registration document France Telecom 2009 - Orange.com

financial information concerning the issuer’s assets and liabilities, financial position and profits and losses
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CONSOLIDATED STATEMENTS
Breakdown of assets acquired and liabilities assumed:
(in millions of euros)
Historical cost
at December 31,
2007
Allocation
of purchase
price
Fair value
at December 31,
2007
Other intangible assets 38 81 119
o/w brand 5
o/w subscriber bases 44
o/w favorable contracts 32
Property, plant and equipment 179 179
Other non-current assets 7 7
Total non-current assets 224 81 305
Net trade receivables 91 91
Current assets 18 18
Cash and cash equivalents 5 5
Other current assets 109 109
Total current assets 223 - 223
Non-current fi nancial liabilities at amortized cost excluding trade payables (7) (7)
Non-current employee benefi ts (11) (11)
Deferred tax liabilities (0) (24) (24)
Total non-current liabilities (18) (24) (42)
Current trade payables (92) (92)
Current employee benefi ts (113) (113)
Other current liabilities (55) (55)
Total current liabilities (260) (260)
Net assets acquired 169 57 226
Assets and liabilities attributable to non-controlling interests (83) (28) (111)
Net assets acquired attributable to owners of France Telecom S.A. (A) 86 29 115
Goodwill (B) 157
Purchase price consideration (A) + (B) 272 (1)
(1) Including 2 million euros of direct costs attributable to the acquisition.
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The brand was measured using the relief from royalty
methodology, based on the present value of royalties that would
have been paid to a third party for the use of the brand had the
Group not owned it.
Subscriber bases were measured using the future cash fl ows
generated by existing customers at the acquisition date. They
are amortized over 14 years.
Contracts concluded on favorable conditions relating to
emphyteutic land leases with the Kenyan government, were
measured at fair value, that is, the difference between rental
fees effectively paid to the Kenyan government and the rental
fees that the company would have paid under normal market
conditions. These assets are amortized over 70 years.
The acquisition of Telkom Kenya resulted in recognition of
residual goodwill of 157 million euros, mainly attributable to the
planned launch of mobile operations in Kenya and to synergies
between the fi xed-line and mobile businesses.
Telkom Kenya generated revenues of 107 million euros over the
full year 2008. France Telecom’s consolidated net income for the
year ended December 31, 2008 includes Telkom Kenya’s net
income, which was (97) million euros including (3) million euros
of amortization of identifi ed acquired assets (net of deferred
taxes reversals) and (57) million euros of goodwill impairment.
Ya.com
On July 31, 2007, France Telecom acquired the entire share
capital of T-Online Telecommunications Spain (now called
FT España ISP) from Deutsche Telekom for a total cash
consideration of 150 million euros. FT España ISP is Spain’s
third broadband operator and trades under the name Ya.com.
Goodwill relating to this transaction amounted to 125 million
euros, after recognizing 76 million euros of identifi able assets
acquired and liabilities assumed, mainly subscriber bases.
Taking account of the intercompany loans acquired from the
former shareholder and the cash acquired, the net cash out was
319 million euros.
Orange Moldova
On July 2, 2007, France Telecom indirectly acquired, for a cash
consideration of 103 million euros, an additional stake in Orange
Moldova, bringing its total stake to 94.3%. Goodwill relating to
this transaction amounted to 85 million euros.
2009 REGISTRATION DOCUMENT / FRANCE TELECOM
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