CONSOLIDATED FINANCIAL STATEMENTS >
EXPLANATORY NOTES
162
| 2013 ANNUAL REPORT | PRYSMIAN GROUP
Details of the fair values of the assets/liabilities acquired are as follows:
Details of the cost of acquisition of Prysmian PowerLink Services Ltd (formerly Global Marine Systems Energy Ltd) and the
related cash outlay are as follows:
The acquisition has given rise to Euro 38 million in goodwill.
Such goodwill is essentially justified by expected synergies
relating to submarine system installation projects.
If the company had been consolidated from 1 January 2012,
its contribution to sales revenue would have been difficult to
determine because its main contracts were transferred and
started only just before the acquisition.
Assets and liabilities recognised as a result of acquisition are
classified in Level 3 of the fair value hierarchy.
(in millions of Euro)
Total acquisition cost (A)
52
Price adjustment receivable (B)
3
Fair value of net assets acquired (C)
11
Goodwill (A)-(B)-(C)
38
Financial outlay for acquisition
52
Cash and cash equivalents held by acquired company
(1)
Acquisition cash flow
51
(in millions of Euro)
Fair value
Property, plant and equipment
43
Inventories
1
Trade and other receivables
11
Trade and other payables
(16)
Borrowings from banks and other lenders
(11)
Provisions for risks and charges
(18)
Cash and cash equivalents
1
Net assets acquired (C)
11
G.
SEGMENT INFORMATION
The criteria used for identifying reportable segments
are consistent with the way in which management runs
the Group.
In particular, segment information is structured in the same
way as the report periodically reviewed by the Chief Executive
Officer for the purposes of managing the business. In fact,
the Chief Executive Officer reviews operating performance
by macro type of business (Energy and Telecom), assesses
the results of operating segments primarily on the basis
of Adjusted EBITDA, defined as earnings (loss) for the
period before non-recurring items (eg. restructuring costs),
amortisation, depreciation and impairment, finance costs and
income, and taxes, and reviews the statement of financial
position for the Group as a whole, and not by operating
segment.
In order to provide users of the financial statements with
clearer information, certain economic data is also reported for
the following sales channels and business areas within the
individual operating segments:
A) Energy operating segment:
1. Utilities: organised in four lines of business, comprising
High Voltage, Power Distribution, Accessories and
Submarine;
2. Trade & Installers: cables and systems for the trade
