Carphone Warehouse 2015 Annual Report Download - page 101

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Dixons Carphone plc Annual Report and Accounts 2014/15
Financial statements
99
4 Non-Headline items
Note
13 months
ended
2 May
2015
£million
Restated
Year
ended
29 March
2014
£million
Included in profit / (loss) before interest and tax:
Amortisation of acquisition intangibles (i) (35) (13)
Exceptional items – CPW Europe Acquisition (ii) — (15)
– Dixons Retail Merger (iii) (41) —
Share of results of joint ventures exited (post-tax) (iv) — (23)
(76) (51)
Included in net finance costs:
Net non-cash finance costs on defined benefit pension schemes (v) (13) —
Total impact on profit / (loss) before tax (89) (51)
Tax on Non-Headline items 15 6
Total impact on profit / (loss) after tax (74) (45)
Non-Headline items also include discontinued operations, which comprise the results of Virgin Mobile France; the Phone House
operations in Germany, the Netherlands, Portugal and France; and Electroworld in the Czech Republic and Slovakia (which had
previously formed part of the discontinued operations of Dixons). The post-tax results of these businesses have been reported
separately and are further described in note 24.
(i) Amortisation of acquisition intangibles:
A charge of £35 million arose during the year in relation to acquisition intangibles arising on the CPW Europe Acquisition and
the Dixons Retail Merger.
(ii) Exceptional items – CPW Europe Acquisition:
13 months
ended
2 May
2015
£million
Year
ended
29 March
2014
£million
CPW Europe Acquisition — (15)
The CPW Europe Acquisition which occurred on 26 June 2013 gave rise to the following exceptional items in the year ended
29 March 2014:
• Professional fees of £7 million, costs of £11 million associated with the early vesting of incentive schemes (of which
£8 million were cash in nature) and a tax credit of £3 million was recognised in respect of these costs.
• A gain of £1 million resulting from the requirement of the Group to fair value its existing 50% interest in CPW Europe,
which was considered to be equal to the £500 million gross consideration for Best Buy’s 50% interest.
• Arrangements with Best Buy allowed the Group to manage the disposal of the Consideration Shares issued to Best Buy,
and to benefit from any gain on disposal above a share price of £1.90. The Consideration Shares were placed at a price of
£2.44, resulting in a net cash gain of £23 million for the Group. The gain implied by comparing the share price at
completion, being £2.38 and £1.90, was treated as an adjustment to consideration and the remaining gain of £2 million
was recorded in the income statement.