Demag Cranes AG tests goodwill for impairment annually at segment level. Goodwill is allocated to segments as follows:

As there is no active market in which to determine the fair value of the segments, Demag Cranes AG assesses goodwill allocated to them for impairment by reference to their discounted expected future operating cash flows less estimated two percent costs to sell (fair value less costs to sell). These cash flows are estimated over the detailed planning period on the basis of the medium-term plan for the Group, which has a five-year planning horizon. Key factors incorporated into the planning model include trends in exchange rates, relevant markets, and costs of production, selling and marketing, and administration. These take into account general market forecasts alongside current trends and past experience. For the ongoing future beyond the medium-term planning horizon, net cash flows are projected to remain unchanged and are not multiplied by a growth factor. The weighted average cost of capital used to discount future cash flows over the detailed planning period is, on a post-tax basis, 7.6 percent in the Industrial Cranes and Services segments (2009: 9.1 percent) and 7.1 percent in the Port Technology segment (2009: 6.6 percent), and on a pre-tax basis 10.6 percent in the Industrial Cranes and Services segments (2009: 12.6 percent) and 9.6 percent in the Port Technology segment (2009: 8.8 percent).

As in the previous year, the impairment tests performed in financial year 2009/2010 confirmed the existing carrying amounts of goodwill.

The EUR 39,388,000 other intangible assets item in the Statement of Financial Position (2009: EUR 40,606,000) comprises trademarks, patents, capitalised development costs for development in progress and completed development, software, and sundry other intangible assets.

Development expenses for development in progress totalling EUR 1,983,000 were capitalised for a new model range in financial year 2009/2010 (2008/2009: EUR 643,000). This was accounted for by the Port Technology segment.

Impairment testing in financial year 2009/2010 did not result in recognition of any impairment losses.

The previous year’s (2008/2009) impairment loss of EUR 5,967,000 on capitalised development expenses for completed development related to the Port Technology segment. The impairment loss was measured relative to the fair value determined using a net present value-based method with an after-tax discount rate of 7.5 percent. The EUR 608,000 in impairment losses on other intangible assets in 2008/2009 likewise related to the Port Technology segment.

As in the previous year, there were no impairment reversals in financial year 2009/2010.

Trademarks with indefinite useful lives are tested annually for impairment. The recoverable amount against which the carrying amount is compared is measured using the relief from royalty method. The future cash flows are discounted at a post-tax discount rate of 7.6 percent in the Industrial Cranes and Services segments (2009: 9.1 percent) and 7.1 percent in the Port Technology segment (2009: 6.6 percent). The imputed licence fee is 0.5 percent (2009: 0.5 percent) of budgeted revenue using the trademark. The carrying amounts of trademark assets in each segment are as follows:

An additional EUR 500,000 (2009: EUR 500,000) relates to the Demag brand.

As in the previous year, impairment testing of trademarks did not give cause to recognise any impairment losses.

Amortisation and impairments of other intangible assets are divided between items in the Statement of Comprehensive Income as follows: