Goodwill is allocated to the segments as follows:
Goodwill broken down by segment |
|
|
(€ thousand) |
2010 |
2009 |
|
|
|
LMH |
954,802 |
952,513 |
STILL |
552,208 |
552,283 |
Total Goodwill |
1,507,010 |
1,504,796 |
Given the strategic orientation of OM, no goodwill was assigned to this segment in the purchase price allocation for the acquisition of the KION Group in 2006.
Intangible assets |
|
|
|
|
|
(€ thousand) |
Goodwill |
Brand names |
Technology |
Sundry intangible assets |
Total |
|
|
|
|
|
|
Balance as at 1/1/2009 |
1,490,183 |
584,100 |
263,119 |
136,000 |
2,473,402 |
|
|
|
|
|
|
Group changes |
0 |
0 |
0 |
6 |
6 |
Currency translation adjustments |
-159 |
-166 |
1,190 |
1,976 |
2,841 |
Additions |
15,490 |
6,406 |
44,840 |
19,485 |
86,221 |
Disposals |
-718 |
0 |
-490 |
-125 |
-1,333 |
Amortisation |
0 |
0 |
-45,156 |
-29,228 |
-74,384 |
Impairment |
0 |
0 |
0 |
-20 |
-20 |
Reclassification |
0 |
0 |
-40 |
14,561 |
14,521 |
|
|
|
|
|
|
Balance as at 12/31/2009 |
1,504,796 |
590,340 |
263,463 |
142,655 |
2,501,254 |
|
|
|
|
|
|
Gross carrying amount as at 12/31/2009 |
1,504,796 |
590,340 |
363,695 |
194,270 |
2,653,101 |
Accumulated amortisation |
0 |
0 |
-100,232 |
-51,615 |
-151,847 |
|
|
|
|
|
|
Balance as at 1/1/2010 |
1,504,796 |
590,340 |
263,463 |
142,655 |
2,501,254 |
|
|
|
|
|
|
Group changes |
0 |
0 |
0 |
234 |
234 |
Currency translation adjustments |
778 |
678 |
304 |
2,744 |
4,504 |
Additions |
1,511 |
0 |
47,538 |
21,582 |
70,631 |
Disposals |
-75 |
0 |
0 |
3 |
-72 |
Amortisation |
0 |
0 |
-47,328 |
-27,360 |
-74,688 |
Impairment |
0 |
0 |
-3,044 |
-5,420 |
-8,464 |
Appreciation |
0 |
0 |
0 |
21 |
21 |
Reclassification |
0 |
0 |
261 |
-261 |
0 |
|
|
|
|
|
|
Balance as at 12/31/2010 |
1,507,010 |
591,018 |
261,194 |
134,198 |
2,493,420 |
|
|
|
|
|
|
Gross carrying amount as at 12/31/2010 |
1,507,010 |
591,018 |
406,879 |
214,386 |
2,719,293 |
Accumulated amortisation |
0 |
0 |
-145,685 |
-80,188 |
-225,873 |
The Group intends to retain and further strengthen the Linde, STILL, OM and KION brand names on a long-term basis. In 2009, a value of €6,406 thousand was attached to the Baoli brand name and allocated to the Linde Material Handling (LMH) segment as part of the purchase price allocation in accordance with IFRS 3. Brand names with a value of €471,918 thousand (31 December 2009: €471,240 thousand) are allocated to the LMH segment. The carrying values recognised for brand names amounting to €107,000 thousand in the STILL segment, €7,000 thousand in the OM segment and €5,100 thousand in the ‘Other’ segment. As required by IAS 38, these assets are not amortised as they have an indefinite useful life.
The total carrying amount for technology and development assets as at 31 December 2010 was €261,194 thousand (31 December 2009: €263,463 thousand). In the past financial year, development costs of €47,538 thousand (2009: €44,840 thousand) were capitalised. Total research and development costs of €103,255 thousand (31 December 2009: €100,526 thousand) were expensed. Of this amount, €50,372 thousand (31 December 2009: €45,156 thousand) related to amortisation and impairment losses.
Due to the lack of future opportunities to use these developments, impairment losses of €8,464 thousand were recognised last year, of which €3,044 thousand related to technology and development and €5,420 thousand to software. Impairments amounting to €6,505 thousand related to the LMH segment and impairments of €1,959 thousand related to the 'Other' segment.
Other intangible assets relate in particular to the intangible assets identified in the course of purchase price allocation for the acquisition of the KION Group, such as the customer base.
The amortisation expense and impairment losses on intangible assets are reported under functional costs.
