Nokia 2010 Annual Report Download - page 227

9. Acquisitions (Continued)
The following table summarizes the estimated fair values of the assets acquired and liabilities
assumed at the date of acquisition.
Carrying Amount Fair Value
EURm EURm
Goodwill ..................................................... — 470
Intangible assets subject to amortization:
Developed technology .......................................... 5 41
Customer relationships .......................................... — 11
License to use trade name and trademark .......................... — 3
555
Property, plant & equipment ..................................... 33 31
Deferred tax assets ............................................. 7 19
Noncurrent assets ............................................. 45 105
Accounts receivable ............................................ 20 20
Prepaid expenses and accrued income ............................. 43 43
Bank and cash ................................................ 147 147
Current Assets ................................................. 210 210
Total assets acquired .......................................... 255 785
Deferred tax liabilities .......................................... — 17
Accounts payable .............................................. 5 5
Accrued expenses .............................................. 48 53
Financial liabilities ............................................. — 20
Total liabilities assumed ....................................... 53 95
Net assets acquired ........................................... 202 690
Revaluation of previously held interests in Symbian ................... 22
Nokia share of changes in Symbian’s equity after each stage of the
acquisition ................................................. 27
Cost of the business combination ............................... 641
The goodwill of EUR 470 million has been allocated to the Devices & Services segment. The goodwill
is attributable to assembled workforce and the significant benefits that the Group expects to realise
from the Symbian Foundation. None of the goodwill acquired is expected to be deductible for income
tax purposes.
The contribution of the Symbian OS and S60 software to the Symbian Foundation has been accounted
for as a retirement. Thus, the Group has recognised a loss on retirement of EUR 165 million consisting
of EUR 55 million book value of Symbian identifiable intangible assets and EUR 110 million book
value of capitalised S60 development costs.
For NAVTEQ and Symbian, the Group has included net losses of EUR 155 million and EUR 52 million,
respectively, in the consolidated income statement. The following table depicts pro forma net sales
and operating profit of the combined entity as though the acquisition of NAVTEQ and Symbian had
occurred on 1 January 2008:
Pro forma 2008
EURm
Net sales .................................................................... 51063
Net profit ................................................................... 4080
During 2008, the Group completed five additional acquisitions. The total purchase consideration paid
F39
Notes to the Consolidated Financial Statements (Continued)