G4S Annual Report and Accounts 2011

Governance Financial statements Shareholder information
17 Acquisitions continued
At 31 December 2010, the fair value adjustments made against net assets acquired were provisional. The initial accounting in respect of acquisitions made
during 2010 has since been finalised. The net assets acquired and goodwill arising in respect of all acquisitions made in the year are as follows:
Fair value
£m
Intangible assets 13
Property, plant and equipment 1
Inventories 3
Trade and other receivables 9
Cash and cash equivalents 6
Trade and other payables (10)
Current tax liabilities (1)
Provisions (7)
Borrowings (4)
Deferred tax liabilities (3)
Net assets acquired of subsidiary undertakings 7
Goodwill 58
Total purchase consideration 65
Satisfied by:
Cash 42
Contingent consideration 23
Total purchase consideration 65
Summary of prior year acquisition activities
Goodwill recognised on prior year acquisitions 58
Goodwill recognised in the prior year relating to acquisitions completed in previous years 12
Total goodwill recognised in the prior year 70
Adjustments made to identifiable assets and liabilities on acquisition are to reflect their fair value. These include the recognition of customer-related
intangible assets amounting to £12m.
On completion of the fair value exercise during 2011, adjustments made to the provisional calculation of identifiable assets and liabilities amounted to £12m,
with an equivalent increase in the reported value of goodwill. The comparative consolidated statement of financial position at 31 December 2010 has been
restated accordingly.
The goodwill arising on acquisitions can be ascribed to the existence of a skilled, active workforce and the opportunities to obtain new contracts and
develop the business. Neither of these meet the criteria for recognition as intangible assets separable from goodwill.
In the year of acquisition, in aggregate, the acquired businesses contributed £23m to revenues, £2m to PBITA and £1m to profit for the part year they were
under the group’s ownership. If all acquisitions had occurred on 1 January 2010, group revenue would have been £7,293m, PBITA would have been £535m
and profit for the year would have been £249m.
Post balance sheet acquisitions
No significant acquisitions have been effected between the balance sheet date and the date that the financial statements were authorised for issue.
G4S plc
Annual Report and Accounts 2011
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