Unilever 2013 Annual Report Download - page 34

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We closely monitored all our exposures and counter-party limits
Unilever has committed credit facilities in place for general
corporate purposes The undrawn bilateral committed credit
facilities in place on 31 December 2013 were US $6,400 million
Further details are given in note 16A on page 120
On 11 February 2013 we redeemed a US $450 million four-year
bond which was issued in 2009 at 3125% On 21 May 2013 we
redeemed a €750 million five-year bond which was issued in 2008
at 4.875%. On 5 August 2013 we issued a seven-year €750 million
bond at 1.75%. On 6 September 2013 we issued US $750 million
2.20% fixed rate notes due March 2019.
ONTRATUAL OBLIATIONS AT 31 DEEMBER 2013
 mllon
Total
 mllon
Due
wthn
1 year
 mllon
Due n
1-3 years
 mllon
Due n
3-5 years
 mllon
Due n
over
5 years
Long-term debt 10,790 3,545 2,018 1,263 3,964
Interest on
financial
liabilities 2,578 307 466 371 1,434
Operating lease
obligations 1,787 335 513 400 539
Purchase
obligations(a) 187 163 19 5 –
Finance leases 312 25 67 40 180
Other long-term
commitments 1,522 743 610 144 25
Total 17,176 5,118 3,693 2,223 6,142
(a) For raw and packaging materials and finished goods.
Unilever’s contractual obligations at the end of 2013 included
capital expenditure commitments, borrowings, lease
commitments and other commitments. A summary of certain
contractual obligations at 31 December 2013 is provided in the
preceding table. Further details are set out in the following notes
to the consolidated financial statements: note 10 on pages 111 and
112, note 15C on pages 118 and 119, and note 20 on pages 129 to
131.
Unilever is satisfied that its financing arrangements are adequate
to meet its working capital needs for the foreseeable future. In
relation to the facilities available to the Group, borrowing
requirements do not fluctuate materially during the year and are
not seasonal.
FINANIAL INSTRUMENTS AND RISK
The key financial instruments used by Unilever are short-term
and long-term borrowings, cash and cash equivalents, and
certain plain vanilla derivative instruments, principally
comprising interest rate swaps and foreign exchange contracts.
The accounting for derivative instruments is discussed in note 16
on page 120 and on pages 124 and 125. The use of leveraged
instruments is not permitted.
Treasury processes are governed by standards approved by the
Unilever Leadership Executive. Unilever manages a variety of
market risks, including the effects of changes in foreign exchange
rates, interest rates, commodity costs and liquidity. Further
details of the management of these risks are given in note 16 on
pages 120 to 125.
BASIS OF REPORTIN AND RITIAL
AOUNTIN POLIIES
The consolidated financial statements have been prepared in
accordance with IFRS. The accounting policies that are most
significant in connection with our financial reporting are set out in
note 1 on pages 94 and 95 and other than as noted below are
consistent with those applied in 2012.
In the year the Group adopted IAS 19 (Revised) ‘Employee benefits’
which changes disclosure requirements and restricts the
accounting options available for defined benefit pension plans.
The changes resulted in an increase in finance costs of €193
million for the year ended 31 December 2013 (€138 million for the
year ended 31 December 2012) and a reduction in net defined
benefit liability of €198 million in the restated comparative
opening balance sheet as at 1 January 2012, with a corresponding
increase in actuarial gains or losses on pension schemes before
tax when restated under the new standard.
AUDIT FEES AND OPINION
Included within operating profit is €21 million (2012: €21 million)
paid to the external auditor, of which €16 million (2012: €18
million) related to statutory audit services.
The audit opinions issued, by PricewaterhouseCoopers
Accountants N.V. and PricewaterhouseCoopers LLP, on the
consolidated results of the Group, as set out on pages 86 to 89,
were unqualified and contained no exceptions or emphasis of
matter.
Unlever Annual Report and Accounts 2013 31Strategc report