Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEARS ENDED
DECEMBER 31, 2011, AND 2010
(EXPRESSED IN THOUSANDS OF EUROS - KEUR)
penalty clauses applicable if those objectives are not met. The useful life of
contractual relationships, has been determined by taking into consideration
the contractual-legal rights, the renewal period and the technological lock-in
period for these intangible assets. It has been determined to range over a
period of 1 to 15 years. A straight-line method of amortization is applied, and
tested for impairment to adjust the carrying amount to the achievement of the
committed objectives (as indicated in paragraph g). And within this category,
those assets that were acquired through the business combination are
amortized using a straight-line method over a period between 8 and 15 years.
� Other intangible assets are amortized on a straight-line basis over 3 to 5
years.
Amortization expenses related to intangible assets are included in the
“Depreciation and amortization” caption of the statement of comprehensive
income.
The Group receives tax incentives in the form of reduced liability for taxes in
relation to research and development costs incurred by the Group. These
incentives are in substance government grants and are recognized when there is
reasonable assurance that the Group will comply with the relevant conditions and
the grant will be received. The incentives for the period are recognized as a lower
research and development expenditure in the statement of comprehensive
income. When the costs incurred first meet the intangible asset recognition
criteria the incentive for the period which is attributable from this point onwards is
recognized as a lower intangible asset cost.
i) Tangible assets
Tangible assets are recognized at cost less accumulated depreciation and
impairment losses. They are depreciated by applying the straight-line method
over the estimated useful lifes of the assets:
14
Useful life in years
Buildings 50
Data processing hardware and software 2 - 7
Other tangible assets 3 - 20
Repairs and renewals are charged to the statement of comprehensive income
within the “Other operating expenses” caption when the expenditure is incurred.
The cost of software licences acquired to be used by data processing hardware
that needs the software to be capable of operating, are regarded as highly
integrated with the data processing hardware and as a tangible fixed asset.
The Amadeus Data Centre in Erding provides the systems and infrastructure
necessary to conduct the Amadeus business. Both the hardware equipment