71
NOTE 15 – INTANGIBLE ASSETS
Group Goodwill
Patents
and other
intangible
assets Total
Cost at January 1, 2016 1,567 597 2,164
Investments - 11 11
Acquired through business combination 46 - 46
Disposals - -6 -6
Reclassifications - -9 -9
Exchange differences 73 15 88
Accumulated cost at December 31, 2016 1,686 608 2,294
Cost at January 1, 2017 1,686 608 2,294
Investments - 37 37
Disposals - -1 -1
Reclassifications - -6 -6
Exchange differences -85 -15 -100
Accumulated cost at December 31, 2017 1,601 623 2,224
Amortization and impairment loss at January 1, 2016 0 220 220
Impairment losses for the year - 34 34
Disposals - -6 -6
Exchange differences - 3 3
Accumulated amortization and impairment loss at December 31, 2016 0 251 251
Amortization and impairment loss at January 1, 2017 0 251 251
Impairment losses for the year - 29 29
Disposals - -1 -1
Reclassifications - -6 -6
Exchange differences - 1 1
Accumulated amortization and impairment loss at December 31, 2017 0 274 274
Residual value at December 31, 2016 1,686 357 2,043
Residual value at December 31, 2017 1,601 349 1,950
Reviewing impairment of goodwill
In preparing the financial statements for 2017, the Group has reviewed impairment of goodwill.
Goodwill is allocated to cash-generating units. The recoverable amount for a cash-generating unit is determined by calculating
its value in use. These calculations are based on estimated future cash flow as stated in budgets and forecasts covering a
five-year period. Cash flow beyond this period has been extrapolated by no more than 3 percent (3) in any case. Working capital
beyond the five-year period is estimated at the same level as year five. Discount rates are assumed to be 9 percent (9) after tax
and 12.8 percent (12.8) before tax. Goodwill testing of the Swedish, Danish, Belgian and Dutch units was done at an aggregate
level, whereby the four production units were considered as a single cash-generating unit. Other goodwill testing considered
cash-generating units at country level. Approximately 35 percent of goodwill is attributable to the business area Chocolate &
Confectionery Fats and the remaining approximately 65 percent to Food Ingredients.
Testing has not demonstrated any need for impairment. The sensitivity in these calculations indicates that recognized goodwill
is still intact even if the discount rate increases by 1 percent or if long-term growth is 1 percent less.
Goodwill by cash-generating unit
2017 2016
Sweden, Denmark, Belgium and the Netherlands 545 535
United Kingdom 65 66
Turkey 44 52
USA 630 700
Colombia 47 51
Mexico 41 43
India 229 239
Total 1,601 1,686