4.5Intangible assets
CHF million | Customer relation- ships | Patents and technology | Brands and trademarks | Software and other intangible assets | Goodwill | Total |
|---|---|---|---|---|---|---|
Carrying amount at January 1, 2024 | 54.1 | 42.4 | 14.9 | 8.0 | 184.3 | 303.7 |
Acquisitions1 | 1.3 | 0.0 | 0.9 | 0.1 | 5.0 | 7.3 |
Additions | – | – | – | 0.9 | – | 0.9 |
Amortization | – 6.7 | – 4.7 | – 1.7 | – 2.5 | – | – 15.6 |
Currency translation differences | 0.7 | 0.8 | 0.1 | 0.1 | 2.7 | 4.4 |
Carrying amount at December 31, 2024 | 49.4 | 38.5 | 14.2 | 6.6 | 192.0 | 300.7 |
Cost at December 31, 2024 | 84.9 | 60.0 | 21.7 | 19.5 | 192.0 | 378.1 |
Accumulated amortization at December 31, 2024 | – 35.5 | – 21.5 | – 7.5 | – 12.9 | – | – 77.4 |
Carrying amount at December 31, 2024 | 49.4 | 38.5 | 14.2 | 6.6 | 192.0 | 300.7 |
Additions | – | – | – | 4.5 | – | 4.5 |
Amortization | – 6.8 | – 4.6 | – 1.8 | – 2.4 | – | – 15.6 |
Currency translation differences | – 0.3 | – 0.4 | – 0.1 | – 0.1 | – 3.0 | – 3.9 |
Carrying amount at December 31, 2025 | 42.3 | 33.5 | 12.3 | 8.6 | 189.0 | 285.7 |
Cost at December 31, 2025 | 84.4 | 59.5 | 21.5 | 23.8 | 189.0 | 378.2 |
Accumulated amortization at December 31, 2025 | – 42.1 | – 26.0 | – 9.2 | – 15.2 | – | – 92.5 |
Carrying amount at December 31, 2025 | 42.3 | 33.5 | 12.3 | 8.6 | 189.0 | 285.7 |
1See note 2.1.
Software consists of capitalized cost for internally generated software. Brands and trademarks with a definite useful life include 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
In the year under review, development costs in the amount of CHF 3.5 million have been capitalized (2024: none). In 2025, software in the amount of CHF 1.0 million has been capitalized (2024: CHF 0.9 million).
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:
Customer relationships
Patents and technology
Brands and trademarks
Software and other intangible assets
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 an 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.
Goodwill resulting from business combinations represents the difference between the purchase considerations paid and the fair value of net assets acquired. Due to its indefinite useful life, it is subject to an impairment test performed at least on an annual basis.