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F-53
put and call options and an increase of $45 in intangible assets and $79 in goodwill. The intangible assets of $45 related primarily to
customer contracts and customer relationships and are being amortized based on their expected pattern of benefit to future periods using
estimates of undiscounted cash flows, and were included in intangible assets on the consolidated balance sheet as of December 31, 2003.
The sale of Nortel Networks 41 percent interest in EADS Telecom has resulted in the receipt of cash of $12 and a reduction in equity
investments of $23. As a result of this transaction, Nortel Networks recognized a gain of $79 which is included in other income (expense)
— net for the year ended December 31, 2003. Except as noted below, there was no additional impact on the results of operations and
financial condition, as NNF and NNG were already included in the consolidated results.
During the three months ended December 31, 2003, the valuation report for NNF and NNG was completed by a third party appraiser. As
a result of the finalization of this valuation, an additional gain of $17 was recorded with a corresponding increase in goodwill on the
transaction (see note 5 for goodwill by reportable segment).
Other ac
q
uisitions
The following table sets out certain information for an acquisition completed by Nortel Networks in the year ended December 31, 2001,
and excludes those entities acquired which were subsequently included as discontinued operations (see note 20). This acquisition was
accounted for using the purchase method. The consolidated financial statements include the operating results of this business from the
date of acquisition.
Purchase
p
rice allocation
Net tangible Deferred
Purchase Acquired assets stock option
Closin
g
dat
e
Ac
q
uisition
p
rice Goodwill technolo
gy
IPR&D (liabilities) com
p
ensation
2001
February 13 980 NPLC business
(a) (b)
$ 2,291 $ 1,890 $ 402 $ 15 $ (16) $ –
(a) The 980 NPLC business consisted of the design and manufacture of G08 980 nanometer pump-laser chips.
(b) Excludes additional consideration that may become payable.