Financial report  >  Consolidated financial statements Geberit Group

Notes to the Consolidated Financial Statements

  1. 1. Basis of preparation

  2. 2. Changes in Group organization

  3. 3. Summary of significant accounting policies

  4. 4. Risk assessment and management

  5. 5. Management of capital

  6. 6. Marketable securities

  7. 7. Trade accounts receivable

  8. 8. Other current assets and current financial assets

  9. 9. Inventories

  10. 10. Property, plant and equipment

  11. 11. Other non-current assets and non-current financial assets

  12. 12. Goodwill and intangible assets

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      Total Goodwill Patents and technology Trademarks and other intangible assets
      MCHF MCHF MCHF MCHF
    2012        
    Cost at beginning of year 1,013.0 715.6 127.3 170.1
    Additions 2.6     2.6
    Disposals -2.9     -2.9
    Translation differences -5.8 -5.6   -0.2
    Cost at end of year 1,006.9 710.0 127.3 169.6
             
    Accumulated amortization at beginning of year 367.8 169.4 121.2 77.2
    Amortization expense 5.8   3.2 2.6
    Disposals -2.9     -2.9
    Translation differences -1.9 -1.8   -0.1
    Accumulated amortization at end of year 368.8 167.6 124.4 76.8
             
    Net carrying amounts at end of year 638.1 542.4 2.9 92.8
             
             
    2011        
    Cost at beginning of year 1,028.0 733.5 127.3 167.2
    Additions 5.0     5.0
    Disposals -1.3     -1.3
    Translation differences -18.7 -17.9   -0.8
    Cost at end of year 1,013.0 715.6 127.3 170.1
             
    Accumulated amortization at beginning of year 369.2 174.8 118.0 76.4
    Amortization expense 5.9   3.2 2.7
    Disposals -1.3     -1.3
    Translation differences -6.0 -5.4   -0.6
    Accumulated amortization at end of year 367.8 169.4 121.2 77.2
             
    Net carrying amounts at end of year 645.2 546.2 6.1 92.9

    Goodwill and intangible assets with an indefinite useful life resulting from acquisitions are analyzed for impairment on an annual basis. As of December 31, 2012, 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 shows also the parameters used in the impairment analysis.

      Carrying   Carrying   Calculation of recoverable amount (PY numbers in brackets)
      amount 31.12.2012   amount 31.12.2011   Value in use (U) or fair value less cost to sell (F) Growth rate
    beyond
    planning
    period    		 Discount
    pre­tax rate    		 Discount
    post­tax rate
      MCHF   MCHF     % % %
    Goodwill from LBO Geberit 238.6   240.0   U 2.60 (3.63) 10.10 (10.17) 8.90 (8.98)
    Goodwill from Mapress acquisition 285.9   287.9   U 2.90 (3.76) 12.30 (11.69) 9.50 (9.38)
    Geberit trademarks 84.6   84.6   U 2.60 (3.63) 10.60 (10.40) 8.90 (8.98)
    Total 609.1   612.5          

    The growth rates beyond the planning period are based on Euroconstruct estimations and on history-based internal assumptions about price and market share development. 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 amount would not lead to an impairment. The scenarios used to support this assumption are based specifically on decreases both in operating margins and the growth rate beyond the planning periods.

  13. 13. Short-term debt

  14. 14. Other current provisions and liabilities

  15. 15. Long-term debt

  16. 16. Derivative financial instruments

  17. 17. Retirement benefit plans

  18. 18. Participation plans

  19. 19. Deferred tax assets and liabilities

  20. 20. Other non-current provisions and liabilities

  21. 21. Contingencies

  22. 22. Capital stock and treasury shares

  23. 23. Earnings per share

  24. 24. Cash discounts and customer bonuses

  25. 25. Other operating expenses, net

  26. 26. Financial result, net

  27. 27. Income tax expenses

  28. 28. Cashflow figures

  29. 29. Segment reporting

  30. 30. Related party transactions

  31. 31. Foreign exchange rates

  32. 32. Subsequent events

  33. 33. Additional disclosures on financial instruments

  34. 34. Group companies as of December 31, 2012