The scope of the consolidation does not include an interest in any of the following:

• Subsidiaries with non-controlling interests
• Associates
• Joint arrangements

The following subsidiaries are included in the consolidated financial statements:

The fair value of the identifiable assets and liabilities and the net cash outflow at the date of acquisition were:

Trade accounts receivable comprise gross contractual amounts due of CHF 1.1 million (2018: CHF 1.9 million), of which CHF 0.0 million (2018: CHF 0.4 million) was expected to be uncollectable at the acquisition date.

The initial accounting for the acquisition of DCPM/PMAS was based on the assumption that the Group would take the election pursuant to section 338(h)(10) of the US tax law, under which a legal share deal is treated as an asset deal for tax purposes. Consequently, no deferred tax liabilities were recognized for the US entity in the interim report 2019. However, after a detailed analysis, it was concluded that the election would not be advantageous for the Group. Accordingly, the opening balance of DCPM was adjusted for deferred tax liabilities of CHF 2.1 million in the second half of 2019. The purchase price allocation is still provisional.

The Group acquired 100% of the voting rights of a long-term supplier to vertically integrate the manufacturing of critical precision-­machined parts of its liquid handling pump portfolio. The acquisition comprises two manufacturing sites:

The consideration transferred for the business combination includes a holdback of USD 3.0 million. The holdback was paid into an escrow bank account and is triggered upon the achievement of a sales-defined milestone in 2020. The business plan underlying the acquisition indicates that the entire holdback will be payable.

The purchase price allocation process for the acquisition of NuGEN Technologies, Inc., which was considered provisional at year-end 2018 for the valuation of trade accounts receivable and capitalized tax-loss carry-forwards, has been completed without any adjustments.

The second and final instalment of the contingent consideration in the amount of USD 5.0 million was paid at the beginning of 2019.

1. In determining these amounts, management has assumed that the fair value adjustments that arose on the acquisition date would have been the same as if the acquisition had occurred on January 1, 2018 and 2019, respectively.
2. The pre-acquisition period of NuGEN Tecnologies, Inc. from January to August 2018 includes several million Swiss Francs in non-recurring expenses for projects (including acquisition related costs) that the former owners had undertaken.

In the second half of 2016, management committed to a plan to sell the Hombrechtikon manufacturing facility after having transferred all business activities to Männedorf. Accordingly, the facility and the related mortgage were presented as a disposal group held for sale. In the first half of 2018, the mortgage was repaid and the related interest derivative settled. Efforts to sell the facility continued. However, a sale in the next 12 months was no longer considered highly probable. At year-end 2018, the facility was classified as an investment property and valued at cost less accumulated depreciation (cost model).

Management has started sales negotiations for the unquoted equity investment. Therefore, the financial asset of CHF 3.0 million is classified as held for sale at year-end 2019. The Group continues to measure the investment at fair value through other comprehensive income (FVOCI) in accordance with IFRS 9 using the discounted cash flow method with level 3 inputs of the fair value hierarchy. 

Total changes in the fair value recognized during 2019 in other comprehensive income amount to CHF 1.2 million. A further ­decrease in the forecasted cash flows of 10% would adversely impact the fair value by estimated CHF 1.0 million. No dividend was paid either in 2018 or in 2019.