Note 21 – Intangible assets

Group Parent Company
SEK m 2015 2014 2015 2014
Goodwill
Acquisition values
Opening acquisition values 1 463 1 249 2 053 2 053
Investments
Increase through business acquisitions 1 197
Sales and disposals
Translation differences -8 17
Closing accumulated acquisition values 1 455 1 463 2 053 2 053
Amortization
Opening accumulated amortization -1 853 -1 753
Amortization for the year -100 -100
Sales and disposals
Translation differences
Closing accumulated amortization 0 0 -1 953 -1 853
Closing book value 1 455 1 463 100 200
Group Parent Company
SEK m 2015 2014 2015 2014
Other intangible fixed assets, customer relations
Acquisition values
Opening acquisition values 271 25
Investments 0
Increase through business acquisitions 232
Sales and disposals
Translation differences -10 15
Closing accumulated acquisition values 261 271 0 0
Amortization
Opening accumulated amortization -15
Amortization for the year -27
Sales and disposals -14
Reclassifications
Translation differences 1 -1
Closing accumulated amortization -41 -15 0 0
Closing book value 221 256 0 0
Group Parent Company
SEK m 2015 2014 2015 2014
Trademarks and licenses
Acquisition values
Opening acquisition values 61 49 50 48
Investments 1 0
Increase through business acquisitions 8
Sales and disposals -3 -3
Reclassifications 6 2 6 2
Translation differences 0 1
Closing accumulated acquisition values 64 61 53 50
Amortization
Opening accumulated amortization -47 -44 -44 -42
Amortization for the year -5 -3 -2 -2
Sales and disposals 3 3
Reclassifications 0
Translation differences 0 0
Closing accumulated amortization -48 -47 -43 -44
Closing book value 16 14 10 6
Group Parent Company
SEK m 2015 2014 2015 2014
Capitalized development expenditures
Acquisition values
Opening acquisition values 146 138 113 108
Investments 1 2
Increase through business acquisitions 0
Decrease through divestment 0
Sales and disposals -4 -4
Reclassifications 9 5 9 5
Translation differences -2 2
Closing accumulated acquisition values 151 146 118 113
Amortization
Opening accumulated amortization -102 -87 -86 -75
Amortization for the year -13 -14 -10 -11
Increase through divestment 0
Sales and disposals 1 1
Reclassifications
Translation differences 1 -1
Closing accumulated amortization -113 -102 -96 -86
Impairment
Opening accumulated impairment -3 -3 -3 -3
Impairment for the year
Disposals 3 3
Translation differences
Closing accumulated impairment 0 -3 0 -3
Closing book value 38 41 22 23
Intangible assets, total 1 730 1 774 132 229

In 2005, the EU introduced an emission rights system as a method for restricting carbon dioxide emissions. For the period 2013 up to and including 2020, Rexcell Tissue & Airlaid AB has been allocated a total of 166,246 tonnes. The allocation for 2015 is 2,237 tonnes for Dals Långed and 19,146 tonnes for Skåpafors. The allocation will gradually diminish up to 2020. The 2020 allocation is 2,027 tonnes/year for Dals Långed and 17,349 tonnes/year for Skåpafors. In total, 11,700 tonnes were consumed in 2015 and 13,057 tonnes in 2014. Received emission rights are reported as intangible assets booked at an acquisition value of zero.

Test for impairment of goodwill

Tests for impairment of goodwill were carried out at the end of the financial years on December 31, 2015 and December 31, 2014. With the implementation of IFRS, allocation of the Group’s goodwill items has taken place through allocation ratios; see Note 4.2.
In 2014, Duni acquired Paper+Design Group, giving rise to an acquisition goodwill of SEK 197 m. During 2013, Duni acquired the assets of Song Seng Associates Pte Ltd, giving rise to an acquisition goodwill of SEK 50 m. For more information, see previous annual reports.
Goodwill is allocated on the Group’s cash-generating units identified per business area as follows::

SEK m 2015 2014
Table Top 1 199 1 199
Consumer 199 206
New Markets 58 58
Total 1 455 1 463

 

On January 1, 2014, Duni reports five business areas instead of the previous three. The goodwill previously attributed to the Professional business area is now attributed to Table Top.

Tests for impairment of goodwill take place annually and where there are indications of impairment. Recoverable amounts for cash-generating units are determined based on estimated use values. The calculations are based on estimated future cash flows before tax, based on financial forecasts approved by company management and which cover the current year as well as a five-year period. Cash flows beyond this period are extrapolated using an assessed growth rate. The growth rate does not exceed the long-term growth rate for the industry as a whole.

The table below shows the rate of growth (on average) used in the calculation for each business area:

 

Growth rate Year 1 Years 2-5 Beyond the forecast period
Table Top 2% 2% 1 %
Consumer 3% 2% 1 %
New Markets 5% 3% 1 %

 

Important assumptions which are used for calculations of use values are primarily profit margin, growth rate and a nominal discount rate of 8.1% – 10.9%, with the lower percentage rate being applied to the Table Top business area (2014: 11% – 13%). The discount rate before tax is used in conjunction with present value calculation of estimated future cash flows

Company management has established profit margin and growth rate based on previous results and its expectations as regards market growth. The discount rates used are stated before tax and reflect specific risks in the business area.

Company management believes that reasonable possible changes in the significant assumptions used in the calculations would not have such a major impact as to reduce per se the recovery value to a value which is below the reported value.