit (loss) for the year attributable to BP shareholders ÷ Sales and other operating revenues
= 100 × 3,780 ÷ 353,568 = 1.07%

² Adjusted net profit margin = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Sales and other operating revenues
= 100 × 235 ÷ 353,568 = 0.07%

Download chart

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	BP PLC adjusted net profit margin ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Sales and other operating revenues	353,568)	379,136)	375,580)	375,517)	297,107)
Total assets	284,305)	305,690)	300,193)	293,068)	272,262)
Activity Ratio
Total asset turnover¹	1.24	1.24	1.25	1.28	1.09
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Sales and other operating revenues	353,568)	379,136)	375,580)	375,517)	297,107)
Adjusted total assets	270,412)	304,705)	299,319)	292,457)	271,734)
Activity Ratio
Adjusted total asset turnover²	1.31	1.24	1.25	1.28	1.09

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Total asset turnover = Sales and other operating revenues ÷ Total assets
= 353,568 ÷ 284,305 = 1.24

² Adjusted total asset turnover = Sales and other operating revenues ÷ Adjusted total assets
= 353,568 ÷ 270,412 = 1.31

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	BP PLC adjusted total asset turnover ratio deteriorated from 2012 to 2013 but then improved from 2013 to 2014 exceeding 2012 level.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Total assets	284,305)	305,690)	300,193)	293,068)	272,262)
Total BP shareholders’ equity	111,441)	129,302)	118,414)	111,465)	94,987)
Solvency Ratio
Financial leverage¹	2.55	2.36	2.54	2.63	2.87
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	270,412)	304,705)	299,319)	292,457)	271,734)
Adjusted total BP shareholders’ equity	123,025)	145,756)	132,604)	125,932)	105,367)
Solvency Ratio
Adjusted financial leverage²	2.20	2.09	2.26	2.32	2.58

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ Financial leverage = Total assets ÷ Total BP shareholders’ equity
= 284,305 ÷ 111,441 = 2.55

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted total BP shareholders’ equity
= 270,412 ÷ 123,025 = 2.20

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	BP PLC adjusted financial leverage ratio decreased from 2012 to 2013 but then increased from 2013 to 2014 not reaching 2012 level.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit (loss) for the year attributable to BP shareholders	3,780)	23,451)	11,582)	25,700)	(3,719)
Total BP shareholders’ equity	111,441)	129,302)	118,414)	111,465)	94,987)
Profitability Ratio
ROE¹	3.39%	18.14%	9.78%	23.06%	-3.92%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders	235)	24,129)	11,691)	30,849)	(11,912)
Adjusted total BP shareholders’ equity	123,025)	145,756)	132,604)	125,932)	105,367)
Profitability Ratio
Adjusted ROE²	0.19%	16.55%	8.82%	24.50%	-11.31%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ ROE = 100 × Profit (loss) for the year attributable to BP shareholders ÷ Total BP shareholders’ equity
= 100 × 3,780 ÷ 111,441 = 3.39%

² Adjusted ROE = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Adjusted total BP shareholders’ equity
= 100 × 235 ÷ 123,025 = 0.19%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	BP PLC adjusted ROE improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010
As Reported
Selected Financial Data (US$ in millions)
Profit (loss) for the year attributable to BP shareholders	3,780)	23,451)	11,582)	25,700)	(3,719)
Total assets	284,305)	305,690)	300,193)	293,068)	272,262)
Profitability Ratio
ROA¹	1.33%	7.67%	3.86%	8.77%	-1.37%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted profit (loss) for the year attributable to BP shareholders	235)	24,129)	11,691)	30,849)	(11,912)
Adjusted total assets	270,412)	304,705)	299,319)	292,457)	271,734)
Profitability Ratio
Adjusted ROA²	0.09%	7.92%	3.91%	10.55%	-4.38%

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

¹ ROA = 100 × Profit (loss) for the year attributable to BP shareholders ÷ Total assets
= 100 × 3,780 ÷ 284,305 = 1.33%

² Adjusted ROA = 100 × Adjusted profit (loss) for the year attributable to BP shareholders ÷ Adjusted total assets
= 100 × 235 ÷ 270,412 = 0.09%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	BP PLC adjusted ROA improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.

BP PLC (NYSE:BP)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

BP PLC, Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

BP PLC, Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)