Financial statements 2008

16. Intangible assets

16. Intangible assets

16. Intangible assets
In CHF'000 Technology Customer lists, Trademarks & Brands Software Goodwill Other intangibles Total
Gross values at cost            
             
As of January 1, 2007 33 323 812 12 329 1 829 116 48 409
Additions 30 206 - 5 752 - - 35 958
Disposals and retirements -7 641 - -1 664 - - -9 305
Change in scope of consolidation 18 545 3 245 7 914 141 062 - 170 766
Currency translation adjustment -1 316 -136 -349 -10 589 3 -12 387
Reclassification & others - - 1 464 - -33 1 431
             
As of January 1, 2008 73 117 3 921 25 446 132 302 86 234 872
Additions 18 314 - 7 321 - 202 25 837
Disposals and retirements -51 - -4 038 - - -4 089
Change in scope of consolidation 789 271 - 30 337 174 31 571
Currency translation adjustment -2 416 -237 -973 -7 529 -57 -11 211
Reclassification & others - - 710 - - 710
             
As of December 31, 2008 89 753 3 955 28 465 155 111 405 277 689
             
Accumulated depreciation and impairment            
             
As of January 1, 2007 -11 030 -64 -8 804 - -106 -20 004
Systematic amortization -6 474 -564 -3 224 - - -10 262
Recovery of amortization on disposal and retirements 5 014 -19 1 664 - 21 6 680
Change in scope of consolidation 14 - -7 105 - - -7 091
Currency translation adjustments 91 18 325 - -1 433
Reclassification & others - - -511 - - -511
             
As of January 1, 2008 -12 385 -629 -17 655 - -86 -30 755
Systematic amortization -8 473 -528 -4 339 - -52 -13 392
Recovery of amortization on disposal and retirements 51 - 4 033 - - 4 084
Change in scope of consolidation - - - - - -
Currency translation adjustments 531 44 940 - 6 1 520
Reclassification & others - - - - - -
             
As of December 31, 2008 -20 276 -1 113 -17 021 - -133 -38 543
             
Net book values as of December 31, 2007 60 732 3 292 7 791 132 302 - 204 117
             
Net book values as of December 31, 2008 69 477 2 842 11 444 155 111 272 239 146
             
Useful life in years 5 - 10 5 - 10 3 - 4 Indefinite 4  

Intangibles with indefinite useful life are subject to a yearly impairment review. Goodwill has been allocated for impairment testing to their cash generating units. Cash generating units are defined within the frame of the Group to their reporting segment. kCHF 115 988 (2007: kCHF 122 304) have been allocated to Middleware & Advertising, kCHF33 786 (2007: kCHF 7 645) to Digital Television Solutions and kCHF 5 337 (2007: kCHF 2 353) to Public Access Solutions.

The Middleware & Advertising Goodwill value in use has been determined based on a value in use calculation which uses cash flow projections approved by the Group management covering a four-year period (2007: a five-year period), and a weighted average cost of capital used as discount rate of 12.0 % (2007: 12.8 %). The cash flows beyond that four-year period (2007: five-year period) have been extrapolated using a steady 3.0 % (2007: 3.0 %) per annum growth. The management believes that any reasonably possible change in the key assumptions on which recoverable amount is based would not cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash-generating unit. As 2009 Digital Television budgeted operating profits and cash flows are greater than carrying value of Goodwill allocated to this cash generating unit, this value is not to be impaired.