Report & accounts 2002 in full - Unilever

90 Notes to the consolidated accounts
Unilever Group
17 Pensions and similar obligations continued
Balance Sheet
The assets, liabilities and surplus/deficit position of the pension and other post retirement benefit plans and the expected rates of return on
the principal plan assets, at the balance sheet date, were:
Unilever Annual Report & Accounts and Form 20-F 2002
€ million € million % € million € million %
31 December 2002 31 December 2001
Other post Long-term Other post Long-term
retirement rates of retirement rates of
Pension benefit return Pension benefit return
plans plans expected plans plans expected
Assets of principal plans:
Equities 7 281 – 8.2% 10 494 – 9.0%
Bonds 3 383 – 4.9% 4 138 – 5.5%
Other 1 644 – 5.4% 1 808 – 6.0%
Assets of other plans 417 2 8.2% 536 3 8.0%
Total plan assets 12 725 2 16 976 3
Present value of liabilities: (a)
Principal plans (15 305) – (15 547) –
Other plans (1 675) (1 042) (1 781) (1 171)
Total present value of liabilities (16 980) (1 042) (17 328) (1 171)
Aggregate net surplus/(deficit) of the plans (4 255) (1 040) (352) (1 168)
Irrecoverable surplus (b) (87) – (265) –
Related deferred tax asset/(liability) 1 058 388 (74) 467
Net pension asset/(liability) (3 284) (652) (691) (701)
Of which in respect of
Funded plans in surplus:
Aggregate surplus 677 – 2 454 –
Irrecoverable surplus (b) (87) – (265) –
Related deferred tax liability (209) – (740) –
Net pension asset
Funded plans in deficit:
381 – 1 449 –
Aggregate deficit (2 575) – (607) –
Related deferred tax asset 808 – 199 –
Net pension liability
Unfunded plans:
(1 767) – (408) –
Aggregate liability (2 357) (1 040) (2 199) (1 168)
Related deferred tax asset 459 388 467 467
Net pension liability (1 898) (652) (1 732) (701)
(a) The basis for valuation of risk benefits has been changed following the issue of UITF 35. The effect has been to increase the liabilities
of the principal plans by €500 million as at 31 December 2002 (2001: €508 million).
(b) The surplus in the plans is only recoverable to the extent that the Group can benefit from either refunds formally agreed or future
contribution reductions.
If the above amounts had been recognised in the financial statements, the Group’s net assets and profit retained would be:
€ million € million € million € million
31 December 2002 31 December 2001
Net assets Profit retained Net assets Profit retained
Unilever Group as reported 6 495 5 777 7 657 6 417
Excluding SSAP 24 net pre-tax liability 3 380 3 344 3 685 3 647
Excluding associated deferred tax asset (691) (679) (843) (830)
Including FRS 17 net liability after tax (3 936) (3 903) (1 392) (1 373)
Net assets/profit retained including FRS 17 pension liability 5 248 4 539 9 107 7 861