2009 1st Half Report - Indesit

Half-year report at 30 June 2009
(million Euro) 31 December 2008 Additions
Depreciation
and
impairment
losses
Decreases
Exchange rate
differences
Reclassificat
ions
30 June 2009
Land and buildings 270,8 0,4 (6,6) (0,3) (4,9) - 259,3
Plant and machinery 261,9 5,6 (27,2) (0,2) (3,8) 4,3 240,6
Industrial and commercial equipment 86,2 1,0 (14,9) (0,5) (3,5) 12,7 81,0
Assets under construction 41,4 7,0 - (0,4) (2,5) (17,5) 28,2
Other assets 32,4 0,3 (2,9) (4,2) 0,0 0,7 26,4
Total 692,8 14,4 (51,7) (5,7) (14,7) 0,2 635,5
In line with the containment policy announced by the Group, in 2009 investments have been
restricted to strategic and/or essential projects, with a focus on the development and launch
of new products and the improvement of manufacturing processes.
8.9. Goodwill and other intangible assets with an indefinite useful life
Goodwill and other intangible assets with an indefinite useful life are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Goodwill 129,8 116,4 139,9
Brands with an indefinite useful life 102,2 91,4 135,5
Total goodwill and other intangible assets with an indefinite useful life 232,0 207,7 275,4
The changes in the net carrying amount of goodwill and other intangible assets with an
indefinite useful life are summarised in the following table:
(million Euro) 31 Dec 08
Exchange rate
differences
Reclassifications 30 June 09
Goodwill 116,4 13,5 - 129,8
Brands with an indefinite useful life 91,4 10,8 - 102,2
Total 207,7 24,3 - 232,0
The brand name with an indefinite useful life (Hotpoint) and goodwill relate to the acquisition
of General Domestic Appliances Holding Ltd. As mentioned in the consolidated financial
statements at 31 December 2008, part of the goodwill deriving from this acquisition was
allocated to the Group Cash Generating Units (CGUs) that benefit from the synergies
deriving from this acquisition.
Considering the results for the first half of 2009, checks were made on the principal plan
assumptions made when preparing the consolidated financial statements at 31 December
2008, in order to calculate the recoverable value of the CGUs to which the intangible assets
with an indefinite useful life were allocated. These checks did not identify any circumstances
at 30 June 2009 making it necessary to repeat the impairment tests at the level of the group
CGU o the UK CGU. There is no apparent need to adjust the carrying amounts of these
assets, given broad compliance with the plans made by the Group and recent trends in
exchange and interest rates.
8.10. Other intangible assets with a finite life
Other intangible assets are analysed as follows:
(million Euro)
30 June 2009 31 Dec 2008 30 June 2008
Development expenses 45,8 37,7 35,7
Licences and software 39,1 42,0 39,7
Brands with a finite useful life 25,3 26,5 8,4
Intangible assets under development 4,3 12,4 11,9
Other 5,2 5,3 6,7
Total 119,7 123,9 102,3
The development expenditure capitalised during the first half of 2009 totalled 8.2 million euro
(6.1 million euro).
The changes in the historical cost of other intangible assets with a finite useful life during the
period are shown below:
38