Unilever 2004 Annual Report Download - page 160

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Unilever Annual Report and Accounts 2004 157
Additional information for US investors (continued)
Unilever Group
Goodwill
An analysis of goodwill of group companies, associates and joint ventures by reporting segment is given below:
€ million € million € million € million € million € million € million € million € million € million
Spreads Ice cream Total
Savoury and and Home and
and cooking frozen Total Home Personal Personal Other
dressings products Beverages foods Foods care care Care operations Total
As at 31 December 2002 14 439 280 1 394 947 17 060 716 562 1 278 – 18 338
Currency retranslation (1 429) 181 59 (149) (1 338) (181) (121) (302) – (1 640)
Acquisitions 201 3 – 15 219 3 13 16 – 235
Disposals (70) – (8) (12) (90) – (8) (8) – (98)
As at 31 December 2003 13 141 464 1 445 801 15 851 538 446 984 – 16 835
Adjustments to prior year
acquisitions 1 120–––1 120––––1 120
Currency retranslation (335) (73) (9) (17) (434) 1 30 31 – (403)
Acquisitions –––––437–7
Disposals (5) (1) (2) (2) (10) – (1) (1) – (11)
Impairment charged to profit
and loss account (200) – (916) – (1 116) – (20) (20) – (1 136)
As at 31 December 2004 13 721 390 518 782 15 411 543 458 1 001 – 16 412
Intangible assets
An analysis of net book value of intangible assets at cost less accumulated amortisation is given below:
€ million € million € million
Indefinite-
lived Finite-lived
intangible intangible
assets assets Total
Cost 6 953 597 7 550
Accumulated amortisation (1 055) (150) (1 205)
Net book value 31 December 2004 5 898 447 6 345
Cost 7 629 531 8 160
Accumulated amortisation (1 274) (86) (1 360)
Net book value 31 December 2003 6 355 445 6 800
Indefinite-lived intangible assets principally comprise trademarks.
Finite-lived intangible assets, which have a weighted average life of 10 years, principally comprise technologies and licences. Amortisation
expense recorded in the period in respect of finite-lived intangible assets was €48 million (2003: €30 million; 2002: €36 million). This is
expected to increase to approximately €60 million for 2005 and subsequent years.
Capitalised software
Under UK GAAP as applied by Unilever, certain costs relating to the development and purchase of software for internal use are expensed when
incurred. Under US GAAP, these costs are capitalised and subsequently amortised over the estimated useful life of the software in conformity with
Statement of Financial Position 98-1, ’Accounting for the Cost of Computer Software Developed or Obtained for Internal Use’.
Restructuring costs
Under Unilever’s accounting policy, certain restructuring costs relating to employee terminations are recognised when a restructuring plan
has been announced. Under US GAAP, liabilities related to exit costs are recognised when incurred. Employee termination costs are generally
considered to be incurred when the company has a liability to the employee unless further service is required from the employee in which case
costs are recognised as benefits are earned.
Costs related to excess lease costs are reduced by assumed sub-lease income for the periods impacted.
Interest
Unilever treats all interest costs as a charge to the profit and loss account in the current period. Under US GAAP, interest incurred during
the construction periods of tangible fixed assets is capitalised and depreciated over the life of the assets.