Barclays 2008 Annual Report Download - page 251

3
Financial statements
39 Acquisitions
The Group made the following material acquisitions in 2008:
Acquisition Gains on
date acquisitions Goodwill
£m £m
Lehman Brothers North American businesses (a) 22nd September 2008 2,262 –
Macquarie Bank Limited residential
mortgage businesses (b)
6th November 2008 52 –
Goldfish credit card UK businesses
(b) 31st March 2008 92 –
Expobank (100% of ordinary shares) (c) 1st July 2008 – 243
Gains on acquisitions 2,406
(a) Lehman Brothers North American businesses
On 22nd September 2008, the Group completed the acquisition of Lehman Brothers North American businesses.
The assets and liabilities of Lehman Brothers North American businesses after the acquisition, details of the purchase price and the gain on acquisition
arising were as follows:
Fair
values
£m
Assets
Cash and balances at central banks 861
Trading portfolio assets 23,837
Loans and advances to customers 3,642
Available-for-sale financial investments 1,948
Other assets 41
Intangible assetsa888
Property, plant and equipment 886
Deferred tax asset 229
Total assets 32,332
Liabilities
Customer accounts 2,459
Derivative financial instruments 599
Repurchase agreements and cash collateral on securities lent 24,409
Other liabilities 1,049
Deferred tax liabilities 517
Total liabilities 29,033
Net assets acquired (excludes Obligation to be settled in shares) 3,299
Obligation to be settled in sharesb(163)
Acquisition cost
Cash paid 834
Attributable costs 40
Total consideration 874
Gain on acquisition 2,262
The acquired assets and liabilities summarised in the table above do not represent the entire balance sheet of Lehman Brothers North American
businesses, or of discrete business lines within those operations. For this reason it is not practical to reliably determine the carrying amount of the
assets and liabilities in the pre-acquisition books and records of Lehman Brothers.
Barclays PLC Annual Report 2008 249
Notes
aIntangible assets included an amount of £636m relating to customer lists.
bUnder the terms of the acquisition, the Group assumed an obligation to make payments to employees of the acquired business in respect of their pre-acquisition service provided to
Lehman Brothers. This amount represents the equity-settled portion of that obligation and is recognised as a component of shareholders’ equity.