Unilever 2008 Annual Report Download - page 105

Notes to the consolidated accounts Unilever Group
102 Unilever Annual Report and Accounts 2008
Financial statements
12 Deferred taxation
€ million € million € million € million
As at 1 As at 31
January Income December
Movements during the year 2008 statement Equity(a) 2008
Pensions and similar obligations 200 (177) 786 809
Provisions 786 (103) (71) 612
Goodwill and intangible assets (780) (34) (9) (823)
Accelerated tax depreciation (598) (2) 45 (555)
Tax losses 84 (7) 28 105
Fair value gains (8) (5) 7 (6)
Fair value losses 8 (3) 35 40
Share-based payments 101 57 (58) 100
Other (3) – (1) (4)
(210) (274) 762 278
(a) Of the total movement in equity of €762 million, €87 million arises as a result of currency retranslation and €8 million as a result of
acquisitions and disposals.
At the balance sheet date, the Group has unused tax losses of €1 369 million and tax credits amounting to €307 million available for offset
against future taxable profits. Deferred tax assets have not been recognised in respect of unused tax losses of €1 019 million and tax credits
of €307 million, as it is not probable that there will be future taxable profits within the entities against which the losses can be utilised. The
majority of these tax losses and credits arise in tax jurisdictions where they do not expire with the exception of €457 million of state and
federal tax losses in the US which expire between now and 2028.
Other deductible temporary differences of €133 million have not been recognised as a deferred tax asset. There is no expiry date for these
differences.
At the balance sheet date, the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries for which
deferred tax liabilities have not been recognised was €967 million (2007: €1 059 million). No liability has been recognised in respect of these
differences because the Group is in a position to control the timing of the reversal of the temporary differences, and it is probable that such
differences will not reverse in the foreseeable future.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when the deferred income taxes relate to the same fiscal authority. The following amounts, determined after appropriate
offsetting, are shown in the consolidated balance sheet:
€ million € million € million € million € million € million
Assets Assets Liabilities Liabilities Total Total
Deferred tax assets and liabilities 2008 2007 2008 2007 2008 2007
Pensions and similar obligations 887 514 (78) (314) 809 200
Provisions 619 750 (7) 36 612 786
Goodwill and intangible assets (345) (223) (478) (557) (823) (780)
Accelerated tax depreciation (368) (234) (187) (364) (555) (598)
Tax losses 103 85 2(1) 105 84
Fair value gains –(3) (6) (5) (6) (8)
Fair value losses 43 8(3) –40 8
Share-based payments 100 101 ––100 101
Other 29 5(33) (8) (4) (3)
1 068 1 003 (790) (1 213) 278 (210)
Of which deferred tax to be recovered/(settled) after
more than 12 months 736 484 (717) (1 111) 19 (627)
13 Inventories
€ million € million
Inventories 2008 2007
Raw materials and consumables 1 437 1 406
Finished goods and goods for resale 2 452 2 488
3 889 3 894
Inventories with a value of €134 million (2007: €101 million) are carried at net realisable value, this being lower than cost. During 2008,
€246 million (2007: €177 million) was charged to the income statement for damaged, obsolete and lost inventories. In 2008, €23 million
(2007: €25 million) was utilised or released to the income statement from inventory provisions taken in earlier years.
In 2008, inventories with a carrying amount of €34 million were pledged as security for certain of the Group’s borrowings (2007: €4 million).