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18 FINANIAL INSTRUMENTS FAIR VALUE RISK CONTINUED
POLICIES AND PROCESSES USED IN RELATION TO THE CALCULATION OF LEVEL 3 FAIR VALUES
Assets valued using Level 3 valuation techniques are primarily made up of long-term cash receivables and unlisted investments.
Valuation techniques used are specific to the circumstances involved. Unlisted investments include €132 million (2012: €130 million) of
investments within Unilever Ventures Limited. These investments are governed and administered by a dedicated management team.
The remaining assets in this category are held across several locations and valuations are managed locally, with oversight from
corporate management.
19 PROVISIONS
Provisions are recognised where a legal or constructive obligation exists at the balance sheet date, as a result of a past event, where
the amount of the obligation can be reliably estimated and where the outflow of economic benefit is probable.
Provsons
 mllon
2013
€ million
2012
Due within one year 379 361
Due after one year 892 846
Total provisions 1,271 1,207
Movements durng 2013
 mllon
Restructurng
 mllon
Legal
 mllon
Dsputed
ndrect taxes
 mllon
Other
 mllon
Total
1 January 2013 290 61 648 208 1,207
Income statement:
Charges 191 133 224 45 593
Releases (89) (7) (24) (21) (141)
Utilisation (150) (15) (45) (44) (254)
Currency translation (6) (5) (117) (6) (134)
31 December 2013 236 167 686 182 1,271
The provision for legal includes provisions related to competition cases (see also note 20).
The provision for disputed indirect taxes is comprised of a number of small disputed items. The largest elements relate to disputes with
Brazilian authorities. Due to the nature of the disputes, the timing of provision utilisation and any cash outflows is uncertain. The
majority of disputed items attract an interest charge.
No individual items within the remaining provisions are significant. Unilever expects that the issues relating to these restructuring,
legal and other provisions will be substantively resolved within five years.
20 OMMITMENTS AND ONTINENT LIABILITIES
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of
ownership. All other leases are classified as operating leases.
Assets held under finance leases are initially recognised at the lower of fair value at the date of commencement of the lease and the
present value of the minimum lease payments. Subsequent to initial recognition, these assets are accounted for in accordance with
the accounting policy relating to that specific asset. The corresponding liability is included in the balance sheet as a finance lease
obligation. Lease payments are apportioned between finance costs in the income statement and reduction of the lease obligation so
as to achieve a constant rate of interest on the remaining balance of the liability.
Lease payments under operating leases are charged to the income statement on a straight-line basis over the term of the lease.
Contingent liabilities are either possible obligations that will probably not require a transfer of economic benefits, or present
obligations that may, but probably will not, require a transfer of economic benefits. It is not appropriate to make provisions for
contingent liabilities, but there isa chance that they will result in an obligation in the future.
129Unlever Annual Report and Accounts 2013 Fnancal statements