Unilever 2001 Annual Report Download - page 79

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Unilever Annual Report & Accounts and Form 20-F 2001
NOTES TO THE CONSOLIDATED ACCOUNTS
Unilever Group
>76
24 Acquisition and disposal of group companies
The net assets and results of acquired businesses are included in the consolidated accounts from their respective dates of acquisition.
The following tables set out the effect of acquisitions of group companies in 2001 on the consolidated balance sheet. Acquisition
accounting (purchase accounting) has been applied in all cases. The fair values currently established for all acquisitions made in 2001 are
provisional. The goodwill arising on these transactions has been capitalised and is being amortised over 20 years.
million million million million
Provisional Provisional
Balance sheets adjustments to fair values
of acquired align accounting Provisional at date of
businesses policies revaluations acquisition
2001 acquisitions
Fixed assets 34 ––34
Current assets 1––1
Creditors (1) –(1) (2)
Provisions for liabilities and charges:
Pensions and similar obligations –(1) –(1)
Minority interest –17 –17
Net assets acquired 34 16 (1) 49
million million million
2001 2000 1999
Acquisitions
Net assets acquired 49 3 910 179
Adjustments to acquisitions made in 2000 (excluding Bestfoods) (49) ––
Goodwill arising in subsidiaries 131 26 019 320
Goodwill arising in joint ventures 6632 –
Consideration 137 30 561 499
Of which:
Cash 26 132 27 777 483
Cash balances of businesses acquired 26 1231 (20)
Current investments, cash deposits and
borrowings of businesses acquired 13 100 26
Non-cash and deferred consideration 3(547) 10
Following the acquisition of Bestfoods in 2000, provisional estimates were made of the fair values of net assets acquired. These were
disclosed in the Unilever Annual Report & Accounts and Form 20-F 2000. These provisional fair value adjustments have now been finalised
giving rise to the further adjustments detailed in the table below. These comprise the restatement of intangible and tangible fixed assets
and pension scheme assets and liabilities to fair value, based on valuations obtained from independent experts, the adjustment of acquired
businesses held for resale to the present value at acquisition of net disposal proceeds and the provision against certain legal and
environmental exposures existing prior to acquisition.
million million million
Provisional
fair values
at date of Adjusted
acquisition Revaluations fair values
Acquisition of Bestfoods
Intangible assets –5 440 5 440
Other fixed assets 1 823 38 1 861
Acquired businesses held for resale (a) 1 757 (197) 1 560
Other current assets 1 745 418 2 163
Creditors (1 965) 145 (1 820)
Provisions for liabilities and charges:
Pensions and similar obligations (437) (201) (638)
Deferred taxation 124 104 228
Other provisions (938) (129) (1 067)
Minority interest 21 (23) (2)
Net assets acquired 2 130 5 595 7 725
Goodwill arising in subsidiaries 23 321 (5 538) 17 783
Goodwill arising in joint ventures 632 (57) 575
Consideration 26 083 –26 083
(a) The fair values of the acquired businesses held for resale are stated net of tax of 435 million.