Note 5. Other intangible assets

Financial statements>Consolidated financial statements>Notes to the Consolidated financial statements>Note 5

Other intangible assets include capitalized development expenditure, software developed or purchased (including licenses) for internal use and purchased technology from third parties. The changes in the amount of other intangible assets are as follows:

	Development costs	Software	Purchased technology and other intangible assets	Total
At cost
Balance January 1, 2016	117,983	21,203	11,704	150,890
Additions	27,327	7,024	–	34,351
Reclassification	–	21	–	21
Disposals	–	(1)	–	(1)
Foreign currency translation effect	4,384	191	125	4,700
Balance December 31, 2016	149,694	28,438	11,829	189,961
Additions	38,615	2,335	58	41,008
Reclassification	–	(66)	–	(66)
Disposals	–	(242)	–	(242)
Foreign currency translation effect	(14,622)	(638)	(387)	(15,647)
Balance December 31, 2017	173,687	29,827	11,500	215,014

Accumulated amortization and impairment losses
Balance January 1, 2016	45,505	15,614	8,236	69,355
Amortization for the year	13,345	655	1,204	15,204
Impairments	3,575	–	–	3,575
Disposals	–	(1)	–	(1)
Foreign currency translation effect	1,343	181	125	1,649
Balance December 31, 2016	63,768	16,449	9,565	89,782
Amortization for the year	13,288	1,493	678	15,459
Impairments	4,337	–	–	4,337
Disposals	–	(242)	–	(242)
Foreign currency translation effect	(6,627)	(602)	(388)	(7,617)
Balance December 31, 2017	74,766	17,098	9,855	101,719

Carrying amounts
December 31, 2016	85,926	11,989	2,264	100,179

December 31, 2017	98,921	12,729	1,645	113,295

Impairment charges on capitalized development costs are included in operating expenses under research and development. Impairment of capitalized development expenses primarily related to development of new hardware for which customer demand has shifted out in time, and purchased technology which became obsolete. The impairment charges for 2016 and 2017 related to customer specific projects.

Capitalized development costs are amortized over their estimated useful lives of five years, other intangible assets are amortized over their estimated useful lives of three to seven years.

Estimated amortization expenses relating to other intangible assets are as follows:

	Development costs	Software	Purchased technology and other intangible assets	Total
2018	9,811	3,116	670	13,597
2019	20,858	4,486	670	26,014
2020	20,791	3,490	285	24,566
2021	17,536	1,630	10	19,176
2022	15,306	7	10	15,323
Years thereafter	14,619	–	–	14,619
Total	98,921	12,729	1,645	113,295

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