Unilever 2001 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2001 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 125

  • 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

Unilever Annual Report & Accounts and Form 20-F 2001
NOTES TO THE CONSOLIDATED ACCOUNTS
Unilever Group
>62
2 Operating costs
million million million
2001 2000 1999
Cost of sales (26 962) (25 221) (22 241)
Distribution and selling costs (12 543) (12 045) (10 126)
Administrative expenses (a) (6 835) (7 014) (4 307)
Total operating costs (46 340) (44 280) (36 674)
Gross profit 24 552 22 361 18 736
(a) Includes amortisation of goodwill and intangibles.
million million million
2001 2000 1999
Operating costs include:
Staff costs 3(7 131) (6 905) (5 828)
Raw materials and packaging (19 924) (18 085) (17 531)
Amortisation of goodwill and
intangibles (b) (1 387) (435) (23)
Depreciation of tangible
fixed assets (c) (1 458) (1 519) (1 124)
Advertising and promotions (6 648) (6 545) (5 345)
Research and development (1 178) (1 187) (935)
Remuneration of auditors:
Audit fees (16) (14) (12)
Audit related services (11) (10) (3)
Other payments to
PricewaterhouseCoopers
for non-audit services:
Tax (5) (4) (14)
General consulting (60) (42) (18)
Lease rentals:
Minimum lease payments (548) (563) (479)
Contingent lease payments (28) (8) (11)
(576) (571) (490)
Less: Sub-lease income 10 12 10
(566) (559) (480)
of which:
Plant and machinery (147) (148) (109)
Other (419) (411) (371)
(b) Includes exceptional amount of (8) million in 2001.
(c) Includes exceptional amount of (263) million in 2001.
See also the information relating to auditors within the Corporate
Governance section on pages 36 and 37.
3 Staff costs and employees
million million million
2001 2000 1999
Staff costs:
Remuneration of employees (6 021) (5 828) (4 899)
Emoluments of directors
as managers (18) (13) (11)
Pension costs:
Defined benefit schemes:
Regular cost (381) (324) (252)
Special termination
benefits (78) (88) (44)
Other (110) (117) (111)
Amortisation of
surpluses/deficits 17 370 309 243
Defined contribution
schemes (24) (8) (4)
Post-retirement health benefits (103) (77) (59)
Social security costs (766) (759) (691)
Total staff costs (7 131) (6 905) (5 828)
Details of the remuneration of directors which form part of these
accounts are given in the following sections of the Remuneration
report: ‘Directors’ pensions’ on pages 42 to 44; ‘Directors’
emoluments’ on page 46; ‘Share options’ on pages 46 to 48
and ‘Advisory Directors’ on page 48.
The average number of employees during the year was:
‘000 ’000 ’000
2001 2000 1999
Europe 75 74 77
North America 30 27 22
Africa, Middle East and Turkey 49 48 54
Asia and Pacific 84 79 72
Latin America 41 33 30
Total 279 261 255
4 Exceptional items
million million million
2001 2000 1999
Included in operating profit
Restructuring (1 515) (1 150) (232)
Other, principally business
disposals 927 (842) (37)
Total (588) (1 992) (269)
These amounts are mainly included in administrative expenses.
Exceptional items are those items within ordinary activities which,
because of their size or nature, are disclosed to give a proper
understanding of the underlying result for the period. These
include restructuring charges in connection with reorganising
businesses (comprising impairment of fixed assets, costs of
severance, and other costs directly attributable to the
restructuring), and profits and losses on disposal of businesses.
Costs associated with restructuring, such as training and
information technology development costs, are recognised
as they arise and are not treated as exceptional.
The exceptional item charges in 2001 and 2000 principally relate
to a series of linked initiatives (the ‘Path to Growth’), announced
on 22 February 2000 to align the organisation behind plans for
accelerating growth and expanding margins and to restructuring