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83
Notes to the consolidated financial
statements, REC Group
REC Annual Report 2011
Intangible assets
(NOK INMILLION)
GOODWILL
ASSETS UNDER
DEVELOPMENT
CUSTOMER
RELATIONSHIPS
OTHER
TOTAL
Carrying value at January 1, 2010
584
161
59
257
1 060
Exchange differences
4
-1
1
4
7
Net additions*
0
-14
0
69
54
Internal development
0
84
0
0
84
Amortization***
0
0
-6
-63
-69
Impairment **
0
0
0
-13
-13
Carrying value at December 31, 2010
587
230
53
253
1 123
At December 31, 2010
Cost price
626
230
115
503
1 474
Accumulated amortization and impairment
-38
0
-62
-250
-351
Carrying value at December 31, 2010
587
230
53
253
1 123
Carrying value at January 1, 2011
587
230
53
253
1 123
Exchange differences
6
-6
1
11
11
Net additions*
0
-190
0
311
121
Internal development
0
45
0
0
45
Amortization***
0
0
-6
-118
-124
Impairment **
-330
-62
0
-123
-515
Carrying value at December 31, 2011
263
16
48
333
661
At December 31, 2011
Cost price
632
79
118
847
1 676
Accumulated amortization and impairment
-368
-63
-70
-514
-1 015
Carrying value at December 31, 2011
263
16
48
333
661
*
Net additions include transfers from assets under construction.
** See note 7 for details of impairments.
*** Total amortization in the statement of income consists of amortization of intangible assets in the table above and amortization of prepaid lease in the table below.
The intangible assets except goodwill included above have estimated finite useful lives, over which the assets are amortized on a
straight-line basis. Intangible assets under construction are not ready for their intended use, and consequently amortization has not started.
At December 31, 2011 and 2010 assets under construction related primarily to SAP implementation in REC Silicon and at December 31,
2010 also REC ASA’s technology agreement with SiGen for mono wafer cutting. The technology agreement was impaired in 2011, reflecting
the uncertainty related to wafer production assets and the potential of this technology. At December 31, 2011 and 2010 customer
relationships were related to pre-existing relationships at the time of acquisition of ASiMI and SGS, and are amortized over a period of
10 to 16 years. Other intangible assets at December 31, 2011 were primarily related to software (3-8 years) and FBR technology in
REC Silicon (20 years). At December 31, 2010 it also included furnace technology in RECWafer that was impaired in 2011.
Prepaid lease
(NOK INMILLION)
2011
2010
Carrying value at January 1
115
39
Exchange differences
2
2
Addition
104
86
Amortization
-12
-12
Carrying value at December 31
209
115
Distribution of total prepaid lease
(NOK INMILLION)
2011
2010
Current
11
11
Non-current
198
104
Total
209
115
Prepaid lease relates to lease of land in Singapore. See note 29 for further information.