Volvo 2014 Annual Report Download - page 143

Intangible assets, acquisition costs Goodwill Capitalized product and
software development Other intangible assets1
Total intangible
assets
Opening balance 2013 22,093 31,745 5,930 59,768
Capital expenditures2–3,7502053,955
Sales/scrapping – (5) (18) (23)
Acquired and divested operations521 (3) (3) 15
Translation differences (734) (790) (402) (1,926)
Reclassifi cations and others 32 (162) (84) (214)
Acquisition cost as of Dec 31, 2013 21,412 34,535 5,628 61,575
Capital expenditures2–1,3901511,541
Sales/scrapping – (81) (28) (109)
Acquired and divested operations5(1,382) 79 200 (1,103)
Translation differences 1,488 1,790 411 3,689
Reclassifi cations and other (24) (5) 6 (23)
Acquisition cost as of Dec 31, 2014 21,494 37,708 6,368 65,570
Accumulated amortization and impairment Goodwill Capitalized product and
software development Other intangible assets1
Total intangible
assets
Opening balance 2013 –18,3752,69521,070
Amortization and impairment4–3,2823163,597
Revaluation 1,458 – – 1,458
Sales/scrapping – (5) (11) (16)
Acquired and divested operations5–(3)(3)(6)
Translation differences – (685) (114) (799)
Reclassifi cations and other – (210) (107) (317)
Accumulated amortization and impairment
as of Dec 31, 2013 1,458 20,754 2,775 24,987
Amortization and impairment4–3,1983353,533
Revaluation – – – –
Sales/scrapping – (53) (20) (73)
Acquired and divested operations5(1,458) – (2) (1,460)
Translation differences – 1,299 186 1,485
Reclassifi cations and other – (17) – (17)
Accumulated amortization and impairment
as of Dec 31, 2014 – 25,181 3,274 28,455
B/S Net value in balance sheet as of December 31, 2013319,954 13,781 2,853 36,588
B/S Net value in balance sheet as of December 31, 2014321,494 12,527 3,094 37,115
1 Other intangible assets mainly consist of entrance fees, trademarks and distribution networks.
2 Including capitalized borrowing costs of SEK 0 M (35).
3 Costs less accumulated amortization and impairments.
4 Of which impairments SEK 60 M (4). Impairment of SEK 36 M in product development relates to
restructuring activities as communicated on pages 24, 72 and 76.
5 Read more in Note 3, Acquisitions and divestments of shares in subsidiaries, for a description of
acquired and divested operations. Including the sale of Volvo Rents for 2014.
Goodwill per Business Area Dec 31,
2014 Dec 31, 2013
Trucks 11,515 10,915
Construction Equipment 8,392 7,536
Buses 1,053 996
Other business areas 534 507
Total goodwill value 21,494 19,954
that estimates of future cash fl ows are reasonable, different assumptions
regarding such cash fl ows could materially affect valuations. The need for
impairment of goodwill and certain other intangible assets with indefi nite
useful lives is determined on an annual basis, or more frequently if re quired
through calculation of the value of the asset. Such an impairment review
will require management to determine the fair value of the Volvo Group’s
cash generating units, on the basis of projected cash fl ows and internal
business plans and forecasts. Surplus values differ between the business
areas and they are, to a varying degree, sensitive to changes in assump-
tions and the business environment. The Volvo Group has performed
similar impairment reviews since 2002. No need for impairment losses
was required for the period 2002 until 2014.
FINANCIAL INFORMATION 2014
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