Econocom - 2019 Universal registration document

06 consolidated financial statements

notes to the consolidated financial statements

Contingent acquisition-related liabilities 2.4. The contingent acquisition debts include options to commit to buy back non-controlling interests, contingent

At the end of 2019, the Group has call options (and non-controlling shareholders have put options) on the remaining shares it does not already own, allowing it to acquire all or part of the share capital of the following entities: Altabox, Alterway, Asystel Italia, Bizmatica, Econocom Digital Security, Energy Net, Exaprobe, Helis, JTRS and Infeeny. Under these options, Econocom agreed to acquire the shares and also has the right to be sold the shares by the non-controlling shareholders.

consideration and deferred payments, most of which have been granted subject to attainment of future financial targets. They are thus dependent on the estimated future performance of the entities concerned (e.g. EBIT multiples, expected future cash flows, etc.).

The table below shows changes in contingent acquisition-related liabilities over the ژ year.

Total contingent acquisition- related liabilities

Put and call options on non-controlling interests

Contingent consideration

Deferred payments

Current portion

Non-current portion

in € ڳ millions

31 ژ Dec. 2018

100.5

8.2

15.5

124.1

58.9

65.2

Increases against equity or goodwill Disbursements Change in fair value through equity Reclassification Change in fair value through nonrecurring profit or loss (1) Change in fair value through recurring profit or ژ loss (2)

-

-

-

-

(24.7)

(13.6)

(15.0)

(53.3)

(11.8)

-

-

(11.8)

(3.8)

1.3

2.5

(1.4)

7.6

-

6.3

0.4

0.3

-

0.7

31 ژ Dec. 2019 38.0 The offsetting entry for these changes in fair value is recorded within non-recurring operating income and (1) expenses. The offsetting entry for these changes in fair value is included in the profit (loss) from continuing operations. (2) 59.1 3.8 3.0 66.0 28.0

Put options on noncontrolling interests are classified in “Other liabilities”, with changes in fair value recognised in equity.

Contingent consideration and deferred payments are classified within financial liabilities (see note 13.3).

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2019 annual report