Annual and Sustainability Report 2011 - Teracom

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Note 15. Property, plant and equipment Land and buildings 2011 2010 Opening cost, 1 January 1 163 573 - Acquisitions 0 586 - Adjustment of acquisition balance/reclassification from intangible assets 20 - - Investments 11 11 - Reclassifications 0 3 - Exchange rate differences -2 -10 Closing accumulated cost, 31 December 1 192 1 163 - Opening depreciation, 1 January -392 -373 - Adjustment of acquisition balance/reclassification from intangible assets -6 - - Depreciation for the year -40 -19 - Exchange rate differences 1 0 Closing accumulated depreciation, 31 December -437 -392 Closing carrying amount, net, 31 December 755 771 Group Plant and machinery 2011 2010 Opening cost, 1 January 5 216 4 281 - Acquisitions 0 837 - Adjustment of acquisition balance -2 - - Investments 16 18 - Sales/disposals -390 -40 - Reclassification from work in progress 173 135 - Exchange rate differences -2 -15 Closing accumulated cost, 31 December 5 011 5 216 - Opening depreciation -3 145 -2 949 - Sales/disposals 388 39 - Depreciation for the year -277 -235 - Exchange rate differences -1 0 Closing accumulated depreciation, 31 December -3 035 -3 145 - Opening impairment losses, 1 January 0 -2 - Reclassifications 0 2 - Impairment losses for the year -7 0 Closing accumulated impairment losses, 31 December -7 0 Closing carrying amount, net, 31 December 1 969 2 071 Equipment, tools, fixtures and fittings 2011 2010 Opening cost, 1 January 373 358 - Acquisitions 0 3 - Adjustment of acquisition balance 2 - - Investments 13 21 - Sales/disposals -23 -9 - Exchange rate differences 0 0 Closing accumulated cost, 31 December 365 373 - Opening depreciation, 1 January -338 -328 - Adjustment of acquisition balance 1 - - Sales/disposals 23 8 - Depreciation for the year -20 -18 - Exchange rate differences 0 0 Closing accumulated depreciation, 31 December -334 -338 - Opening impairment losses, 1 January -2 0 - Reclassifications 2 -2 - Impairment losses for the year 0 0 Closing accumulated impairment losses, 31 December 0 -2 Closing carrying amount, net, 31 December 31 33 Group Group Construction-in-progress 2011 2010 Opening cost, 1 January 164 115 - Investments 247 192 - Sales 0 -2 - Reclassifications -173 -141 Closing carrying amount, net, 31 December 238 164 Investment projects and the inventory of spare parts related to investment projects are for construction-in-progress. Group 80
Note 16. Goodwill and other intangible assets Goodwill and intangible assets with uncertain useful life Goodwill as of 31 December 2011 had a carrying amount of SEK 1,181 million. In addition, the right to use the brand Plus TV in Finland, which was acquired in June 2009, was assigned an uncertain useful life. This right has a carrying amount of SEK 73 million. Goodwill is allocated to the Group's cash-generating units that have been identified by operating segment in accordance with the table below. 2011 Group operating segments, SEK million Goodwill Brand Intangible assets with uncertain useful life Teracom Sweden 0 - 0 Boxer Sweden 818 - 818 Teracom Denmark 110 - 110 Boxer Denmark 0 - 0 Plus TV 253 73 326 Total 1 181 73 1 254 The Teracom Group's goodwill and intangible assets that have an uncertain useful life are not amortized. Rather, they are tested annually for impairment. When testing for impairment, the recoverable amount for each cash generating unit (CGU) is calculated. The recoverable amount is either the fair value or the value-in-use of the CGU (whichever is higher). The recoverable amount of a CGU has been established based on calculations of the value-in-use. These calculations are derived from an estimation of future cash flows, based on the most recent financial business plans that have been approved by the Group management team. The Teracom Group has selected a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. The discount rate does not reflect risks for which future cash flows have been adjusted. Boxer Sweden Impairment testing of Boxer Sweden is based on a calculation of the valuein-use. The calculated value is based on cash flow forecasts through 2017, which are based on reasonable and verifiable assumptions representing the Group's best estimates of the financial conditions that are expected to prevail during the period. The present value of the forecasted cash flows has been calculated using a discount rate of approximately 8.5 percent. The expected future scenario is based on prior experience and external sources. The Group management team has determined that there have not been any changes to important assumptions such that the calculated value-in-use is now less than the carrying amount. Plus TV Impairment testing of Plus TV is based on a calculation of the value-in-use. The calculated value is based on cash flow forecasts through 2017, which are based on reasonable and verifiable assumptions representing the Group's best estimates of the financial conditions that are expected to prevail during the period. The calculations apply to periods that are more than five years in the future because the company is still in the start-up phase and it will be quite some time before long-term stable profitability is achieved. The present value of the forecasted cash flows