Siemens 2007 Annual Report Download - page 227

Notes to Consolidated Financial Statements 227
(in millions of €, except where otherwise stated and per share amounts)
Notes to Consolidated Financial Statements
ab) Acquisitions in fi scal 2006
In the fourth quarter of fi scal 2006, Siemens completed the acquisition of all of
the shares of the immunodiagnostics provider DPC. The acquisition, which is inte-
grated into Med, enables Siemens to expand its existing healthcare solutions port-
folio. Acquisition costs were payable in cash and amounted to €1,416 (including
€94 cash acquired). DPC is consolidated as of August 2006. The purchase price
allocation resulted in €267 intangible assets subject to amortization and €774
goodwill. Of the €267 intangible assets, €196 relate to customer relationships with
a weighted average useful life of 11 years and €54 to trademarks and tradenames
with a weighted average useful life of 10 years.
In fi scal 2006, the Company acquired a number of other entities, which are
also not signifi cant individually, including the coal gasifi cation business of the
Swiss Sustec-Group, Wheelabrator Air Pollution Control, Inc., USA, a supplier of
air pollution control and reduction products and solutions for the coal-fi red power
and industrial markets, both at PG, Electrium Limited, UK, a vendor of electrical
installation systems at A&D and Bewator, Sweden, a supplier of products and sys-
tems for access control solutions at Siemens Building Technologies (SBT). The
combined preliminary purchase price of these acquisitions amounts to €425.
The Company made certain other acquisitions during the years ended Septem-
ber 30, 2007 and 2006, which did not have a signifi cant effect on the Consolidated
Financial Statements.
b) Dispositions
ba) Dispositions in fi scal 2007
In April 2007, Siemens contributed its carrier-related operations and Nokia Corpo-
ration (Nokia), Finland contributed its Networks Business Group into Nokia Sie-
mens Networks B.V., the Netherlands (NSN), in exchange for shares in NSN. Sie-
mens and Nokia each own an economic share of approximately 50% of NSN. The
transaction resulted in a preliminary non-cash pre-tax gain of €1,627 which is
included in discontinued operations.
Siemens has the ability to exercise signifi cant infl uence over operating and
fi nancial policies of NSN and beginning April 2007 reports its equity interest in
NSN in Investments accounted for using the equity method and its share of income
(loss) in NSN in Income (loss) from investments accounted for using the equity
method, net (see Notes 7 and 36 for further information).
At the beginning of October 2006, the Company sold Siemens Dispolok GmbH,
Germany, which was part of the Group Transportation Systems (TS), to Mitsui
Group. The transaction resulted in a pre-tax gain, net of related costs of €76,
which is included in Other operating income.