Unilever 2007 Annual Report Download - page 113

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Unilever Annual Report and Accounts 2007 111
Financial statements continued
Notes to the consolidated accounts Unilever Group
24 Retained profit
€ million € million € million € million € million € million € million € million € million
NV NV NV PLC PLC PLC Total Total Total
Movements during the year 2007 2006 2005 2007 2006 2005 2007 2006 2005
1 January 8 404 8 721 6 831 4 320 1 294 1 223 12 724 10 015 8 054
Recognised income and expense through
retained profit 2 599 3 727 3 092 1 829 1 848 733 4 428 5 575 3 825
Dividends on ordinary capital (1 167) (1 529) (1 073) (903) (1 155) (794) (2 070) (2 684) (1 867)
Conversion of preference shares –– (199) ––––– (199)
Utilisation of treasury stock (53) (217) – (46) (68) – (99) (285) –
Share-based compensation credit(a) 90 70 132 50 41 54 140 111 186
Adjustment arising from change in structure
of group companies(b) 499 (2 368) (70) (499) 2 368 70 –––
Other movements in retained profit 31 –88(8) 8 39 (8) 16
31 December 10 403 8 404 8 721 4 759 4 320 1 294 15 162 12 724 10 015
Of which retained by:
Parent companies 10 009 9 755 9 463 2 344 2 306 2 145 12 353 12 061 11 608
Other group companies 345 (1 294) (668) 2 555 2 006 (837) 2 900 712 (1 505)
Joint ventures and associates 49 (57) (74) (140) 8 (14) (91) (49) (88)
10 403 8 404 8 721 4 759 4 320 1 294 15 162 12 724 10 015
(a) The share-based compensation credit relates to the reversal of the non-cash charge recorded against operating profit in respect of the fair
value of share options and awards granted to employees.
(b) As part of the review of Unilever's corporate structure, and in the light of the constitutional and operational arrangements which enable
Unilever N.V. and Unilever PLC to operate as nearly as practicable as a single company, the Directors have been authorised to take any
action necessary or desirable in order to ensure that the ratio of the dividend generating capacity of PLC to that of NV does not differ
substantially from the ratio of the dividend entitlement of ordinary shareholders in PLC to that of ordinary shareholders in NV. During 2007,
Unilever’s shareholding in Unilever Jerónimo Martins in Portugal was transferred from NV to PLC for no consideration. In addition, a part
of indirect shareholdings in Unilever US was sold by NV to PLC and the fair value economic swap in South Africa led to further adjustments
between NV and PLC. In 2006, shareholdings in the Unilever companies in Czech Republic, Hungary, Russia and Turkey, as well as a part
of indirect shareholdings in Unilever US, were transferred from NV to PLC for no consideration. In addition, part of a dividend which would
otherwise be due from a Unilever US intermediate company to a company within the NV part of the Group was instead paid to a company
within the PLC part of the Group. Re-organisations of group companies have produced similar types of adjustments in previous years.
Cumulative goodwill written off directly to reserves prior to the transition to IFRS on 1 January 2004 was €5 199 million for NV and
€2 063 million for PLC.