Note 12 Intangible fixed assets

Note 12 Intangible fixed assets


Goodwill
Other intangible fixed asets


Licenses, brands, customer relations and similar assets
Capitalized development
Total other intangible fixed assets
SEKm 2013 2012
2013 2012
2013 2012
2013 2012
Acquisition value, beginning balance 3,198 2,838
2,085 1,621
1,781 2,364
3,866 3,985
Acquisition of subsidiaries 167 436
30 260

29
30 290
Sale of subsidiaries
–44

–8




–9
Other investments
2
111 34
234 301
345 335
Divestments/disposals


–11 –6
–41 –661
–52 –667
Reclassifications


–28 189
28 –189
0
Translation differences –62 –34
–45 –5
34 –63
–11 –68
Accumulated acquisition value, end of year 3,303 3,198
2,142 2,085
2,036 1,781
4,178 3,866
Amortization, beginning balance


–1,023 –859
–740 –1,269
–1,763 –2,128
Acquisition of subsidiaries



–1

–2

–3
Amortization for the year


–225 –174
–105 –173
–330 –347
Divestments/disposals


19 5
33 655
52 660
Reclassifications


18

–18

0
Translation differences


16 6
–25 49
–9 55
Accumulated amortization, end of year


–1,195 –1,023
–855 –740
–2,050 –1,763
Impairments, beginning balance –8 –8
–8 –8
–516 –366
–524 –374
Impairments for the year


–2


–152
–2 –152
Divestments/disposals










Translation differences





–5 2
–5 2
Accumulated impairments, end of year –8 –8
–10 –8
–521 –516
–531 –524
Ending balance 3,295 3,190
937 1,054
660 525
1,597 1,579

Internally generated intangible assets are reported as capitalized development expenditures, which were chiefly attributable to system support for shared IT solutions and integration of IT infrastructure. Other intangible fixed assets were chiefly attributable to brands and customer relations. Expensed development costs totaled to SEK 0 (0) during the year.

For information on acquisition of intangible fixed assets through acquisition of subsidiaries, see Note 31, Acquisitions and Divestments of Operations, page 130.

Impairments on capitalized development work totaled SEK 0m (152). Last year’s impairment was attributable to the Danish SAP platform; see also Note 8, Depreciation and Impairments, page 115. Impairments on other intangible fixed assets totaled SEK 2m (0).

Impairment test on intangible fixed assets

Goodwill is not subject to depreciation but rather to an annual impairment test. No impairment of goodwill occurred during the period. Goodwill is the only intangible asset with an indeterminate period useful life.

A value assessment was conducted on all cash-generating segments with a discount factor of 7.5 (8.3)% after tax.

As of December 31, 2013, the SEK 3,295m (3,190) carrying amount of goodwill arose in the following cash-generating segments: SEK 1,433m (1,507) for international parcel and pallet operations (DPD and Tollpost Globe AS), SEK 697m (691) for Stralfors, SEK 311m (300) for Post Danmark A/S, 331m (332) for PostNord Logistik TPL AB, SEK 95m (105) for Harlem Transport AS, SEK 66m (0) for Nordisk Kyl Logistik AB/Transbothnia AB and SEK 362m (255) for other businesses (refers mainly to Data Scanning A/S, Transportgruppen A/S, Budstikken Transport A/S, Eek Transport AS, Nils Hansson Logistics AB, HIT, Direct Link and Addresspoint). All intangible assets with indefinite useful lives are tested at least once per year to determine that the value does not deviate negatively from actual book value. Individual assets may be tested more often if there are indications of impairment. The recoverable value of each of these cash-generating segments was based on their value in use. The calculations were based on three-year business plans and forecasts adopted and formulated based on analyses of the external business environment and planned marketing and production activities. The assessments made in the business plans are based on Group Management’s knowledge and experience.

The assumptions with the greatest impact on the impairment assessments are volume growth and profit margins. Calculations were made with different assumptions for the operating profit and discount rate to evaluate the sensitivity of test outcome.

Tollpost Globe AS is part of the international parcel and pallet operation and is considered integrated with DPD in the impairment test performed. For international parcel and pallet operations, average annual growth of 3% is forecast for the business plan period. The test did not show any impairment.

Goodwill in Post Danmark A/S is attributable to the 1995 conversion into a corporation. The cash-generating segment’s recoverable amount is based on value in use. Average annual growth of 2% is forecast for Post Danmark for the business plan period. Value in use exceeds book value. The test did not show any impairment.

With respect to Strålfors, the entire operation (that existed as of the 2006 acquisition) is viewed as a cash-generating segment at the time of testing. For Strålfors, average annual growth of 5% is forecast for the business plan period. The cash-generating segment’s recoverable amount is based on value in use. Calculated value in use exceeds book value. The test did not show any impairment.

Growth after the business plan period totals 0–2%.