Unilever 2005 Annual Report Download - page 120

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Financial Statements
Unilever Annual Report and Accounts 2005 117
Notes to the consolidated accounts
Unilever Group
22 Pensions and similar obligations (continued)
The constituents of the ‘Principal plans’ have been extended during 2005, such that some plans have been moved from ‘Other plans’ into
‘Principal plans’.
Equity securities include Unilever securities amounting to €34 million (0.2% of total plan assets) and €24 million (0.2% of total plan assets)
at 31 December 2005 and 2004 respectively. Property includes property occupied by Unilever amounting to €73 million and €67 million at
31 December 2005 and 2004 respectively.
The pension assets above exclude the assets in a Special Benefits Trust amounting to €197 million (2004: €174 million) to fund pension and
similar obligations in the US (see also note 13 on page 103).
Income statement
The charge to the income statement comprises:
€ million € million
2005 2004
Charged to operating profit:
Defined benefit pension and other benefit plans
Current service cost (367) (344)
Employee contributions 19 32
Special termination benefits (79) (135)
Past service cost (13) (13)
Settlements/curtailments 95 62
Defined contribution plans (63) (65)
Total operating cost (408) (463)
Charged to other finance income/(cost):
Interest on retirement benefits (986) (976)
Expected return on assets 931 918
Total other finance income/(cost) (55) (58)
Net impact on the income statement (before tax) (463) (521)
Cash flow
Group cash flow in respect of pensions and similar benefits comprises company contributions paid to funded plans and benefits paid by the
company in respect of unfunded plans. In 2005, the benefits paid in respect of unfunded plans amounted to €328 million (2004: €324 million).
Company contributions to funded defined benefit plans are subject to periodic review. In 2005, contributions to funded defined benefit plans
amounted to €508 million (2004: €462 million). Contributions to defined contribution plans including 401k plans amounted to €63 million
(2004: €65 million). In 2005, a €15 million (2004: € nil) refund of assets was received out of unrecognised surplus from Finland. Total
contributions to funded plans and benefit payments by the Group in respect of unfunded plans are currently expected to be about €930 million
in 2006 (2005: €898 million).
Statement of recognised income and expense
Amounts recognised in the statement of recognised income and expense:
€ million € million
2005 2004
Actual return less expected return on pension and other benefit plan assets 1 592 369
Experience gains/(losses) arising on pension plan and other benefit plan liabilities 27 (47)
Changes in assumptions underlying the present value of the pension and other benefit plan liabilities (1 706) (1 047)
Actuarial gain/(loss) (87) (725)
Change in unrecognised surplus (41) 2
Refund of unrecognised assets 15 –
Net actuarial gain/(loss) recognised in statement of recognised income and expense (before tax) (113) (723)