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84
Other changes
Application of IAS 32 and IAS 39 as from January 1,
2005 led to the recognition of a put option granted to
minority shareholders of MGE. The difference
between the fair value of the put option and the under-
lying minority interests, in an amount of 76.7 million,
was posted to goodwill as explained in note 2. Follow-
ing an adjustment at the end of the financial year, this
amount was reduced to 75.4 million.
In addition, the price of shares acquired in 2004 was
adjusted on the basis of MGE’s financial results for the
period ended September 30, 2005, in accordance with
the earn-out clause in the current shareholders’ pact.
The adjusted price of 38.2 million represented an
increase of 14.2 million from the valuation at Decem-
ber 31, 2004. The related goodwill was increased by
the same amount.
During 2005, intangible assets of 24 million (net of
deferred taxes) were recognized for Kavlico Inc., of
which 12 million for the trademark. Goodwill recog-
nized on the first-time consolidation of Kavlico in 2004
was reduced by the same amount.
Impairment tests did not reveal any losses on the
above items. Impairment losses for the period con-
cerned various non-material goodwill items, primarily
in Europe and were recorded under "Other operating
income and expenses" (note 25).
The main exchange rate fluctuations concerned good-
will in US dollars and Australian dollars.
Note 5 - Intangible assets
5.1 - Changes in intangible assets
Trademarks Software Development Other Total
projects (R&D)
Gross Value
Dec. 31, 2004 617.8 390.6 76.9 145.1 1,230.4
Acquisitions - 52.9 - 17.5 70.4
Internally generated assets - 33.6 108.9 - 142.5
Disposals - (17.4) - (2.6) (20.0)
Translation adjustment 18.4 12.8 1.2 18.7 51.1
Reclassification 14.4 12.7 (0.5) 40.4 67.0
Changes in the scope
of consolidation and other 93.8 1.5 0.3 91.5 187.1
Dec. 31, 2005 744.4 486.7 186.8 310.6 1,728.5
Accumulated amortization and impairment
Dec. 31, 2004 (2.5) (228.9) (15.0) (89.5) (335.9)
Allocation and impairment - (67.9) (8.5) (21.9) (98.3)
Reversal - 17.0 - 2.5 19.5
Translation adjustment - (8.4) (0.3) (6.7) (15.4)
Reclassification - (1.0) 1.8 1.0 1.8
Changes in the scope
of consolidation and other (1.2) (1.6) - 1.7 (1.1)
Dec. 31, 2005 (3.7) (290.8) (22.0) (112.9) (429.4)
Net Value
Dec. 31, 2004 615.3 161.7 61.9 55.6 894.5
Dec. 31, 2005 740.7 195.9 164.8 197.7 1,299.1
In relation to the year’s acquisitions, the Group recog-
nized the Juno Lighting trademark and other intangible
assets, consisting primarily of patents and customer
lists. In addition, following the final valuation of Kavlico,
acquired in 2004, the Group recognized the Kavlico
trademark and other intangible assets and reduced
goodwill by the same amount (see note 4 and note 5.2).
In 2005, costs totaling 33.6 million were capitalized
in connection with an ongoing project to develop a
Groupwide SAP configuration module.