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79
Unilever Annual Report & Accounts and Form 20-F 2000 Financial Statements
Notes to the consolidated accounts
Unilever Group
Unilever Annual Report & Accounts and Form 20-F 2000
33 Pension and other benefit plans continued
million
Pension plans Other benefits plans
2000 1999 1998 2000 1999 1998
Components of net periodic benefit cost
Service cost 231 217 181 16 14 14
Interest cost 698 518 548 64 45 43
Expected return on plan assets (932) (683) (698) ———
Employee contributions ————— (1)
Amortisation of prior service cost 26 25 24 ———
Amortisation of transition (asset) (66) (64) (64) ———
Amortisation of actuarial loss/(gain) (58) (5) (55) (2) —1
Total before SFAS 88 events (101) 8 (64) 78 59 57
Adjustments for SFAS 88 events 19 21 52 (1) —14
Net periodic benefit cost (82) 29 (12) 77 59 71
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with accumulated
benefit obligations in excess of plan assets were 2 122 million, 2 019 million, and 1 441 million respectively, as of 31 December 2000
and 868 million, 756 million, and 35 million respectively, as of 31 December 1999.
The Group also maintains a number of smaller defined benefit plans. Approximately 1 755 million (1999: 1 404 million) is provided for
on their behalf in the Group balance sheet. In 2000, 151 million (1999: 130 million; 1998: 87 million) w as charged in the accounts.
These amounts would not have been materially different under SFAS 87.
In addition to the special termination benefits mentioned in the table above, during 2000, the Group also charged 56 million (1999:
28 million; 1998: 41 million) in respect of pension or similar obligations arising on terminations of employment.
Post-retirement health care benefits
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point
change in assumed health care cost trend rates w ould have the follow ing effects:
million
1% point 1% point
increase decrease
Effect on total of service and interest cost components 5 (5)
Effect on post-retirement benefit obligation 57 (51)
34 Equity based compensation plans
As at 31 December 2000, the Group had nine equity based compensation plans:
• the Unilever PLC 1985 Share Save Scheme (the ‘UK Employee Sharesave Plan’)
• the Unilever PLC 1985 Executive Share Option Scheme, the Unilever PLC 1985 Unapproved Executive Share Option Scheme and the Unilever
PLC International 1997 Executive Share Option Scheme (together the ‘PLC Executive Option Plans’)
• the Unilever N.V. Executive Share Option Scheme (the ‘NV Executive Option Plan’)
• the Unilever N.V. Employee Share Option Plan (the ‘Netherlands Employee Option Plan’)
• the Unilever N.V. Germany Employee Share Option Plan (the ‘German Employee Option Plan’)
• the Unilever N.V. France Employee Share Option Plan (the ‘French Employee Option Plan’)
• the Unilever North America Executive Stock Option Plan (the ‘NA Executive Option Plan’)
• the Unilever North America Employee Stock Purchase Plan (the ‘NA Employee Purchase Plan’)
• the Restricted Share Plan
All of these plans are described below. Grants of share options to directors and other senior executives in 1997 and subsequent years are
made under the International 1997 Executive Share Option Scheme (the ‘International Plan’).
The International Plan comprises the following:
• the NV Executive Option Plan
• the PLC Executive Option Plans, and
• the NA Executive Option Plan.