Unilever 1999 Annual Report Download - page 14

Unilever Group Notes to the consolidated accounts
4 Exceptional items (continued)
Exceptional items are those items within ordinary activities which,
because of their size or nature, are disclosed to give a proper
understanding of the underlying result for the period. These
include restructuring charges associated with reorganising
businesses (comprising impairment of fixed assets, costs of
severance, and other costs directly attributable to the
restructuring), and profits and losses on disposal of businesses.
Provisions for impairment of fixed assets are recognised
immediately the decision to reorganise is taken; provisions for
other costs are taken when the obligation arises – normally on
announcement; consequential costs within restructuring which
arise in the ongoing business e.g. training, relocation and
information technology, are recognised as they arise and are not
normally treated as exceptional.
On 22 February 2000, the Group announced a series of linked
initiatives to align the organisation behind plans for accelerating
growth and expanding margins. These initiatives are estimated to
cost Fl. 11.0 billion over five years, most of which is expected to be
exceptional restructuring costs. Provisions for these costs and asset
write downs will be made as necessary consultations are
completed and plans finalised.
5 Interest
Fl. million
1999 1998
Interest payable and similar
charges:
Bank loans and overdrafts (350) (424)
Bonds and other loans (638) (424)
Interest receivable and similar
income 929 1 187
Exchange differences 29 5
(30) 344
6 Taxation on profit on ordinary activities
Parent and group companies
(a)
(3 005) (3 333)
Joint ventures (12) (5)
(3 017) (3 338)
Of which:
Adjustments to previous years 291 146
(a) United Kingdom Corporation
Tax at 30.0% (1998: 31.0%) (981) (803)
less: double tax relief 531 172
plus: non-United Kingdom taxes (2 555) (2 702)
(3 005) (3 333)
Deferred taxation has been
included on a full provision basis for:
Accelerated depreciation 187 177
Other 184 (125)
371 52
On a SSAP 15 basis the
credit/(charge) for deferred
taxation would be: 307 (87)
Profit on ordinary activities after
taxation on a SSAP 15 basis would be: 6485 6 667
6 Taxation on profit on ordinary activities (continued)
Europe is Unilever’s domestic tax base. The reconciliation between
the computed rate of income tax expense which is generally
applicable to Unilever’s European companies and the actual rate of
taxation charged, expressed in percentages of the profit on
ordinary activities before taxation, is as follows:
%
1999 1998
Computed rate of tax (see below) 32 32
Differences due to:
Other rates applicable to
non-European countries 21
Incentive tax credits (2) (1)
Withholding tax on dividends 21
Adjustments to previous years (3) (1)
Other 11
Actual rate of tax 32 33
In the above reconciliation, the computed rate of tax is the
average of the standard rates of tax applicable in the European
countries in which Unilever operates, weighted by the amount of
profit on ordinary activities before taxation generated in each of
those countries.
7 Dividends on ordinary capital
Dividends on ordinary capital
– Interim (857) (831)
– Normal final (1 886) (1 896)
– Special final
(a)
—(16 374)
(a) Assuming all shareholders had elected to take the cash
dividend, further details are set out in note 19 on page 19 and
note 20 on page 20.
8 Goodwill and intangible assets
(a)
Cost
1 January 641
Acquisitions/disposals 731
Currency retranslation 115
31 December
(b)
1 487
Amortisation
1 January 15
Charged to profit and loss account 50
Currency retranslation 4
31 December 69
Net book value 31 December
(b)
1 418
(a) Arising on businesses purchased after 1 January 1998.
(b) Of which identifiable intangibles have a net book value
of Fl. 205 million and a cost of Fl. 220 million.
14 Unilever Annual Accounts 1999