Note 21 – Intangible assets

Group Parent Company
SEK m 2016 2015 2016 2015
Goodwill
Acquisition values
Opening acquisition values 1 455 1 463 2 053 2 053
Investments
Increase through business acquisitions 104 1
Sales and disposals
Translation differences 18 -8
Closing accumulated acquisition values 1 577 1 455 2 053 2 053
Amortization
Opening accumulated amortization -1 953 -1 853
Amortization for the year -100 -100
Sales and disposals
Translation differences
Closing accumulated amortization 0 0 -2 053 -1 953
Closing book value 1 577 1 455 0 100
Group Parent Company
SEK m
 2016 2015 2016  2015
Other intangible fixed assets, customer relations
Acquisition values
Opening acquisition values 261 271
Investments  –
Increase through business acquisitions 46  –
Sales and disposals  –
Translation differences 15 -10  –
Closing accumulated acquisition values 322 261 0  0
Amortization
Opening accumulated amortization -41 -15
Amortization for the year -29 -27  –
Sales and disposals  –
Reclassifications  –
Translation differences -2 1  –
Closing accumulated amortization -72 -41 0  0
Closing book value 250 221 0  0
Group Parent Company
SEK m
2016 2015  2016 2015
Trademarks and licenses
Acquisition values
Opening acquisition values 64 61 53 50
Investments 1 1
Increase through business acquisitions 1
Sales and disposals -3 -3
Reclassifications -14 6 -19 6
Translation differences 1 0
Closing accumulated acquisition values 52 64 34 53
Amortization
Opening accumulated amortization -48 -47 -43 -44
Amortization for the year -7 -5 -3 -2
Business acquisitions 0
Sales and disposals 3 3
Reclassifications 17 0 21
Translation differences -1 0
Closing accumulated amortization -39 -48 -25 -43
Closing book value 14 16 9 10
Group Parent Company
SEK m
 2016 2015  2016  2015
Capitalized development expenditures
Acquisition values
Opening acquisition values 151 146 118 113
Investments 12 1 11
Increase through business acquisitions
Decrease through divestment 0 0
Sales and disposals -23 -4 -23 -4
Reclassifications 19 9 24 9
Translation differences 1 -2
Closing accumulated acquisition values 160 151 130 118
Amortization
Opening accumulated amortization -113 -102 -96 -86
Amortization for the year -12 -13 -9 -10
Increase through divestment 0 0
Sales and disposals 23 1 23 1
Reclassifications -16 -21
Translation differences -1 1
Closing accumulated amortization -120  -113 -103 -96
Impairment
Opening accumulated impairment 0 -3 0 -3
Impairment for the year
Disposals 3 3
Translation differences
Closing accumulated impairment 0 0 0 0
Closing book value 40 38 27 22
Intangible assets, total 1 881 1 730 36 132

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 2016 is 2,196 tonnes for Dals Långed and 18,794 tonnes for Skåpafors. The total allocation is gradually diminishing each year until, in 2020, the allocation of emission rights will correspond to 2,027 tonnes/year for Dals Långed and 17,349 tonnes/year for Skåpafors. The production plant in Dals Långed is dormant and, when no production takes place, no emission rights are utilized. The allocation of emission rights by the County Administrative Board will be dormant as from 2017, but can be resumed up to 2020 upon application. In total, 11,367 tonnes were consumed in Skåpafors in 2016, compared with 11,700 tonnes in 2015. 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, 2016 and December 31, 2015. With the implementation of IFRS, allocation of the Group’s goodwill items has taken place through allocation ratios; see Note 4.2.

In 2016, Terinex Siam in Thailand was acquired with an acquisition goodwill of SEK 104 m. 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 2016 2015
Table Top 1 199 1 199
Consumer 209 199
New Markets 169 58
Total 1 577 1 455

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 4% 2% 1%
Consumer 0% 3% 1%
New Markets 2% 3% 1%

 

Important assumptions which are used for calculations of use values are primarily profit margin, growth rate and a nominal discount rate of 7.4% – 10.4%, with the lower percentage rate being applied to the Table Top business area (2015: 8.1% – 10.9%). 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.