Vodafone 2015 Annual Report Download - page 168

28. Acquisitions and disposals (continued)
The purchase price allocation is set out in the table below:
Fair value
£m
Net assets acquired:
Identiable intangible assets13,000
Property, plant and equipment 2,017
Inventory 89
Trade and other receivables (net of provisions of £285 million) 1,745
Current and deferred taxation (155)
Short and long-term borrowings (19)
Trade and other payables (2,415)
Provisions (96)
Post employment benets (52)
Net identiable assets acquired 4,114
Goodwill23,007
Total consideration 7,121
Notes:
1 Identiable intangible assets of £3,000 million consisted of customer relationships of £1,319 million, licences and spectrum of £1,319 million and software of £362 million.
2 The goodwill is attributable to (i) efciencies from the ability to operate the business as a wholly owned subsidiary; (ii) the non-recognition of certain intangible assets such as the assembled
workforce; and (iii) the value attributable to access future customers.
Disposals
Verizon Wireless (‘VZW’)
On 21 February 2014, the Group sold its US sub-group which included its entire 45% shareholding in VZW to Verizon Communications Inc. for a total
consideration of £76.7 billion before tax and transaction costs. The Group recognised a net gain on disposal of £44,996 million, reported in prot for
the nancial year from discontinued operations.
£m
Net assets disposed (27,957)
Total consideration176,716
Other effects2(3,763)
Net gain on disposal3,4 44,996
Notes:
1 Consideration of £76.7 billion comprises cash of £35.2 billion, shares in Verizon Communications Inc. of £36.7 billion, loan notes issued by Verizon Communications Inc. of £3.1 billion and
a 21.3%interest in Vodafone Italy valued at £1.7 billion.
2 Other effects include foreign exchange losses transferred to the consolidated income statement.
3 Reported in prot for the nancial year from discontinued operations in the consolidated income statement.
4 Transaction costs of £100 million were charged in the Group’s consolidated income statement in the year ended 31 March 2014.
The Group did not separately value the embedded derivatives arising from the agreement to sell the US sub-group for a xed consideration
on 2 September 2013 because it was not able to make a reliable estimate of the value of this derivative due to the difculty in estimating the fair
value of the shares in an unlisted entity in the period between 2 September 2013 and transaction completion on 21 February 2014.
Vodafone Omnitel B.V. (‘Vodafone Italy’)
On 21 February 2014, the Group completed a deemed disposal of its entire 76.9% shareholding in Vodafone Italy as part of the VZW disposal deal for
a total consideration of £5.5 billion before tax and transaction costs. The Group recognised a net loss on disposal of £712 million, reported in other
income and expense.
£m
Net assets disposed (8,480)
Total consideration 5,473
Other effects12,295
Net loss on disposal2(712)
Notes:
1 Other effects include foreign exchange gains transferred to the consolidated income statement.
2 Reported in other income and expense in the consolidated income statement.
Vodafone Group Plc
Annual Report 2015
166
Notes to the consolidated nancial statements (continued)