Audi 2012 Annual Report Download - page 211

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GROUP OF CONSOLIDATED COMPANIES
In addition to AUDI AG, the Consolidated Financial Statements include all principal companies in
which AUDI AG can directly or indirectly govern the financial and operating policies so as to ob-
tain benefit from the activities of the entities (subsidiaries) in question. Consolidation begins at
that point in time when AUDI AG has control of an entity; it ends when control is lost.
Associated companies are accounted for using the equity method.
Non-consolidated subsidiaries as well as participating interests are always reported at amor-
tized cost because no active market exists for the shares of these companies and no fair value
can reliably be determined with a justifiable amount of effort.
Where there is evidence that the fair value is lower, this fair value is recognized. These subsidiar-
ies are principally companies with only limited business operations. The total equity contributed
by these subsidiaries is 0.9 (1.0) percent of the Group’s equity. The total profit after tax of these
companies amounts to 0.1 (0.1) percent of the Audi Group’s profit after tax.
On July 19, 2012, the Audi Group, through Automobili Lamborghini S.p.A., Sant’Agata Bolognese
(Italy), a subsidiary of AUDI AG, acquired 100 percent of the voting rights in the motorcycle
company DUCATI MOTOR HOLDING S.P.A., Bologna (Italy) in exchange for payment of a purchase
price of EUR 747 million. This acquisition of Ducati – an internationally renowned manufacturer
of motorcycles in the premium segment with huge expertise in high-performance engines and
lightweight construction – marks the Audi Group’s first foray into the growth market of high-end
motorcycles. During the 2011 calendar year, the Ducati Group sold 42,016 motorcycles, generat-
ing revenue amounting to EUR 479 million.
Due to time constraints, it was not possible for the acquired assets and liabilities to be analyzed
in full before publication of the Consolidated Financial Statements. The provisional figure for
goodwill of EUR 290 million includes benefits that cannot be separated out and that are not
based on contractual or other rights, such as the expertise and knowledge of Ducati employees.
Goodwill is not deductible for tax purposes. The transaction-related costs, totaling EUR 1 million
to date, are recognized as an expense.
The provisional allocation of the purchase price to the assets and liabilities is shown in the fol-
lowing table:
EUR million
IFRS carrying
amounts at
acquisition date
Purchase price
allocation
Fair values at the
time of acquisition
Brand names 211 193 404
Customer relations 49 131 180
Other intangible assets 78 17 95
Land and buildings 78 3 81
Other non-current assets 25 8 33
Inventories 83 0 83
Cash and cash equivalents 150 – 150
Other current assets 154 – 154
Total assets 828 352 1,180
Non-current liabilities 106 108 214
Current liabilities 510 – 510
Total debts 616 108 724
The gross value of the acquired receivables at the time of acquisition was EUR 153 million, with
a net carrying amount of EUR 142 million (corresponding to the fair value).