Bradken Limited Annual Report 2015 - page 98

63 l BRADKEN LIMITED ANNUAL REPORT 2015
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
30 June 2015
(continued)
16 Intangible assets
Goodwill
Customer
Patents,
Licences
Total
lists
trademarks and other
and brands
$'000
$'000
$'000
$'000
$'000
At 1 July 2013
Cost
284,133
108,770
12,459
60,236
465,598
Accumulated amortisation and impairment
(8,759)
(26,436)
(3,895)
(43,769)
(82,859)
Net book amount
275,374
82,334
8,564
16,467
382,739
Year ended 30 June 2014
Opening net book amount
275,374
82,334
8,564
16,467
382,739
Additions
-
-
-
3,994
3,994
Foreign exchange variation
(4,171)
(2,384)
(239)
-
(6,794)
Amortisation charge
-
(7,470)
(1,423)
(4,124)
(13,017)
Closing net book amount
271,203
72,480
6,902
16,337
366,922
At 30 June 2014
Cost
279,962
106,386
12,220
64,230
462,798
Accumulated amortisation and impairment
(8,759)
(33,906)
(5,318)
(47,893)
(95,876)
Net book amount
271,203
72,480
6,902
16,337
366,922
Year ended 30 June 2015
Opening net book amount
271,203
72,480
6,902
16,337
366,922
Additions
-
-
-
4,752
4,752
Impairment charge
(141,360)
(9,137)
-
(16,685)
(167,182)
Foreign exchange variation
25,709
13,866
1,072
-
40,647
Amortisation charge
-
(5,765)
(3,266)
(2,249)
(11,280)
Closing net book amount
155,552
71,444
4,708
2,155
233,859
At 30 June 2015
Cost
305,671
120,252
13,292
68,982
508,197
Accumulated amortisation and impairment
(150,119)
(48,808)
(8,584)
(66,827)
(274,338)
Net book amount
155,552
71,444
4,708
2,155
233,859
Impairment tests for goodwill and other intangibles
Due to the continued adverse market conditions and the continued downturn in the market for mobile plant mining capital parts
sales, an assessment of the recoverable amount of the goodwill and other intangibles of each of the Group's CGUs was
performed both before and after the re-alignment of the CGUs. The recoverable amount of the CGUs is determined based on
value-in-use calculations. These calculations use cash flow projections based on financial forecasts prepared by management
covering a five-year peroid. Cash flows beyond the five-year period are extrapolated using perpetual growth rates.
For the year ending 30 June 2015, this has resulted in a $141.4m impairment expense against goodwill, $16.7m impairment
expense against Licences and Other and a $9.1m impairment expense against customer lists in the current period. The below
table outlines the Group's CGUs tested for impairment, the allocation of these impairment balances, and the goodwill remaining
in the balance sheet at 30 June 2015:
As a result of the manufacturing reorganisation changes within the Group, the cash generating units (CGUs) for which
impairment is tested have been reorganised in May 2015. During the second half of the year, the former Mining Products, and
Transport and Industrial CGUs were combined to form the newly named Mining & Transport segment. Concurrently, the Fixed
Plant business was separated from the Mining Products CGU and now forms a new CGU called Fixed Plant.
*Mining Products and Transport & Industrial CGU
impairment testing was performed prior to the
restructure in May 2015.
** The goodwill balances at 30 June 2014 were Mining
Products $45.9m, Transport and Industrial $19.3m,
Engineered Products $85.1m, Mineral Processing
$112.3m and CMS $8.6m
$'000s
Goodwill
Other
Intangibles
FY15 Total
Impairment
Charge
Remaining
Goodw ill
balances at 30
June 2015**
Mining Products* (old)
(26,528)
-
(26,528)
-
Transport & Industrial* (old)
(16,723)
(4,285)
(21,008)
-
Mining and Transport (new)
(14,800)
(12,400)
(27,200)
-
Fixed Plant (new)
-
(5,942)
(5,942)
8,200
Engineered Products
(37,806)
(1,726)
(39,532)
49,138
Mineral Processing
(45,503)
(1,469)
(46,972)
89,600
Cast Metal Services
-
-
-
8,614
Total impairment
(141,360)
(25,822)
167,182
155,552
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Bradken Limited
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