ACS Group Annual Report - Grupo ACS

Consolidated
Financial Statements
4.02. Other intangible assets
The changes in this consolidated statement of fi nancial position heading in 2010 and 2009 were as follows:
Development
Expenditure
Computer
software
Concessions
Remaining
intangible
assets
Total other
intangible
Assets
Accumulated
Amortisation
Impairment
losses
Total Other
Intangible
Assets Net
Thousands of euros
Balance at 01 January 2009 6,989 47,658 181,414 313,030 549,091 (91,166) (80) 457,845
Changes in the scope of
- (15,334) (103,428) 114,259 (4,503) 6,955 - 2,452
consolidation
Additions or charges for the year 2,017 4,403 32,645 116,158 155,223 (20,412) 17 134,828
Disposals or reductions (187) (2,363) (33,482) (2,490) (38,522) 6,920 3 (31,599)
Exchange differences (1) 89 (10) (53) 25 (43) - (18)
Transfers from/to other assets 2,067 148 (1,578) 5,630 6,267 (2,824) 10 3,453
Balance at 31 December 2009 10,885 34,601 75,561 546,534 667,581 (100,570) (50) 566,961
Changes in the scope of
- 20 2 793 815 (770) - 45
consolidation
Additions or charges for the year 95 3,018 73,982 40,074 117,169 (22,366) (19,252) 75,551
Disposals or reductions (279) (1,551) (2) (99,004) (100,836) 2,129 2,277 (96,430)
Exchange differences - 90 - 5,973 6,063 (78) (324) 5,661
Transfers from/to other assets (2,505) 351 5,485 (90,384) (87,053) 7,242 (7,619) (87,430)
Balance at 31 December 2010 8,196 36,529 155,028 403,986 603,739 (114,413) (24,968) 464,358
In 2010 there were no changes in other intangible assets resulting from signifi cant changes in the scope of consolidation. The
changes in scope of consolidation in 2009 relate mainly to the consideration of port and logistics services as a discontinued
operation and the allocations of intangible assets relating to the acquisitions of the companies Pol-Aqua, Pulice Construction,
Inc. and John P. Picone, Inc. which amounted to EUR 98,222 thousand and were included under “Remaining intangible assets”
fi nally being reallocated in 2010 (Note 2.02.f.). The business combinations have focused on businesses characterised by the
existence of a signifi cant construction order book and client base, among others, many of which expire in the short-medium
term and are subject to periodic renewals (on tacit occasions), thus establishing a recurring relationship over time with its
most signifi cant clients. In these cases, the ACS Group deems that, according to IFRS 3, part of the gain must be allocated
to said contracts and generally to the contractual relationships with clients. The assessment of the order book signed on
the acquisition date of the contractual relationships with clients, takes the planned margins (EBITDA) after taxes, the CAPEX
forecasts and the signed contractual period as a reference. Said assessment gives rise to the generation of an intangible
asset, which shall be amortised over the remaining term of the contract and the term of the aforementioned contractual
relationship, which tends to be limited to 10 years, proportionately to the estimated cash fl ows.
The intangible assets identifi ed above, correspond in their entirety to the assessment of the order book of signed contracts
on the acquisition date and the contractual relationships with certain key clients of the acquired companies. They are
amortised on a straight-line basis over the estimated period in which they generate the cash fl ows for the company.
Investments in 2010 amounted to EUR 117,936 thousand, of which EUR 117,169 thousand relate to separate acquisitions
and EUR 767 thousand to assets acquired through business combinations. Noteworthy were the acquisitions relating to the
capitalisation of the concession project of the RSU treatment plant of Marsella (EVERE) for EUR 66,822 thousand, whose
completion date is 2030.
82
ANNUAL REPORT 2010
ACS GROUP