185000000 IT Holding Finance SA

IT HOLDING S.p.A. Notes to the consolidated financial statements for the year ended December 31, 2002
18. Goodwill, trademarks, other intangible assets and deferred charges, net
Movements of intangible assets in 2002 were as follows:
Development Patents and
Assets in
formation and
cost trademarks Goodwill advanced Other Total
(In thousands of Euros)
Costs
Balance at January 1, 2002 ............ — 85,068 74,580 7,411 1,058 168,117
Acquisitions.................................... 979 3,477 1,696 2,926 3,627 12,705
Changes of consolidation area ....... — 175,883 83,140 2,007 7,577 268,607
Other movements ........................... — 67 (72) — (2,006) (2,011)
Write-downs................................... — — — — (23) (23)
Disposal.......................................... — — — (2,599) (3,389) (5,988)
Balance at December 31, 2002 .....
Depreciation
979 264,495 159,344 9,745 6,844 441,407
Balance at January 1, 2002 ............ — (19,495) (24,720) (966) (45,181)
Depreciation of the year................. (175) (16,021) (10,872) — (549) (27,617)
Balance at December 31, 2002 ....
Carrying amount
(175) (35,516) (35,592) — (1,515) (72,798)
At January 1, 2002 ......................... — 65,573 49,860 7,411 92 122,936
At December 31, 2002 ................... 804 228,979 123,752 9,745 5,329 368,609
The increase in balance of the item trademark is basically determined by the brand Ferrè purchased in 2002 for Euro
175 million.
The increase in goodwill is mainly due to the acquisition of the Ferrè Group.
19. Deferred tax assets and liabilities
Recognized deferred tax assets and liabilities
Deferred tax assets and liabilities at December 31, 2002 and 2001 are attributable to the following:
Assets Liabilities Net
Deferred tax assets and liabilities 2002 2001 2002 2001 2002 2001
(In thousands of Euros)
Property, plant and equipment ......................................... — (66) 1,346 1,315 1,346 1,249
Intangible assets ............................................................... (10,270) (10,600) 63,723 — 53,453 (10,600)
Investment property ......................................................... — — 845 1,469 845 1,469
Investment in subsidiary .................................................. (16,503) — — — (16,503) —
Interest-bearing loans and borrowings............................. (164) (234) 91 — (73) (234)
Employee benefits............................................................ — — 234 271 234 271
Provisions ......................................................................... (4,245) (3,353) 307 310 (3,938) (3,043)
Other items ....................................................................... (5,937) (1,198) — — (5,937) (1,198)
Tax value of loss carry-forwards not recognized ............ (1,350) (4,309) — — (1,350) (4,309)
Net tax (assets)/liabilities ............................................... (38,469) (19,760) 66,546 3,365 28,077 (16,395)
The caption “Investment in subsidiary” relates to write off of the value of the investment that is tax deductible.
Unrecognized deferred tax assets
Deferred tax assets have not been recognized in respect of the following items:
2002 2001
Increase
(Decrease)
(In thousands of Euros)
Intangible assets ............................................................................................................................... 4,235 1,482 2,753
Provisions ......................................................................................................................................... 4,268 974 3,294
Other items ....................................................................................................................................... 1,372 161 1,211
Tax value of loss carry-forwards not recognized ............................................................................ 20,397 15,673 4,724
Total................................................................................................................................................. 30,272 18,290 11,982
F- 117