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- >Note 11
1. Basic information and principles of the report
2. Changes in Group structure
3. Summary of significant accounting policies
4. Risk assessment and management
5. Management of capital
6. Trade accounts receivable
7. Other current assets and current financial assets
8. Inventories
9. Property, plant and equipment
10. Other non-current assets and non-current financial assets
11. Goodwill and intangible assets
| Total | Goodwill |
Patents and technology |
Trademarks |
Other intangible assets1 |
|
|---|---|---|---|---|---|
| MCHF | MCHF | MCHF | MCHF | MCHF | |
| 1 Others: mainly software and capitalized product development costs (see Note 27: Research and development cost) | |||||
| 2015 | |||||
| Cost at beginning of year | 1,086.5 | 765.8 | 127.2 | 144.4 | 49.1 |
| Changes in scope of consolidation | 1302.8 | 900.3 | 129.2 | 229.1 | 44.2 |
| Additions | 14.0 | 14.0 | |||
| Disposals | -2.9 | -2.9 | |||
| Translation differences | -144.0 | -158.1 | 4.5 | 8.0 | 1.6 |
| Cost at end of year | 2,256.4 | 1,508.0 | 260.9 | 381.5 | 106.0 |
| Accumulated amortization at beginning of year | 441.2 | 225.9 | 127.2 | 59.8 | 28.3 |
| Changes in scope of consolidation | 35.4 | 35.4 | |||
| Amortization | 37.5 | 30.8 | 6.7 | ||
| Disposals | -2.5 | -2.5 | |||
| Translation differences | -12.3 | -12.7 | 0.5 | -0.1 | |
| Accumulated amortization at end of year | 499.3 | 213.2 | 158.5 | 59.8 | 67.8 |
| Carrying amounts at end of year | 1,757.1 | 1,294.8 | 102.4 | 321.7 | 38.2 |
| 2014 | |||||
| Cost at beginning of year | 1,092.8 | 775.9 | 127.2 | 144.4 | 45.3 |
| Additions | 10.6 | 10.6 | |||
| Disposals | -7.6 | -7.6 | |||
| Translation differences | -9.3 | -10.1 | 0.8 | ||
| Cost at end of year | 1,086.5 | 765.8 | 127.2 | 144.4 | 49.1 |
| Accumulated amortization at beginning of year | 447.3 | 227.9 | 127.2 | 59.8 | 32.4 |
| Amortization | 3.2 | 3.2 | |||
| Disposals | -7.6 | -7.6 | |||
| Translation differences | -1.7 | -2.0 | 0.3 | ||
| Accumulated amortization at end of year | 441.2 | 225.9 | 127.2 | 59.8 | 28.3 |
| Carrying amounts at end of year | 645.3 | 539.9 | 0.0 | 84.6 | 20.8 |
Goodwill and intangible assets with an indefinite useful life resulting from acquisitions are analyzed for impairment on an annual basis. As of December 31, 2015, there was no need for an impairment of these assets. The following table shows the carrying amount of positions which are material for the Group. The table also shows the parameters used in the impairment analysis.
| Carrying | Carrying | Calculation of recoverable amount (PY numbers in brackets) | ||||||
|---|---|---|---|---|---|---|---|---|
|
amount 31.12.2015 |
amount 31.12.2014 |
Value in use (U) or fair value less cost to sell (F) |
Growth rate beyond planning period |
Discount rate pretax |
Discount rate posttax |
|||
| MCHF | MCHF | % | % | % | ||||
| Goodwill from LBO Geberit | 221.8 | 238.0 | U | 2.10 (2.80) | 8.00 (7.60) | 7.10 (6.90) | ||
| Goodwill from Mapress acquisition | 254.8 | 283.5 | U | 2.50 (2.70) | 9.40 (8.80) | 7.30 (7.00) | ||
| Goodwill from Sanitec acquisition | 800.9 | 0.0 | U | 2.10 | 8.60 | 7.30 | ||
| Geberit trademarks | 84.6 | 84.6 | U | 2.10 (2.80) | 8.20 (7.90) | 7.10 (6.90) | ||
| Various trademarks | 237.1 | 0.0 | U | 2.10 | 6.10 - 9.30 | 6.00 - 7.80 | ||
The growth rates beyond the planning period are based on Euroconstruct estimates and on history-based internal assumptions about price and market share development. All trademarks are tested on the basis of the relief of royalty method. The position “Various trademarks” contains mainly the trademarks Ifö, Keramag, Kolo, IDO, Twyford, Allia and Sphinx. From today’s perspective, management believes that a possible and reasonable change of one of the crucial parameters (see Note 3) used to calculate the recoverable amounts would not lead to an impairment. The scenarios used to support this assumption are based specifically on decreases in both, the operating margins and the growth rate beyond the planning periods.