Page 47 - Sector Alarm Annual Report 2020

Sector Alarm / Annual Report 2020
Note 7 / Intangible assets and goodwill Amounts in TNOK
Balance at 31 December 2018
Translation differences
Acquisitions
Acquisition through business combinations
Disposals
Amortization for the year
Balance at 31 December 2019
Acquisition cost Accumulated amortization
Carrying amounts at 31 December 2019
Amortization and impairment for the year
Useful life
Amounts in TNOK
Balance at 31 December 2019
Translation differences
Acquisitions
Acquisition through business combinations
Disposals
Amortization for the year
Balance at 31 December 2020
Acquisition cost Accumulated amortization
Carrying amounts at 31 December 2020
Amortization and impairment for the year
Useful life
Goodwill
1 154 160
-15 290
0
0
0
0
1 138 870
1 121 330
17 540
1 138 870
0
indefinite
Goodwill
1 138 870
77 282
0
0
0
0
1 216 153
1 216 153
0
1 216 153
0
Indefinite
Licenses, software, etc.
46 022
-90
24 757
0
0
-18 466
52 223
121 693
-69 470
52 223
-18 466
3-5 years
Licenses, software, etc.
52 223
699
9 406
0
0
-20 754
41 575
132 013
-90 438
41 575
-20 754
3-5 years
Brand
89 535
-761
0
0
0
0
88 774
88 774
0
88 774
0
indefinite
Brand
88 774
5 459
0
0
0
0
94233
94 233
0
94 233
0
Indefinite
Customer contracts
2 393 567
-27 442
355 955
0
0
-220 816
2 501 264
3 509 841
-1 008 577
2 501 264
-220 816
16 years
Customer contracts
2 501 264
147 140
374 709
0
-180
-237 887
2 785 046
4 005 426
-1 220 380
2 785 046
-237 887
17 years
Total
3 683 284
-43 583
380 711
0
0
-239 281
3 781 132
4 841 638
-1 060 507
3 781 132
-239 281
Total
3 781 132
230 580
384 115
0
-180
-258 641
4 137 007
5 447 824
-1 310 818
4 137 007
-258 641
Customer contracts is amortised according churn data per customer portfolio. The customer portfolios varies in historical churn and between countries, but the average useful life for the Group was 17 years in 2020. Customer contracts as presented in the table above comprise of both customer contracts arising from business combinations or portfolio acquisitons and contracts arising from organic sales, where the latter comprise of the capitalised contract cost in accordance with cost to obtain and cost to fulfil contracts with customers. For further details see note 2.5 regarding business combinations and 2.14 regarding revenue from contracts with customers.
Impairment test goodwill and intangible assets
All goodwill is acquired through purchases and has been of strategic importance in retaining and strengthening the market positions of the Group. The goodwill is linked to cost savings and economies of scale as a result of coordination with the Group’s operations in the relevant markets and utilization of the Group’s experience and industry knowledge.The goodwill is allocated to the portfolios in Norway, Sweden, Finland, Ireland, Spain and France.