Note 17 Intangible assets

Goodwill Trademarks Customer relationships Technology
Other intangible assets
Total
Goodwill Varumärken Kundrelationer Teknologi
Övriga immateriella tillgångar
Total

Opening acquisition cost 01-01-2017 Ingående anskaffningsvärde 2017-01-01 4,976,155 1,357,419 1,616,256 805,644 5,621 8,761,095
Investments Investeringar 0 0 206,849 24,234 29,339 260,422
Acquisition of group companies Förvärv av koncernföretag 0 0 0 0 0 0
Sales/disposals Försäljningar/utrangeringar 0 0 0 0 -299 -299
Reclassifications Omklassificeringar 0 342 1,280 -58,292 47,315 -9,355
Exchange rate differences Valutakursdifferenser -23,181 -6,565 -8,528 632 0 -37,642
Closing accumulated acquisition cost 12-31-2017 Utgående ackumulerade anskaffningsvärden 2017-12-31 4,952,974 1,351,196 1,815,857 772,218 81,976 8,974,221
Opening depreciation and write-downs 01-01-2017 Ingående av- ocn nedskrivningar 2017-01-01 0 0 -67,059 -22,109 0 -89,168
Depreciation for the year Årets avskrivningar 0 0 -155,785 -47,154 -1,236 -204,175
Write-down for the year Årets nedskrivningar 0 0 0 -12,044 -15,589 -27,633
Sales/disposals Försäljningar/utrangeringar 0 0 0 0 0 0
Reclassifications Omklassificeringar 0 -171 -554 44,778 -44,053 0
Exchange rate differences Valutakursdifferenser 0 0 -453 -609 0 -1,062
Closing accumulated depreciation and write-downs 12-31-2017 Utgående ackumulerade av- och nedskrivningar 2017-12-31 0 -171 -223,851 -37,138 -60,878 -322,038
Reported amount Redovisat värde 4,952,974 1,351,025 1,592,006 735,080 21,098 8,652,183
Opening acquisition cost 07-20-2016 Ingående anskaffningsvärde 2016-07-20 0 0 0 0 0 0
Investments Investeringar 0 0 0 49,689 6,593 56,282
Acquisition of group companies Förvärv av koncernföretag 4,895,713 1,362,022 1,580,268 755,941 115 8,594,059
Sales/disposals Försäljningar/utrangeringar 0 0 0 −80 0 -80
Reclassifications Omklassificeringar 0 0 0 0 -1,087 -1,087
Exchange rate differences Valutakursdifferenser 80,442 -4,603 35,988 94 0 111,921
Closing accumulated acquisition cost 12-31-2016 Utgående ackumulerade anskaffningsvärden 2016-12-31 4,976,155 1,357,419 1,616,256 805,644 5,621 8,761,095
Opening depreciation 07-20-2016 Ingående avskrivningar 2016-07-20 0 0 0 0 0 0
Depreciation for the year Årets avskrivningar 0 0 -67,164 -22,112 0 -89,276
Sales/disposals Försäljningar/utrangeringar 0 0 0 36 0 36
Reclassifications Omklassificeringar 0 0 0 0 0 0
Exchange rate differences Valutakursdifferenser 0 0 105 −33 0 72
Closing accumulated depreciation 12-31-2016 Utgående ackumulerade avskrivningar 2016-12-31 0 0 -67,059 -22,109 0 -89,168
Reported amount Redovisat värde 4,976,155 1,357,419 1,549,197 783,535 5,621 8,671,927

Goodwill has been allocated to the following cash-generating units:

Goodwill 12/31/2017 12/31/2016
Goodwill 2017-12-31 2016-12-31
USA USA 854,124 943,861
United Kingdom Storbritannien 732,209 737,101
Germany Tyskland 954,336 926,936
Rest of world Övriga världen 2,412,305 2,368,257
Reported amount Redovisat värde 4,952,974 4,976,155

Goodwill and trademarks are evaluated on an annual basis to assess the need for write-downs or whenever there is an indication that write-downs are required. Where applicable, impairment charges are recognized in an amount equal to the carrying amount of the asset less its estimated recovery value (ERV), which is the higher of its fair market value minus any selling costs and its useful value. The useful value relates to the sum of the net present value of estimated future cash flows and the estimated recovery value at the end of the asset’s useful lifespan. When calculating the useful value, future cash flow is discounted at an interest rate that takes the prevailing market risk-free interest rate as well as the risk associated with the specific asset into account, the so-called WACC (Weighted Average Cost of Capital). The calculations are based on estimated future cash flows based on past results, budgets approved by the board, strategic 5-year plans, and market data. In predicting future cash flows, assumptions are primarily made relating to sales growth, operating margins, investments, and discount rates. The cash-generating units include the largest geographic segments: USA, United Kingdom, and Germany. Other countries have been lumped together into one segment: Rest of world. The WACC that has been applied ranges from 7.3-8.9% (8.6%) before taxes and reflects the specific risks associated with the respective markets/currencies. After the 5-year period, a growth rate of 2% (2%) is applied, which coincides with the group’s long-term outlook for inflation and the market’s long-term growth.

Based on the assumptions presented above, the useful value exceeds the carrying amounts for goodwill and trademarks. Reasonable modification of the aforementioned assumptions should not result in the need for impairment charges of goodwill or trademarks.

Other intangible assets consist of capitalization of the development of the group’s business systems.