Samsung 2014 Annual Report Download - page 108

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Financial Statements
36. Business Combination
Samsung Electronics America, the Group’s subsidiary, acquired 100% of the equity
shares of SmartThings on August 18, 2014.
(A) Overview of the acquired company
Name of the acquired company SmartThings, Inc.
Headquarters location Washington D.C. USA.
Representative director Alexander Hawkinson
Industry Sale of smart home electronics
(B) Purchase price allocation (In millions of Korean won)
Amount
I. Consideration transferred ₩166,546
II. Identifiable assets and liabilities
Cash and cash equivalents 2,471
Trade and other receivables 667
Inventories 1,208
Property, plant and equipment 126
Intangible assets 47,763
Trade and other payables (5,681)
Deferred income tax liabilities (13,225)
Total net identifiable assets 33,329
III. Goodwill (I – II)133,217
Had SmartThings been consolidated from January 1, 2014, revenues would increase by KRW
2,469 million and net loss would increase by KRW 6,786 million on the consolidated statement
of income. The revenues and net loss contributed by SmartThings after the consolidation date
of August 18, 2014 amount to KRW 2,733 million and KRW 7,424 million, respectively.
37. Non-current Assets Held-for-Sale
(Assets of disposal group)
(A) As at December 31, 2014
(1) Summary
I. Sale of optical materials business segment
During the year ended December 31, 2014, the management of the Group de-
cided to sell the Optical Materials business segment and accordingly related
assets and liabilities are classified as held-for-sale. Since the business does
not represent a separate major line of the Group, related profit or loss was not
presented as profit or loss of discontinued operations. The contract was entered
into on December 2, 2014, and the transaction is expected to be completed by
March 2015.
II. Sale of Samsung Techwin Co., Ltd
During the year ended December 31, 2014, the management of the Group de-
cided to sell all shares of Samsung Techwin Co., Ltd. to Hanwha Corporation.
The contract was entered into on November 26, 2014, and the transaction and
associated due diligence will be completed by June 2015.
III. Sale of Samsung General Chemicals Co., Ltd.
During the year ended December 31, 2014, the management of the Group
decided to sell all shares of Samsung General Chemicals Co., Ltd. to Hanwha
Chemical and Hanwha Energy Corporation. The contract was entered into on
November 26, 2014, and the transaction and associated due diligence will be
completed by June 2015.
(2) Details of assets and liabilities reclassified as held-for-sale, as at December
31, 2014, are as follows: (In millions of Korean won)
Amount
Assets held-for-sale
Trade receivables ₩60,173
Inventories 9,703
Other current assets 22,523
Property, plant and equipment 37,955
Investment 511,441
Other non-current assets 3,696
Total ₩645,491
Liabilities held-for-sale
Current liabilities ₩25,939
Non-current liabilities 2,377
Total ₩28,316
Impairment loss recognized from the reclassification of assets and liabilities held-
for-sale amounts to KRW 31,219 million.