Annual Report 2009 - Husqvarna Group

70 Husqvarna Annual Report 2009 Notes
Amounts in SEKm unless otherwise stated.
NOTE 10
Intangible assets
Group
Parent
Company
Goodwill
Trademark
Product
development
Other Total
Product
development
and other
Acquisition costs
Opening balance, 1 Jan 2008 5,461 3,300 859 535 10,155 621
Acquired during the year — — — 12 12 7
Product development — — 242 — 242 127
Acquired companies 346 64 — 64 474 324
Fully amortized — — –50 –31 –81 —
Exchange-rate differences 981 516 84 107 1,688 —
Closing balance, 31 Dec 2008 6,788 3,880 1,135 687 12,490 1,079
Acquired during the year — — — 60 60 44
Product development — — 188 — 188 107
Acquired companies — — — 2 2 7
Fully amortized — — — –5 –5 —
Reclassification — — 44 114 158 —
Exchange-rate differences –327 –221 –42 –27 –617 —
Closing balance, 31 Dec 2009 6,461 3,659 1,325 831 12,276 1,237
Accumulated amortization 1
Opening balance, 1 Jan 2008 — 102 408 153 663 398
Amortization for the year — 26 141 70 237 90
Acquired companies — — — — — —
Fully amortized — — –50 –31 –81 —
Impairment — — — 2 2 —
Exchange-rate differences — 19 41 32 92 —
Closing balance, 31 Dec 2008 — 147 540 226 913 488
Amortization for the year — 35 189 76 300 150
Acquired companies — — — — — 5
Fully amortized — — — –5 –5 —
Impairment — — 49 45 94 42
Reclassification — — 44 114 158 —
Exchange-rate differences — –9 –31 –16 –56 —
Closing balance, 31 Dec 2009 — 173 791 440 1,404 685
Carrying amount, 31 Dec 2008 6,788 3,733 595 461 11,577 591
Carrying amount, 31 Dec 2009 6,461 3,486 534 391 10,872 552
1) In the income statement amortization is primarily accounted for within Cost of goods sold.
Intangible assets with indefinite useful lives
Goodwill as per 31 December 2009 amounts to SEK 6,461m,
whereof SEK 4,711m relates to Consumer Products and
SEK 1,750m to Professional Products. Husqvarna has assigned
the Gardena trademark indefinite life, with a total carrying
amount of SEK 3,317m. All intangible assets with indefinite
useful lives are tested for impairment at least once a year and
individual assets can be tested more regularly in cases in
which there are indications of impairment. The recoverable
amounts of the operations have been determined based on
value in use calculations. Value in use is estimated using the
discounted cash-flow model on the strategic plans that are
established for each cash-generating unit covering the coming
three years, i.e. 2010 to 2012. These plans are used for the
impairment tests made at the end of 2009. The cash flow of
the third year is normally used for the fourth year and onwards
with an estimated growth rate of 2% included. The pre-tax
discount rate used in 2009 was 9%. Under the current
business environment, management do not believe that any
reasonable changes in the key assumptions on which the
cash-generating unit’s recoverable amounts are based upon
would result in the carrying amounts exceeding the recovorable
amounts. However a future market decline could possibly
lead to an impairment situation.