BAE-annual-report-2014
BAE-annual-report-2014
BAE-annual-report-2014
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Financial statements<br />
NOTES TO THE GROUP ACCOUNTS<br />
CONTINUED<br />
26. ACQUISITIONS continued<br />
Fair values<br />
The acquisitions had the following effect on the Group’s assets and liabilities:<br />
SilverSky<br />
£m<br />
Intangible assets 81 – – 81<br />
Property, plant and equipment 7 – – 7<br />
Inventories – 1 – 1<br />
Receivables 8 6 1 15<br />
Deferred tax assets 14 – – 14<br />
Payables (11) (4) – (15)<br />
Deferred tax liabilities (31) – – (31)<br />
Cash and cash equivalents 2 1 – 3<br />
Net assets acquired 70 4 1 75<br />
Goodwill 79 117 12 208<br />
Fair value of net assets acquired and goodwill arising 149 121 13 283<br />
SDT<br />
£m<br />
SIG<br />
£m<br />
Total<br />
£m<br />
Cash consideration (note 24) 149 72 12 233<br />
Amounts payable in respect of purchase price adjustments – – 1 1<br />
Consideration 149 72 13 234<br />
Carrying value of existing 40% shareholding in SDT (note 12) – 2 – 2<br />
Fair value gain on existing 40% shareholding in SDT (note 4) – 47 – 47<br />
Fair value of net assets acquired and goodwill arising 149 121 13 283<br />
The intangible assets acquired as part of the acquisition of SilverSky of £81m include customer relationships (£47m), software (£30m)<br />
and order backlog (£4m).<br />
Receivables include trade receivables with a fair value and gross contractual value of £10m, which are expected to be fully recoverable.<br />
The goodwill is not expected to be deductible for tax purposes.<br />
148<br />
<strong>BAE</strong> Systems<br />
Annual Report <strong>2014</strong>
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