Gulf of Mexico oil spill                                           (18)      (11)     (31)         (29)      (52) 
Fair value accounting effects[(e)]                                 73        (447)    (41)         (374)     (41) 
Other                                                              21        (24)     66           (3)       (13) 
                                                                   (120)     (508)    (39)         (628)     (173) 
Total before interest and taxation                                 210       844      (14,452)     1,054     (15,694) 
Finance costs[(i)(j)]                                              (202)     (148)    (114)        (350)     (236) 
Total before taxation                                              8         696      (14,566)     704       (15,930) 
Taxation credit (charge) on adjusting items                        (396)     12       3,477        (384)     3,787 
Taxation - impact of foreign exchange[(k)]                         (30)      (13)     114          (43)      (251) 
Total taxation on adjusting items                                  (426)     (1)      3,591        (427)     3,536 
Total after taxation for period                                    (418)     695      (10,975)     277       (12,394) fair value accounting effects. Comparative information for 2020 has been restated to reflect the changes in reportable segments. For more information see Note 1 Basis of preparation - Change in segmentation. (b)     First quarter and first half 2021 relate to a gain from the divestment of a 20% stake in Oman Block 61. (c)      See Note 3 for further information. (d)     All periods in 2021 include recognized provisions for restructuring costs associated with the reinvent programme that was formalized in 2020. (e)      For further information, including the nature of fair value accounting effects reported in each segment, see page 39. (f)       Second quarter and first half 2020 include the exploration write-off of USD668 million in gas and lower carbon energy relating to fair value ascribed to certain licences as part of the accounting at the time of acquisition of gas & low carbon assets in India and the impairment of certain intangible assets in Mauritania and Senegal and USD1,301 million in oil production & operations relating to fair value ascribed to certain licences as part of the accounting at the time of acquisition of oil production & operations assets in Brazil and the Gulf of Mexico. (g)      Second quarter and first half 2021 Includes adjustments relating to the change in discount rate on retained decommissioning provisions and the recognition of a decommissioning provision in relation to certain assets previously sold to a third party where the decommissioning obligation transferred may revert to bp due to the financial condition of the current owner. (h)     Second quarter and first half 2021 includes a USD415 million charge relating to a remeasurement of deferred tax balances in our equity-accounted entity in Argentina following income tax rate changes partially offset by impairment reversals in equity-accounted entities. Top of page 33 (i)       All periods presented include the unwinding of discounting effects relating to Gulf of Mexico oil spill payables. Second quarter, first quarter and first half 2021 also include the income statement impact associated with the buyback of finance debt. See Note 9 for further information. (j)       From first quarter 2021 bp is presenting temporary valuation differences associated with the group's interest rate and foreign currency exchange risk management of finance debt as an adjusting item within finance costs. In 2020 these amounts were presented within production and manufacturing expenses and as an 'other' adjusting item in the other business & corporate segment. Relevant amounts in the comparative periods presented were not material. (k)     bp is presenting certain foreign exchange effects on tax as adjusting items. These amounts represent the impact of: (i) foreign exchange on deferred tax balances arising from the conversion of local currency tax base amounts into functional currency, and (ii) taxable gains and losses from the retranslation of US dollar-denominated intra-group loans to local currency. Net debt including leases 
Net debt including leases*                                             Second    First     Second      First     First 
                                                                       quarter   quarter   quarter     half      half 
USD million                                                              2021      2021      2020        2021      2020 
Net debt                                                               32,706    33,313    40,920      32,706    40,920 
Lease liabilities                                                      8,863     9,030     9,331       8,863     9,331 
Net partner (receivable) payable for leases entered into on behalf 
of joint operations                                                    109       37        (90)        109       (90) 
Net debt including leases                                              41,678    42,380    50,161      41,678    50,161 
Total equity                                                           93,232    90,586    82,811      93,232    82,811 
Gearing including leases*                                              30.9%     31.9%     37.7%       30.9%     37.7% Gulf of Mexico oil spill 
                                                   30 June    31 December 
USD million                                          2021       2020 
Gulf of Mexico oil spill payables and provisions   (10,258)   (11,436) 
Of which - current                                 (1,270)    (1,444) 
 
Deferred tax asset                                 4,326      5,471 and settlement agreement with the United States and the five Gulf coast states. Payables and provisions presented in the table above reflect the latest estimate for the remaining costs associated with the Gulf of Mexico oil spill. Where amounts have been provided on an estimated basis, the amounts ultimately payable may differ from the amounts provided and the timing of payments is uncertain. Further information relating to the Gulf of Mexico oil spill, including information on the nature and expected timing of payments relating to provisions and other payables, is provided in BP Annual Report and Form 20-F 2020 - Financial statements - Notes 7, 9, 20, 22, 23, 29, and 33. Top of page 34 Working capital* reconciliation[(a)] 
                                                                     Second    First     Second     First     First 
                                                                     quarter   quarter   quarter    half      half 
USD million                                                            2021      2021      2020       2021      2020 
Movements in inventories and other current and non-current assets 
and liabilities as per condensed group cash flow statement[(b)]      26        (2,793)   (609)      (2,767)   74 
Adjusted for inventory holding gains (losses)* (Note 4 excluding 
Rosneft)                                                             885       1,642     1,035      2,527     (3,648) 
Adjusted for fair value accounting effects                           (1,377)   259       (139)      (1,118)   (175) 
Working capital release (build) after adjusting for net inventory 
gains (losses) and fair value accounting effects                     (466)     (892)     287        (1,358)   (3,749) (a)      Commencing with second quarter 2021 results fair value accounting effects have been included in the working capital reconciliation. For further information see Glossary page 43. (b)    The movement in working capital includes outflows relating to the Gulf of Mexico oil spill on a pre-tax basis of USD1,204 million and USD1,339 million in the second quarter and first half of 2021 respectively. For the same periods in 2020 the amount was an outflow of USD1,120 million and USD1,374 million respectively. Surplus cash flow* reconciliation 
                                                                                Second    First 
                                                                                quarter   half 
USD million                                                                       2021      2021 
Sources: 
Net cash provided by operating activities                                       5,411     11,520 
Cash provided from investing activities                                         282       4,507 
Receipts relating to transactions involving non-controlling interests (other)   3         671 
Cash inflow                                                                     5,696     16,698 
 
Uses: 
Lease liability payments                                                        (514)     (1,074) 
Payments on perpetual hybrid bonds                                              (328)     (383) 
Dividends paid - BP shareholders                                                (1,062)   (2,126) 
- non-controlling interests                                                     (107)     (158) 
Total capital expenditure*                                                      (2,514)   (6,312) 
Net repurchase of shares relating to employee share schemes                     (500)     (500) 
Currency translation differences relating to cash and cash equivalents          24        (34) 
Cash outflow                                                                    (5,001)   (10,587) 
 
Surplus (deficit) cash and cash equivalent                                      695       6,111 
 
Net debt 
Opening balance at 1 January 2021                                                         38,941 
Fair value and other movements on debt                                                    (212) 
Net debt target                                                                           35,000 
Cash used to meet net debt target                                                         3,729

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