Boskalis Annual Report 2020

108 108

GOODWILL

OTHER

TOTAL

Balance as at 1 January 2019 Cost

629,426 - 532,349

121,125 - 98,562 22,563

750,551 - 630,911 119,640

Accumulated amortization and impairments

Carrying amount

97,077

Movements Amortization

- - -

- 3,557

- 3,557

Currency translation differences and other movements

300

300

- 3,257

- 3,257

Balance as at 31 December 2019 Cost Accumulated amortization and impairments

634,671 - 537,594

121,965 - 102,659

756,636 - 640,253 116,383

Carrying amount

97,077

19,306

ANNUAL REPORT 2020 – BOSKALIS FINANCIAL STATEMENTS 2020 ANNUAL REPORT 2020 -- BOSKALIS FI ANCIAL S AT MENTS 20 CASH-GENERATING UNIT Survey Inland Infra Salvage Dredging Total When conducting impairment tests on goodwill, the recoverable amounts are determined based on value in use calculations. Value in use is determined by discounting the expected future cash flows from the continuing operations of the CGU. Management projects cash flows based on past trends and estimates of future market developments, cost developments and investment plans. These projections also factor in market conditions, order book in hand, expected win rates of contracts and expected vessel utilization. Key assumptions in the calculation of value in use are the growth rate applied in the calculation of the terminal value and the discount rate used. Cash flows for the CGUs beyond five years are extrapolated using an estimated long-term growth rate of 1.0% (2019: 1.0%). The applicable growth rate does not exceed the long-term average growth rate which may be expected for the activities. The pre-tax discount rate used in the calculations per CGU are: Survey 9.9%, Inland Infra 9.2% (2019: 8.3%), Salvage 6.8% (2019: 6.5%) and Dredging 8.25% (2019: 7.9%) and is determined per CGU by means of an iterative calculation using the post-tax discount rates (determined by an external valuator), projected post-tax cash flows and expected tax rate. The Group has analyzed sensitivity to a reasonable possible change in the discounted expected future cash flows of the carrying amount, including goodwill, of the CGU (‘headroom’). The recoverable amounts for Inland Infra, Salvage, Dredging and Survey exceed the carrying amounts of the CGUs with significant headroom. OTHER INTANGIBLE ASSETS Other intangible assets, which are identified and recognized at fair value in business combinations, consist of tradenames, technology (including software) and favorable contracts. Currency translation differences mainly relate to goodwill and other intangible assets resulting from the acquisitions of Dockwise, Fairmount and Horizon, which are denominated in USD. Following impairment charges recognized in previous years, currency translation differences do not occur with respect to the carrying amount of goodwill. However, cost and accumulated amortization and impairments are still impacted by currency translation differences. GOODWILL For the purpose of impairment testing, goodwill is allocated to the cash-generating units (CGU) which represent the lowest level within the Group at which the goodwill is monitored for internal management purposes. This does not exceed the level of Group’s operating segments reported in note 4 on Segment reporting. Goodwill is allocated to the following cash-generating units: OPERATIONAL SEGMENT 2020 Offshore Energy 66,083 46,607 36,875 13,595 163,160 Dredging & Inland Infra Towage & Salvage Dredging & Inland Infra

2019

-

46,607 36,875 13,595 97,077