Unilever 2001 Annual Report Download - page 66

Unilever Annual Report & Accounts and Form 20-F 2001
NOTES TO THE CONSOLIDATED ACCOUNTS
Unilever Group
>63
Financial Statements
4 Exceptional items continued
arising from the integration of Bestfoods. The total net cost of these
programmes is estimated to be 6.2 billion over five years, most of
which is expected to be exceptional restructuring costs. Provisions
for these costs and asset write downs are being recognised as
necessary consultations are completed and plans finalised. In 2001
1.8 billion has been charged to the accounts, of which net
1.4 billion is exceptional. To date the total incurred is 3.9 billion
of which 3.4 billion is exceptional. Also in exceptional items
in 2001 is the profit on the sale of 811 million in respect of
the brands to secure regulatory approval for our acquisition
of Bestfoods.
In 2000 these amounts included a profit of 143 million on
the disposal of the European bakery businesses and a loss of
859 million on the agreed disposal of Elizabeth Arden.
5 Interest
million million million
2001 2000 1999
Interest payable and similar charges:
Bank loans and overdrafts (451) (221) (159)
Bonds and other loans (1 463) (787) (290)
Interest receivable and
similar income 210 374 422
Exchange differences (3) 12 13
(1 707) (622) (14)
Less: interest capitalised on
businesses held for resale 61 27 –
Add: exceptional interest –(37) –
Total (1 646) (632) (14)
Exceptional interest in 2000 principally comprised fees paid on
the unused financing facility put in place prior to the acquisition
of Bestfoods.
6 Taxation on profit on ordinary activities
million million million
2001 2000 1999
Parent and group companies (a)(b) (1 522) (1 392) (1 364)
Joint ventures (25) (11) (5)
Total (1 547) (1 403) (1 369)
Of which:
Adjustments to previous years
United Kingdom taxes (3) (5) (18)
Other taxes 61 36 150
(a) United Kingdom
Corporation Tax at 30.0% (381) (455) (445)
less: double tax relief 140 334 241
plus: non-United Kingdom taxes (1 281) (1 271) (1 160)
(1 522) (1 392) (1 364)
(b) Of which, tax on exceptional
items amounted to 232 283 84
Deferred taxation has been included
on a full provision basis for:
Accelerated depreciation 87 119 85
Other (207) 153 83
(120) 272 168
million million million
2001 2000 1999
On SSAP 15 basis the
credit/(charge) for deferred
taxation would be: (131) 262 140
Profit on ordinary activities after
taxation on SSAP 15 basis
would be: 2 066 1 310 2 944
Europe is Unilever’s domestic tax base. The reconciliation between
the computed rate of income tax expense which is generally
applicable to Unilever’s European companies and the actual rate of
taxation charged, expressed in percentages of the profit of ordinary
activities before taxation is as follows:
%%%
2001 2000 1999
Computed rate of tax
(see below) 33 32 32
Differences due to:
Other rates applicable to
non-European countries (1) 22
Incentive tax credits (3) (2) (2)
Withholding tax on dividends 332
Adjustments to previous years (2) (2) (3)
Non-deductible goodwill impairment –13 –
Non-deductible goodwill amortisation 12 4 –
Other 121
Actual rate of tax 43 52 32
In the above reconciliation, the computed rate of tax is the average
of the standard rate of tax applicable in the European countries
in which Unilever operates, weighted by the amount of profit
on ordinary activities before taxation generated in each of
those countries.
Analyses of European and non-European profit on ordinary
activities before taxation, and of the actual taxation charge
thereon, are as follows:
million million million
2001 2000 1999
Profit on ordinary activities
before taxation
Europe:
Parent and group companies 2 429 1 796 2 345
Joint ventures 21 14 12
2 450 1 810 2 357
Outside Europe:
Group companies 1 111 871 1 959
Joint ventures 63 42 25
1 174 913 1 984
Total 3 624 2 723 4 341