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85
9. Goodwill and intangible assets continued
Movements during 2010
€ million
Goodwill
€ million
Indefinite-
lived
intangible
assets
€ million
Finite-
lived
intangible
assets
€ million
Software
€ million
Total
Cost
1 January 2010 13,408 4,269 611 687 18,975
Acquisitions of group companies 225 246 1 – 472
Disposals of group companies (222) (1) – – (223)
Reclassed to held for disposal (82) – – – (82)
Additions – 1 1 180 182
Disposals (1) (8) – (16) (25)
Currency retranslation 822 250 31 48 1,151
31 December 2010 14,150 4,757 644 899 20,450
Amortisation and impairment
1 January 2010 (944) (219) (458) (307) (1,928)
Disposal of group companies – – – – –
Amortisation for the year – – (58) (116) (174)
Disposals – – – 6 6
Currency retranslation (63) (16) (24) (18) (121)
31 December 2010 (1,007) (235) (540) (435) (2,217)
Net book value 31 December 2010 13,143 4,522 104 464 18,233
There are no significant carrying amounts of goodwill and intangible assets that are allocated across multiple cash generating units (CGUs).
Impairment charges in the year
There were no material impairments in 2011, 2010 or 2009.
Significant CGUs
The goodwill and indefinite-lived intangible assets held in the regional Foods CGUs are considered significant in comparison to the total carrying
amounts of goodwill and indefinite-lived intangible assets at 31 December 2011. Noother CGUs are considered significant in this respect.
The goodwill and indefinite-lived intangible assets held in the regional Foods CGUs are:
€ billion
2011
Goodwill
€ billion
2011
Indefinite-
lived
intangibles
€ billion
2010
Goodwill
€ billion
2010
Indefinite-
lived
intangibles
Western Europe 5.2 1.4 5.2 1.4
The Americas 4.1 1.5 4.2 1.5
Asia Africa CEE 2.0 0.6 1.8 0.6
During 2011, the Group conducted an impairment review of the carrying value of these assets. Value in use has been calculated as the
present value of projected future cash flows. A pre-tax discount rate of 7.4% was used.
For the regional Foods CGUs, the following key assumptions were used in the discounted cash flow projections:
Western
Europe Americas
Asia Africa
CEE
Longer-term sustainable growth rates 0.2% 1.4% 3.0%
Average near-term nominal growth rates 0.8% 2.9% 7.9%
Average operating margins 19-22% 18-20% 12-14%
The growth rates and margins used to estimate future performance are based on past performance and our experience of growth rates
and margins achievable in our key markets.
The projections covered a period of five years, as we believe this to be the most appropriate timescale over which to review and consider
annual performances before applying a fixed terminal value multiple to the final year cash flows.
The growth rates used are consistent with our annual planning and strategic planning processes.
We have performed sensitivity analyses around the base assumptions and have concluded that no reasonable possible changes in key
assumptions would cause the recoverable amount of the regional Foods CGUs to be less than the carrying value.
Unilever Annual Report and Accounts 2011
Financial statements