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9 OODWILL AND INTANIBLE ASSETS CONTINUED
For the significant CGUs, the following key assumptions were used in the discounted cash flow projections:
Foods
Europe
Foods
The
Amercas
Foods
Asa/
AMET/RUB
Longer-term sustainable growth rates 05% 17% 31%
Average near-term nominal growth rates 07% 54% 76%
Average operating margins 19-20% 20-22% 16-18%
The growth rates and margins used to estimate future performance are based on past performance and our experience of growth rates
and margins achievable in our key markets.
The projections covered a period of five years, as we believe this to be the most appropriate timescale over which to review and consider
annual performances before applying a fixed terminal value multiple to the final year cash flows.
The growth rates used are consistent with the prudent end of the range of assumptions from our annual planning and strategic
planning processes.
We have performed sensitivity analyses around the base assumptions and have concluded that no reasonable possible changes in key
assumptions would cause the recoverable amount of the significant CGUs to be less than the carrying value.
10 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated
impairment losses.
Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values are reviewed
at least annually. Estimated useful lives by major class of assets are as follows:
• Freehold buildings (no depreciation on freehold land) 40 years
• Leasehold land and buildings 40 years (or life of lease if less)
• Plant and equipment 2-20 years
Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is
necessary. If an indication of impairment exists, the asset’s or cash generating unit’s recoverable amount is estimated and any
impairment loss is charged to the income statement as it arises.
Movements durng 2014
 mllon
Land and
buldngs
 mllon
Plant and
equpment
 mllon
Total
ost
1 January 2014 3,847 13,382 17,229
Acquisitions of group companies 21 20 41
Disposals of group companies (50) (191) (241)
Additions 306 1,593 1,899
Disposals (109) (619) (728)
Currency retranslation 155 523 678
Reclassification as held for sale 30 6 36
31 December 2014 4,200 14,714 18,914
Accumulated deprecaton
1 January 2014 (1,254) (6,631) (7,885)
Disposals of group companies 27 108 135
Depreciation charge for the year (102) (845) (947)
Disposals 31 516 547
Currency retranslation (52) (243) (295)
Reclassification as held for sale 4 (1) 3
31 December 2014 (1,346) (7,096) (8,442)
Net book value 31 December 2014 2,854 7,618 10,472(a)
Includes payments on account and assets in course of construction 253 1,499 1,752
(a) Includes €259 million (2013: €235 million) of freehold land.
The Group has commitment to capital expenditure of €640 million (2013: €669 million) – see note 20.
105Unilever Annual Report and Accounts 2014 Financial statements