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111
5
4.2 - Changes in goodwill
The main movements between December 31, 2005
and December 31, 2006 are summarized in the follow-
ing table:
2006 2005
Net goodwill at opening 5,878.8 4,539.0
Acquisitions 727.7 * 1,079.5
Disposals (1.5) -
Impairment - (8.4)
Translation adjustment (323.8) 301.5
Reclassifications (95
.
5) (32.8)
Net goodwill at year end 6,185.7 5,878.8
Cumulative impairment (8.4) (8.4)
*On the basis of the exchange rate on the acquisition date.
Acquisitions
Acquisitions primarily included Invensys Building Sys-
tems (IBS) and Silicon Power Corporation (Crydom) in
North America, Clipsal Asia and Citect in Asia-Pacific,
and OVA Bargellini SpA., AEM SA, GET Group Plc,
and Merten GmbH & Co Kg in Europe.
Other changes
Adjustments to the provisional accounting for the BEI
Technologies Inc business combination when the initial
accounting was completed led to the recognition in
2006 of intangible assets of $141.8 million (117.9
million), of which $42.3 million (35.2 million) for the
trademark and $80.5 million (66.9 million) for the dis-
tribution network. This led to the recognition of $55.2
million (44.5 million) for deferred tax liabilities.
Impairment tests did not reveal any losses on goodwill
recognized in the balance sheet.
The main exchange rate fluctuations concerned good-
will in US dollars.
Note 5 - Intangible assets
5.1 - Change 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
Dec. 31, 2005 744.4 486.7 186.8 310.6 1,728.5
Acquisitions/Capitalization 1.5 20.7 120.8 82.4 225.4
Internally generated assets - (0.2) - - (0.2)
Disposals 0.2 (4.7) (4.5) (10.1) (19.1)
Translation adjustment (26.9) (10.1) (7.8) (33.6) (78.4)
Reclassification 0.1 (60.8) 9.5 53.3 2.1
Changes in the scope
of consolidation and other 46.4 6.4 9.7 93.0 155.5
Dec. 31, 2006 765.7 438.0 314.5 495.6 2,013.8
Accumulated amortization and impairment
Dec. 31, 2004 (2.5) (228.9) (15.0) (89.5) (335.9)
Dec. 31, 2005 (3.7) (290.8) (22.0) (112.9) (429.4)
Allocation and impairment (1.8) (59.2) (29.0) (25.7) (115.7)
Recapture 0.2 6.7 2.5 3.2 12.6
Translation adjustment 0.1 8.0 1.5 7.3 16.9
Reclassification (0.2) (1.4) (1.4) 4.5 1.5
Changes in the scope
of consolidation and other 0.1 (3.5) (2.2) (1.2) (6.8)
Dec. 31, 2006 (5.3) (340.0) (50.6) (124.8) (520.7)
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
Dec. 31, 2006 760.4 98.0 263.9 370.8 1,493.1