15Goodwill and other intangible assets
|
|
|
2022 |
||||||||||
|
millions of CHF |
|
Goodwill |
|
Trademarks and licenses |
|
Research and development |
|
Computer software |
|
Customer relationship |
|
Total |
|
Acquisition cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1 |
|
1’067.3 |
|
93.8 |
|
9.8 |
|
47.2 |
|
449.5 |
|
1’667.6 |
|
Divestitures of subsidiaries |
|
– |
|
– |
|
– |
|
–0.3 |
|
–1.4 |
|
–1.7 |
|
Classification as held for sale 1) |
|
–8.6 |
|
– |
|
– |
|
–0.8 |
|
–12.6 |
|
–22.0 |
|
Additions |
|
– |
|
– |
|
2.2 |
|
6.4 |
|
0.1 |
|
8.7 |
|
Disposals |
|
– |
|
– |
|
– |
|
–4.1 |
|
–8.6 |
|
–12.6 |
|
Reclassifications |
|
– |
|
– |
|
4.1 |
|
1.8 |
|
0.2 |
|
6.0 |
|
Currency translation differences |
|
–41.8 |
|
–1.3 |
|
–0.0 |
|
0.5 |
|
–27.7 |
|
–70.3 |
|
Balance as of December 31 |
|
1’016.9 |
|
92.5 |
|
16.1 |
|
50.7 |
|
399.5 |
|
1’575.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1 |
|
340.0 |
|
38.1 |
|
8.2 |
|
33.3 |
|
244.2 |
|
663.8 |
|
Divestitures of subsidiaries |
|
– |
|
– |
|
– |
|
–0.3 |
|
–1.4 |
|
–1.7 |
|
Classification as held for sale 1) |
|
– |
|
– |
|
– |
|
–0.3 |
|
–6.4 |
|
–6.7 |
|
Additions |
|
– |
|
8.4 |
|
1.1 |
|
2.3 |
|
27.0 |
|
38.8 |
|
Disposals |
|
– |
|
– |
|
– |
|
–4.1 |
|
–8.6 |
|
–12.6 |
|
Currency translation differences |
|
– |
|
–0.7 |
|
–0.0 |
|
–0.2 |
|
–16.2 |
|
–17.1 |
|
Balance as of December 31 |
|
340.0 |
|
45.8 |
|
9.3 |
|
30.7 |
|
238.6 |
|
664.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 1 |
|
727.3 |
|
55.7 |
|
1.6 |
|
14.0 |
|
205.3 |
|
1’003.8 |
|
As of December 31 |
|
676.9 |
|
46.7 |
|
6.7 |
|
20.0 |
|
160.8 |
|
911.2 |
1) In 2022, Goodwill in the amount of CHF 8.6 million and other intangible assets with a net book value of 6.7 million were allocated to the Russian disposal group and fully impaired; reference is made to note 6. The impairments of CHF 15.3m are recorded in other operating expenses (see note 12).
