ANNUAL REPORT INTRUM JUSTITIA A N N U A L R EP O R T 2 0 ...

62
Notes
NOTE 10
INTANGIBLE fIXED ASSETS
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Capitalized expenditure
for IT development
Acquisition cost, opening
balance
882.0 779.8 4.8 4.4
Capitalized expenditures
for the year
110.2 166.7 0.6 0.4
Disposals –9.1 –31.0 – –
Reclassification 1.4 – – –
Acquired through business
combination
25.0 – – –
Translation differences –78.6 –33.5 – –
Accumulated acquisition
cost, closing balance
930.9 882.0 5.4 4.8
Accumulated amortization,
opening balance
–429.1 –383.2 –4.3 –4.0
Disposals 7.9 29.9 – –
Reclassification –0.3 – – –
Acquired through business
combination
–5.3 – – –
Amortization for the year –104.6 –84.7 –0.2 –0.3
Translation differences 40.6 8.9 – –
Accumulated amortization,
closing balance
–490.8 –429.1 –4.5 –4.3
Impairments, opening balance –125.6 –133.4 – –
Translation differences – 7.8 – –
Accumulated impairments,
closing balance
–125.6 –125.6 0.0 0.0
Carrying value 314.5 327.3 0.9 0.5
Client relationships
Acquisition cost, opening
balance
Capitalized expenditures
129.6 138.8 – –
for the year upon business
acquisitions
101.4 – – –
Translation differences –16.7 –9.2 – –
Accumulated acquisition
cost, closing balance
214.3 129.6 0.0 0.0
Accumulated amortization, opening
balance
–51.3 –33.1 – –
Amortization for the year –14.5 –21.8 – –
Translation differences 7.5 3.6 – –
Accumulated amortization,
closing balance
–58.3 –51.3 0.0 0.0
Carrying value 156.0 78.3 0.0 0.0
Other intangible fixed assets
Acquisition cost, opening
balance
42.9 32.8 – –
Capitalized expenditures
for the year
1.4 15.1 – –
Translation differences –5.9 –5.0 – –
Accumulated acquisition
cost, closing balance
38.4 42.9 0.0 0.0
Goodwill
Acquisition cost, opening
balance
1,825.3 1,956.6 – –
Aqcuistions for the year 468.2 – – –
Divestments for the year – –76.6 – –
Translation differences –141.0 –54.7 – –
Accumulated acquisition
cost, closing balance
2,152.5 1,825.3 – –
Impairments, opening balance – –60.7 – –
Divestments for the year – 60.7 – –
Accumulated acquisition
cost, closing balance
– – 0.0 0.0
Carrying value 2,152.5 1,825.3 0.0 0.0
Capitalized expenditure for IT development is mainly generated internally
using our own employees and/or contracted consultants. Client
relations and goodwill are acquired in connection with business acquisitions.
Other intangible fixed assets are mainly acquired externally.
Payments during the year regarding investments in intangible fixed assets
amounted to SEK 119.0 M (192.0) for the Group.
Impairment tests for cash-generating units containing goodwill
Intrum Justitia treats the following groups of countries where the Group has
operations as cash-generating units in the sense referred to in IAS 36 Impairment
of Assets. Previous years each country has been treated as a cash-generating
unit in connection to impairment tests, but the operations in each group
of countries are now regarded to be integrated to such an extent that they are
to be seen as cash generating units. The goodwill value is distributed among
the largest countries as follows:
SEK M 2010 2009
Sweden, Norway, Denmark,
Finland och The Baltics
Netherlands, Belgium,
UK and Ireland
GROUP PARENT COMPANY
SEK M 2010 2009 2010 2009
Accumulated amortization,
opening balance
–12.7 –6.1 – –
Amortization for the year –11.0 –9.8 – –
Translation differences 2.8 3.2 – –
Accumulated amortization,
closing balance
–20.9 –12.7 0.0 0.0
Carrying value 17.5 30.2 0.0 0.0
1,059.8 620.6
518.2 584.3
Germany, Switzerland and Austria 292.1 296.2
Poland, Hungary, Czech Republic
and Slovakia
63.4 72.7
Spain and Portugal 22.2 25.5
France 137.7 158.1
Italy 59.1 67.9
Total 2,152.5 1,825.3
Impairment testing of goodwill for each cash-generating unit was done prior
to preparation of the annual accounts. The recoverable amount is determined
through an estimation of its value in use. For each cash-generating unit, management
has compiled a forecast of annual future cash flows based on historical
experience and the company’s own plans and estimates for the future. The calculation
is based on a detailed forecast for the years 2011–2013 and thereafter
an annual increase of 3 percent. The cash flows have been discounted to present
value applying the Group’s weighted average cost of capital, which is estimated
at 7.87 percent (7.93) per year before tax. The recoverable amount has been
compared for each unit with the Group’s net book value of the unit’s assets and
liabilities. The test gave no indication of a need of goodwill impairment.