Lenovo 2014 Annual Report Download - page 186
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184 Lenovo Group Limited 2013/14 Annual Report
NOTES TO THE FINANCIAL STATEMENTS
32 Significant related party transactions
(a) The Group had the following significant related party transactions in the normal course of business during the year:
2014 2013
US$’000 US$’000
閃聯信息技術工程中心有限公司
(IGRS Engineering Lab Limited) (an associate)
– Purchase of goods 2,508 9,183
北京聯想利泰軟件有限公司
(Beijing Legendsoft International Technology Company Limited) (an associate)
– Purchase of goods –3,476
– Service income –351
Note: The English name of each company is a direct translation of its Chinese registered name.
(b) Key management compensation
Details on key management compensation are set out in Note 11.
33 Commitments
(a) Capital commitments
Apart from disclosed elsewhere in these financial statements, on March 31, 2014, the Group and the Company had the
following other capital commitments:
Group Company
2014 2013 2014 2013
US$’000 US$’000 US$’000 US$’000
Contracted but not provided for:
– Property, plant and equipment 153,621 102,341 ––
– Patent and technology 122,500 –122,500 –
– Prepaid lease payments –6,015 ––
– IT consulting services 830 1,953 ––
276,951 110,309 122,500 –
Authorized but not contracted for:
– Property, plant and equipment 890,701 914,126 ––
– Prepaid lease payments 65,692 52,229 ––
956,393 966,355 ––
Acquisition of IBM X86 server business
On January 23, 2014, the Company entered into a Master Asset Purchase Agreement with International Business
Machines Corporation (“IBM”), pursuant to which the Company agreed to acquire the X86 server hardware and related
maintenance service business of IBM. The acquisition will be made with a total consideration of US$2,300,000,000.
Acquisition of Motorola Mobility Group
On January 30, 2014, the Company entered into an Acquisition Agreement with Google Inc. (“Google”), pursuant to
which the Company agreed to acquire 100% interest in Motorola Mobility Group. The acquisition will be made with a total
consideration of US$2,910,000,000.
The completion of these two acquisitions is pending for the approval of certain relevant government authorities.