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90 being focused: being better
6. Intangible assets
unit employing a specific number of employees. All constraints relating to these grants were
assigned to the purchasing party when the Insulation Technology Business Center was sold.
The grant for the wind converter was posted to income, as expenses for developing this plant
in fiscal 2002 are shown under expenses for research and development.
Property, plant and equipment of 3,088 thousand euros less accumulated depreciation
of 954 thousand euros was capitalized under capital leases (carrying value 2,134 thousand
euros).
Individual assets were only assigned as collateral in the USA. The collateral assignment
worth 1,132 thousand euros was accepted as part of an ongoing acquisition deal from the
previous fiscal year.
Dec. 31, 2002 Dec. 31, 2001
‘000 euros ‘000 euros
Licenses, software and patents 8,965 13,614
Goodwill 89,412 90,083
Payments on account 4,058 3,818
Total 102,435 107,515
Amortization of other intangible assets in fiscal 2002 came to 9,978 thousand euros (2001:
15,385 thousand euros). Additions to intangible assets totaled 5,694 thousand euros. Following
amortization, the carrying value as of December 31, 2002 was 4,610 thousand euros.
Apart from scheduled amortization, intangible assets in fiscal 2002 were written down by
a higher amount of 5,000 thousand euros due to reduction of the estimated useful life of software
in the service area, shown under administrative expenses.
From January 1, 2002 the Company is applying the new accounting standard SFAS No.
142 (Goodwill and Other Intangible Assets) to corporate acquisitions. This particularly relates
to goodwill, as laid down by the Financial Accounting Standard Board in July 2001. Under SFAS
No. 142, goodwill is no longer subject to scheduled amortization; instead the Company must
carry out an annual impairment test.
In line with this, the Company subjected goodwill carried in the consolidated financial
statements to an impairment test. In fiscal 2001, the Company charged 8,040 thousand euros
to scheduled amortization of goodwill, plus impairment of 1,612 thousand euros.
Net income of continued operations, net of taxes for fiscal 2001, excluding scheduled
amortization of goodwill and intangible assets no longer written down under SFAS 142, came
to 53,526 thousand euros. This also takes account of tax effects on goodwill. Pro-forma profit
per share of continued operations was 1.18 euros (calculated net of minority interests).