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- >Note 12
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. Marketable securities
7. Trade accounts receivable
8. Other current assets and current financial assets
9. Inventories
10. Property, plant and equipment
11. Other non-current assets and non-current financial assets
12. Goodwill and intangible assets
| Total | Goodwill | Patents and technology | Trademarks and other intangible assets1 | |
|---|---|---|---|---|
| MCHF | MCHF | MCHF | MCHF | |
| 2014 | ||||
| Cost at beginning of year | 1,092.8 | 775.9 | 127.2 | 189.7 |
| 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 | 193.5 |
| Accumulated amortization at beginning of year | 447.3 | 227.9 | 127.2 | 92.2 |
| 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 | 88.1 |
| Carrying amounts at end of year | 645.3 | 539.9 | 0.0 | 105.4 |
| 2013 | ||||
| Cost at beginning of year | 1,079.8 | 768.6 | 127.3 | 183.9 |
| Additions | 7.4 | 7.4 | ||
| Disposals | -0.8 | -0.8 | ||
| Translation differences | 6.4 | 7.3 | -0.1 | -0.8 |
| Cost at end of year | 1,092.8 | 775.9 | 127.2 | 189.7 |
| Accumulated amortization at beginning of year | 441.7 | 226.2 | 124.4 | 91.1 |
| Amortization | 5.5 | 2.8 | 2.7 | |
| Disposals | -0.8 | -0.8 | ||
| Translation differences | 0.9 | 1.7 | -0.8 | |
| Accumulated amortization at end of year | 447.3 | 227.9 | 127.2 | 92.2 |
| Carrying amounts at end of year | 645.5 | 548.0 | 0.0 | 97.5 |
| 1 Others: mainly software and capitalized product development costs (see Note 27: Research and development expenditures). | ||||
Goodwill and intangible assets with an indefinite useful life resulting from acquisitions are analyzed for impairment on an annual basis. As of December 31, 2014, 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 31.12.2014 | amount 31.12.2013 | Value in use (U) or fair value less cost to sell (F) | Growth rate beyond planning period | Discount rate pre-tax | Discount rate post-tax | |||
| MCHF | MCHF | % | % | % | ||||
| Goodwill from LBO Geberit | 238.0 | 241.0 | U | 2.80 (3.00) | 7.60 (8.90) | 6.90 (7.90) | ||
| Goodwill from Mapress acquisition | 283.5 | 289.3 | U | 2.70 (3.00) | 8.80 (10.40) | 7.00 (8.20) | ||
| Geberit trademarks | 84.6 | 84.6 | U | 2.80 (3.00) | 7.90 (9.20) | 6.90 (7.90) | ||
| Total | 606.1 | 614.9 | ||||||
The growth rates beyond the planning period are based on Euroconstruct estimates 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 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. Based on the recent decision of the Swiss National Bank (SNB) to stop supporting the Swiss franc, the Group also simulated an impairment test taking into account a strengthening of the Swiss franc by +15% against all other currencies. The simulation did not result in a need for an impairment.