Annual Report 2010/11 - Sonova

122
1,000 cHf 31.3.2010
Cost
Goodwill software intangibles
relating to
acquisitions
other
intangibles
Balance april 1 321,129 27,102 76,395 32,116 456,742
changes through business combinations 1) 619,301 307 103,875 110 723,593
additions 1,690 8,805 185 19,389 30,069
disposals 2) (9,306) (2,078) (58) (9) (11,451)
exchange differences 1) 29,258 (313) 4,542 26 33,513
Balance March 31 1) 962,072 33,823 184,939 51,632 1,232,466
Accumulated amortization and impairments
Balance april 1 (20,081) (15,266) (2,949) (38,296)
additions 1) (4,953) (12,301) 3) (1,569) (18,823)
disposals 2,049 53 2 2,104
Impairment 1) (156,556) (156,556)
exchange differences 1) (430) 331 (867) (9) (975)
Balance March 31 1) (156,986) (22,654) (28,381) (4,525) (212,546)
Net book value
Balance april 1 321,129 7,021 61,129 29,167 418,446
Balance March 31 1) 805,086 11,169 156,558 47,107 1,019,920
1) Restated based on finalization of the acquisition accounting of advanced Bionics (for details refer to note 3.7).
2) disposals of goodwill include primarily earn-out adjustments.
3) Relates to research and development (cHf 1.1 million) and sales and marketing (cHf 11.2 million).
other intangible assets include capitalized costs for the development of hearing implants in the amount of cHf 21.1 million
(previous year cHf 33.4 million).
intangibles relating to acquisitions consist primarily of technology, customer relationships, client lists, and brand names.
for the purpose of impairment testing, goodwill is allocated to a cash-generating unit or to a group of cash-generating
units, which are expected to benefit from the synergies of the corresponding business combination. the recoverable
amount of a cash-generating unit (higher of the cash-generating unit’s fair value less selling costs and the cash- generating
units value in use) is compared to the carrying amount. future cash flows are discounted with the Weighted average cost
of capital (Wacc) including the appl ication of the capital asset Pricing model (caPm). Value in use is normally assumed to
be higher than the fair value less selling costs. therefore, fair value less selling costs is only investigated when value in
use is lower than the carrying amount of the cash-generating unit.
the cash flow projections are generally based on a five year period. cash flows beyond the projection period are extrapolated
using the estimated long-term growth rates (see following table). the long-term growth rates are below the expected
long-term average growth rates for the hearing systems industry in which the cash-gen erating units operate. Gross margin
is generally projected to remain consistent over the years.
actual cash flows as well as related values derived from discounting techniques could vary significantly compared to projections.
total