Annual Report 2003 2004

140
The final purchase price allocation resulted in goodwill of €9 million
which has been assigned entirely to the acquired company. No goodwill
is deductible for tax purposes.
On July 25, 2003, ThyssenKrupp acquired 100% of the shares of
Sofedit s.a., located in Versailles, France (“Sofedit”), in the Automotive
segment, for a purchase price of €66 million consisting of €14 million
in cash and the assumption of debt of €52 million. Sofedit produces
automotive stampings and assemblies as well as chassis, body and
cockpit modules in France, Brazil, Poland and Spain. The acquisition
will strengthen ThyssenKrupp Automotive’s leading positions in the
Body and Chassis businesses. The results of these operations have
been included in the consolidated financial statements since July 01,
2003.
The following table summarizes the estimated fair value of the
assets acquired and liabilities assumed at the date of acquisition:
million €
Intangible assets
Goodwill arising on the purchase
Property, plant and equipment
Operating assets
Deferred income taxes
Total assets acquired
Accrued pension and similar obligations
Other accrued liabilities
Financial payables
Other payables
Deferred income taxes
Total liabilities assumed
Net assets acquired
July 01, 2003
Substantially all of the intangible assets were assigned to software
which is subject to amortization and have a weighted average useful
life of approximately 7 years. The final purchase price allocation
resulted in goodwill of €7 million (preliminary €12 million) which has
been assigned entirely to the acquired companies. No goodwill is
deductible for tax purposes.
On August 31, 2003, the ThyssenKrupp finalized the sale of the
formwork and scaffolding activities of the business unit Construction
Services in the Services segment as part if its portfolio realignment.
On the sale the Group realized cash in the amount of €47 million and
vendor loans in the value of €28 million. The sale resulted in a loss
of €61 million.
6
7
120
112
7
252
5
6
52
171
4
238
14
3 Discontinued operations and disposal groups
Year ending September 30, 2004
As part of the portfolio optimization program, the Group has sold or
has initiated the disposal of several business units and operating
groups during the period. In accordance with sfas 144, these
transactions have been classified as discontinued operations and
accordingly the results as well as the gain or loss on the disposals of
the discontinued operations have been presented separately in the
consolidated statements of income in the line item “discontinued
operations (net of tax)”. Prior periods have been adjusted accordingly.
For the entities for which the disposal has not been completed as of
September 30, 2004, the assets and liabilities have been disclosed
separately in the consolidated balance sheet of the current reporting
period as “assets held for sale” and “liabilities associated with assets
held for sale”.
On October 07, 2003, in the Technologies segment, Novoferm was
sold. The Group has received €174 million in cash. The disposal did
not result in a significant gain or loss. In the September 30, 2003
consolidated balance sheet Novoferm was classified as a disposal
group; Novoferm did not qualify for discontinued operations reporting.
In March 2004, the business unit Information Services, in the
Services segment, was discontinued through the sale of the Triaton
group as well as the termination of the other remaining activities
within the business unit. The selling price amounted to €249 million,
which resulted in a gain before taxes of €191 million. Due to the
continuation of service contracts between ThyssenKrupp and
Triaton, €64 million of the disposal gain has been deferred and will
be recognized rateably over a period of seven years. The Group
recognized €6 million of this disposal gain in cost of sales in the
Services segment in the 2nd half of fiscal year 2003/2004, which
partially offset the cost of services purchased from the former Triaton
group during the period. In the 2nd quarter ending March 31, 2004,
a gain on the disposal of discontinued operations of €127 million
(€125 million net of tax) was realized. The results from discontinued
operations are disclosed in the table below.