Unilever 2011 Annual Report Download - page 75

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72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS UNILEVER GROUP continued
3. Gross profit and operating costs
Research and market support costs
Expenditure on research and market support, such as advertising, is charged to the income statement as incurred.
Restructuring, business disposals, impairment and other one-off items
On the face of the income statement, costs and revenues relating to restructuring, business disposals and impairments are
disclosed. In addition, individual items judged to be significant are disclosed separately. These items are material in terms of
nature and/or amount.
Restructuring costs are incurred as Unilever continues to simplify the organisation, reorganise operations and support functions
and redevelop the portfolio. They primarily relate to redundancy and retirement costs. Business disposals generate both gains and
losses which are not reflective of underlying performance. Acquisition and integration costs are one-off expenses incurred in
relation to the acquired businesses.
€ million € million € million
2011 2010 2009
Turnover 46,467 44,262 39,823
Cost of sales(a) (27,930) (25,890) (23,182)
Gross profit
Selling and administrative
Operating profit
expenses(a)
18,537
(12,104)
6,433
18,372
(12,033)
16,641
(11,621)
6,339 5,020
(a) During 2011 the Group reassessed the presentation of distribution costs which in prior years have been presented within selling and administrative
expenses. These are considered to be more appropriately recorded in cost of sales. The comparative information for 2010 and 2009 has been reclassified
accordingly. In addition, in 2010 €179 million has been reclassified between cost of sales and selling and administrative expenses. The 2009 impact is not
significant and has not been reclassified. There was no impact on operating profit in 2010 or 2009.
The following items are disclosed on the face of the income statement to provide additional information to users to help them better
understand underlying business performance.
€ million
2011
€ million
2010
€ million
2009
Restructuring (612) (589) (897)
Business disposals, impairments and other one-off items: 144 308 29
Gain/(loss) on disposals of group companies 221 468 4
Impairments –– –
Past service credit for UK pension plan 153 – –
(Provision for)/release of Brazilian sales tax – – 25
(Provision for)/release of EU competition investigations 4 (110) –
Acquisition and integration costs (234) (50) –
Other items within operating costs include:
€ million
2011
€ million
2010
€ million
2009
Staff costs 4 (5,345) (5,599) (5,223)
Distribution costs (3,080) (3,015) (2,602)
Raw and packaging materials and goods purchased for resale (19,253) (17,636) (15,267)
Amortisation of finite-lived intangible assets and software (191) (174) (168)
Depreciation of property, plant and equipment (838) (819) (851)
Advertising and promotions (6,069) (6,064) (5,302)
Research and development (1,009) (928) (891)
Exchange gains/(losses): (9) 7 (33)
On underlying transactions (45) (36) (19)
On covering forward contracts 36 43 (14)
Lease rentals: (452) (465) (472)
Minimum operating lease payments (456) (465) (475)
Contingent operating lease payments (3) (4) (3)
Less: Sub-lease income relating to operating lease agreements 7 4 6
Unilever Annual Report and Accounts 2011
Financial statements