Financial statements 2009

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, 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 January 1, 2009 89 753 3 955 28 465 155 111 405 277 689
Additions 10 671 14 327 399 456 25 853
Disposals and retirements -1 -1 -1 754 -627 -2 383
Change in scope of consolidation 1 485 1 485
Currency translation adjustment -744 -62 -206 -5 160 13 -6 159
Reclassification & others 788 788
           
As of December 31, 2009 101 164 3 892 41 620 150 350 247 297 273
             
Accumulated depreciation and impairment            
             
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
Currency translation adjustments 531 44 940 6 1 520
             
As of January 1, 2009 -20 276 -1 113 -17 021 -133 -38 543
Systematic amortization -10 017 -531 -8 348 -59 -18 955
Impairment -5 350 -5 350
Recovery of amortization on disposal and retirements 7 1 702 1 709
Currency translation adjustments 335 42 129 1 507
Reclassification & others -116 -116
             
As of December 31, 2009 -35 301 -1 602 -23 654 -191 -60 748
             
Net book values as of December 31, 2008 69 477 2 842 11 444 155 111 272 239 146
             
Net book values as of December 31, 2009 65 863 2 290 17 966 150 350 56 236 525
             
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 112 051 (2008: kCHF 115 988) have been allocated to Middleware & Advertising, kCHF32 980 (2008: kCHF 33 786) to Digital Television Solutions and kCHF 5 319 (2008: kCHF 5 337) 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 five-year period (2008: a four-year period), and a weighted average cost of capital used as discount rate of 12.0 % (2008: 12.0%). The cash flows beyond that five-year period (2008: four-year period) have been extrapolated using a steady 3.0 % (2008: 3.0 %) per annum growth. 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 2010 Digital Television Solutions and Public Access Solutions budgeted operating profits and cash flows are greater than carrying value of Goodwill allocated to these cash generating units, these values do not need to be impaired.

Impairment in 2009 consisted in technologies, the future cash flows of which became unsure.