History   

The sale of American Water Works Company Inc., Wilmington / Delaware, USA, was initiated in fiscal 2007. The companies assigned to the Water Division thus far have been reported as discontinued operations since December 31, 2007. In accordance with IFRS 5, the prior-year figures in the income statement have been adjusted; the prior-year figures in the balance sheet and cash flow statement, however, have not been adjusted.

On April 23, 2008, RWE sold 58 million shares in American Water on the New York Stock Exchange at a price of US$ 21.50 per share. Furthermore, approximately five million additional shares were sold to the underwriters at the aforementioned issuance price as a result of their exercise of an over-allotment option (“greenshoe”). The share of American Water remaining after the sale as of September 30, 2008, was about 60 %. Therefore, RWE still holds the majority of the voting rights. The carrying amount of American Water’s assets and liabilities allocable to the shares sold is stated as part of the minority interest.

In accordance with IFRS 5, discontinued operations are recognized at the lower of the carrying amount and the fair value, less costs to sell. The issuance price of the share placement was already taken into account when measuring American Water as of March 31, 2008.

Key figures for the activities of American Water are presented in the following tables:

Key figures for American Water
€ million

09/30/08

12/31/07

1

Excluding depreciation (or amortization) in accordance with IFRS 5.25.

Non-current assets

7,905

8,290

Current assets

344

329

Non-current liabilities

5,362

5,210

Current liabilities

806

687

 

 

 

 

 

 

€ million

Jan – Sep
20081

Jan – Sep
2007

Revenue

1,161

1,226

Expenses / income

–854

–1,029

Ordinary income from discontinued operations before tax

307

197

Taxes on income

–122

–56

Net income

185

141

Fair value adjustments

–783

 

Income from discontinued operations

–598

141

 

 

 

 

 

 

€ million

Jan – Sep
2008

Jan – Sep
2007

Cash flows from operating activities

288

353

Cash flows from investing activities

–487

–406

Cash flows from financing activities

195

137


 

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