• Intangible assets consist largely of goodwill, capitalised in accordance with IFRS 3, that resulted from the acquisition of companies beginning in the 1995|96 financial year. Intangibles also include acquired customer relationships, software, patents and similar rights, as well as non-current prepayments.
• Of the total carrying amount of goodwill, the Sugar segment accounted for € 21,384 thousand (prior year: € 21,283 thousand), the Starch segment for € 2,090 thousand (prior year: € 2,090 thousand) and the Fruit segment for € 196,806 thousand (prior year: € 199,342 thousand). The goodwill increase in the Sugar segment related to the acquisition of the remaining 49% of AGRANA Bulgaria AD. The decrease in the Fruit segment related to the deconsolidation of AGRANA Fruit Bohemia s.r.o.
• To satisfy the provisions of IFRS 3 in conjunction with IAS 36 and to allow the calculation of any impairment of goodwill, AGRANA has defined its cash-generating units to match its internal reporting structure. The cash-generating units in the AGRANA Group are the Sugar segment, Starch segment and Fruit segment, consistent with the internal management accounting and reporting processes.
• To test for impairment, the carrying amount of each cash-generating unit is measured by allocating to it the corresponding assets and liabilities, inclusive of attributable goodwill and other intangible assets. An impairment loss is recognised when the recoverable amount of a cash-generating unit is less than its carrying amount inclusive of goodwill. The recoverable amount is the higher of net realisable value and the present value of future cash flows expected from an asset.
• In testing for impairment, AGRANA uses a discounted cash flow method to determine the value in use of the cash-generating units. The determination of expected cash flows from each cash-generating unit is based on validated business plans that are approved by Supervisory Board committees and have a planning horizon of five years. Projections beyond a five-year horizon are based on the assumption of a constant, inflation-induced growth rate of 0.75% per year (assumption in the prior year: 0.75%). The weighted average cost of capital (WACC) derived from the AGRANA Group’s capital costs is calculated at between 9.5% and 10.6% (prior year: between 8.0% and 9.6%) before tax.
• The quality of the forecast data is frequently tested against actual outcomes with the help of variance analysis. The insights gained are then taken into account during the preparation of the next annual plan. Projections of value in use are highly sensitive to assumptions regarding future local market developments and volume trends. Value in use is therefore ascertained both on the basis of experience and of assumptions that are reviewed with experts for the regional markets.
• All goodwill reported in the consolidated financial statements was shown to be free of impairment.
• No other intangible assets with indefinite useful lives required recognition at the balance sheet date.

• Additions (i.e., purchases) of property, plant and equipment and intangible assets (other than goodwill).

• Currency translation differences are the differences between amounts arising from the translation of the opening balances of foreign Group companies at the exchange rates prevailing at the start and at the end of the reporting period.
• The government assistance during the financial year consisted of grants for plant and equipment in the Starch segment in Austria.
• The AGRANA Group, in addition to operating leases, also employs a small number of finance leases. The movement in property, plant and equipment under finance leases was as follows:

• The use of off -balance sheet property, plant and equipment (under operating leases) gives rise to the following obligations under lease, licence and rental agreements:

• Expenses for operating leases, licence and rental agreements were € 8,913 thousand (prior year: € 9,221 thousand).

Since the 2009|10 financial year, Österreichische Rübensamenzucht Gesellschaft m.b.H. is treated as a non-consolidated subsidiary.

¹ Investments in non-consolidated subsidiaries and outside companies, and loan receivables.

Amounts owed by affiliated companies represent open accounts with non-consolidated subsidiaries as well as with the Group’s parent – Südzucker AG – and the parent’s subsidiaries.

The net carrying amount of trade receivables after provision for impairment is determined as follows:

The provision for impairment of trade receivables showed the following movements:

The release of part of the provision resulted in interest income of € 36 thousand (prior year: € 46 thousand).

Receivables are as a rule individually reviewed for their collectability and measured on the basis of estimated future cash flows.

Where advance financing is extended to growers, AGRANA receives liens to secure the credit exposure.

The table below provides information on the credit risks in respect of trade receivables. The maturity profile of trade receivables was as follows:

Deferred tax assets were attributable to balance sheet items as follows:

Deferred tax liabilities are detailed in 7.13.

The carrying amount of written-down inventories was € 10,520 thousand (prior year: € 46,598 thousand).

