Unilever 2003 Annual Report Download - page 136

Download and view the complete annual report

Please find page 136 of the 2003 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 169

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169

Unilever Annual Report & Accounts and Form 20-F 2003 133
Additional information for US investors
Unilever Group
Had the Group accounted for its goodwill and identifiable intangible assets that have indefinite lives under SFAS 142 for the year ending
31 December 2001, the impact on reported results would have been as follows:
€ million
2001
Restated
Net income under US GAAP 1 446
Amortisation, net of tax:
Goodwill 1 266
Intangibles 404
Adjusted net income under US GAAP 3 116
Adjusted net income per share 3.12
Adjusted diluted net income per share 3.03
The differences between UK GAAP as applied by Unilever and US GAAP on accounting for goodwill and intangible assets are set out in the
tables and footnotes below.
Impact of goodwill and intangible asset accounting differences on net profit (before tax):
€ million € million € million
2003 2002 2001
Cessation of goodwill amortisation(a) 852 932 –
Cessation of intangible assets amortisation(a) 257 277 –
Pre-1998 goodwill and intangible assets(b) 48 127 (209)
Differences in calculation of goodwill on acquisition(c) – – (33)
Cessation of goodwill amortisation on joint ventures and associates(a) 11 22 –
Total adjustment to net profit 1 168 1 358 (242)
Impact of goodwill and intangible assets differences on capital and reserves:
As at As at
31 December 31 December
2003 2002
Cessation of goodwill amortisation(a) 1 579 866
Cessation of intangible assets amortisation(a) 472 246
Pre-1998 goodwill and intangible assets(b) 3 797 4 386
Differences in calculation of goodwill on acquisition(c) (75) (91)
Cessation of goodwill amortisation on joint ventures and associates(a) 23 20
Total adjustment to capital and reserves 5 796 5 427
(a) Under US GAAP prior to 1 January 2002, purchased goodwill and identifiable intangible assets were capitalised and amortised over their
useful lives. From 1 January 2002, under SFAS 142, the amortisation of goodwill and identifiable intangible assets that have indefinite
useful lives ceased. Intangible assets that have finite useful lives continue to be amortised over their useful lives.
(b) Under UK GAAP, goodwill and intangible assets purchased prior to 1 January 1998 were written off in the year of acquisition as a
movement in profits retained. On disposal of a business acquired prior to 1 January 1998, purchased goodwill written off on acquisition is
reinstated in arriving at the profit or loss on disposal. Under US GAAP, such goodwill and intangible assets were capitalised and, prior to
1 January 2002, were amortised over their useful lives. These different accounting treatments give rise to differences between net profit
calculated under UK GAAP and net profit calculated under US GAAP, both in respect of amortisation recorded for US GAAP purposes prior
to 1 January 2002, and in respect of the calculation of profit and loss on disposal of a business. Similar differences arise in the calculation
of capital and reserves under UK and US GAAP.
(c) The detailed rules for determining the fair value of assets and liabilities acquired as part of the acquisition of a business differ between
UK and US GAAP. These differences give rise to differing figures for goodwill arising on acquisition as calculated under UK and US GAAP.
Management have completed an impairment assessment during 2003 and have concluded that there was no impairment of goodwill
or identifiable intangible assets with indefinite lives for the year ended 31 December 2003.
Goodwill
An analysis of goodwill of group companies by reporting segment is given below:
€ million
Spreads Health &
Savoury and and cooking wellness and Ice cream and Home Personal Other
dressings products beverages frozen foods care care operations Total
As at 31 December 2001 16 620 212 1 685 1 135 733 633 – 21 018
Currency retranslation (2 540) (32) (255) (171) (112) (97) – (3 207)
Acquisitions 191 119 – – 17 26 – 353
Disposals (65) (19) (36) (17) (185) – – (322)
As at 31 December 2002 14 206 280 1 394 947 453 562 – 17 842
Currency retranslation (1 387) 181 59 (149) (40) (121) – (1 457)
Acquisitions 388 3 – 15 3 13 – 422
Disposals (70) – (8) (12) – (8) – (98)
As at 31 December 2003 13 137 464 1 445 801 416 446 – 16 709