21 Goodwill and other intangible assets

(XLS:)

in CHF thousands

Goodwill

Other
intangible
assets

Software

Total

As at 1 January 2010

 

 

 

 

Cost

170'421

112'374

76'211

359'006

Accumulated amortisation

–26'261

–30'497

–15'978

–72'736

Net book amount

144'160

81'877

60'233

286'270

 

 

 

 

 

Year ended December 2010

 

 

 

 

Opening net book amount

144'160

81'877

60'233

286'270

Additions

0

0

36'611

36'611

Disposals/write-offs

0

0

–423

–423

Writing back of write-downs

0

0

168

168

Amortisation

0

–8'124

–8'176

–16'300

Closing net book amount

144'160

73'753

88'413

306'326

 

 

 

 

 

As at 31 December 2010

 

 

 

 

Cost

170'421

112'374

112'399

395'194

Accumulated amortisation

–26'261

–38'621

–23'986

–88'868

Net book amount

144'160

73'753

88'413

306'326

 

 

 

 

 

Year ended December 2011

 

 

 

 

Opening net book amount

144'160

73'753

88'413

306'326

Additions

0

0

13'961

13'961

Disposals/write-offs

0

0

–10

–10

Writing back of write-downs

0

0

0

0

Amortisation

0

–8'084

–12'238

–20'322

Non-current assets held for sale

–76'897

–22'280

–1'156

–100'333

Closing net book amount

67'263

43'389

88'970

199'622

 

 

 

 

 

As at 31 December 2011

 

 

 

 

Cost

93'524

71'050

119'192

283'766

Accumulated amortisation

–26'261

–27'661

–30'222

–84'144

Net book amount

67'263

43'389

88'970

199'622

Goodwill

Goodwill is allocated to the Group's cash-generating units (CGUs) identified according to the business segments.

(XLS:)

in CHF thousands

2011

2010

Domestic Market

55'620

55'620

International Market

11'643

88'540

Institutional Market

0

0

Corporate Center

0

0

Total

67'263

144'160

The obtainable amount of a CGU is determined on the basis of value-in-use calculations and surplus equity. These calculations are based on the data at 31 December 2011 and on cash flow projections based on financial budgets approved by management covering a five-year period. Cash flows beyond the five-year period are extrapolated using an average estimated growth rate.

Key assumptions used for value-in-use calculations

(XLS:)

in percent

Domestic
Market

International
Market

Cash flow/operating profit (average planned value)

23.6%

14.3 %

Average growth rate used to extrapolate cash flows beyond the budget period

4.5%

3.1%

Discount rate

6.0%

8.5%

Management has determined the revenues and expenditures based on developments in the past and expectations regarding future developments as well as strategic development. The average growth rate is in accord with forecasts made by the industry. The discount rate, which is applied to the cash flow projections, is an equity cost rate and reflects the specific risks of the segment concerned. An analysis of the value retention of goodwill revealed that no impairment of value has occured.

For analysis purposes, the Group makes estimates and assumptions regarding future developments. The extrapolated figures obtained in this manner only very rarely correspond to actual subsequent events and conditions. The following overview provides information about significant risks within the next financial year in the form of an adjustment of book values:

Sensitivity analysis

(XLS:)

 

Actual value
to planned value

Value
impairment goodwill

 

 

Domestic
Market

International
Market

Cash flow before tax

–10.0 %

none

none

Discount rate

+10.0 %

none

none

If subsequently the cash flow before tax were to be higher or the discount interest rate lower than estimated by management, an already effected, unplanned write-off (value impairment) of goodwill cannot be reversed.

Other intangible assets

Customer relationships and brand values are reported as assets under other intangible assets. These are amortised over a period of 10 to 15 years on a straight-line basis. Estimated aggregated amortisation on intangible assets amounts to:

(XLS:)

in CHF thousands

 

2012

5'117

2013

5'117

2014

5'117

2015

5'116

2016

3'719

2017 and thereafter

19'203

Total

43'389

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