Notes to the Interim Report & Accounts
(unaudited)
4 Exceptional items
Items which are material either because of their size or their nature, or which are non-recurring, are presented within their relevant consolidated income statement category, but highlighted separately on the face of the income statement. The separate reporting of exceptional items helps provide a better picture of the Company’s underlying performance. Items which may be included within the exceptional category include:
- profits/(losses) on disposal of businesses;
- spend on the integration of significant acquisitions;
- significant goodwill or other asset impairments;
- income and expenditure relating to John Crane, Inc. asbestos litigation; and
- other particularly significant or unusual items.
An analysis of the amounts presented as exceptional items in these financial statements is given below:
|
|
Period ended |
Period ended |
Period ended |
|
Operating items |
|
|
|
|
Integration of acquisitions |
(2.4) |
(5.0) |
(9.0) |
|
Impairment of goodwill and other assets |
|
|
(10.3) |
|
Profit/(loss) on disposal of businesses (note 11) |
27.0 |
14.5 |
(5.2) |
|
Aborted transaction costs |
|
|
(12.7) |
|
Litigation |
|
|
|
|
– Commutation of insurance policies (note 15) |
|
42.9 |
42.9 |
|
– Provision for John Crane, Inc. litigation (note 15) |
(5.7) |
(44.3) |
(100.7) |
|
– Provision for other litigation (note 15) |
|
|
(8.6) |
|
– Class action settlement |
|
|
5.4 |
|
|
18.9 |
8.1 |
(98.2) |
|
Financing items |
|
|
|
|
Exceptional finance costs – adjustment to discounted provision (note 15) |
(2.5) |
|
|
|
|
16.4 |
8.1 |
(98.2) |
Restructuring costs in connection with the integration of Medex amounting to £2.4m (period ended 3 February 2007 £5.0m; period ended 31 July 2007 £9.0m) were incurred in the period. The charge of £5.7m in respect of John Crane, Inc. asbestos litigation arises from changes in US interest rates (see note 15) and does not represent a change in the assessment of the gross cash flows expected to be incurred before discount.