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114 Unilever Annual Report and Accounts 2007
Financial statements continued
Notes to the consolidated accounts Unilever Group
26 Acquisitions and disposals (continued)
The following table sets out the effect of acquisitions in 2007, 2006 and 2005 on the consolidated balance sheet. The fair values currently
established for all acquisitions made in 2007 are provisional. The goodwill arising on these transactions has been capitalised and is subject to an
annual review for impairment (or more frequently if necessary) in accordance with our accounting policies as set out in note 1 on page 72. Any
impairment is charged to the income statement as it arises. Detailed information relating to goodwill is given in note 9 on pages 86 and 87.
€ million € million € million
Acquisitions 2007 2006 2005
Net assets acquired 94 42 7
Goodwill arising in subsidiaries 334 60 13
Consideration 428 102 20
Consideration consisted of €214 million cash, principally relating to acquisitions of minority interest, and €214 million fair value economic swap in
South Africa.
27 Assets held for sale and discontinued operations
Included under this heading are the results of the majority of Unilever’s European frozen foods businesses following the sale to Permira Funds in
November 2006 and Unilever Cosmetics International (UCI) following the sale of this business to Coty Inc. in July 2005.
An analysis of the result of discontinued operations, and the result recognised on disposal of discontinued operations is as follows:
€ million € million € million
Income statement of discontinued operations 2007 2006 2005
Turnover –1 033 1 501
Expenses –(863) (1 253)
Operating profit –170 248
Net finance costs –(3) (6)
Profit before tax –167 242
Taxation –(25) (72)
Profit after taxation –142 170
Gain/(loss) on disposal of discontinued operations(a) 89 1 349 513
Recycling of currency retranslation upon disposal ––5
Taxation arising on disposal (9) (161) (48)
Gain/(loss) after taxation on disposal 80 1 188 470
Net profit from discontinued operations 80 1 330 640
(a) In 2007, a one-off gain of €50 million was recognised for future performance based consideration from the sale of UCI.
€ million € million € million
Segment analysis of discontinued operations 2007 2006 2005
Turnover
Europe –1 033 1 397
The Americas ––102
Asia Africa ––2
–1 033 1 501
Foods –1 033 1 271
Personal care ––230
–1 033 1 501
Operating profit
Europe –170 227
The Americas ––20
Asia Africa ––1
–170 248
Foods –164 226
Personal care –622
–170 248