|
Group |
Customer relations | Trade-marks | Patents, licenses, technology and other rights | Goodwill | Total intangible assets |
|---|---|---|---|---|---|
| SEK millions |
|
|
|
|
|
| Acquisition value, January 1, 2009 | 7,434 | 5 | 688 | 21,105 | 29,232 |
| Acquisitions | - | - | 7 | - | 7 |
| Translation differences | -496 | - | -42 | -1,404 | -1,942 |
| Acquisition value, December 31, 2009 | 6,938 | 5 | 653 | 19,701 | 27,297 |
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|
|
|
|
|
| Acquisition value, January 1, 2010 | 6,938 | 5 | 653 | 19,701 | 27,297 |
| Translation differences | -372 | - | -34 | -1,058 | -1,464 |
| Acquisition value, December 31, 2010 | 6,566 | 5 | 619 | 18,643 | 25,833 |
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|
|
| Accumulated amortizaton, January 1, 2009 | 1,181 | 2 | 281 | - | 1,464 |
| Amortization for the year | 804 | 1 | 102 | - | 907 |
| Translation differences | -128 | 0 | -21 | - | -149 |
| Accumulated amortization, December 31, 2009 | 1,857 | 3 | 362 | - | 2,222 |
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|
|
| Accumulated amortization, January 1, 2010 | 1,857 | 3 | 362 | - | 2,222 |
| Amortization for the year | 758 | 1 | 63 | - | 822 |
| Translation differences | -142 | 0 | -21 | - | -163 |
| Accumulated amortization, December 31, 2010 | 2,473 | 4 | 404 | - | 2,881 |
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|
|
|
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| Residual value, December 31, 2009 | 5,081 | 2 | 291 | 19,701 | 25,075 |
| Residual value, December 31, 2010 | 4,093 | 1 | 215 | 18,643 | 22,952 |
Amortization for the year is included in the income statement in the amount of SEK 818 (903) million in costs of goods sold; SEK 2 (1) million in administrative expenses; and SEK 3 (3) million in other operating expenses There are no internally generated intangible assets.
Test of impairment of goodwill
A test of impairment of goodwill takes place annually on November 30. Significant goodwill balances are allocated to two of the Group's cash-generating units identified below:
|
|
SSAB North America | Steinwalls Plåt | ||
|---|---|---|---|---|
| SEK millions | 2010 | 2009 | 2010 | 2009 |
|
|
18,570 | 19,630 | 60 | 60 |
A recoverable amount for a cash-generating unit is based on calculations of value in use. These calculations are based on financial budgets and forecasts produced on a regular basis by management. Cash flows beyond a five year period have been extrapolated using assessed growth in accordance with the information below. The rate of growth does not exceed the long-term rate of growth for the market on which these cash-generating units operate.
Significant assumptions used in calculations of use value are shown in the table below:
|
|
SSAB North America | Steinwall Plåt | ||
|---|---|---|---|---|
| % | 2010 | 2009 | 2010 | 2009 |
| Assessed rate of growth | 2 | 2 | 2 | 2 |
| Weighted average discount rate, before tax | 11.0 | 11.7 | 11.0 | 11.7 |
The assumptions have been used to analyze each cash-generating unit.
The management has established the budgeted and forecast margin based on historical results and expectations regarding market trends and the cash generating unit. The rate of growth used corresponds to the forecasts available in industry and analyst reports. The discount rate used is stated before tax and reflects specific risks applicable to the different cash-generating units.
Calculations conducted using the above assumptions have demonstrated that no impairment of goodwill existed as per December 31. For a sensitivity analysis, see Note 28.
Emission rights
As a method for curtailing carbon dioxide emissions, in 2005 the EU introduced a system of emission rights. For the trading period 2008–2012, the Group received 36.7 million tonnes, of which 9.8 million tonnes were consumed in 2008–2009. Estimated consumption for 2010 is 5.8 million tonnes. No emissions were sold in 2010, but 3.9 million tonnes were sold in 2008–2009. Thus, slightly more than 17 million tonnes remains for the reminder of the trading period, 2011–2012, Emission rights are reported as intangible assets booked at an acquisition value of SEK 0.