Annual Report 2015

9. Depreciation, amortization and impairment losses

 

EUR million

2015

2014

Amortization on intangible assets

   

Development costs

0.9

0.5

Intangible rights

15.2

17.1

Total

16.1

17.7

     

Impairment losses on intangible assets

   

Impairment losses on intangible rights

8.6

2.1

Total

8.6

2.1

     

Depreciation on tangible assets

   

Buildings and structures

17.3

22.4

Investment properties

0.2

0.7

Machinery and equipment

33.6

33.7

Assets leased under finance lease

12.4

10.6

Other tangible assets

0.8

1.0

Total

64.4

68.4

     

Impairment losses on tangible assets

   

Impairment losses on land and water

0.3

-

Impairment losses on buildings

2.9

2.4

Total

3.2

2.4

     

Total depreciation, amortization and impairment losses

92.4

90.4

     

Impairment losses include a EUR 7.6 million impairment loss on assets included in Itella Russia segment. The most substantial impaired assets were the customer relationships, which were booked to zero. The forecasted cash flows from these customer relationships decreased below their book value. The fair value was determined based on data that is not based on verifiable market data (level 3).

     

Goodwill is not amortized on regular basis. Instead, goodwill is tested for impairment annually and whenever there are indications for impairment.

More information about impairment testing of goodwill is presented in Note 13.