Note 21 – Intangible assets
| Group | Parent Company | |||||
| SEK m | 2017 | 2016 | 2017 | 2016 | ||
| Goodwill | ||||||
| Acquisition values | ||||||
| Opening acquisition values | 1 577 | 1 455 | 2 053 | 2 053 | ||
| Investments | – | – | – | – | ||
| Increase through business acquisitions | 37 | 104 | – | – | ||
| Sales and disposals | – | – | – | – | ||
| Translation differences | 3 | 18 | – | – | ||
| Closing accumulated acquisition values | 1 617 | 1 577 | 2 053 | 2 053 | ||
| Amortization | ||||||
| Opening accumulated amortization | – | – | -2 053 | -1 953 | ||
| Amortization for the year | – | – | – | -100 | ||
| Sales and disposals | – | – | – | – | ||
| Translation differences | – | – | – | – | ||
| Closing accumulated amortization | 0 | 0 | -2 053 | -2 053 | ||
| Closing book value | 1 617 | 1 577 | 0 | 0 | ||
| Group | Parent Company | |||||
| SEK m | 2017 | 2016 | 2017 | 2016 | ||
| Other intangible fixed assets, customer relations | ||||||
| Acquisition values | ||||||
| Opening acquisition values | 322 | 261 | – | – | ||
| Investments | – | – | – | – | ||
| Increase through business acquisitions | 20 | 46 | – | – | ||
| Sales and disposals | – | – | – | – | ||
| Translation differences | 6 | 15 | – | – | ||
| Closing accumulated acquisition values | 348 | 322 | 0 | 0 | ||
| Amortization | ||||||
| Opening accumulated amortization | -72 | -41 | – | – | ||
| Amortization for the year | -34 | -29 | – | – | ||
| Sales and disposals | – | – | – | – | ||
| Translation differences | -2 | -2 | – | – | ||
| Closing accumulated amortization | -108 | -72 | 0 | 0 | ||
| Closing book value | 240 | 250 | 0 | 0 | ||
| Group | Parent Company | |||||
| SEK m | 2017 | 2016 | 2017 | 2016 | ||
| Trademarks, software and licenses | ||||||
| Acquisition values | ||||||
| Opening acquisition values | 52 | 64 | 34 | 53 | ||
| Investments | 15 | 1 | 14 | – | ||
| Increase through business acquisitions | 1 | 1 | – | – | ||
| Sales and disposals | – | – | – | – | ||
| Reclassifications | 2 | -14 | 2 | -19 | ||
| Translation differences | – | 1 | – | – | ||
| Closing accumulated acquisition values | 70 | 52 | 50 | 34 | ||
| Amortization | ||||||
| Opening accumulated amortization | -39 | -48 | -25 | -43 | ||
| Amortization for the year | -6 | -7 | -4 | -3 | ||
| Business acquisitions | – | 0 | – | – | ||
| Sales and disposals | – | – | – | – | ||
| Reclassifications | – | 17 | – | 21 | ||
| Translation differences | – | -1 | – | – | ||
| Closing accumulated amortization | -45 | -39 | -29 | -25 | ||
| Closing book value | 25 | 14 | 21 | 9 | ||
| Group | Parent Company | |||||
| SEK m | 2017 | 2016 | 2017 | 2016 | ||
| Capitalized development expenses | ||||||
| Acquisition values | ||||||
| Opening acquisition values | 160 | 151 | 130 | 118 | ||
| Investments | 1 | 12 | 1 | 11 | ||
| Increase through business acquisitions | – | – | – | – | ||
| Decrease through divestments | – | 0 | – | – | ||
| Sales and disposals | – | -23 | – | -23 | ||
| Reclassifications | -2 | 19 | -2 | 24 | ||
| Translation differences | 1 | 1 | – | – | ||
| Closing accumulated acquisition values | 160 | 160 | 129 | 130 | ||
| Amortization | ||||||
| Opening accumulated amortization | -120 | -113 | -103 | -96 | ||
| Amortization for the year | -10 | -12 | -7 | -9 | ||
| Increase through divestment | – | 0 | – | – | ||
| Sales and disposals | – | 23 | – | 23 | ||
| Reclassifications | – | -16 | – | -21 | ||
| Translation differences | -1 | -1 | – | – | ||
| Closing accumulated amortization | -130 | -120 | -110 | -103 | ||
| Impairment | ||||||
| Opening accumulated impairment | 0 | 0 | 0 | 0 | ||
| Impairment for the year | – | – | – | – | ||
| Disposals | – | – | – | – | ||
| Translation differences | – | – | – | – | ||
| Closing accumulated impairment | 0 | 0 | 0 | 0 | ||
| Closing book value | 30 | 40 | 19 | 27 | ||
| Intangible assets, total | 1 911 | 1 881 | 40 | 36 | ||
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 metric tons. The allocation for 2017 is 0 metric tons for Dals Långed and 18,438 metric tons for Skåpafors. The total number of emission rights will diminish each year up to 2020, when Dals Långed will have emission rights corresponding to 0 metric tons per year, and Skåpafors 17,349 metric tons per year. 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, 13,308 metric tons were consumed in Skåpafors in 2017, compared with 11,367 metric tons in 2016. Received emission rights are reported as intangible assets recognized at an acquisition value of zero.
Impairment testing for goodwill
Impairment testing is performed for goodwill at the end of each financial year. With the implementation of IFRS, allocation of the Group’s goodwill items has taken place through allocation ratios; see Note 4.2.
In 2017, Sharp Serviettes in New Zealand was acquired with an acquisition goodwill of SEK 37 m. 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 to the Group’s cash-generating units identified per business area as follows:
| SEK m | 2017 | 2016 | |
| Table Top | 1 199 | 1 199 | |
| Consumer | 215 | 209 | |
| New Markets | 203 | 169 | |
| Total | 1 617 | 1 577 | |
Impairment testing for goodwill is performed annually for and when there are indications of impairment. Recoverable amounts for cash-generating units are determined based on estimated values in use. 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 estimated 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, the figures in brackets show what growth rate was used in last year’s calculation.
| Growth rate | Year 1 | Year 2–5 | Beyond the forecast period |
| Table Top | 2% (4%) | 2% (2%) | 1% (1%) |
| Consumer | 2% (0%) | 3% (3%) | 1% (1%) |
| New Markets | 2% (2%) | 3% (3%) | 1% (1%) |
| Discount rate before tax used per business area | |
| Table Top | 8.1% (7.4%) |
| Consumer | 9.3% (8.7%) |
| New Markets | 11.1% (10.4%) |
Significant assumptions which are used for calculations of values in use are primarily profit margin, growth rate and a nominal discount rate. Which discount rate is used for each business area can be seen in the table above. The discount rate before tax is used in conjunction with present value calculation of estimated future cash flows.
Company management has established the profit margin and growth rate based on previous income 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 the Group’s operations are stable and there are therefore not any individual significant assumptions that could impact the profit margin. The estimated growth rate is applied in all essential respects to net sales and free cash flow.
Company management believes that reasonably possible changes in the significant assumptions used in the calculations would not have such a major impact as to individually reduce the recoverable amount to a value which is below the carrying amount.