Unilever 2004 Annual Report Download - page 117

Download and view the complete annual report

Please find page 117 of the 2004 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 192

  • 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
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

Notes to the consolidated accounts
Unilever Group
114 Unilever Annual Report and Accounts 2004
9 Goodwill and intangible assets (continued)
Other exceptional goodwill impairment charges recognised in the year include €133 million of write-downs in respect of planned business
disposals that will complete during 2005. In each case the impairment recognised was based on the expected sales proceeds from disposal.
Other small impairments were recognised during the course of the year for tea plantations and a bakery business in India, and a home and
personal care business in North Africa.
10 Tangible fixed assets
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided on a straight-line basis at percentages of cost based on the
expected average useful lives of the assets. Estimated useful lives by major class of assets are as follows:
Freehold buildings (no depreciation on freehold land) 40 years
Leasehold land Life of lease
Leasehold buildings 40 years*
Plant and equipment 2–20 years
Motor vehicles 3–6 years
*or life of lease if less than 40 years
Tangible fixed assets are subject to review for impairment in accordance with United Kingdom FRS 11 and United States SFAS 144. Any
impairment in the value of such fixed assets is charged to the profit and loss account as it arises, and is reported in operating profit.
€ million € million
2004 2003
At cost less depreciation and impairment:
Land and buildings(a) 2 082 2 278
Plant and machinery 4 189 4 377
Total 6 271 6 655
(a) includes: freehold land 248 238
leasehold land (mainly long-term leases) 54 58
Commitments for capital expenditure at 31 December 172 167
€ million € million € million
Land and Plant and
Movements during 2004 buildings machinery Total
Cost
1 January 3 386 10 418 13 804
Currency retranslation (80) (212) (292)
Capital expenditure 153 852 1 005
Disposals (247) (754) (1 001)
Acquisitions of group companies 224
Disposals of group companies (25) (109) (134)
Other adjustments (16) 16 –
31 December 3 173 10 213 13 386
Depreciation and impairment
1 January (1 108) (6 041) (7 149)
Currency retranslation 27 130 157
Disposals 139 651 790
Disposals of group companies 13 70 83
Charged to profit and loss account(b) (130) (866) (996)
Other adjustments (32) 32 –
31 December (1 091) (6 024) (7 115)
Net book value 31 December(c) 2 082 4 189 6 271
Includes payments on account and assets in course of construction 51 435 486
(b) Including a charge of €239 million in respect of fixed assets written down to net realisable value in connection with restructuring projects,
of which €131 million was exceptional.
(c) Includes €200 million in 2004 for tangible fixed assets under finance leases of which €161 million relates to plant and machinery. For
depreciation of these assets see note 2 on page 108.