Siemens 2008 Annual Report Download - page 233

Notes to Consolidated Financial Statements 137
(in millions of €, except where otherwise stated and per share amounts)
acquired). Based on the nal purchase price allocation, €753 was allocated to intangible assets subject to amorti-
zation and €2,735 to goodwill. Of the €753 intangible assets, €573 relate to customer relationships with a
weighted average useful life of 14 years and €139 to trademarks and tradenames with a weighted average useful
life of 10 years.
On May 4, 2007, Siemens completed the acquisition of U.S.-based UGS Corp. (UGS), one of the leading providers
of product lifecycle management (PLM) software and services for manufacturers. UGS was integrated into Sector
Industry’s division Industry Automation and consolidated as of May 2007. The acquisition enables Siemens to
provide an end-to-end software and hardware portfolio for manufacturers encompassing the complete lifecycle
of products and production facilities. The acquisition costs including the assumption of debt, amount to €2.752
billion (including €75 cash acquired). Based on the nal purchase price allocation, €1,094 was allocated to intan-
gible assets subject to amortization and approximately €1,983 was recorded as goodwill. Of the €1,094 intangi-
ble assets, €294 relate to customer relationships with a weighted average useful life of 12 years and €718 to tech-
nology with a weighted average useful life of 7 years.
The Company made certain other acquisitions during the years ended September 30, 2008 and 2007, which did
not have a signicant effect on the Consolidated Financial Statements.
b) Dispositions and discontinued operations
Siemens VDO Automotive (SV) – discontinued operation
At the beginning of December 2007, Siemens sold its SV activities to Continental AG, Hanover, Germany for a
sales price of approximately €11.4 billion. The transaction resulted in a preliminary gain, net of related costs of
€5,522, which is included in discontinued operations. The historical results of SV are reported as discontinued
operations in the Consolidated Statements of Income for all periods presented.
The assets and liabilities of SV were presented as held for disposal on the balance sheet as of September 30, 2007
and measured at the lower of their carrying amount and fair value less costs to sell. The carrying amounts of the
major classes of assets and liabilities of SV were as follows:
September 30,
2007
Trade and other receivables 1,917
Inventories 989
Goodwill 1,543
Property, plant and equipment 2,030
Deferred tax assets 1,334
Other assets* 1,291
Assets classified as held for disposal 9,104
Trade payables 1,402
Current provisions 245
Other current liabilities 596
Pension plans and similar commitments 359
Other liabilities 445
Liabilities associated with assets classified as held for disposal 3,047
* As of September 30, 2007, this caption includes €185 of cash and cash equivalents.