Notes to the consolidated accounts
24 Retained profit
| € million NV |
€ million NV |
€ million NV |
€ million PLC | € million PLC |
€ million PLC |
€ million Total |
€ million Total |
€ million Total |
|
|---|---|---|---|---|---|---|---|---|---|
| Movements during the year | 2007 | 2006 | 2005 | 2007 | 2006 | 2005 | 2007 | 2006 | 2005 |
| 1 January | 8 404 | 8 721 | 6 831 | 4 320 | 1 294 | 1 223 | 12 724 | 10 015 | 8 054 |
| Recognised income and expense through retained profit | 2 599 | 3 727 | 3 092 | 1 829 | 1 848 | 733 | 4 428 | 5 575 | 3 825 |
| Dividends on ordinary capital | (1 167) | (1 529) | (1 073) | (903) | (1 155) | (794) | (2 070) | (2 684) | (1 867) |
| Conversion of preference shares | – | – | (199) | – | – | – | – | – | (199) |
| Utilisation of treasury stock | (53) | (217) | – | (46) | (68) | – | (99) | (285) | – |
| Share-based compensation credit(a) |
90 | 70 | 132 | 50 | 41 | 54 | 140 | 111 | 186 |
| Adjustment arising from change in structure of group companies(b) |
499 | (2 368) | (70) | (499) | 2 368 | 70 | – | – | – |
| Other movements in retained profit | 31 | – | 8 | 8 | (8) | 8 | 39 | (8) | 16 |
| 31 December | 10 403 | 8 404 | 8 721 | 4 759 | 4 320 | 1 294 | 15 162 | 12 724 | 10 015 |
| Of which retained by: | |||||||||
| Parent companies | 10 009 | 9 755 | 9 463 | 2 344 | 2 306 | 2 145 | 12 353 | 12 061 | 11 608 |
| Other group companies | 345 | (1 294) | (668) | 2 555 | 2 006 | (837) | 2 900 | 712 | (1 505) |
| Joint ventures and associates | 49 | (57) | (74) | (140) | 8 | (14) | (91) | (49) | (88) |
| 10 403 | 8 404 | 8 721 | 4 759 | 4 320 | 1 294 | 15 162 | 12 724 | 10 015 |
(a) The share-based compensation credit relates to the reversal of the non-cash charge recorded against operating profit in respect of the fair value of share options and awards granted to employees.
(b) As part of the review of Unilever's corporate structure, and in the light of the constitutional and operational arrangements which enable Unilever N.V. and Unilever PLC to operate as nearly as practicable as a single company, the Directors have been authorised to take any action necessary or desirable in order to ensure that the ratio of the dividend generating capacity of PLC to that of NV does not differ substantially from the ratio of the dividend entitlement of ordinary shareholders in PLC to that of ordinary shareholders in NV. During 2007, Unilever's shareholding in Unilever Jerónimo Martins in Portugal was transferred from NV to PLC for no consideration. In addition, a part of indirect shareholdings in Unilever US was sold by NV to PLC and the fair value economic swap in South Africa led to further adjustments between NV and PLC. In 2006, shareholdings in the Unilever companies in Czech Republic, Hungary, Russia and Turkey, as well as a part of indirect shareholdings in Unilever US, were transferred from NV to PLC for no consideration. In addition, part of a dividend which would otherwise be due from a Unilever US intermediate company to a company within the NV part of the Group was instead paid to a company within the PLC part of the Group. Re-organisations of group companies have produced similar types of adjustments in previous years.
Cumulative goodwill written off directly to reserves prior to the transition to IFRS on 1 January 2004 was €5 199 million for NV and €2 063 million for PLC.
