4.5 Intangible assets
CHF million | Software | Customer relation- ships | Patents and technology | Brands and trademarks | Other intangible assets | Total intangible assets |
|---|---|---|---|---|---|---|
Carrying amount at January 1, 2023 | 9.0 | 63.5 | 49.5 | 17.5 | 0.1 | 139.6 |
Additions | 1.4 | 0.0 | 0.0 | 0.0 | 0.0 | 1.4 |
Amortization | – 2.4 | – 6.9 | – 4.7 | – 1.8 | 0.0 | – 15.8 |
Currency translation differences | – 0.1 | – 2.5 | – 2.4 | – 0.8 | 0.0 | – 5.8 |
Carrying amount at December 31, 2023 | 7.9 | 54.1 | 42.4 | 14.9 | 0.1 | 119.4 |
Cost at December 31, 2023 | 13.9 | 82.7 | 59.2 | 20.6 | 4.5 | 180.9 |
Accumulated amortization at December 31, 2023 | – 6.0 | – 28.6 | – 16.8 | – 5.7 | – 4.4 | – 61.5 |
Carrying amount at December 31, 2023 | 7.9 | 54.1 | 42.4 | 14.9 | 0.1 | 119.4 |
Acquisitions1 | 0.1 | 1.3 | 0.0 | 0.9 | 0.0 | 2.3 |
Additions | 0.9 | 0.0 | 0.0 | 0.0 | 0.0 | 0.9 |
Amortization | – 2.4 | – 6.7 | – 4.7 | – 1.7 | – 0.1 | – 15.6 |
Currency translation differences | 0.1 | 0.7 | 0.8 | 0.1 | 0.0 | 1.7 |
Carrying amount at December 31, 2024 | 6.6 | 49.4 | 38.5 | 14.2 | 0.0 | 108.7 |
Cost at December 31, 2024 | 15.0 | 84.9 | 60.0 | 21.7 | 4.5 | 186.1 |
Accumulated amortization at December 31, 2024 | – 8.4 | – 35.5 | – 21.5 | – 7.5 | – 4.5 | – 77.4 |
Carrying amount at December 31, 2024 | 6.6 | 49.4 | 38.5 | 14.2 | 0.0 | 108.7 |
1See note 2.1.
Software consists of capitalized cost for internally generated software. Brands and trademarks include the brands of SSM, Accotex, Temco, Schlafhorst, Autoconer, and Prosino. Technology consists only of capitalized costs for acquired technology in connection with acquisitions.
Significant accounting estimates and judgments
No development costs were recognized as intangible assets in the year under review or in the previous year. Due to rapid technological changes and wide cyclical fluctuations in the industry, future economic benefits could not be sufficiently demonstrated. The earthquake in Türkiye as well as the global economic and geopolitical uncertainties had no impact on these accounting estimates and judgments, as Rieter has no intangible assets or development projects based in Türkiye, Ukraine, Russia, Belarus, or the Middle East.
Material accounting policies
Intangible assets acquired from third parties such as product licenses, patents, trademark rights (brands), and customer relationships are recognized in the balance sheet at historical cost and are amortized on a straight-line basis over the expected useful life of up to 15 years. Rieter does not hold any intangible assets with an indefinite useful life.
Internally generated software is capitalized as intangible asset only if the costs can be measured reliably, the completion of the project is intended, and it can be demonstrated that the software project is technically and financially feasible and will generate a future economic benefit. All other costs associated with internally generated software are recognized in the income statement as incurred. Internally generated software is amortized over a period of up to five years.
The respective ranges of useful life are as follows:
Software
Customer relationships
Patents and technology
Brands and trademarks
Other intangible assets
3 – 5 years
10 – 15 years
8 – 15 years
5 – 15 years
1 – 5 years
Research and development activities focus on the expansion and improvement of Rieter’s product and service portfolio. Expenses related to research activities are recognized in the income statement as incurred. Expenditure in connection with development projects is capitalized as intangible assets only if the costs can be measured reliably and it can be demonstrated that the project is technically and financially feasible and will generate a future economic benefit. Otherwise, the respective costs are expensed as incurred.