APC 2011 Annual Report Download - page 169

1672011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC
CONSOLIDATED FINANCIAL STATEMENTS
5
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.1 – Acquisition of Areva T&D’s Distribution business in 2010
In accordance with standard IFRS3R, Schneider Electric valued the assets acquired and liabilities assumed at their fair value on the date of
acquisition. The fi nal allocation of the acquisition price breaks down as follows:
Areva Distribution
Before allocation of
acquisition price Allocation of acquisition price After allocation of acquisition price
Acquisition price 1,208
Cash and cash equivalents 33 - 33
Current assets 992 (23) 969
Non current assets 437 139 576
Total assets 1,462 116 1,578
Financial liabilities 45 - 45
Non-current liabilities excluding debt 167 156 323
Current liabilities excluding debt 799 67 866
Non-controlling interests 34 (18) 16
Total liabilities 1,045 205 1,250
GOODWILL 880
The valuation of the assets acquired at their fair value led
principally to the recognition of intangible assets in the amount of
EUR159 million (technology, backlog, inventories and customer
relationships) and to revaluations of property, plant and equipment
in the amount of EUR26 million; these assets were valued by
independent experts. Contingent liabilities were recognised for a
total amount of EUR199million. The goodwill is not tax-deductible.
On December 31, 2010, the main elements of the provisional
computation were:
•contingent liabilities, for the identifi cation of risks, particularly
tax, was not completed at the close of business on
December31,2010;
•tangible assets, because the estimated fair value of these assets
was in progress;
•intangible assets, because the assumptions used to value the
technology has been refi ned in 2011.
On December 31, 2010, the Distribution business of Areva
T&D’s, had been included to the scope of consolidation from the
acquisition date, i.e. June7, 2010. If Distribution business of Areva
T&D’s had been acquired from January1, 2010, then the effect on
the consolidated income statement i n 2010 would have been as
follows:
Group
excluding Areva
Distribution
Contribution of
ArevaD since
acquisition Group
published
ArevaD from
January1, to
Jun.7
Group including
ArevaD since
January1
Revenue 18,350 1,230 19,580 648 20,228
EBITA 2,846 85 2,931 9 2,940
% 15.5% 6.9% 15.0% 1.4% 14.5%
Restructuring costs (96) (96) (5) (101)
Other operating income and expenses 8 8 8
Adjusted EBITA* 2,934 85 3,019 14 3,033
% 16.0% 6.9% 15.4% 2.2% 15.0%
* Adjusted EBITA: EBITA before Restructuring costs and Other income and expenses (of which Costs of acquisition, integration
andseparation).
Comparative data in 2010 did not require a change in 2011 because the impacts related to changes in fair value recognized as part of the
acquisition were not signifi cant across the Schneider Group balance sheet and income statement also.