Write-downs of € 1,185 thousand were recognised on inventories (prior year: write-downs of € 17,369 thousand).

In the 2008|09 financial year in the Fruit segment, apple juice concentrate inventories from the preceding year’s crop had to be written down by € 32,400 thousand to expected net realisable value.

Securities held as current assets had a carrying amount of € 3,515 thousand (prior year: € 5,830 thousand) and consisted mainly of floating rate debt securities held as a liquidity reserve.

• The Company had share capital of € 103,210,250 at the balance sheet date, divided into
  14,202,040 ordinary voting bearer shares without par value.
• The movements in the Group’s equity are presented here.
• The capital reserves (“share premium and other capital reserve”) consist of share premium (i.e., additional paid-in capital) and a capital reserve resulting from the reorganisation of companies. Share premium and other capital reserve remained unchanged in the 2009|10 financial year. Retained earnings include the revaluation reserve, the foreign currency translation effects in connection with consolidation, and accumulated profits/losses.

A key goal of equity management is the maintenance of sufficient equity resources to safeguard the Company’s continuing existence as a going concern and ensure continuity of dividends. Equity bore the following relationship to total capital:

Capital management at AGRANA means the management of equity and of net debt. By optimising these two measures, the Company seeks to achieve the best possible shareholder returns. In addition to the equity ratio, the most important control variable is the Gearing ratio (net debt divided by total equity). The total cost of equity and debt capital employed and the risks associated with the different types of capital are continuously monitored.

Provisions for retirement and termination benefits are measured using the projected unit credit method, taking into account future trends on an actuarial basis. For both the retirement and termination benefit obligations, the plans are defined benefit plans.

In respect of the Austrian companies, the following assumptions were made regarding probable future increases in pay and in retirement benefits:

For foreign entities the assumptions are adjusted to reflect local conditions.

The discount rate for retirement benefit obligations is determined by reference to yields of senior fixed income corporate bonds observable in the financial markets at the balance sheet date. For Austria, the biometric basis for the calculations consists of the version of the computation tables by Pagler & Pagler specific to salaried employees (“AVÖ 2008-P-Rechnungsgrundlagen für die Pensionsversicherung”).

The rate of return on the plan assets depends on the strategic portfolio structure of the pension fund.

The amount of the contributions expected to be paid into the plan in the subsequent reporting period is € 388 thousand.

Over the last five years the present values of the defined benefit obligations changed as follows:

Historical information on the retirement benefit obligation

The provisions showed the following movements:

The present value of expected future benefits reflects the benefits to which employees are expected to be entitled based on conditions at the balance sheet date. It includes actuarial gains and losses resulting from the differences between expected risks and actual experience. The provision for direct benefit obligations does not take into account actuarial gains and losses within the corridor allowed by IAS 19 of 10% of the actual amount of the defined benefit obligation.

Similar obligations exist, in particular, in foreign Group companies. They are measured on an actuarial basis and by taking into account future cost trends.

Experience adjustments for the difference between actuarial assumptions made and actual plan experience amounted to a loss of € 1,418 thousand (prior year: loss of € 2,258 thousand).

The movement in plan assets was as follows:

The plan assets consist primarily of investments in an external pension fund.

Of the total other provisions, € 14,073 thousand (prior year: € 17,575 thousand) were classified as non-current liabilities and € 28,592 thousand (prior year: € 23,513 thousand) were current liabilities.

The provision for reclamation comprises recultivation obligations as well as the emptying of landfills and removal of waste residues. The provisions for staff costs also include the provision for long-service awards. The provisions for uncertain liabilities include, among other items, provisions for litigation risks (€ 1,480 thousand), beet transitional storage costs charged by Vereinigung Österreichischer Rübenbauern (the umbrella organisation of Austrian beet farmers) (€ 7,603 thousand), additional payments related to export prices (€ 1,314 thousand), and other risk provisions (€ 1,709 thousand).

Deferred tax liabilities were attributable to balance sheet items as follows:

Deferred tax assets are detailed under 7.6.

The guarantees relate primarily to bank loans of the joint ventures in the Sugar segment and in the Juice business.

Guarantees issued in favour of related companies amounted to € 14,962 thousand.

The guarantees are not expected to be utilised.

Other financial liabilities were as presented in the table below: