8. Intangible Assets
| CHF million | EDP software and consultancy | Customer relationships | Brands and intellectual property | Goodwill | Other intangible assets | 2015 Total |
|---|---|---|---|---|---|---|
| Acquisition costs as at January 1, 2015 | 78.0 | 132.3 | 459.8 | 779.7 | 8.0 | 1,457.9 |
| Additions | 10.5 | – | – | – | 7.3 | 17.8 |
| Retirements | – 5.6 | – | – | – | – | – 5.6 |
| Transfers | – 0.1 | – | – | – | – | – 0.1 |
| Currency translation | – 4.9 | – | – | – 0.2 | – 1.7 | – 6.8 |
| Acquisition costs as at December 31, 2015 | 77.9 | 132.3 | 459.8 | 779.5 | 13.6 | 1,463.1 |
| Accumulated depreciation as at January 1, 2015 | 60.3 | 3.0 | – | – | 0.1 | 63.4 |
| Additions | 6.3 | 8.6 | – | – | 0.2 | 15.1 |
| Retirements | – 5.6 | – | – | – | – | – 5.6 |
| Currency translation | – 3.8 | 0.2 | – | – | – 0.1 | – 3.7 |
| Accumulated depreciation as at December 31, 2015 | 57.2 | 11.8 | – | – | 0.2 | 69.2 |
| Net intangible assets as at December 31, 2015 | 20.7 | 120.5 | 459.8 | 779.5 | 13.4 | 1,393.9 |
| CHF million | EDP software and consultancy | Customer relationships | Brands and intellectual property | Goodwill | Other intangible assets | 2014 Total |
| Acquisition costs as at January 1, 2014 | 70.4 | – | – | – | 5.3 | 75.7 |
| Additions | 8.1 | – | – | – | 2.9 | 11.0 |
| Retirements | – 1.7 | – | – | – | – | – 1.7 |
| Transfers | 0.4 | – | – | – | – | 0.4 |
| Acquisition of subsidiary | – | 121.5 | 459.9 | 716.1 | – | 1,297.5 |
| Currency translation | 0.8 | 10.8 | – 0.1 | 63.6 | – 0.1 | 75.0 |
| Acquisition costs as at December 31, 2014 | 78.0 | 132.3 | 459.8 | 779.7 | 8.0 | 1,457.9 |
| Accumulated depreciation as at January 1, 2014 | 55.1 | – | – | – | – | 55.1 |
| Additions | 6.1 | 2.8 | – | – | 0.1 | 9.0 |
| Retirements | – 1.7 | – | – | – | – | – 1.7 |
| Currency translation | 0.8 | 0.2 | – | – | – | 1.0 |
| Accumulated depreciation as at December 31, 2014 | 60.3 | 3.0 | – | – | 0.1 | 63.4 |
| Net intangible assets as at December 31, 2014 | 17.7 | 129.3 | 459.8 | 779.7 | 7.9 | 1,394.5 |
Research and development expenditures amounted to CHF 10.5 million (CHF 9.5 million in 2014) and are expensed as incurred.
An impairment test of goodwill and other intangible assets with infinite life (i.e. “Brands and intellectual property”) relating to the acquisition of Russell Stover Candies, LLC (i.e. cash generating unit) in 2014 has been conducted.
The recoverable amount was determined based on future discounted cash flows, planning assumptions over the next years plus a residual value. The calculation of the recoverable amount is mainly sensitive to sales growth, EBIT margin, tax and discount rate. The gross margin is based on historical data and expected data for the Group and the industry.
In line with internal benchmarks, the recoverable amount was calculated based on projected cash flows over a period of ten years and applying annual sales growth of 5 % with the usual group wide operating profit margins. A terminal growth rate of 2.5 % and a discount rate of 6.1 % were used.
The recoverable amount for goodwill and intangible assets with infinite life is higher than the carrying amount.