8. Intangible Assets
| CHF million | EDP software and consultancy | Brands and intellectual property rights | Customer relationships | Goodwill | Other Intangible Assets | 2014 Total |
|---|---|---|---|---|---|---|
| Acquisition costs as at January 1, 2014 | 70.4 | – | – | – | 5.3 | 75.7 |
| Additions | 8.1 | – | – | – | 2.9 | 11.0 |
| Retirements | – 1.7 | – | – | – | – | – 1.7 |
| Transfers | 0.4 | – | – | – | – | 0.4 |
| Acquisition of subsidiary (note 32) | – | 459.9 | 121.5 | 716.1 | – | 1,297.5 |
| Currency translation | 0.8 | – 0.1 | 10.8 | 63.6 | – 0.1 | 75.0 |
| Acquisition costs as at December 31, 2014 | 78.0 | 459.8 | 132.3 | 779.7 | 8.0 | 1,457.9 |
| Accumulated depreciation as at January 1, 2014 | 55.1 | – | – | – | – | 55.1 |
| Additions | 6.1 | – | 2.8 | – | 0.1 | 9.0 |
| Retirements | – 1.7 | – | – | – | – | – 1.7 |
| Currency translation | 0.8 | – | 0.2 | – | – | 1.0 |
| Accumulated depreciation as at December 31, 2014 | 60.3 | – | 3.0 | – | 0.1 | 63.4 |
| Net intangible assets as at December 31, 2014 | 17.7 | 459.8 | 129.3 | 779.7 | 7.9 | 1,394.5 |
| CHF million | EDP software and consultancy | Brands and intellectual property rights | Customer relationships | Goodwill | Other Intangible Assets | 2013 Total |
| Acquisition costs as at January 1, 2013 | 63.2 | – | – | – | – | 63.2 |
| Additions | 8.8 | – | – | – | 5.3 | 14.0 |
| Retirements | – 0.7 | – | – | – | – | – 0.7 |
| Transfers | 0.1 | – | – | – | – | 0.1 |
| Currency translation | – 0.8 | – | – | – | – | – 0.8 |
| Acquisition costs as at December 31, 2013 | 70.4 | – | – | – | 5.3 | 75.7 |
| Accumulated depreciation as at January 1, 2013 | 50.0 | – | – | – | – | 50.0 |
| Additions | 6.4 | – | – | – | – | 6.4 |
| Retirements | – 0.7 | – | – | – | – | – 0.7 |
| Transfers | 0.1 | – | – | – | – | 0.1 |
| Currency translation | – 0.7 | – | – | – | – | – 0.7 |
| Accumulated depreciation as at December 31, 2013 | 55.1 | – | – | – | – | 55.1 |
| Net intangible assets as at December 31, 2013 | 15.3 | – | – | – | 5.3 | 20.6 |
Research and development expenditures amounted to CHF 9.5 million (CHF 8.3 million in 2013) and are expensed as incurred.
An impairment test of goodwill and other intangible assets with infinite life (i.e. "Brands and intellectual property rights") relating to the acquisition of Russell Stover Candies, LLC (i.e. cash generating unit) in 2014 has been conducted. The recoverable amount was determined based on future discounted cash flows, planning assumptions over the next years plus a residual value. The calculation of the recoverable amount is mainly sensitive to sales growth, EBIT margin and discount rate. The gross margin is based on historical data and expected data for the Group and the industry.
As the assumptions applied for the purchase price allocation (see note 32) have basically not changed since the acquisition date, the same discount rate of 7.7% after taxes and essentially the same assumptions of a 5% sales growth in the next years and a terminal growth rate of 3% and the usual group wide operating profit margins were applied for the calculation of the recoverable amount.
The recoverable amount for goodwill and intangible assets with infinite life is higher than the carrying amount.