Review of 2010 – USD version - Skanska

Note
18 Continued
Goodwill impairment losses
During 2010 the Group recognized goodwill impairment losses of USD –15.0 M (–27.4).
The year’s impairment loss was related to goodwill that arose in conjunction with acquisitions
in Finland carried out in 2000. Last year’s impairment was attributable to the
acquisition of McNicholas in the United Kingdom in 2006.
The impairment loss was based on a calculation of value in use and was recognized
as a selling and administrative expense in the income statement.
Information about cost and accumulated impairment loss
Note
19
Intangible assets
Goodwill
2010 2009
Accumulated cost
January 1 652.6 592.1
Acquisitions of companies 0.7
Exchange differences for the year –17.0 59.8
635.6 652.6
Accumulated impairment losses
January 1 –45.6 –17.0
Impairment losses for the year –15.0 –27.4
Exchange rate differences for the year 0.8 –1.2
–59.8 –45.6
Carrying amount, December 31 575.8 607.0
Carrying amount, January 1 607.0 575.2
Intangible assets are recognized in compliance with IAS 38, “Intangible Assets.”
See “Accounting and valuation principles,” Note 1.
Intangible assets and useful life applied
Dec 31, 2010 Dec 31, 2009 Jan 1, 2009
Useful life
applied
Expressway concession 27.3 20 years
Other intangible assets,
externally acquired 24.7 28.9 30.0
Total 52.0 28.9 30.0
3–10
years
The Group has no remaining carrying amounts for intangible assets that were internally
generated.
The expressway concession refers to an expressway project in Antofagasta, Chile,
where Skanska Latin America has the construction assignment. “Other tangible assets,
externally acquired” includes acquired patents in Sweden, acquired service contracts in
the United Kingdom, acquired service contracts in Poland, extraction rights for gravel
pits and rock quarries in Sweden and computer software. Computer software is amortized
in 3–5 years. Service contracts are amortized over a period of 3–6 years and patents
are amortized over 10 years.
Extraction rights for rock quarries and gravel pits are amortized as material is
extracted.
Amortization of other intangible assets by function
All intangible assets were amortized, because they have a limited useful life.
Amortization by function 2010 2009
Cost of sales –7.1 –7.4
Selling and administration –3.9 –3.1
Total –11.0 –10.6
Impairment losses/reversals of impairment losses on other intangible assets
During 2010, impairment losses/reversals of impairment losses on other intangible
assets were recognized in the amount of USD –0.8 M (0.0). The impairment losses were
mainly attributable to the Construction business stream and were based on net
realizable value.
Information about cost, accumulated amortization and accumulated
impairment losses
Accumulated cost
Expressway
concession
Other intangible
assets, externally
acquired
Intangible assets,
internally generated
1
2010 2009 2010 2009 2010 2009
January 1 0.0 82.2 107.4 95.4 8.9 8.3
Change in accounting principle –82.2
Adjusted accumulated cost,
January 1 0.0 0.0 107.4 95.4 8.9 8.3
Acquisitions of companies 0.7
Other investments 25.8 10.0 8.1
Divestments –3.5
Exchange rate differences for
the year 1.5 0.0 –2.2 3.2 0.5 0.6
27.3 0.0 111.7 107.4 9.4 8.9
Accumulated amortization
January 1 0.0 –8.2 –75.3 –62.4 –8.9 –8.3
Change in accounting principle 8.2
Adjusted accumulated amortization,
January 1 0.0 0.0 –75.3 –62.4 –8.9 –8.3
Divestments 1.8
Amortization for the year –11.0 –10.6
Reclassifications 0.3
Exchange rate differences for
the year 1.4 –2.3 –0.5 –0.6
0.0 0.0 –82.8 –75.3 –9.4 –8.9
Accumulated impairment losses
January 1 –3.2 –3.0
Amortization for the year –0.8
Exchange rate differences for
the year 0.0 0.0 –0.2 –0.2 0.0 0.0
–4.3 –3.2
Carrying amount, December 31 27.3 0.0 24.7 28.9 0.0 0.0
Carrying amount, January 1 0.0 74.1 28.9 30.0 0.0 0.0
1 Internally generated intangible assets consisted of computer software.
Other matters
Information about capitalized interest is presented in Note 15, “Borrowing costs.”
Direct research and development expenses amounted to USD 6.0 M (7.6).
Skanska Review of 2010 – USD version Notes, including accounting and valuation principles 125