Unilever 2002 Annual Report Download - page 81

Unilever Annual Report & Accounts and Form 20-F 2002
78 Notes to the consolidated accounts
Unilever Group
4 Exceptional items continued
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 2002, 1.3 billion of net costs have been incurred under Path
to Growth programmes of which a net 1.1 billion is exceptional.
To date, which is three years into the five year programme, the total
cost incurred is 5.2 billion of which 4.5 billion is exceptional.
Other exceptional items include the release of provisions
(98 million) against environmental exposures when events showed
that the provisions were no longer required. These provisions were
originally recorded on the acquisition of the Bestfoods business.
In 2001 exceptional items included 1.4 billion of Path to Growth
net costs and 811 million gain on the sale of brands to secure
regulatory approval for the acquisition of Bestfoods.
In 2000 other exceptional items included a profit of 143 million
on the disposal of the European bakery business and a loss of
980 million on the agreed disposal of Elizabeth Arden. The latter
amount has been restated as a result of the implementation of FRS
19; there was no impact on net profit arising from this restatement.
See note 18 on page 94.
5 Interest
million million million
2002 2001 2000
Total interest payable
and similar charges (1 446) (1 914) (1 008)
Group interest payable
and similar charges:
Bank loans and overdrafts (186) (451) (221)
Bonds and other loans (1 228) (1 463) (787)
Share of interest payable
of joint ventures (5) ––
Share of interest payable
of associates (27) ––
Group interest receivable
and similar income 247 210 374
Exchange differences 26 (3) 12
(1 173) (1 707) (622)
Less: interest capitalised on
businesses held for resale –61 27
Add: exceptional interest ––(37)
Total (1 173) (1 646) (632)
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
2002 2001 2000
Parent and group companies (a)(b) (1 515) (1 522) (1 271)
Joint ventures (19) (25) (11)
Associates (4) ––
Total (1 538) (1 547) (1 282)
Of which:
Adjustments to previous years
United Kingdom taxes 11 (3) (5)
Other taxes 245 61 36
(a) United Kingdom
Corporation Tax at 30.0% (173) (381) (451)
less: double tax relief 66 140 334
United Kingdom taxes (107) (241) (117)
plus: non-United Kingdom taxes (1 408) (1 281) (1 154)
(1 515) (1 522) (1 271)
(b) Of which, tax on exceptional
items amounted to 241 232 404
Deferred taxation has been included
on a full provision basis for:
Accelerated depreciation 50 87 119
Other 242 (207) 153
292 (120) 272
Where appropriate, amounts have been restated for FRS 19, see
note 18 on page 94.
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:
%%%
2002 2001 2000
Computed rate of tax
(see below) 33 33 32
Differences due to:
Other rates applicable to
non-European countries 3(1) 2
Incentive tax credits (3) (3) (2)
Withholding tax on dividends 133
Adjustments to previous years (6) (2) (2)
Non-deductible goodwill impairment ––10
Non-deductible goodwill amortisation 912 4
Other 212
Actual rate of tax
(current and deferred) 39 43 49
Actual rate of deferred tax for:
Accelerated depreciation 125
Other 6(6) 6
Actual rate of current tax 46 39 60
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.