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102 Unilever Annual Report and Accounts 2006
Financial Statements (continued)
18 Trade payables and other liabilities
€million €million
Trade and other payables 2006 2005
Due within one year
Trade payables 3833 3988
Accruals 2741 2858
Social security and sundry taxes 386 410
Finance lease creditors 61 64
Others 913 908
7934 8228
Due after more than one year
Accruals 197 153
Finance lease creditors 126 153
Others 76 83
399 389
Total trade and other payables 8333 8617
The amounts shown above do not include any creditors due after more than five years other than finance lease creditors described in note 25
on page 112.
19 Provisions
€million €million
Provisions 2006 2005
Due within one year
Restructuring provisions 439 391
Preference shares provision 300 –
Other provisions 270 253
1009 644
Due after one year
Restructuring provisions 53 63
Legal provisions 51 38
Disputed indirect taxes 560 547
Net liability of associate 34 37
Other provisions 128 47
826 732
Total restructuring and other provisions 1835 1376
€million € million € million € million € million € million € million
Preference
Restructuring Legal shares Disputed Net liability Other
Movements during 2006 provisions provisions provision indirect taxes of associate provisions Total
31 December 2005 454 38 – 547 37 300 1 376
Disposal of group companies 1 – – – – 48 49
Income statement:
New charges 472 18 300 95 – 126 1 011
Releases (89) (3) – (47) – (30) (169)
Utilisation (332) – – (22) – (35) (389)
Currency retranslation (14) (2) – (13) (3) (11) (43)
31December 2006 492 51 300 560 34 398 1 835
Restructuring provisions primarily relate to early retirement and redundancy costs; no projects are individually material.
Legal provisions are comprised of many claims, of which none is individually material.
Unilever announced on 8 November 2006 that it had agreed a settlement with the main parties in the legal dispute over its 1999 Unilever N.V.
preference shares. The terms of the agreement are that NV will pay an amount of €1.38 plus interest of €0.16 compensation per preference
shareheld at the beginning of 24 March 2004, the day on which NV announced its intention to convert the preference shares into NV ordinary
shares. NV also agreed to reimburse the parties who initiated the Enterprise Chamber procedure for costs and expenses. On 19 January 2007
NV announced that the settlement offer will be extended to all those other former preference shareholders who held preference shares at the
beginning of 24 March 2004. Unilever has provided €300 million in respect of the settlement.
The provision for disputed indirect taxes is comprised of a number of small disputed items. The largest elements of the provision relate to
disputes with the Brazilian authorities. Because of the nature of the disputes, the timing of the utilisation of the provisions, and any associated
cash outflows, is uncertain. The majority of the disputed items attract an interest charge.
Noindividual item within the other provisions balance is significant. Unilever expects that the issues relating to these restructuring, legal and
other provisions will be substantively resolved over the next five years.
Notes to the consolidated accounts Unilever Group