Siemens 2008 Annual Report Download - page 232

136 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated and per share amounts)
Siemens is subject to legal and regulatory proceedings and government investigations in various jurisdictions.
These proceedings are, amongst others, related to the area of competition law and to possible breaches of anti-
corruption legislation in Germany, the Foreign Corrupt Practices Act in the United States and similar legislation
in other countries. Such proceedings may result in criminal or civil sanctions, penalties or disgorgements
against the Company. If it is more likely than not that an obligation of the Company exists and will result in an
outow of resources, a provision is recorded if the amount of the obligation can be reliably estimated. Regula-
tory and legal proceedings as well as government investigations often involve complex legal issues and are sub-
ject to substantial uncertainties. Accordingly, management exercises considerable judgment in determining
whether it is more likely than not that such a proceeding will result in an outow of resources and whether the
amount of the obligation can be reliably estimated. The Company periodically reviews the status of these pro-
ceedings with both inside and outside counsel. These judgments are subject to change as new information
becomes available. The required amount of a provision may change in the future due to new developments in
the particular matter. Revisions to estimates may signicantly affect results of future operations. Upon resolu-
tion of any legal or regulatory proceeding or government investigation, Siemens may incur charges in excess of
the recorded provisions for such matters. It can not be excluded that the nancial condition or results of opera-
tions of Siemens will be materially affected by an unfavorable outcome of legal or regulatory proceedings or
government investigations. See Note 30 for further information.
4 Acquisitions, dispositions and discontinued operations
a) Acquisitions
During the years ended September 30, 2008 and 2007, the Company completed a number of acquisitions. These
acquisitions have been accounted for under the purchase method and have been included in the Company’s
Consolidated Financial Statements since the date of acquisition.
aa) Acquisitions in scal 2008
At the beginning of November 2007, Siemens completed the acquisition of Dade Behring Holdings, Inc. (Dade
Behring), USA, a leading manufacturer and distributor of diagnostic products and services to clinical laborato-
ries. Dade Behring, which was consolidated as of November 2007 will be integrated into Sector Healthcare’s
Diagnostics division and complements the acquisitions of Diagnostic Products Corporation and Bayer Diagnos-
tics. The aggregate consideration, including the assumption of debt, amounts to approximately €4.9 billion
(including €69 cash acquired). The company has not yet nalized the purchase price allocation. Based on the
preliminary purchase price allocation, approximately €1,171 was allocated to intangible assets subject to amorti-
zation and approximately €3,349 was recorded as goodwill. Of the € 1,171 intangible assets, €955 was allocated
to customer relationships, €116 to trademarks and €74 to patented and unpatented technology.
In scal 2008, Siemens completed the acquisitions of a number of entities which are not signicant individually
including BJC, Spain, a supplier of switches and socket-outlets at Sector Industry, Building Technologies Divi-
sion; Innotec, a leading software provider for lifecycle management solutions at Sector Industry’s Industry Auto-
mation division; and the rolling mill technology specialist Morgan Construction Co., USA, at Sector Industry,
Industry Solutions Division. The combined preliminary purchase price of these acquisitions amounts to €302.
ab) Acquisitions in scal 2007
On January 2, 2007, Siemens completed the acquisition of the diagnostic division of Bayer Aktiengesellschaft
(Bayer). The acquisition, which was consolidated as of January 2007, was integrated into Sector Healthcare’s
Diagnostics division. The purchase price, payable in cash, amounts to €4.4 billion (including €185 cash