Registration Document - Pernod Ricard

Within the V&S acquisition, some net assets were classified as heldfor-sale
on initial recognition at the time they were acquired. These
assets held for sale basically comprise the Cruzan brand and related
assets, the Maxxium and Future Brands shares and brands that the
Group has agreed with the European Commission it would sell.
V&S’s other asset and liability items were similarly reviewed
(provisions for contingencies and charges, pensions and other longterm
employee benefits, receivables, etc.).
Fair value adjustments incorporate management estimates,
particularly as regards inventories, provisions, property, plant and
equipment and intangible assets.
Brands – The main brands recorded on the balance sheet are:
ABSOLUT, Ballantine’s, Beefeater, Chivas Regal, Kahlúa, Malibu,
Martell, Mumm, Perrier-Jouët and Montana. Most of these were
recognised at the time of the acquisitions of Seagram, Allied Domecq
and V&S.
Other intangible assets – On 9 September 2005, Pernod Ricard and
SPI Group signed an agreement by which the Group acquired exclusive
NOTE 12 Property, plant and equipment
ANNUAL CONSOLIDATED FINANCIAL STATEMENTS 4
Notes to the annual consolidated fi nancial statements
distribution rights for a period of five years for the Stolichnaya vodka
brand and a number of other brands in markets where SPI Group
owns the distribution rights, notably the United States.
A new agreement was signed between the Group and SPI Group in
March 2008 setting out the terms governing early termination of the
distribution contract in the event of Pernod Ricard acquiring V&S, the
owner of the ABSOLUT brand:
◆ Pernod Ricard continued to distribute Stolichnaya for a transition
period of six months from the date of the V&S acquisition. This
period allowed SPI Group to find a new distributor for its brands.
An impairment provision was therefore recorded against the
exclusive distribution rights at 30 June 2008 to reflect this
cessation of distribution by the Group at the end of the transition
period;
◆ in association with the contract, the Group paid $80 million, part of
which was recorded as a cost related to the acquisition of V&S.
The Group is not dependent on any specific patent or licence.
Movements in the year
Foreign
currency
gains and Other
In euro million
01.07.2007 Acquisitions Depreciation Disposals losses movements 30.06.2008
Land 310 1 - (4) (11) 2 297
Buildings 696 15 - (6) (57) 19 667
Machinery & equipment 1,141 56 - (27) (117) 76 1,128
Other property, plant and equipment 233 27 - (13) (35) (10) 202
Assets in progress 120 122 - (1) (11) (99) 132
Advance on property, plant and equipment 3 4 - (1) (0) (1) 5
GROSS VALUE 2,502 224 - (52) (231) (12) 2,431
Land (6) - (2) 0 1 (0) (7)
Buildings (233) - (25) 2 21 (1) (235)
Machinery & equipment (509) - (92) 23 66 (8) (521)
Other property, plant and equipment (80) - (17) 11 20 7 (60)
DEPRECIATION/AMORTISATION (828) - (136) 36 108 (3) (823)
PROPERTY, PLANT AND EQUIPMENT, NET 1,675 224 (136) (16) (124) (15) 1,608
I REFERENCE DOCUMENT 2008/2009 I PERNOD RICARD 95