Nokia 2015 Annual Report Download - page 143

141
Financial statements
NOKIA IN 2015
Cash ows from Discontinued operations, Devices & Services business
EURm 2015 2014 2013
Net cash used in operating activities (6) (1 054) (1 062)
Net cash from/(used in) investing activities 50 2 480 (130)
Net cash used in nancing activities – (9) (21)
Net cash ow for the period 44 1 417 (1 213)
On April25, 2014, upon completion of the Sale of the D&S Business, EUR 500million 1.125% convertible bonds due September 2018,
EUR500million 2.5% convertible bonds due September 2019 and EUR 500million 3.625% convertible bonds due September 2020, all issued
by the Group to Microsoft, were repaid and netted against the deal proceeds by the amount of principal and accrued interest. Refer to Note 35,
Risk management.
4. Acquisitions
In 2015, the Group acquired two businesses (four businesses in 2014). The combined purchase consideration amounts to EUR 96 million
(EUR175 million in 2014). The combined goodwill arising on acquisition amounts to EUR 7 million (EUR 76 million in 2014) and is attributable
toassembled workforce and post-acquisition synergies. The Group expects that the majority of goodwill acquired in 2015 will be deductible
fortax purposes. The Group expects that the majority of goodwill acquired in 2014 will not be deductible for tax purposes.
Acquisitions during 2015 and 2014:
Company/business Description
2015
Wireless network
business of Panasonic
The business transfer included Panasonic’s LTE/3G wireless base station system business, related wireless
equipment system business, xed assets and business contracts with Panasonic’s customers as well as more than
300 Panasonic employees. The Group acquired the business through an asset transaction on January 1, 2015.
Eden Rock
Communications, LLC
Eden Rock Communications is pioneer in SON and creator of Eden-NET, an industry leading multivendor centralized
in SON solution. The Group acquired 100% ownership interest on July 10, 2015.
2014
SAC Wireless(1) SAC Wireless is a company providing infrastructure and network deployment solutions. The Group acquired 100%
ownership interest on August 22, 2014.
Medio Systems Inc.(2) Medio Systems Inc. is a company specializing in real-time predictive analytics. The Group acquired 100% ownership
interest on July 2, 2014.
Desti(2) Desti specializes in articial intelligence and natural language processing technology. The Group acquired
thebusiness through an asset transaction on May 28, 2014.
Mesaplexx Pty Ltd. Mesaplexx Pty Ltd. has know-how in developing compact, high performance radio frequency lter technology.
TheGroup acquired 100% ownership interest on March 24, 2014.
(1) Legal entities acquired are SAC Wireless LLC and HCP Wireless LLC.
(2) HERE business acquisitions.
Total consideration paid, aggregate fair values of intangible assets, other net assets acquired and resulting goodwill at each acquisition date:
EURm 2015 2014
Other intangible assets 56 77
Other net assets 33 22
Total identiable net assets 89 99
Goodwill 776
Total purchase consideration(1) 96 175
(1) In 2015, the total purchase consideration does not correspond with the acquisition of businesses, net of acquired cash in the consolidated statement of cash ows due to foreign exchange rate used
and the closing mechanism. In 2014, the total purchase consideration of the HERE acquisitions amounted to EUR 84 million of which goodwill was EUR 65 million.
The intangible assets are primarily customer-related, and technology-based intangible assets. Goodwill has been allocated to cash-generating
units or groups of cash-generating units expected to benet from the synergies of the combination. Refer to Note 10, Impairment.
Acquisition-related costs of EUR 3 million (EUR 3 million in 2014) have been charged to selling, general and administrative expenses in the
consolidated income statement.