Nokia 2007 Annual Report Download - page 178

8. Acquisitions (Continued)
Carrying Amount Fair Value Useful lives
EURm EURm
Deferred tax liabilities ................................ 171 997
Longterm interestbearing liabilities .................... 34 34
Noncurrent liabilities................................. 205 1031
Shortterm borrowings ................................ 231 213
Accounts payable .................................... 1539 1491
Accrued expenses .................................... 1344 1502
Provisions .......................................... 463 397
Current liabilities .................................... 3577 3603
Total liabilities assumed ............................. 3 782 4 634
Minority interest.................................... 110 108
Net assets acquired ................................. 2 385 3 995
Cost of Acquisition ................................... 5500
Goodwill .......................................... 1 505
Less noncontrolling interest in goodwill ................. 753
Plus costs directly attributable to the acquisition ........... 51
Goodwill arising on formation of Nokia Siemens
Networks ........................................ 803
The goodwill of EUR 803 million has been allocated to the Nokia Siemens Networks segment. The
goodwill is attributable to assembled workforce and the synergies expected to arise subsequent to
the acquisition. None of the goodwill acquired is expected to be deductible for income tax purposes.
The amount of the loss specifically attributable to the business acquired from Siemens since the
acquisition date included in the Group’s profit for the period has not been disclosed as it is not
practicable to do so. This is due to the ongoing integration of the acquired Siemens’ carrierrelated
operations and Nokia’s networks business, and management’s focus on the operations and results of
the combined entity, Nokia Siemens Networks.
During 2007, the Group completed the acquisition of the following three companies. The purchase
consideration paid and goodwill arising from these acquisitions was not material to the Group.
• Enpocket Inc., based in Boston, USA, a global leader in mobile advertising providing technology
and services that allow brands to plan, create, execute, measure and optimise mobile
advertising campaigns around the world. The Group acquired 100% ownership interest in
Enpocket Inc. on October 5, 2007.
• Avvenu Inc., based in Palo Alto, USA, provides internet services that allow anyone to use their
mobile devices to securely access, use and share personal computer files. The Group acquired
100% ownership interest in Avvenu Inc. on December 5, 2007.
• Twango, provides a comprehensive media sharing solution for organising and sharing photos,
videos and other personal media. The Group acquired substantially all assets of Twango on
July 25, 2007.
Goodwill and aggregate net assets acquired in these transactions has been allocated to Common
Group Functions, Enterprise Solutions segment and Multimedia segment.
Acquisitions completed in 2006
On February 10, 2006, the Group completed its acquisition of all of the outstanding common stock of
F35
Notes to the Consolidated Financial Statements (Continued)