Barclays 2007 Annual Report Download - page 223

3
Financial statements
Barclays PLC Annual Report 2007 221
38 Acquisitions (continued)
Details of the net assets of material companies acquired and consideration paid were as follows:
Carrying
value pre- Fair value
acquisition adjustments 2007
£m £m £m
Assets
Cash and balances at central banks 51 – 51
Assets designated at fair value 133 – 133
Goodwill 41 (41) –
Property, plant and equipment 7–7
Other assets 19 – 19
Intangible assets –5353
Deferred tax assets 10 – 10
Total assets 261 12 273
Liabilities
Deposits from banks 162 – 162
Deferred tax liabilities –44
Other liabilities 98 (38) 60
Total liabilities 260 (34) 226
Net assets acquired 47
Goodwill 267
Total 314
The excess of proceeds over the net assets acquired has generated goodwill of £267m, based on the exchange rate at the date of acquisition and is
attributable to the operational synergies and earnings potential expected to be realised over the longer term.
In aggregate, the acquired businesses generated a loss of (£15m) to consolidated profit before tax for the period from acquisition date to 31st December 2007.
If all of the above acquisitions had occurred on 1st January 2007 the impact on total Group income and net profit for the year would have been immaterial.
2007
£m
Acquisition cost
Cash paid 297
Deferred consideration 11
Attributable costs 6
Total consideration 314
Cash outflows in respect of acquisitions
The aggregate net outflow of cash from the acquisition of the above Group entities was as follows:
2007
£m
Cash paid 297
Cash and cash equivalents acquired (51)
Net cash outflow on acquisition 246
Cash paid in respect of acquisition of shares in Barclays Global Investors UK Holdings Limited 488
Cash paid in respect of acquisition of shares in Absa Bank Limited 180
Increase in investment in subsidiaries 668
39 Investment in subsidiaries
The investment in Barclays Bank PLC is stated in the balance sheet of Barclays PLC at a cost of £10,186m (2006: £8,641m). The increase of £1,545m
(2006: £179m) during the year represents the cost of additional shares of £111m (2006: £179m) and a capital contribution of £1,434m (2006: £nil).
The investment in Barclays Investments (Netherlands) N.V. is stated in the balance sheet of Barclays PLC at a cost of £205m (2006: £nil). The increase
of £205m (2006: £nil) during the year represents the cost of the initial share issue.
The investment in Odysseus Jersey (No. 1) Limited is stated in the balance sheet of Barclays PLC at a cost of £0.1m (2006: £nil). The increase of £0.1m
(2006: £nil) during the year represents the cost of the initial share issue.