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in CHF m

  

Goodwill

  

Technology

  

Customer relation­ships

  

Trade names

  

Other

  

Total 2015

Cost

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

1 324

  

187

  

187

  

74

  

259

  

2 031

Additions

  

–

  

–

  

–

  

–

  

27

  

27

Acquired in business combinations

  

4

  

2

  

1

  

–

  

9

  

16

Disposals

  

–

  

–30

  

–

  

–3

  

–3

  

–36

Reclassifications

  

30

  

42

  

87

  

37

  

63

  

259

Exchange rate differences

  

–95

  

–9

  

–5

  

–

  

–25

  

–134

At 31 December

  

1 263

  

192

  

270

  

108

  

330

  

2 163

 

  

 

  

 

  

 

  

 

  

 

  

 

Accumulated amortization and impairment

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

–210

  

–86

  

–51

  

–38

  

–159

  

–544

Disposals

  

–

  

30

  

–

  

3

  

3

  

36

Amortization

  

–

  

–15

  

–8

  

–7

  

–24

  

–54

Impairment (see )

  

–7

  

–

  

–

  

–

  

–4

  

–11

Reclassifications

  

–30

  

–53

  

–115

  

–27

  

–34

  

–259

Exchange rate differences

  

3

  

3

  

–

  

–

  

13

  

19

At 31 December

  

–244

  

–121

  

–174

  

–69

  

–205

  

–813

 

  

 

  

 

  

 

  

 

  

 

  

 

Net book value

  

1 019

  

71

  

96

  

39

  

125

  

1 350

(XLS:) Download

in CHF m

  

Goodwill

  

Technology

  

Customer relation­ships

  

Trade names

  

Other

  

Total 2014

Cost

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

1 330

  

179

  

178

  

69

  

296

  

2 052

Additions

  

–

  

–

  

–

  

–

  

13

  

13

Acquired in business combinations
(see )

  

10

  

3

  

2

  

5

  

1

  

21

Disposals

  

–

  

–

  

–

  

–

  

–60

  

–60

Reclassifications

  

–9

  

6

  

3

  

–

  

–

  

–

Exchange rate differences

  

–7

  

–1

  

4

  

–

  

9

  

5

At 31 December

  

1 324

  

187

  

187

  

74

  

259

  

2 031

 

  

 

  

 

  

 

  

 

  

 

  

 

Accumulated amortization and impairment

  

 

  

 

  

 

  

 

  

 

  

 

As per 1 January

  

–208

  

–50

  

–43

  

–22

  

–180

  

–503

Disposals

  

–

  

–

  

–

  

–

  

59

  

59

Amortization

  

–

  

–17

  

–8

  

–7

  

–29

  

–61

Impairment (see )

  

–

  

–20

  

–

  

–8

  

–

  

–28

Exchange rate differences

  

–2

  

1

  

–

  

–1

  

–9

  

–11

At 31 December

  

–210

  

–86

  

–51

  

–38

  

–159

  

–544

 

  

 

  

 

  

 

  

 

  

 

  

 

Net book value

  

1 114

  

101

  

136

  

36

  

100

  

1 487

Amortization is allocated to the line in the income statement, which represents the function to which the intangible asset pertains.

Impairments recognized in 2015 and 2014 arose as a result of the restructuring measures and the disposal projects.

As per end of 2015, other intangible assets include costs in the amount of CHF 44 million (2014: CHF 46 million) capitalized in connection with the REACH regulation and CHF 23 million (2014: CHF 15 million) of capitalized internally generated intangibles.

Impairment test for goodwill. Goodwill is allocated to the Group’s cash generating units (CGU). Cash generating units consist of Business Units which are for external reporting purposes reported under the corresponding (reportable segments, see ).

Goodwill is allocated to the following CGUs:

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in CHF m

  

31.12.2015

  

31.12.2014

Industrial & Consumer Specialties

  

46

  

43

Masterbatches

  

174

  

185

Pigments

  

18

  

25

Functional Minerals

  

143

  

158

Catalysts

  

622

  

685

Oil & Mining Services

  

16

  

18

Total net book value

  

1 019

  

1 114

Continuing operations

The recoverable amount for all CGUs is determined based on their value-in-use. The value-in-use calculations use projections based on financial budgets approved by the Board of Directors covering a five-year period. Beyond this five-year period growth in accordance with market growth is assumed. The main assumptions used for cash flow projections were in percent of sales and sales growth. The assumptions regarding these two variables are based on Management’s past experience and future expectations of business performance. The pre-tax discount rates used are based on the Group’s weighted average cost of capital. The assumed pre-tax discount rate was 11.31% for all cash generating units (2014: 12.01%).

For all CGUs it was assumed that they achieve sales growth in line with or higher than market growth based on the current specific strategic plans for those CGUs. It was also assumed that the EBITDA in percentage of sales will improve over present performance as a result of the continuous improvement measures implemented. It was also determined that the net present value of their expected cash flows exceeds the carrying amount of the net assets allocated on a value-in-use basis.

The estimated recoverable amount of the CGU Catalysts exceeds its carrying amount including goodwill by CHF 141 million. The recoverable amount would be equal to the carrying amount if the assumed average annual sales growth rate during the planning period were reduced by 0.6%, or alternatively, if the operating margin was reduced by 1.5% of sales.

Business area

In 2013 Clariant adjusted its reporting segments and grouped its businesses with similar end-user markets and growth drivers. Today, the company reports in four distinct Business Areas: Care Chemicals, Catalysis, Natural Resources, and Plastics & Coatings. VIEW ENTIRE GLOSSARY

Cash flow

Economic indicator representing the operational net inflow of cash and cash equivalents during a given period. VIEW ENTIRE GLOSSARY

EBITDA

Earnings before interest, taxes, depreciation, and amortization. VIEW ENTIRE GLOSSARY

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