Panalpina Annual Report 2006

Consolidated and Annual Financial Statements 2006
15
94 Panalpina Annual Report 2006
Financial, other and intangible assets
Available-for-sale investments are only equity investments for which no active market with publicly quoted market values
exist. Therefore, it has been impossible to determine the market value of these equity investments and the investments
are carried at historical cost less identified impairment.
In 2006, impairment charges of CHF 0.5 million (2005: CHF 0.2 million) were recorded to net available-for-sale investments
relating to the valuation of an equity investment. No additional impairment charge was necessary for 2006.
The fair values of unlisted securities are based on discounted cash flows using a rate based on the market interest rate
and the risk premium specific to the unlisted securities.
Receivables include third party loans of CHF 1.9 million (2005: CHF 0.8 million) and mainly rental and guarantee deposits of
CHF 8.2 million (2005: CHF 10.1 million).
The net book value of other intangible assets comprises:
• Software in the amount of CHF 18.9 million (2005: CHF 26.4 million). Software includes internally generated capitalized
software development costs of CHF 15.0 million (2005: CHF 3.4 million).
• Other intangible assets consist mainly of acquired brands and customer relations of CHF 22.0 million
(2005: CHF 21.4 million).
Impairment test for goodwill
Available-
for-sale
investments
Financial and other assets
Receiv-
ables
Pension
plan
asset
Intangible assets
Goodwill
Other
intangible
assets
Acquisition costs
Balance on 1 January 26,173 10,945 13,448 60,203 91,423 202,192 215,252
Translation differences (31) (389) 771 3,057 3,408 8,972
Change in the scope of consolidation 0 11,206
Additions 121 4,477 8,761 13,359 23,880
Disposals (102) (878) (1,404) (1,526) (3,910) (11,875)
Reclassifications 0 (45,243)
Balance on 31 December 26,161 14,155 12,044 60,974 101,715 215,049 202,192
Accumulated depreciation
or impairment losses
Balance on 1 January 7,525 0 0 0 42,834 50,359 83,580
Translation differences (9) 2,549 2,540 3,661
Additions 511 16,383 16,894 12,295
Disposals (32) (1,435) (1,467) (3,934)
Reclassifications 0 (45,243)
Balance on 31 December 8,004 (9) 0 0 60,331 68,326 50,359
Net book value on 1 January 18,648 10,945 13,448 60,203 48,589 151,833 131,672
Net book value on 31 December 18,157 14,164 12,044 60,974 41,384 146,723 151,833
Goodwill is allocated to the Group’s cash-generating units (CGUs) identified to the country of operation. The recoverable
amount of a CGU is determined based on value-in-use calculations. These calculations use cash flow projections
based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period
are extrapolated using the estimated growth rates stated below. The growth rate does not exceed the long-term average
growth rate for the business in which the CGU operates.
Total
2006
Total
2005