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)
� There is certain stability within the GDS industry since it is composed of few
players worldwide and Amadeus has a strong positioning.
Thereby, we do not see any fact or circumstance driving us to estimate a definite
useful life for the Amadeus brand, thus, qualifying the asset as an indefinite useful
life intangible asset. The Amadeus brand carrying amount is allocated to the cashgenerating
units of Distribution by KEUR 257,800, and IT Solutions by KEUR 35,400.
This intangible asset does not generate cash inflows that are independent from other
assets, and is therefore tested for impairment as part of the cash-generating units to
which it is allocated. The key assumptions used for the impairment tests as well as
the methodology followed is described in note 7.
During the year ended December 31, 2011, total additions to intangible assets
amounted to KEUR 298,823, of which KEUR 110,031 were acquired separately and
KEUR 188,792 were internally developed. In year 2010, total additions to intangible
assets amounted to KEUR 218,608, of which KEUR 57,246 were acquired
separately, and KEUR 161,362 were internally developed.
Significant additions during the years ended at December 31, 2011, and 2010
include software capitalizations by the subsidiary Amadeus s.a.s., for a total amount
of KEUR 182,967 and KEUR 156,108, respectively, as well as the payments made
to travel agents and travel providers that meet the requirements to be recognised as
an asset by KEUR 101,821 and KEUR 52,111, for each year respectively.
In 2010 the “additions due to acquisitions” relate to the assets of Perez Informatique
S.A. and subsidiaries, also detailed in note 13.
In year ended 2010, the “Assets classified as held for sale” caption presents the
transfer of the assets corresponding to Opodo Group. During 2011, Opodo Group
has been sold, as described in note 14.
In year ended 2010, the retirements mainly relate to the carrying value of intangible
assets of Amadeus Hospitality Group, for a total amount of KEUR 5,184, as a result
of the sale by the Group in 2010, as described in note 14.
The Group has carried out a review of the recoverable amount of the significant
intangible assets that show signs of impairment. As a result of this review, the Group
has recognised an impairment loss mainly assigned to software internally developed
and contractual relationships as of December 31, 2011, and 2010 by an amount of
KEUR 2,543 and KEUR 10,746, respectively. From the total impairment expense for
year 2011, KEUR 140 corresponds to the IT Solutions operating segment and KEUR
2,404 to the Distribution operating segment. For year ended 2010 KEUR 2,511 and
KEUR 8,235, respectively.
Additions of software internally developed are presented net of government grants
received from the French Tax Authorities (Research Tax Credit) as of December 31,
2011, and 2010, by an amount of KEUR 6,678 and KEUR 8,347, respectively. The
total government grants received from the French Tax Authorities, including the
37