Vodafone 2000 Annual Report Download - page 50

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Vodafone AirTouch Plc Annual Report & Accounts for the year ended 31 March 2000
48
Notes to the Consolidated Financial Statements continued
21 Acquisitions and disposals continued
Pre-merger results of AirTouch Communications, Inc.
The summarised profit and loss accounts and statements of total recognised gains and losses of AirTouch Communications, Inc. prepared
under US GAAP for the 6 months ended 30 June 1999 and the year ended 31 December 1998, and translated at the average exchange rate
for these periods of £1 = $1.61 and £1 = $1.66, respectively, are given below.
6 months ended 12 months ended
30 June 1999 31 December 1998
£m £m
Profit and loss account
Turnover 1,811 3,120
Operating costs (1,490) (2,550)
–––––––– ––––––––
Operating profit 321 570
Joint ventures and associated undertakings 227 236
Minority interests (57) (108)
Merger related costs (74) –
Miscellaneous income 57 2
Net interest payable (44) (73)
–––––––– ––––––––
Profit before taxation 430 627
Taxation (136) (190)
–––––––– ––––––––
Profit after taxation 294 437
–––––––– ––––––––
Statement of total recognised gains and losses
Profit after taxation 294 437
Foreign currency translation (loss)/gain (55) 5
Other gains and losses (18) –
–––––––– ––––––––
221 442
–––––––– ––––––––
CommNet Cellular Inc.
On 6 January 2000 the Group acquired CommNet Cellular Inc., a cellular network operator in the US, for a cash consideration of £459m.
The composition of net liabilities acquired is given below.
Balance sheet Fair value Accounting policy Fair value
at acquisition adjustments(1) conformity(2) balance sheet
£m £m £m £m
Intangible fixed assets 110 – (110) –
Tangible fixed assets 115 (12) – 103
Trade debtors 18 – – 18
Other net current assets 18 (14) – 4
Short term debt (449) – – (449)
–––––––– –––––––– –––––––– ––––––––
Net liabilities (188) (26) (110) (324)
–––––––– –––––––– ––––––––
Goodwill 783
––––––––
Cash consideration 459
––––––––
Notes
1. The fair value adjustments, which primarily comprise the revaluation of certain tangible fixed assets and the write-off of deferred costs, are provisional and may be
subject to adjustment in the year ending 31 March 2001.
2. Elimination of acquired intangibles.
The loss after tax of CommNet Cellular Inc. for the 3 months ended 31 December 1999 was £1m (prepared under US GAAP and translated
at the average exchange rate for the period of £1=$1.62) and the profit after tax of CommNet Cellular Inc. for the year ended 30 September
1999 was £16m (prepared under US GAAP and translated at the average exchange rate for the year of £1 = $1.63).
Other acquisitions
The Group undertook a number of other acquisitions in the year for an aggregate consideration of £1,318m. The aggregate net liabilities
acquired as a result of these transactions was £3m, with goodwill of £1,321m resulting. Goodwill comprised £112m, £70m, £1,130m and
£9m in respect of acquired subsidiary undertakings, joint ventures, associated undertakings and customer bases, respectively. No significant
fair value adjustments were made to the acquired net assets or liabilities.
Disposal of interest in associated undertaking
In December 1999, the Group disposed of its interest in Martin Dawes Telecommunications Limited. The cash consideration received by the
Group in respect of the disposal was £27m. Goodwill amounting to £18m, which was previously written off to reserves, has been reinstated
and charged in the profit and loss account.