NOTES TO THE CONSOLIDATED BALANCE SHEET
GOODWILL AND INTANGIBLE ASSETS
kEUR
Customer
relationship Technology
Develop-
ment costs Brand Service net
Licences and
software Intangible assets Goodwill Historical costs As of 12/31/2012 103,406 21,098 4,231 31,879 3,495 17,459 181,568 75,541 Additions – – 1,127 – – 8,259 9,386 – Foreign currency translation -1,479 -224 – -433 – -409 -2,545 -1,752 As of 12/31/2013 101,927 20,874 5,358 31,446 3,495 25,309 188,409 73,789
Additions from initial
consolidation – 63 – 402 – – 465 2,044 Additions – – 2,348 – 1,875 4,223 – Disposals – – – – – 84 84 – Foreign currency translation 4,702 715 – 1,372 – 983 7,772 3,752 As of 12/31/2014 106,629 21,652 7,706 33,220 3,495 28,083 200,785 79,585 Accumulated amortization As of 12/31/2012 20,037 12,016 450 454 1,181 8,961 43,099 28,556 Additions 2,836 1,879 314 – 175 1,478 6,682 – Foreign currency translation -302 -92 – – – -96 -490 -171 As of 12/31/2013 22,571 13,803 764 454 1,356 10,343 49,291 28,385 Additions 2,837 1,887 386 100 175 2,407 7,792 – Disposals – – – – – 67 67 – Foreign currency translation 1,041 325 – -14 – 54 1,406 952 As of 12/31/2014 26,449 16,015 1,150 540 1,531 12,737 58,422 29,337 Carrying amount 12/31/2013 79,356 7,071 4,594 30,992 2,139 14,966 139,118 45,404 Carrying amount 12/31/2014 80,180 5,637 6,556 32,680 1,964 15,346 142,363 50,248
6 _
Consolidated balance sheet Consolidated result for the periodkEUR 12/31/2014 12/31/2013 2014 2013
Inventories 2,317 1,492 730 -31
Pensions and other similar benefits 11,401 8,106 -83 -1,081
Other financial liabilities 21 56 -35 –
Other provisions 2,398 1,873 291 272
Tax loss carry-forwards 2,592 3,508 -1,033 146
Interest carry-forwards 29,315 29,646 -1,642 -57
Recycling of the cash flow hedge reserve – – 391 592
Other 5,601 3,226 2,065 597
Deferred tax assets 53,645 47,907
Intangible assets -34,076 -30,980 -1,315 1,223
Property, plant, and equipment -10,184 -10,581 1,455 -199
Inventories – -7 7 17
Investments accounted for using the equity method -3,950 -2,790 -1,307 -141
Other assets -287 -1,478 -62 -95
Interest bearing loans and bonds -1,094 -82 118 1,070
Other -5,096 -2,248 -2,224 -793
Deferred tax liabilities -54,687 -48,166
Deferred tax income -2,644 1,520
kEUR 12/31/2014 12/31/2013 Expiry date Infinite 29,711 25,810 Within 5 years 4,048 3,730 Within 10 years 3,422 1,691 Total 37,181 31,231
002 Company 060 Management Report 116 Financial Statements
Notes to the Consolidated Statement of Comprehensive Income
Notes to the Consolidated Balance Sheet
155 154
Intangible assets with finite useful lives, which the Group considers important, are presented in the following table:
Impairment testing of goodwill and intangible assets with indefinite useful lives
The Group carries out its annual impairment tests of recognized goodwill and intangible assets with indefinite useful lives as of October 1.
The allocation of the carrying amounts of goodwill and brands to the cash-generating units remains largely unchanged from the previous year. As a result of the acquisition of Corpco Beijing Technology and Development Co., Ltd., goodwill of KEUR 2,044 was added to the Powered Vehicle Systems cash-generating unit. The carrying amounts are as follows:
__ Key assumptions for the calculation of the recoverable amount
To calculate the recoverable amount, a discounted cash flow method was used. The discounted cash flow method was based on a detailed five-year plan. For the value added from 2020, it will be supplemented by the perpetual annuity. The basis for the calculation of the perpetual an- nuity is the assumed long-term sustainably achievable result in consideration of the cyclical nature of the market environment.
Sales/EBITDA margin – The forecasts for sales and earnings of the cash-generating units are based on generally available economic data as well as industry information and, in addition to general market forecasts, also reflect current developments and past experience.
Discount rates – To calculate the discount rates, a weighted average cost of capital (WACC) method was applied. This method considers yields on government bonds at the beginning of the budget period as a risk-free interest rate. As in the previous year, a growth rate deduction of 1.0% was used in the perpetual annuity.
Trailer Systems
Powered Vehicle
Systems Aftermarket Gesamt
kEUR 12/31/2014 12/31/2013 12/31/2014 12/31/2013 12/31/2014 12/31/2013 12/31/2014 12/31/2013
Goodwill 17,456 16,441 2,044 – 30,748 28,963 50,248 45,404
Brand 26,132 25,423 5,975 5,047 573 522 32,680 30,992
The results of the impairment tests can be summarized as follows: __ Goodwill
For the purpose of the impairment test, the recoverable amount of a cash-generating unit is determined on the basis of the value in use.
Trailer Systems cash-generating unit
The pre-tax discount rate used to calculate the value in use as of October 1, 2014 is 11.87% (October 1, 2013: 13.71%). As in the previous year, the impairment test in 2014 did not identify any impairment of goodwill as the value in use was above the carrying amount of the cash-generating unit.
Powered Vehicle Systems cash-generating unit
In the context of the acquisition of Corpco Beijing Technology and Development Co., Ltd., goodwill of KEUR 2,044 was added to the “Powered Vehicle Systems“ cash-generating unit. The pre-tax discount rate used to calculate the value in use is 13.08%. Other goodwill of the “Powered Vehicle Systems” cash-generating unit was impaired in full as a result of the impair- ment test as of December 31, 2008.
Aftermarket cash-generating unit
The pre-tax discount rate used to calculate the value in use is 12.42% (October 1, 2013: 14.11%). On the basis of the test carried out, management did not identify any impairment for this cash- generating unit.
Sensitivity to changes in assumptions
Within the scope of the value in use calculation, sensitivity analyses were carried out in relation to the main value drivers. For this purpose, alternative calculations were used without consideration of the assumed growth rate of the perpetual annuity and in consideration of an increase in the average cost of capital by 100 base points. All cash-generating units exceeded the relevant carrying amounts.
SAF brand
The impairment test of October 1, 2014 was carried out at the level of the Trailer Systems cash-generating unit. Please refer to the previous sections regarding the pre-tax discount rate used for the value in use of the cash-generating unit.
The impairment test did not result in an impairment. Holland brand
The impairment test of October 1, 2014 was carried out at the level of the Powered Vehicle Systems cash-generating unit. The pre-tax discount rate used to calculate the value in use is 13.08% (October 1, 2013: 14.49%).
The impairment test did not result in an impairment.
2014 2013
kEUR Netbook value
Remaining useful
life in years Netbook value
Remaining useful life in years
Customer relationship "OEM" 30,329 32 31,299 33
Customer relationship "5th-Wheel" 13,312 24 13,873 25
SAP-application 12,751 8.5 12,873 9.5
002 Company 060 Management Report 116 Financial Statements
Notes to the Consolidated Balance Sheet
157 156
6.2