Unilever 1999 Annual Report Download - page 22

Unilever Group Notes to the consolidated accounts
20 Called up share capital (continued)
Share options
To satisfy options granted under NV share option schemes and under North American stock option/purchase plans, certain group
companies hold certificates or depositary receipts of ordinary shares of NV and of PLC. At 31 December 1999 there were options
outstanding to purchase 6 066 879 Fl. 1.12 ordinary NV shares (1998: 9 670 233 Fl. 1 ordinary NV shares), and 18 923 500 1.4p ordinary
PLC shares (1998: 4 949 657 1.25p ordinary PLC shares) in respect of these schemes and plans.
To satisfy options granted under the share option schemes in the United Kingdom, trusts in Jersey and the United Kingdom purchase and
hold PLC shares. The book value of these shares, together with the borrowings of the trusts, is taken up in the entity accounts of PLC, as
required by UITF Abstract 13. The trustees of these trusts have agreed, until further notice, to waive dividends on these shares, save for
the nominal sum of 0.01p per 1.4p ordinary share. At 31 December 1999 there were options outstanding to purchase 1 078 001 Fl. 1.12
ordinary NV shares (1998: 546 328 Fl. 1 ordinary NV shares), and 43 905 600 1.4p ordinary PLC shares (1998: 42 720 873 1.25p
ordinary PLC shares) in respect of these schemes.
At 31 December 1998 the Jersey trust held ordinary shares of NV for the purposes of the share option schemes in the United Kingdom.
During 1999 its holding of NV shares was sold to NV, subject to an agreement to reacquire the shares at book value when needed to
satisfy the exercise of the options. As a result the shares became NV ’treasury’ shares, on which no dividend is payable.
The book value of all shares held in respect of stock option schemes is eliminated in consolidation by deduction from other reserves (see
note 22 below).
By PLC trusts By NV/Group companies
1999 1998 1999 1998
Number of ordinary PLC shares held (1999: 1.4p, 1998: 1.25p) 42 492 210 39 623 389 19 031 246 9 750 637
Number of ordinary NV shares held (1999: Fl. 1.12, 1998: Fl. 1) —551 802 7 225 674 5 152 836
Book value of shares held
Fl. million 638 537 1 196 593
Market value of shares held
Fl. million 605 859 1 144 1 032
At 31 December 1999 the exercise price of 31 435 091 PLC options and 4 247 803 NV options was above market price. These shares are
accounted for in accordance with Dutch law. Any difference between the book value of the shares and the proceeds received when the
shares are sold will be dealt with in reserves. Any difference between the cost of the shares and the exercise price of the related options
is charged to the profit and loss account.
21 Profit retained
Fl. million NV PLC
1999 1998 1999 1998
Net profit 3 882 3655 2 224 2 833
Preference dividends (44) (15) ——
Normal dividends on ordinary capital (1 562) (1 594) (1 181) (1 133)
Special dividend (9 282) (7 092)
Profit of the year retained 2 276 (7 236) 1 043 (5 392)
Goodwill movements 54 (181) 29 187
Currency retranslation 607 (747) 230 (609)
Net movement during the year 2 937 (8 164) 1 302 (5 814)
Profit retained – 1 January 7 355 15 519 2 826 8 640
Profit retained – 31 December 10 292 7355 4 128 2 826
Of which retained by:
Parent companies 4 782 2388 3 208 1 929
Other group companies 5 495 4965 918 893
Joint ventures 15 224
10 292 7355 4 128 2 826
Cumulative goodwill written off (14 467) (14 521) (6 075) (6 104)
22 Other reserves
Adjustment on translation of PLC’s ordinary capital at £1=Fl. 12 ——(345) (362)
Capital redemption reserve ——40 36
Book value of shares or certificates held in connection with share options
(a)
(802) (498) (1 032) (632)
(802) (498) (1 337) (958)
(a) Under UITF 13 these shares would be classified as fixed assets.
22 Unilever Annual Accounts 1999