ATS Corp /ATS
For the period ended Mar 31, 2025. Filed May 29, 2025.
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The yearly report of certain Canadian companies, filed under a joint US and Canadian system. It is the main yearly account these companies give US investors, largely as filed in Canada.
FY2025 · Filed May 29, 2025
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Contents
12. INTANGIBLE ASSETS
- INTANGIBLE ASSETS
| Note | Development projects | Computer software, licenses and other | Technology | Customer relationships | Brands(i) | Total | |
|---|---|---|---|---|---|---|---|
| Cost: | |||||||
| Balance, at March 31, 2023 | $68,222 | $55,689 | $278,510 | $348,733 | $171,035 | $922,189 | |
| Additions | 18,135 | 11,493 | — | — | — | 29,628 | |
| Acquisition of subsidiaries | 5 | 1,170 | 1,639 | 48,920 | 57,379 | 29,183 | 138,291 |
| Disposals | (635) | (2,641) | — | — | — | (3,276) | |
| Exchange and other adjustments (ii) | (6,525) | 3,476 | (12,174) | (60,794) | (390) | (76,407) | |
| Balance, at March 31, 2024 | $80,367 | $69,656 | $315,256 | $345,318 | $199,828 | $1,010,425 | |
| Additions | 32,826 | 10,391 | 116 | — | 745 | 44,078 | |
| Acquisition of subsidiaries | 5 | — | 1,991 | 10,200 | 45,743 | 17,041 | 74,975 |
| Disposals | (723) | (1,843) | — | (164) | — | (2,730) | |
| Exchange and other adjustments (ii) | 16,356 | 2,519 | 20,334 | (96,261) | 10,411 | (46,641) | |
| Balance, at March 31, 2025 | $128,826 | $82,714 | $345,906 | $294,636 | $228,025 | $1,080,107 | |
| Development projects · Computer software, licenses and other · Technology · Customer relationships · Brands(i) · Total | |||||||
| Amortization: | |||||||
| Balance, at March 31, 2023 | $(27,755) | $(34,878) | $(79,670) | $(183,729) | $(2,947) | $(328,979) | |
| Amortization | (6,493) | (12,364) | (31,172) | (29,547) | (3,487) | (83,063) | |
| Disposals | 13 | 2,594 | — | — | — | 2,607 | |
| Exchange and other adjustments (ii) | 190 | 6,563 | 11,478 | 60,303 | 23 | 78,557 | |
| Balance, at March 31, 2024 | $(34,045) | $(38,085) | $(99,364) | $(152,973) | $(6,411) | $(330,878) | |
| Amortization | (9,135) | (11,431) | (32,616) | (29,065) | (2,925) | (85,172) | |
| Disposals | 723 | 1,843 | — | 164 | — | 2,730 | |
| Exchange and other adjustments (ii) | (9,259) | (1,308) | (7,818) | 107,785 | 2,344 | 91,744 | |
| Balance, at March 31, 2025 | $(51,716) | $(48,981) | $(139,798) | $(74,089) | $(6,992) | $(321,576) | |
| Net book value: | |||||||
| At March 31, 2025 | $77,110 | $33,733 | $206,108 | $220,547 | $221,033 | $758,531 | |
| At March 31, 2024 | $46,322 | $31,571 | $215,892 | $192,345 | $193,417 | $679,547 | |
(i)The Company has assessed a portion of its brand intangible assets to have a useful life offive years. The carrying amount of the intangible assets estimated to have an indefinite life as at March 31, 2025 was $200,473 (March 31, 2024 - $183,432).
(ii) Represents translation from the functional currency of the related foreign operations into Canadian dollars at the period-end exchange rate, and includes the elimination of intangible assets that have been fully amortized. The resulting exchange differences are recognized in the consolidated statements of comprehensive income.
Research and development costs that are not eligible for capitalization of $10,632 have been expensed and are recognized in cost of revenues (March 31, 2024 - $10,184).
The Company performed its annual impairment test of indefinite-lived intangible assets in the fourth quarter. The recoverable amount of the related CGUs was estimated based on a value in use calculation using the present value of the future cash flows expected to be derived by the related CGU. This approach requires management to estimate cash flows that include earnings from operations less capital expenditures and related tax effects.
In determining future cash flows, the budgeted results for the year ending March 31, 2026, as presented to and approved by the Board, were extrapolated for a five-year period, followed by a terminal calculation based on the fifth year forecasted amount. The estimated cash flows are based on historical data and past experience of operating within the each market. The average revenue growth rate used for the intangible asset impairment testing of indefinite-lived brands was 6.1% (March 31, 2024 -5%). The terminal growth rate used in the impairment testing was 3% (March 31, 2024 - range of 3% to 5%). The rates used to project cash flows are based on management's expectations for the growth of the cash generating unit and do not exceed long-term average growth rates for the markets in which the cash generating units operate. Management used a discount rate range from 11.0% to 19.5% (March 31, 2024 -10%), depending on the characteristics of the CGU, to determine the present value of future cash flows. As a result of the analysis, management did not identify an impairment of the indefinite lived intangible assets and any reasonable change in assumptions would not result in impairment.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.