Unilever 2003 Annual Report Download - page 114

Unilever Annual Report & Accounts and Form 20-F 2003 111
Notes to the consolidated accounts
Unilever Group
22 Profit retained
€ million € million € million € million € million € million
NV NV NV PLC PLC PLC
2003 2002 2001 2003 2002 2001
Restated Restated Restated Restated
Net profit 1 976 1 679 764 786 457 916
Preference dividends (27) (42) (51) –––
Dividends on ordinary capital (954) (941) (868) (728) (718) (662)
Result for the year retained 995 696 (155) 58 (261) 254
Goodwill movements 99 158 192 36 300 82
Actuarial gains/(losses) on pension schemes net of tax (19) (1 220) (747) (9) (1 591) (739)
Share option credit(a) 146 133 73 62 52 33
Unrealised gain on partial disposal of a group company ––––56 –
Adjustment arising from change in ownership of group companies(b) (31) 1 646 –31(1 646) –
Currency retranslation (10) (1 206) (1 026) 169 (361) (248)
Net movement during the year 1 180 207 (1 663) 347 (3 451) (618)
Profit retained – 1 January(c) 5 655 5 448 7 111 (992) 2 459 3 077
Profit retained – 31 December 6 835 5 655 5 448 (645) (992) 2 459
Of which retained by:
Parent companies 7 304 6 581 3 508 1 527 1 590 1 552
Other group companies (388) (895) 1 929 (2 171) (2 593) 904
Joint ventures and associates (81) (31) 11 (1) 11 3
6 835 5 655 5 448 (645) (992) 2 459
Cumulative goodwill written off directly to reserves (5 199) (5 298) (5 456) (2 063) (2 099) (2 399)
(a) The share option credit relates to the reversal of the non-cash charge recorded against operating profit in respect of the fair value of share
options awarded to employees.
(b) During 2002, as part of the legal and fiscal integration of the Bestfoods businesses, a number of internal ownership changes took place.
These internal transactions, which took place at fair value, did not involve any third party and therefore had no effect on the results or net
assets of the consolidated Unilever Group. The historical cost of the net assets of the business transferred by PLC was greater than the
historical cost of the net assets of the business transferred by NV. As it would be inappropriate to recognise revaluations to assets and
liabilities of the Group arising from internal transactions, this imbalance led to NV recording an unrealised gain of €1 646 million on the
transfer while PLC recorded an equal and opposite goodwill balance which is eliminated on consolidation. A further re-organisation in 2003
produced a similar type of adjustment with a small unrealised gain in PLC and goodwill eliminated in NV.
(c) Profit retained has been restated following changes in our accounting policy for pensions and other post-employment benefits and in our
accounting policy for share-based payments. Profit retained at 1 January 2001 has been increased in aggregate by €3 237 million (of which
€2 237 million relates to NV and €1 000 million relates to PLC). Profit retained at 1 January 2002 has been increased in aggregate by
€1 490 million (of which €1 299 million relates to NV and €191 million relates to PLC). Movements in profit retained in 2001 and 2002
have been restated as appropriate. Profit retained at 31 December 2002 has been decreased in aggregate by €1 114 million (of which an
increase of €274 million relates to NV and a reduction of €1 388 million relates to PLC).
23 Other reserves
€ million € million € million € million € million € million
NV NV NV PLC PLC PLC
2003 2002 2001 2003 2002 2001
Restated Restated Restated Restated
Adjustment on translation of PLC‘s ordinary capital
at £1 = Fl. 12 = €5.445 –––(164) (159) (155)
Capital redemption reserve –––16 18 18
Book value of shares or certificates held in connection
with share options (1 783) (1 534) (1 108) (511) (469) (418)
(1 783) (1 534) (1 108) (659) (610) (555)
The effect of the change in number of shares or certificates held in connection with share options on the other reserves of NV was
€(249) million (2002: €(426) million; 2001: €(551) million) and for PLC was €(42) million (2002: €(51) million; 2001: €(59) million).