össur annual report2009 - Euroland

Depreciation classified by operational category, is shown in the following schedule:
2009 2008
Cost of goods sold 3,594 3,507
Sales and marketing expenses 603 678
Research and development expenses 317 319
General and administrative expenses 3,666 4,223
The following useful lives are used in the calculation of depreciation:
8,180 8,727
Buildings 20 - 50 years
Fixtures & furniture 3 - 10 years
Machinery & equipment 4 - 10 years
ASSETS pLEDGED AS SECURITY
All the Company´s assets have been pledged in relation to financing arranged by Arion
Bank. The Company is not allowed to pledge the assets as security to raise further
financing.
15. goodWill
2008 / 2009
COST
At 1 January 2008 342,359
Reclassification of Goodwill to deferred tax ( 7,322 )
Addition due to previous acquisitions 2,399
Exchange rate differences ( 15,055 )
At 31 December 2008 322,381
Arising on acquisition of subsidiaries 7,083
Exchange rate differences 5,380
At 31 December 2009 334,844
During the year, the Company assessed the recoverable amount of goodwill and determined
that none of the Company´s cash-generating units have suffered an impairment
loss.
15.1 allocation of goodWill to cash-generating units
In April 2009 improvements to IAS 36 were issued that apply prospectively for periods
beginning on or after 1. January 2010. The Company adopted the amendment before
effective date. The effect of the early adoption is a reallocation of the Company’s goodwill
to the operating segments.
The carrying amount of goodwill was allocated to the following cash-generating units:
WACC % 2009 2008
Americas 11.72 / 10.03 205,312 196,280
EMEA 12.03 / 11.03 126,611 123,524
Asia 11.57 / 11.33 2,921 2,577
All amounts in thousands of USD 83 annual report 09
334,844 322,381
The recoverable amount of the cash-generating units is determined based on a value in
use calculation which uses cash flow projections based on the financial budget for 2010
approved by the directors. The discount rate of 11.57. - 12.03% (2008: 10.0 - 11.3%) per
annum was used.
Cash flows beyond 2014 have been extrapolated using a steady 3% per annum growth
rate. This growth rate does not exceed the long-term average growth rate for the market
in each market area. The directors believe that any reasonably further change in the
key assumptions on which recoverable amount is based would not cause the carrying
amount to exceed its recoverable amount.
Össur hf. consolidated financial stateMents 2009