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Goodwill roll-forwards for the periods ended December 31, 2007 and
2006 are as follows:
2007 2006
Opening balance $775,223 $477,495
Acquisitions (Note 3) 194,548 268,315
FIN 48 adoption effect (Note 2) 6,870 -
Currency translation adjustment 63,175 29,413
Closing balance $1,039,816 $775,223
The total gross carrying value and accumulated amortization
of VimpelCom’s intangible assets by major intangible asset class
as of December 31, 2007 and December 31, 2006 was as follows:
Weighted average
amortization period, years 2007 2006
Telephone line capacity 9.6 $172,672 $132,713
Customer list 11.4 210,158 187,795
Other intangible assets 2.4 98,554 70,944
481,384 391,452
Accumulated depreciation (218,882) (133,535)
$262,502 $257,917
Amortization expense for all VimpelCom’s intangible assets for each
of the succeeding five years is expected to be as follows:
2008 $231,871
2009 220,056
2010 175,775
2011 172,727
2012 151,845
Thereafter 145,954
8. SOFTWARE
The total gross carrying value and accumulated amortization of
VimpelCom’s software as of December 31, 2007 and December 31, 2006
were as follows:
2007 2006
Software, at cost $1,432,647 $976,572
Accumulated depreciation (809,832) (428,670)
Total software $622,815 $547,902
ВымпелКом / Годовой отчет 2007
9. SUPPLEMENTAL BALANCE SHEET
INFORMATION
Other current assets consisted of the following at December 31:
2007 2006
Advances to suppliers $45,362 $66,116
Prepaid expenses 4,960 9,682
Short term investments 42,712 -
Software with a useful life shorter than one year 32,965 38,354
Prepaid taxes 35,955 34,711
Other 10,338 10,910
Total other current assets $172,292 $159,773
Short-term investments consists mostly of cash deposits with
an original maturity of more than 90 days denominated in Russian
rubles of 1,000 million RUR (US$40,740 as at the exchange rate
as of December 31, 2007) at the rate of 8.5%.
Other non-current assets consisted of the following at December 31:
2007 2006
Prepayments to suppliers for long-lived assets $69,906 $55,426
Escrow cash deposit (Note 19) 200,170 -
Investments in equity of affiliates 5,908 1,269
Prepayments for investments in equity 6,367 10,140
Unamortized debt issue costs 69,534 68,268
Frequencies and permissions 75,279 39,836
Advance for GTel-Mobile (Vietnam) (Note 18) 22,250 -
Long term input VAT 33,043 -
Other long-term assets 21,347 15,525
Total other non-current assets $503,804 $190,464
As of 31 December, 2007 amounts held by Lillian Acquisition, Inc.,
a wholly owned subsidiary of VimpelCom, at Citibank N.A. include
US$120,000 on an escrow account and US$80,000 on a control account.
Funds were placed on the escrow and control accounts in accordance
with Lillian Acquisition, Inc.’s obligations to Golden Telecom, Inc. under
the terms of the Merger Agreement executed in connection with
the acquisition of Golden Telecom, Inc. (Note 19).
Other current accrued liabilities consisted of the following at December 31:
2007 2006
Interest payable $24,712 $25,901
Current portion of liability related to
share-based compensation (Note 17) 143,563 39,940
Accrued income 4,559 8,448
Derivatives 10,499 12,271
Other accrued liabilities 2,781 9,498
Total current accrued liabilities $186,114 $96,058
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