Boskalis jaarverslagen 2011

14. Intangible assets

    Goodwill   Other   Total
             
Balance as at January 1, 2011            
Cost   461,978   137,849   599,827
Accumulated amortisations     -6,150   -6,150
Book value   461,978   131,699   593,677
             
Movements            
Acquired through business combinations   50,079   1,172   51,251
In / (out) consolidation   -35,697   -8,936   -44,633
Amortisation     -10,839   -10,839
Currency translation differences and other movements   4,866   1,274   6,140
    19,248   -17,329   1,919
Balance as at December 31, 2011            
Cost   481,226   131,359   612,585
Accumulated amortisations     -16,989   -16,989
Book value   481,226   114,370   595,596

    Goodwill   Other   Total
             
Balance as at January 1, 2010            
Cost   13,595     13,595
Accumulated amortisations      
Book value   13,595     13,595
             
Movements            
Acquired through business combinations   448,383   128,091   576,474
Amortisation     -6,150   -6,150
Currency translation differences and other movements     9,758   9,758
    448,383   131,699   580,082
Balance as at December 31, 2010            
Cost   461,978   137,849   599,827
Accumulated amortisations     -6,150   -6,150
Book value   461,978   131,699   593,677

14.1 Goodwill

The goodwill recognized in 2011 relates to the business combinations with Rebras and MNO Vervat (see note 5); in 2010 this concerns the business combination with SMIT. The movement with respect of the sale of the SMIT terminals activities to Lamnalco is presented in in/ (out) consolidation in 2011.

The goodwill, in accordance with 2010, per cash generating unit for the annual impairment test amounts to:

    2011   2010
         
SMIT Harbour Towage   198,266   186,435
SMIT Salvage, Transport & Heavy Lift   156,096   178,965
SMIT Terminals     82,983
Lamnalco   71,754  
MNO Vervat   41,515  
Homemarket ‘Mexico’   13,595   13,595
Total   481,226   461,978

In the impairment testing of goodwill the value in use of the cash generating unit is determined by dis-counting expected future cash flows from continuing operations of the unit. Management has projected cash flows based on past trends and estimates of market developments. The calculation includes cash flow projections for a period of five years, after which the cash flows are extrapolated using an assumed growth rate for the revenue of 2% (2010: 2%) per year and an unchanged operating profit. This growth rate does not exceed the long-term average growth rate which may be expected for the activities of the cash generating unit. The average discount rate used reflects the risks specific to the cash generating units and is 8.3% (2010: 8.2%) for SMIT Harbour Towage and 10.4% (2010: 10.3%) for SMIT Salvage, Transport & Heavy Lift.

The assessment has indicated that no impairment is required while the recoverable amount is higher than the recognized goodwill and the carrying amount of the assets and liabilities attributable to the cash generating unit. Changes that could be reasonably expected in the principles of calculating the recoverable amount at year-end such as an increase in the discount rate by 1% or a decrease in growth rate by 1% does not give rise to an impairment.

The book values of the remaining (proportionally consolidated) cash generating units to which Goodwill has been allocated, are assessed for their value in use based on expected future cash flows. 
The discount rates used in this calculations vary from 8.3% to 11.2%. This assessment indicated that no impairment is required.

14.2 Other intangible assets

Other intangible assets mainly comprise intangible assets which were recognized as a result of acquisitions. This item primarily relates to customer portfolios and trademarks resulting from the business combination of SMIT in 2010.

Added to My report add to My report Source: Annual report 2011, page 88