ANNUAL REPORT 2008/09 - Sonova

1,000 CHF 31.3.2008
Cost
Goodwill Software Intangibles
relating to
acquisitions
Other
intangibles
Balance April 1 241,518 21,281 40,912 1,336 305,047
Changes through business combinations 23,637 1 11,103 34,741
Additions 1,438 2,565 265 15,272 19,540
Disposals (246) (434) (338) (108) (1,126)
Exchange diff erences (22,855) (1,532) (5,367) (157) (29,911)
Balance March 31 243,492 21,881 46,575 16,343 328,291
Accumulated amortization
Balance April 1 (13,951) (5,008) (329) (19,288)
Additions (3,480) (4,994) (1,235) (9,709)
Disposals 403 108 511
Exchange diff erences 1,118 1,019 18 2,155
Balance March 31 (15,910) (8,983) (1,438) (26,331)
Net book value
Balance April 1 241,518 7,330 35,904 1,007 285,759
Balance March 31 243,492 5,971 37,592 14,905 301,960
Other intangible assets include cost for the development of middle ear implants in the amount of
CHF 15.4 million (previous year CHF 6.5 million).
Intangibles relating to acquisitions consist primarily of client relationships, customer lists and
brand names.
For the purpose of impairment testing, goodwill is allocated to a cash-generating unit or to a group of
cash-generating units, which are expected to benefi t from the synergies of the corresponding business
combination. The recoverable amount of a cash-generating unit (higher of the cash-generating unit’s
fair value less selling costs and the cash- generating units value in use) is compared to the carrying amount.
Future cash fl ows are discounted with the Weighted Average Cost of Capital (WACC) including the application
of the Capital Asset Pricing Model (CAPM). Value in use is normally assumed to be higher than the
fair value less cost to sell; therefore, fair value less selling costs is only investigated when value in use
is lower than the carrying amount of the cash-generating unit.
The cash fl ow projections are based on a fi ve-year period. Cash fl ows beyond the fi ve-year period are
extrapolated using the estimated long-term growth rates (see following table). The long-term growth rates
are below the expected long-term average growth rate for the hearing instruments industry in which
the cash-gen erating units operate. Gross margin is projected to remain constant.
Total
CONSOLIDATED FINANCIAL STATEMENTS
87