Download - Ferrovial - Annual Report 2012

Consolidated financial statements at 31 December 2011
Ferrovial S.A. and Subsidiaries
Investments in environmental activities are measured at acquisition cost and are capitalised to the cost of non-current assets in the
year in which they are made, applying the methods described in Note 3 on “Accounting Policies”.
Costs incurred to protect and improve the environment are taken to the income statement when incurred, irrespective of when the
related monetary or financial flow takes place.
Provisions for probable or certain environmental liability, litigation in progress and indemnities or other outstanding obligations of
undetermined amount not covered by insurance policies are recorded when the liability or obligation giving rise to the indemnity or
payment arises.
25. Fair value adjustments
The “Fair Value Adjustments” column relates to gains and losses arising as result of changes in the fair value of derivatives, other
financial assets and liabilities and impairment losses on assets and liabilities. Specifically, in 2011 there were three items with a
significant impact: the remeasurement at fair value of the interest retained in BAA (see Notes 1.2 and 2), the impairment losses
recognised on certain assets (see Note 26), and the impact of the revaluation of derivatives that are not considered effective the
changes of the value of which are recognised in the income statement (see Notes 12 and 29).
26. Impairment and disposals of non-current assets and Other Non-recurring effects
In addition to the revaluations and impairment losses included in the fair value adjustments, this line item includes the gains and losses
on disposals recognised and other non-recurring effects.
The detail of the main gains and losses relating to impairment and disposals is as follows:
Gains and losses recognised in 2011:
Millions of euros
Before fair
value
adjustments
Impact on profit or
loss before tax
Fair
value
adjustments
2011 Total
Impact
on net
profit or
loss
Gains from disposals:
Swissport 195 0 195 200
Total services 195 0 195 200
Gains from disposals:
Trados 45 41 0 41 27
Chilean toll roads -6 0 -6 -6
Impairment losses 0 -87 -87 -66
Total Cintra 34 -87 -52 -45
Impairment and gains and losses on disposals of non-current assets
and Other Non-recurring effects
229 -87 142 154
Gains
On 17 February Ferrovial Servicios sold the ownership interest it held in Swissport, which was classified as held for sale in the
consolidated financial statements for 2010. This transaction gave rise to the recognition of a gain of EUR 195 million (EUR 200 million
in the net profit attributable to the Parent).
In addition, on 20 January, Cintra completed the process to sell its ownership interest of 50% in Autopista Trados 45 to FINAVIAS, an
investment vehicle for the infrastructure funds of AXA Private Equity. The gain on this transaction amounted to EUR 41 million (EUR 27
million in profit attributable to the Parent).
Also in the Toll Roads Division, on 16 November it was agreed with the Colombian company ISA to sell the remaining 40% held by
Cintra in Cintra Chile following the transaction to sell 60% in 2010. The loss incurred in 2011 amounted to EUR 6 million and relates
mainly to translation differences arising on the ownership interest held until the date of the sale.
Impairment
An impairment loss of EUR 87 million was recognised within the Toll Roads Division (EUR -66 million effect on net profit) in relation to
the portfolio of European toll roads due to the negative evolution thereof in 2011 and the updated long-term assumptions relating to
these toll roads based on the methodology described in Note 6. These impairment losses were recognised under various headings in
the balance sheet. A balancing item of EUR -55 million was recognised under "Provisions" (see Note 19), EUR -25 million was
Ferrovial, S.A. Consolidated financial statements at 31 December 2011 81