12 Goodwill and other intangible assets

2022

millions of CHF

Goodwill

Trademarks and licenses

Research and development

Computer software

Customer relationships

Total

Acquisition cost

Balance as of January 1

258.0

78.5

6.0

17.8

231.8

592.2

Acquired through business combination

5.2

1.3

–

6.9

13.4

Deconsolidation of medmix Poland

–

–0.0

–

–0.1

–

–0.2

Additions

–

0.0

2.1

–

2.2

Disposals

–

–0.1

–

–0.1

Currency translation differences

–8.8

–0.4

–0.2

–0.7

–7.7

–17.8

Balance as of December 31

254.4

79.4

5.8

19.1

231.0

589.7

Accumulated amortization and impairment losses

Balance as of January 1

–

66.6

4.5

14.1

113.0

198.3

Deconsolidation of medmix Poland

–

–0.0

–

–0.1

–

–0.1

Additions

–

2.6

0.4

1.3

16.5

20.8

Disposals

–

–0.1

–

–0.1

Impairments

–

Currency translation differences

–

–0.3

–0.2

–0.1

–3.5

–4.1

Balance as of December 31

–

69.0

4.7

15.1

126.0

214.8

Net book value

As of January 1

258.0

11.9

1.5

3.7

118.8

393.9

As of December 31

254.4

10.4

1.2

3.9

104.9

374.9

	2021
millions of CHF	Goodwill	Trademarks and licenses	Research and development	Computer software	Customer relationships	Total
Acquisition cost
Balance as of January 1	265.4	78.6	5.6	15.7	237.4	602.7
Acquired through business combination	–	–	–	–	–	–
Additions	–	–	0.5	1.5	–	2.1
Disposals	–	–	–0.0	–0.1	–	–0.1
Currency translation differences	–7.4	–0.1	–0.2	0.7	–5.6	–12.5
Balance as of December 31	258.0	78.5	6.0	17.8	231.8	592.2

Accumulated amortization and impairment losses
Balance as of January 1	–	64.0	4.0	13.3	97.3	178.6
Additions	–	2.9	0.5	1.0	17.7	22.2
Disposals	–	–	–0.0	–0.1	–	–0.1
Impairments	–	–	0.1	–	–	0.1
Currency translation differences	–	–0.3	–0.2	–0.0	–2.1	–2.6
Balance as of December 31	–	66.6	4.5	14.1	113.0	198.3

Net book value
As of January 1	265.4	14.7	1.6	2.4	140.0	424.1
As of December 31	258.0	11.9	1.5	3.7	118.8	393.9

Goodwill impairment test

	2022
millions of CHF	Goodwill	Headroom	Growth rate residual value	Pretax discount rate
Healthcare	69.9	1’604.3	2.0%	7.9%
Consumer & Industrial	184.5	375.8	2.0%	9.5%
Total as of December 31	254.4	1’980.1

	2021
millions of CHF	Goodwill	Headroom	Growth rate residual value	Pretax discount rate
Healthcare	58.2	1’976.0	2.0%	5.6%
Consumer & Industrial	199.8	855.2	2.0%	5.6%
Total as of December 31	258.0	2’831.2

Goodwill is allocated to the smallest cash-generating unit at which goodwill is monitored for internal management purposes (i.e., business area). The recoverable amount of these units is determined over a five-year cash flow projection period.

The calculation is based on the budget for the first period (2022), the three-year strategic plan for the subsequent two periods (2023–2024) and a management calculation for the next two periods (2025–2026). The budget and the three-year strategic plan were approved by the Board of Directors in February 2022. Cash flows beyond the planning period are extrapolated using a terminal value including the growth rates as stated above.

As of December 31, 2022, there is no indication for goodwill impairment. Updating the impairment test would not have resulted in a goodwill impairment.

Sensitivity analyses

The recoverable amount from cash-generating units is measured on the basis of value-in-use calculations significantly impacted by the terminal growth rate used to determine the residual value, the discount rate and the projected cash flows. The table above shows the amount by which the estimated recoverable amount of the CGU exceeds its carrying amount (headroom).

Management determined there are no reasonably possible changes in key assumptions that would result in a goodwill impairment.