has been calculated using a discount rate of approximately 8.7 percent. Improved margins and growth in sales are important variables to consider when calculating Plus TV's value-in-use. The expected future scenario is based on prior experience and external sources. The Group management team has determined that there have not been any changes to important assumptions such that the calculated value-in-use is now less than the carrying amount. Boxer Denmark Impairment testing of Boxer Denmark is based on a calculation of the valuein-use. The calculated value is based on cash flow forecasts through 2019, which are based on reasonable and verifiable assumptions representing the Group's best estimates of the financial conditions that are expected to prevail during the period. The calculations apply to periods that are more than five years in the future because the company is still in the start-up phase and it will be quite some time before long-term stable profitability is achieved. The present value of the forecasted cash flows has been calculated using a discount rate of approximately 8.6 percent. Important variables to consider when calculating Boxer Denmark's value-in-use are improved margins and growth in sales. The expected future scenario is based on prior experience and external sources. The Group management team has determined that there have not been any changes to important assumptions such that the calculated valuein-use is now less than the carrying amount. Teracom Denmark Impairment testing of Teracom Denmark is based on a calculation of the value-in-use. The calculated value is based on cash flow forecasts through 2019, which are based on reasonable and verifiable assumptions representing the Group's best estimates of the financial conditions that are expected to prevail during the period. The present value of the forecasted cash flows has been calculated using a discount rate of approximately 8.3 percent. The expected future scenario is based on prior experience and external sources. The Group management team has determined that there have not been any changes to important assumptions such that the calculated value-in-use is now less than the carrying amount. Note 16 continues on the next page 81
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Annual and Sustainability Report 20
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Read more about the Swedish busines
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Denmark has been and continues to b
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Teracom Group On 1 June, Teracom Gr
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An integrated TV business The Group
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digital radio and, in connection wi
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Subsidized public transportation en
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Sweden Sweden is the Group’s firs
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The market The competition primaril
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67 PR5 Customer satisfaction for Bo
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Denmark Denmark is the Group's youn
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Chris Corneliussen, Boxer Denmark
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Finland PlusTV is the largest Pay-T
Page 28 and 29:
Kimi »The Iceman« Räikkönen is
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Sustainability - corporate responsi
Page 32 and 33: The Teracom Group’s sustainabilit
Page 34 and 35: The Group's breakdown of climate im
Page 36 and 37: Employees For the Teracom Group, hi
Page 38 and 39: Media plurality requires a long-ter
Page 40 and 41: Reporting in accordance with GRI gu
Page 42 and 43: GRI G3 Index Reference Comments 1.
Page 44: Contents 44 Directors’ Report 49
Page 47 and 48: Operating profit for the year amoun
Page 49 and 50: Diversity and equal opportunity Div
Page 51 and 52: Corporate Governance Report The Cor
Page 53 and 54: Teracom AB's 2011 AGM Teracom AB's
Page 55 and 56: Evaluation of the Board of Director
Page 57 and 58: ously striving to achieve long-term
Page 59 and 60: 1 2 3 4 5 6 7 8 9 10 11 12 Board of
Page 61 and 62: Consolidated Income Statement MSEK
Page 63 and 64: Consolidated Cash Flow Statement MS
Page 65 and 66: Parent Company Income Statement MSE
Page 67 and 68: Parent Company Cash Flow Statement
Page 69 and 70: Notes Contents Note Description Pag
Page 71 and 72: the Group conducts an impairment te
Page 73 and 74: No major changes will be made for f
Page 75 and 76: Note 4 Segment reporting The Group
Page 77 and 78: Notice period and severance pay The
Page 79 and 80: Return on plan assets 2011 2010 For
Page 81: Note 13. Tax on profit for the year
Page 85 and 86: Note 17. Other financial assets Gro
Page 87 and 88: Net investments of foreign operatio
Page 89 and 90: Financial derivative instruments Th
Page 91 and 92: Note 26. Shares and participations
Page 93 and 94: Auditors' report on overall review
Page 95: Responsibility of the auditor It is
Page 98 and 99: Technical definitions Broadcasting
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Annual and Sustainability Report 2011 - Teracom

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