Unilever 2012 Annual Report Download - page 110
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Please find page 110 of the 2012 Unilever annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.ABOUT UNILEVER GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION
107Unilever Annual Report and Accounts 2012 Financial statements
9 oodwll and ntangble assets continued
There are no significant carrying amounts of goodwill and intangible assets that are allocated across multiple cash generating units.
Imparment charges
We have tested all material goodwill and indefinite-life intangible assets for impairment. No impairments were identified.
Sgnfcant Us
The goodwill and indefinite-life intangible assets held in the three CGUs relating to Foods across the geographical areas are considered
significant within the total carrying amounts of goodwill and indefinite-life intangible assets at 31 December 2012 in terms of size, headroom
and sensitivity to assumptions used. Noother CGUs are considered significant in this respect.
The goodwill and indefinite-life intangible assets held in the significant CGUs are:
bllon
2012
oodwll
bllon
2012
Indefnte-
lfe
ntangbles
€ billion
2011
Goodwill
€ billion
2011
Indefinite-
life
intangibles
Foods Europe 58 16 5.7 1.6
Foods The Americas 39 14 4.1 1.5
Foods Asia/AMET/RUB 14 04 1.5 0.4
During 2012, the Group conducted an impairment review of the carrying value of these assets as part of its comprehensive annual
review. 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 significant CGUs, the following key assumptions were used in the discounted cash flow projections:
Foods
Europe
Foods
The
Amercas
Foods
Asa/AMET/
RUB
Longer-term sustainable growth rates 03% 16% 33%
Average near-term nominal growth rates 08% 49% 105%
Average operating margins 22-24% 17-20% 13-16%
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 significant CGUs to be less than the carrying value.
10 Property, plant and equpment10 Property, plant and equpment
Property, plant and equipment is measured at cost including eligible borrowing costs less depreciation and accumulated
impairment losses.
Depreciation is provided on a straight-line basis over the expected average useful lives of the assets. Residual values are reviewed
at least annually. Estimated useful lives by major class of assets are as follows:
• Freehold buildings (no depreciation on freehold land) 40 years
• Leasehold land and buildings 40 years (or life of lease if less)
• Plant and equipment 2-20 years
Property, plant and equipment is subject to review for impairment if triggering events or circumstances indicate that this is
necessary. If an indication of impairment exists, the asset or cash generating unit recoverable amount is estimated and any
impairment loss is charged to the income statement as it arises.