Unilever 2006 Annual Report Download - page 108

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Unilever Annual Report and Accounts 2006 105
Financial Statements (continued)
Notes to the consolidated accounts Unilever Group
20 Pensions and similar obligations (continued)
Balance Sheet
The assets, liabilities and surplus/(deficit) position of the pension and other post-employment benefit plans and the expected rates of return on
the plan assets at the balance sheet date were:
€million € million % €million € million % € million € million %
31 December 2006 31 December 2005 31 December 2004
Other post- Long-term Other post- Long-term Other post- Long-term
employment rates of employment rates of employment rates of
Pension benefit return Pension benefit return Pension benefit return
plans plans expected plans plans expected plans plans expected
Assets of principal plans:
Equities 10 274 – 7.8% 9670 – 7.4% 8 050 – 7.9%
Bonds 3946 – 4.9% 3854 – 4.2% 3 154 – 4.5%
Property 1421 – 6.3% 1326 – 5.8% 1 229 – 6.3%
Other 1221 – 6.3% 752 – 6.1% 684 – 6.1%
Assets of other plans 403 13 7.3% 387 17 6.9% 288 14 7.2%
17 265 13 15 989 17 13 405 14
Present value of liabilities:
Principal plans (18 711) – (19 081) – (16 528) –
Other plans (722) (925) (1 059) (1 306) (1 070) (1 175)
(19 433) (925) (20 140) (1 306) (17 598) (1 175)
Aggregate net deficit of the plans (2 168) (912) (4 151) (1 289) (4 193) (1 161)
Irrecoverable surplus(a) – – (141) – (100) –
Pension liability net of assets (2 168) (912) (4 292) (1 289) (4 293) (1 161)
Of which in respect of
Funded plans in surplus:
Liabilities (5 200) – (4 728) – (4 176) –
Assets 6897 – 5905 – 4 901 –
Aggregate surplus 1697 – 1177 – 725 –
Irrecoverable surplus(a) – – (141) – (100) –
Pension asset net of liabilities 1697 – 1036 – 625 –
Funded plans in deficit:
Liabilities (11 716) (44) (12 444) (72) (10 795) (62)
Assets 10 368 13 10 084 17 8 504 14
Pension liability net of assets (1 348) (31) (2 360) (55) (2 291) (48)
Unfunded plans:
Pension liability (2 517) (881) (2 968) (1 234) (2 627) (1 113)
(a) The surplus in the plans is recoverable to the extent that the Group is able to benefit from either refunds or future contribution reductions.
The constituents of the ‘Principal plans’ have been extended during 2006, such that some plans have been moved from ‘Other plans’ into
‘Principal plans’.
Equity securities include Unilever securities amounting to €32 million (0.2% of total plan assets) and €34 million (0.2% of total plan assets)
at 31 December 2006 and 2005 respectively. Property includes property occupied by Unilever amounting to €75 million and €73 million at
31 December 2006 and 2005 respectively.
The pension assets above exclude the assets in a Special Benefits Trust amounting to €181 million (2005: €197 million) to fund pension and
similar obligations in the US (see also note 11 on page 92).
The sensitivity of the overall pension liabilities to changes in the weighted key financial assumptions are:
Impact on
Change in overall
assumption liabilities
Discount rate Increase/decrease by 0.5% Decrease/increase by 6.8%
Inflation rate Increase/decrease by 0.5% Increase/decrease by 5.6%