|
|
|
2021 |
||||||||||
|
millions of CHF |
|
Goodwill |
|
Trademarks and licenses |
|
Research and development |
|
Computer software |
|
Customer relationship |
|
Total |
|
Acquisition cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1 |
|
1’286.0 |
|
221.6 |
|
15.3 |
|
58.3 |
|
628.4 |
|
2’209.6 |
|
Acquired through business combination |
|
56.6 |
|
11.0 |
|
– |
|
– |
|
68.7 |
|
136.3 |
|
Derecognized as discontinued operations |
|
–265.4 |
|
–78.8 |
|
–5.8 |
|
–16.7 |
|
–239.8 |
|
–606.6 |
|
Additions |
|
– |
|
– |
|
0.3 |
|
6.7 |
|
0.0 |
|
6.9 |
|
Disposals |
|
– |
|
–61.2 |
|
–0.0 |
|
–2.4 |
|
–0.7 |
|
–64.4 |
|
Currency translation differences |
|
–9.9 |
|
1.2 |
|
–0.0 |
|
1.4 |
|
–7.1 |
|
–14.4 |
|
Balance as of December 31 |
|
1’067.3 |
|
93.8 |
|
9.8 |
|
47.2 |
|
449.5 |
|
1’667.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment losses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of January 1 |
|
340.0 |
|
148.7 |
|
11.4 |
|
46.5 |
|
316.1 |
|
862.6 |
|
Derecognized as discontinued operations |
|
– |
|
–66.2 |
|
–4.4 |
|
–13.9 |
|
–112.7 |
|
–197.2 |
|
Additions |
|
– |
|
16.9 |
|
1.3 |
|
2.8 |
|
45.9 |
|
66.8 |
|
Disposals |
|
– |
|
–61.2 |
|
–0.0 |
|
–2.3 |
|
–0.7 |
|
–64.2 |
|
Impairments |
|
– |
|
– |
|
– |
|
– |
|
0.2 |
|
0.2 |
|
Currency translation differences |
|
– |
|
–0.1 |
|
–0.0 |
|
0.2 |
|
–4.6 |
|
–4.5 |
|
Balance as of December 31 |
|
340.0 |
|
38.1 |
|
8.2 |
|
33.3 |
|
244.2 |
|
663.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net book value |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 1 |
|
946.0 |
|
73.0 |
|
4.0 |
|
11.8 |
|
312.3 |
|
1’347.0 |
|
As of December 31 |
|
727.3 |
|
55.7 |
|
1.6 |
|
14.0 |
|
205.3 |
|
1’003.8 |
Goodwill impairment test
|
|
|
2022 |
||||||
|
millions of CHF |
|
Goodwill |
|
Headroom |
|
Growth rate residual value |
|
Pretax discount rate |
|
Flow Equipment |
|
384.9 |
|
605.7 |
|
2.0% |
|
8.9% |
|
Services |
|
205.0 |
|
1’275.5 |
|
2.0% |
|
10.2% |
|
Chemtech |
|
87.0 |
|
717.6 |
|
2.0% |
|
10.5% |
|
Total as of December 31 |
|
676.9 |
|
2’598.8 |
|
|
|
|
|
|
|
2021 |
||||||
|
millions of CHF |
|
Goodwill |
|
Headroom |
|
Growth rate residual value |
|
Pretax discount rate |
|
Flow Equipment |
|
416.3 |
|
545.0 |
|
2.0% |
|
8.3% |
|
Services |
|
222.0 |
|
1’208.2 |
|
2.0% |
|
10.5% |
|
Chemtech |
|
88.9 |
|
684.2 |
|
2.0% |
|
9.5% |
|
Discontinued operations |
|
– |
|
– |
|
n/a |
|
n/a |
|
Total as of December 31 |
|
727.3 |
|
2’437.4 |
|
|
|
|
Goodwill is allocated to the smallest cash-generating unit at which goodwill is monitored for internal management purposes (i.e., division). The recoverable amount has been determined based on a value-in-use calculation. The three-year strategic plan approved by the Board of Directors in the first quarter of the year forms the basis for the projected cash flows, with two additional periods based on a management calculation. These cash flow projections were updated by management in the middle of the year following the classification of the Russian business as held for sale and the associated write-downs. These updated cash flow projections cover a period of four and a half years. Cash flows beyond the planning period are extrapolated using a terminal value including a growth rate as stated above.
As of December 31, 2022, there is no indication of goodwill impairment. Updating the impairment test would not have resulted in any goodwill impairment.
Sensitivity analyses
The recoverable amount from cash-generating units is measured on the basis of value-in-use calculations significantly impacted by the terminal growth rate used to determine the residual value, the discount rate and the projected cash flows. The table above shows the amount by which the estimated recoverable amount of the CGU exceeds its carrying amount (headroom).
Management identified that for the CGU Flow Equipment, a reasonably possible decrease in the terminal growth rate by 6.6 percentage points could cause the carrying amount to exceed the recoverable amount (2021: decrease by 5.0 percentage points).
Management determined there are no other reasonably possible changes in key assumptions that would result in a goodwill impairment.