Unilever 2000 Annual Report Download - page 72

Download and view the complete annual report

Please find page 72 of the 2000 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements
70
Notes to the consolidated accounts
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2000Unilever Annual Report & Accounts and Form 20-F 2000
26 Acquisition and disposal of group companies
The net assets and results of acquired businesses are included in the consolidated accounts from their respective dates of acquisition. The
following tables set out the effect of acquisitions of group companies in 2000 on the consolidated balance sheet. Acquisition accounting
(or purchase accounting) has been applied in all cases. The fair values currently established for all acquisitions are provisional. The goodw ill
arising on these transactions has been capitalised and is being amortised over 20 years.
On 4 October 2000, Unilever, through its subsidiary Unilever United States, Inc., acquired Bestfoods for a consideration of 23.6 billion in
cash. The bakery business of Bestfoods, and a number of other small businesses, are expected to be sold within one year of the purchase
date. The net assets and liabilities of these businesses, after adjustment to estimated net proceeds of sale, have been included w ithin
current assets as ‘Acquired businesses held for resale’. The valuations at 31 December 2000 include the interest of 27 million on the debt
attributable to these businesses for the period 4 October to 31 December 2000. The carrying value w ill be adjusted by interest incurred
between the balance sheet date and date of disposal. The profit earned by the bakery business of Bestfoods from 4 October 2000 to
31 December 2000 w as not material.
The book values of the net assets acquired have been restated to provisional fair values as at the date of acquisition. The principal adjustments
recognise acquired businesses held for resale at the present value of net expected disposal proceeds and write-off certain intangible assets. The
exercise to allocate fair values to intangible and tangible fixed assets has not yet been completed; any fair value adjustments arising from this
exercise will be recognised in 2001. The accounting policy alignment reflects the write-off of capitalised softw are, interest, and certain
intangible assets and the valuation of working capital, pension provisions and deferred tax in accordance w ith Unilever’s accounting policy.
.
million
Provisional Provisional
Balance sheets adjustments to fair values
of acquired align accounting Provisional at date of
businesses policies revaluations acquisition
Acquisition of Bestfoods
Intangible assets 1 504 (1 126) (378) —
Fixed assets 2 184 (361) — 1 823
Acquired businesses held for resale 946 — 811 1 757
Other current assets 1 816 (71) — 1 745
Creditors (1 782) (183) — (1 965)
Provisions for liabilities and charges:
Pensions and similar obligations (674) 237 — (437)
Deferred taxation 450 (326) — 124
Other provisions (938) — — (938)
Minority interest 55 (34) — 21
Net assets acquired 3 561 (1 864) 433 2 130
Other acquisitions
Intangible assets 305 — 861 1 166
Fixed assets 482 (6) (37) 439
Current assets 559 (2) (2) 555
Creditors (342) (26) (2) (370)
Provisions for liabilities and charges:
Pensions and similar obligations (6) (2) (2) (10)
Deferred taxation 9 6 (11) 4
Other provisions (1) — — (1)
Minority interest — (3) — (3)
Net assets acquired 1 006 (33) 807 1 780
million
2000 1999 1998
Bestfoods Slim•Fast(b) Other Total Total Total
Acquisitions
Net assets acquired 2 130 992 788 3 910 179 49
Goodwill arising in subsidiaries 23 321 1 493 1 205 26 019 320 224
Goodwill arising in joint ventures 632 — — 632 ——
Goodwill w ritten off (a) —————82
Consideration 26 083 2 485 1 993 30 561 499 355
Of w hich:
Cash 28 23 623 2 434 1 720 27 777 483 339
Cash balances of businesses acquired 28 22 (14) 223 231 (20) (16)
Current investments, cash deposits and
borrow ings of businesses acquired 3 006 65 29 3 100 26 17
Non cash and deferred consideration (568)(c) — 21 (547) 10 15
(a) Adjustments to goodwill on acquisitions made before 1 January 1998. (b) Net assets acquired include intangibles of 859 million.
(c) Translation adjustment between accounting rate and actual exchange rate at settlement date.