Experian 2011 Annual Report Download - page 150

148 Experian Annual Report 2011
Notes to the Group nancial statements continued
44. Contingencies
There are a number of pending and threatened litigation claims involving the Group in North America and Latin America which are being
vigorously defended. The directors do not believe that the outcome of any such pending or threatened litigation will have a materially adverse
effect on the Group’s nancial position. However, as is inherent in legal proceedings, there is a risk of outcomes unfavourable to the Group. In
the case of unfavourable outcomes the Group would benet from applicable insurance recoveries.
45. Related parties
Signicant subsidiary undertakings at 31 March 2011 are shown in note U to the parent company nancial statements. Disclosures in respect of
FARES, the Group’s only individually material associate during the year, are given in note 17.
Remuneration of key management personnel is analysed as follows:
2011
US$m
2010
US$m
Salaries and short-term employee benets 12 12
Retirement benets 1 1
Share-based payments 14 13
27 26
Key management personnel comprises the board of directors and their remuneration is charged to labour costs. The amount included
in respect of share-based payments includes attributable costs in respect of demerger-related equity incentive plans. Further details of
directors’ remuneration are given in the audited part of the report on directors’ remuneration. Other than remuneration, there were no material
transactions or balances between the Group and its key management personnel or members of their close families in either the current or
previous year.
46. Events occurring after the end of the reporting period
Details of the second interim dividend announced since the end of the reporting period are given in note 19.
On 3 May 2011, Experian announced that it had signed a denitive agreement to acquire a majority stake in Computec S.A., a leading Latin
American credit services information provider, based in Colombia. The offer price is equivalent to a valuation of the whole of the equity of
some US$400m. The transaction is subject to regulatory approval and the launching of a delisting tender offer, and is expected to complete in
the second half of this calendar year.
On 5 May 2011, Experian announced an agreement to establish a credit bureau with six of Australia’s leading nancial institutions to provide
consumer and business credit information in Australia. The formation of the joint venture is subject to regulatory approval, on receipt of which
the joint venture company will be established with initial gross assets of A$30m. Experian will own 76% of the entity.
Since the balance sheet date, the Group has also completed two individually immaterial acquisitions. In April 2011, the Group purchased
a further 40% interest in DP Information in Singapore and it now holds a controlling interest in this undertaking. In May 2011 the Group acquired
the whole of the issued share capital of SafetyWeb, Inc, a provider of identity management services in North America. The stake was acquired
from SafetyWeb’s founding shareholders and private equity partners. At 31 March 2011 SafetyWeb, Inc had gross assets of US$3m. A summary
of the provisional net assets acquired and goodwill in respect of these acquisitions is given below.
US$m
Total assets 44
Total liabilities (8)
36
Goodwill 28
64
Satised by:
Cash 36
Fair value of existing stake in associate 23
Recognition of non-controlling interest 5
64
Goodwill represents the synergies, assembled workforce and future growth potential of the businesses acquired and, of the above amount, some
US$7m is expected to be deductible for tax purposes.