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NOTES
Consolidated financial statements • 111
BUSINESS COMBINATIONS
5.1
2016
2015
DKK million
Total
Total
Other intangible assets
-
69
Property, plant and equipment
6
23
Other non-current receivables
9
12
Receivables
4
30
Inventories
61
141
Cash
1
21
Assets acquired
81
296
Non-current liabilities
2
5
Payables
6
40
Other non-current liabilities
-
7
Liabilities assumed
8
52
Total identifiable net assets acquired
73
244
Goodwill arising on acquisitions
115
281
Purchase consideration
188
525
Cash movements on acquisitions:
Prepaid, previous year
1
-7
-
Consideration transferred regarding previous years
2
29
-
Deferred payment (including earn-out)
-
-222
Cash acquired
-1
-21
Net cash flows on acquisitions for the year
209
282
Prepayments, acquisitions
3
1
7
Net cash flows on acquisitions
210
289
Cash flow from sale of businesses
4
-
-29
Net cash flows from business combinations
210
260
1
Prepayments 2015 relate to the acquisitions in Singapore, Macau and the Philippines on 1 January 2016. The amount paid was DKK 7 million.
2
The consideration transferred in 2016 was the final payment for the transfer of assets regarding the acquisition in China in 2015, DKK 29 million.
3
Prepayments 2016 relate to the acquisition of a store in Australia on 4 January 2017. The amount paid was DKK 1 million.
4
Sale of businesses in 2015 includes mainly inventories, DKK 18 million and goodwill, DKK 9 million.
SECTION 5: OTHER DISCLOSURES, CONTINUED
Acquisitions in 2016
On 1 January 2016, PANDORA acquired the PANDORA
store network in Singapore and Macau from Norbreeze
Group (Norbreeze). The distribution agreements with
Norbreeze for distributing PANDORA jewellery in
Singapore, Macau and the Philippines expired on 31
December 2015. Distribution in the Philippines continues
under a new agreement with the existing distributor,
whereas distribution in Singapore and Macau remains with
PANDORA. On 1 January 2016, PANDORA established
a local office in Singapore for the Singapore operation,
whereas Macau and the Philippines are operated out of
PANDORA’s office in Hong Kong.
According to the purchase price allocation, the
purchase price of DKK 167 million was primarily related to
non-current assets and inventories related to the acquired
stores. Goodwill was DKK 102 million mainly related to
the opportunity to enter Singapore and Macau directly and
to add 15 PANDORA concept stores and 5 shop-in-shops
located in these two markets to PANDORA’s retail chain.
In 2016, purchase consideration in the amount of DKK
160 million has been transferred to Norbreeze. DKK 7
million was prepaid in 2015. Transaction costs of DKK 3
million have been recognised in the income statement as
administrative expenses. None of the goodwill recognised is
deductible for income tax purposes.
On 6 July 2016, PANDORA acquired four concept
stores in London, UK, in a business combination. The
purchase amount was DKK 21 million. Assets acquired
mainly consist of inventories and other assets and liabilities
relating to the stores. Of the purchase price DKK 13 million
was allocated to goodwill. Transaction cost was DKK 1
million. None of the goodwill recognised is deductible for
income tax purposes.