The Group 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, the Group assesses goodwill allocated to them for impairment by reference to their discounted expected future operating cash flows less estimated costs to sell (fair value less costs to sell). These cash flows are estimated over the detailed planning period on the basis of the Group’s medium-term plan, 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. We refer to the Management Report for detailed information. 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 discount rate used to discount future cash flows is 12.6 percent in the Industrial Cranes and Services segments (2007/2008: 14.1 percent) and 8.8 percent in the Port Technology segment (2007/2008: 12.8 percent). This is equal to the weighted average pre-tax cost of capital.

As in the previous year, the impairment tests performed in financial year 2008/2009 confirmed the existing carrying amounts of goodwill.

The other intangible assets balance sheet item in the amount of EUR 40,606,000 (2008: EUR 49,236,000) comprises trademarks, patents, capitalised development costs for development in progress, capitalised development costs for completed development, software, and sundry other intangible assets.

EUR 643,000 in development expenses were capitalised for a new model range in financial year 2008/2009 (2007/2008: EUR 696,000). They were accounted for by the Port Technology segment.

Based on indications that they may be impaired, capitalised development expenses in the Port Technology segment were tested for impairment in financial year 2008/2009. The resulting impairment loss of EUR 5,967,000 was recognised in the Income Statement, where it is included in research and development expenses. The impairment loss is 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 impairment losses on other intangible assets related to the Port Technology segment in the amount of EUR 608,000 in financial year 2008/2009 and to the Industrial Cranes segment in the amount of EUR 2,000 in financial year 2007/2008.

As in the previous year, there were no impairment reversals in financial year 2008/2009.

Trademarks with indefinite useful lives are tested annually for impairment using the relief from royalty method. The recoverable amounts were computed by applying a pre-tax discount rate of 9.1 percent (2008: 9.8 percent) in the Industrial Cranes and Services segments and of 6.6 percent (2008: 9.0 percent) in the Port Technology segment. The imputed licence fee was 2.5 percent (2008: 2.5 percent). The carrying amounts of trademark assets in each segment are as follows:

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

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