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18 FINANIAL INSTRUMENTS FAIR VALUE RISK ONTINUED
• Dervatves are valued usng valuaton technques wth market observable nputs The models ncorporate varous nputs ncludng
the credt qualty of counter-partes, foregn exchange spot and forward rates, nterest rate curves and forward rate curves of the
underlyng commodtes
• For lsted securtes where the market s not lqud, and for unlsted securtes, valuaton technques are used These nclude the use of
recent arm’s length transactons, reference to other nstruments that are substantally the same and dscounted cash flow calculatons
OTHER FINANIAL ASSETS AND LIABILITIES (FAIR VALUES FOR DISLOSURE PURPOSES ONLY)
• ash and cash equvalents, trade and other current recevables, bank loans and overdrafts, trade payables and other current
labltes have far values that approxmate to ther carryng amounts due to ther short-term nature
• The far values of preference shares and lsted bonds are based on ther market value
• Non-lsted bonds, other loans, bank loans and non-current recevables and payables are based on the net present value of the
antcpated future cash flows assocated wth these nstruments usng rates currently avalable for debt on smlar terms, credt rsk
and remanng maturtes
• Far values for fnance lease credtors have been assessed by reference to current market rates for comparable leasng arrangements
POLIIES AND PROESSES USED IN RELATION TO THE ALULATION OF LEVEL 3 FAIR VALUES
Assets valued usng Level 3 valuaton technques are prmarly made up of long-term cash recevables and unlsted nvestments
Valuaton technques used are specfc to the crcumstances nvolved Unlsted nvestments nclude 192 mllon (2014 136 mllon)
of nvestments wthn Unlever Ventures companes
19 PROVISIONS
Provsons are recognsed where a legal or constructve oblgaton exsts at the balance sheet date, as a result of a past event,
where the amount of the oblgaton can be relably estmated and where the outflow of economc beneft s probable
Provsons
 mllon
2015
 mllon
2014
Due wthn one year 309 418
Due after one year 831 916
Total provsons 1,140 1,334
Movements durng 2015
 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 2015 215 228 706 185 1,334
Income statement
harges 143 145 149 83 520
Releases (42) (15) (67) (16) (140)
Utlsaton (133) (193) (39) (35) (400)
urrency translaton 5 (4) (179) 4 (174)
31 December 2015 188 161 570 221 1,140
The provson for legal ncludes provsons related to competton cases (see also note 20)
The provson for dsputed ndrect taxes s comprsed of a number of small dsputed tems The largest elements relate to dsputes
wth Brazlan authortes Due to the nature of the dsputes, the tmng of provson utlsaton and any cash outflows s uncertan
The maorty of dsputed tems attract an nterest charge
No ndvdual tems wthn the remanng provsons are sgnfcant Unlever expects that the ssues relatng to these restructurng,
legal and other provsons wll be substantvely resolved wthn fve years
129Unilever Annual Report and Accounts 2015 Financial statements