Goodwill and other intangible assets
The change in the amount of goodwill was the result of currency effects.
The total carrying amount for technology and development assets as at 31 March 2014 was €216.0 million (31 December 2013: €216.9 million). Development costs of €9.8 million were capitalised in the first quarter of 2014 (Q1 2013: €9.9 million). Total research and development costs of €29.5 million were recognised as an expense in the first quarter of 2014 (Q1 2013: €29.4 million). Of this amount, €9.9 million (Q1 2013: €11.3 million) related to amortisation.
Inventories
The rise in inventories compared with 31 December 2013 was largely attributable to the increase in materials and supplies (up by 4.2 per cent), work in progress (up by 11.0 per cent) and finished goods (up by 18.7 per cent). In the first three months of 2014, impairment losses of €4.5 million were recognised on inventories (Q1 2013: €3.2 million). Reversals of impairment losses had to be recognised in the amount of €0.4 million (Q1 2013: €2.8 million) because the reasons for the impairment losses no longer existed.
Trade receivables
The rise in trade receivables compared with 31 December 2013 was primarily due to the increase of €29.5 million in receivables due from third parties and the increase of €9.8 million in receivables due from associated companies and joint ventures. Valuation allowances of €43.3 million (31 December 2013: €42.4 million) were recognised for trade receivables.
Equity
As at 31 March 2014, the Company’s share capital amounted to €98.9 million, which was unchanged on 31 December 2013, and was fully paid up. It was divided into 98,900,000 no-par-value shares, each with a value of €1. The total number of shares outstanding as at 31 March 2014 was 98.7 million no-par-value shares. At the reporting date, KION GROUP AG held 0.2 million treasury shares.
Retirement benefit obligation
For the purposes of the interim report, a qualified estimate of the defined benefit obligation was made based on the change in actuarial parameters and taking into account any particular effects in the quarter under review.
In the United Kingdom, the expected one-off payment to be made in 2014 due to the failure to reach certain defined targets has been reduced by €2.3 million to around €4.6 million.
The retirement benefit obligation was higher than it had been at the end of 2013 owing, above all, to actuarial losses resulting largely from lower discount rates. The estimated present value of the defined benefit obligation was calculated on the basis of the discount rates shown in >> TABLE 24.
The change in estimates in relation to defined benefit pension entitlements resulted in a decrease of €31.5 million in equity as at 31 March 2014 (after deferred taxes).
|
Discount rate |
>>TABLE 24 |
|
|
|
31/03/2014 |
31/12/2013 |
|
|
|
|
|
Germany |
3.30% |
3.60% |
|
UK |
4.30% |
4.40% |
|
Other (weighted average) |
2.62% |
2.95% |