Annual Report 2010 - Falck

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Notes to the Group financial statements Note DKK million 15 Intangible assets (contiued) Group | Falck Annual Report 2010 75 Impairment tests of goodwill Goodwill is tested for impairment at least once a year, and more frequently if there are indications of impairment. In impairment tests, the discounted value of the future net cash flows of each of the cash-generating units (value in use) are compared with their carrying amounts. 2010 2009 Goodwill is related to the following business areas: Assistance 1,948 1,805 Emergency 956 480 Healthcare 761 781 Training 1,046 1,009 Total goodwill 4,711 4,075 In connection with the company's acquisition of the shares in Falck A/S in 2004/05 (merged with the parent company on 1 January 2009), goodwill with a carrying value of DKK 2,630 million was allocated to the respective business areas For the above mentioned business areas, goodwill is tested for impairment in the relevant cash generating units within the business areas based on the following parameters and assumptions: The future net cash flows are based on the consolidated budget for 2011 and the Group’s strategic plan for the period until 2015. Moreover, growth during the terminal period has been estimated at 2-3% (2009: 3.0%). The key parameters for the impairment test are performance in terms of revenue and the operating margin. As capital tied up in net operating assets is generally low in the Group, this parameter does not have any material impact on the impairment test. The Assistance activities primarily consist of subscriptions and are therefore stable from year to year. The discount rate has been set at 8% (2009: 8%). The Emergency activities primarily consist of ambulance services, including transportation of patients, and of fire fighting for public customers, and they do not fluctuate materially from year to year. Emergency also includes Fire Services which consist of long-term contracts and training and consulting services for private companies in several countries. The discount rate for Emergency has been set at 8% (2009: 8%). The Healthcare activities primarily consist of subscriptions and longer term contracts and are therefore stable from year to year. The discount rate has been set at 8% (2009: 8%). Substantial growth is expected in the Healthcare business in the years ahead. Healthcare also includes staffing business which mainly consists of payments on a case-by-case basis. The discount rate has therefore been set at 9% (2009: 9%). Training is to an extent affected by the activity level in the oil industry. The discount rate has therefore been set at 9% (2009: 9%). The main assumptions in the strategic plan until 2015 are the expected organic growth and that off-shore exploration activities will pick up pace. The impairment tests of goodwill did not result in any impairment.
76 Falck Annual Report 2010 | Group Notes to the Group financial statements Note DKK million 16 Propertry, plant and equipment Fixtures, Leasehold fittings, Land and improve- tools and 2010 buildings ments equipment Total Cost at 1 January 2010 844 82 1,100 2,026 Foreign exchange differences 16 4 41 61 Additions on acquisitions - 2 63 65 Additions 152 7 215 374 Disposals and reclassification (154) (4) (245) (403) Cost at 31 December 2010 858 91 1,174 2,123 Depreciation and impairment at 1 January 2010 (118) (26) (288) (432) Foreign exchange differences (4) (1) (30) (35) Disposals and reclassification 12 3 145 160 Depreciation (36) (10) (206) (252) Depreciation and impairment at 31 December 2010 (146) (34) (379) (559) Carrying amount at 31 December 2010 712 57 795 1,564 of which assets under construction 14 - 18 32 of which assets held under finance leases 12 - 12 24 Fixtures, Leasehold fittings, Land and improve- tools and 2009 buildings ments equipment Total Cost at 1 January 2009 816 74 1,014 1,904 Foreign exchange differences 23 2 19 44 Additions on acquisitions 26 - 13 39 Additions 12 10 271 293 Disposals and reclassification (33) (4) (217) (254) Cost at 31 December 2009 844 82 1,100 2,026 Depreciation and impairment at 1 January 2009 (94) (18) (238) (350) Foreign exchange differences (7) (1) (12) (20) Disposals and reclassification 13 3 163 179 Depreciation (30) (10) (201) (241) Depreciation and impairment at 31 December 2009 (118) (26) (288) (432) Carrying amount at 31 December 2009 726 56 812 1,594 of which assets under construction 51 - 34 85 of which assets held under finance leases 11 - 15 26
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Falck’s international expansion c
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Ville Kalliomäki, age 29, assistan
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Annual Report 2010 - Falck

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