Unilever 2005 Annual Report Download - page 128

Download and view the complete annual report

Please find page 128 of the 2005 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 193

  • 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
  • 193

Financial Statements
Unilever Annual Report and Accounts 2005 125
Notes to the consolidated accounts
Unilever Group
24 Called up share capital (continued)
Internal holdings
The ordinary shares numbered 1 to 2 400 (inclusive) in NV and deferred stock of PLC are held as to one half of each class by N.V. Elma – a
subsidiary of NV – and one half by United Holdings Limited – a subsidiary of PLC. This capital is eliminated on consolidation. It carries the right
to nominate persons for election as Directors at general meetings of shareholders. The subsidiaries mentioned above have waived their rights to
dividends on their ordinary shares in NV.
Share-based compensation
The Group operates a number of share-based compensation plans involving options and awards of ordinary shares of NV and PLC. Full details
of these plans are given in note 31 on pages 132 to 141.
25 Other reserves
€ million € million € million € million € million € million
NV NV PLC PLC Total Total
2005 2004 2005 2004 2005 2004
Fair value reserves(a) 240 n/a 87 n/a 327 n/a
Cash flow hedges (3) n/a (2) n/a (5) n/a
Available-for-sale financial assets –n/a –n/a –n/a
Net investment hedges 243 n/a 89 n/a 332 n/a
Currency retranslation of group companies 305 160 (54) 58 251 218
Adjustment on translation of PLC‘s ordinary capital
at £1 = Fl.12 = €5.445 ––(164) (164) (164) (164)
Capital redemption reserve ––16 16 16 16
Book value treasury stock (2 010) (2 065) (748) (560) (2 758) (2 625)
(1 465) (1 905) (863) (650) (2 328) (2 555)
(a) From 1 January 2005, Unilever has adopted IAS 32 ‘Financial Instruments: Disclosure and Presentation’ and IAS 39 ‘Financial Instruments:
Recognition and Measurement’ which require unrealised fair value gains/(losses) on cash flow hedges, available-for-sale financial assets and
net investment hedges to be recognised in equity. In accordance with the transition rules for IAS 32 and IAS 39, comparative amounts for
2004 have not been restated. The year-end balance of the cash flow hedges will be recognised in the income statement spread over the
years 2006 to 2010, based on maturities.
€ million
Cash flow hedges – movements during the year 2005
1 January (19)
Additions 9
Transfers to income statement 1
Transfers to inventories/non-current assets 4
31 December (5)
Unilever acquired 20 094 859 ordinary shares of NV and 31 749 739 ordinary shares of PLC through purchases on the stock exchanges during
the year. These shares are held as treasury stock as a separate component of other reserves. The total number held at 31 December 2005 is
24 726 337 (2004: 25 120 635) NV shares and 158 516 224 (2004: 142 739 616) PLC shares. Of these, 19 791 377 NV shares and
132 835 745 PLC shares are held as hedges against share-based compensation plans (see note 31 on pages 132 to 141).
€ million € million
Treasury stock – movements during the year 2005 2004
1 January 2 625 2 294
Utilised for preference shares conversion at average book value (1 129) –
Purchases and other utilisations 1 262 331
31 December 2 758 2 625
€ million € million
Currency retranslation reserve – movements during the year 2005 2004
1 January 218 –
Currency retranslation during the year 92 216
Recycled to income statement (59) 2
31 December 251 218