[16] Goodwill and other intangible assets

Goodwill is allocated to the segments as follows:

Goodwill broken down by segment

€ thousand

2011

2010

 

 

 

LMH

971,873

954,802

STILL

552,208

552,208

Other

13,915

Total goodwill

1,537,996

1,507,010

The change in goodwill resulted mainly from business combinations amounting to €31,535 thousand in 2011. The goodwill of €13,915 thousand arising from the acquisition of the forklift truck and warehouse technology business of Voltas Limited, Mumbai, India, has been allocated to the 'Other' segment.

Intangible assets

€ thousand

Goodwill

Brand names

Technology &
development

Sundry intangible assets

Total

 

 

 

 

 

 

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

Reversal of impairment

0

0

0

21

21

Reclassification

0

0

261

-261

0

 

 

 

 

 

 

Balance as at 31/12/2010

1,507,010

591,018

261,194

134,198

2,493,420

 

 

 

 

 

 

Gross carrying amount as at 31/12/2010

1,507,010

591,018

406,879

214,386

2,719,293

Accumulated amortisation

0

0

-145,685

-80,188

-225,873

 

 

 

 

 

 

Balance as at 1/1/2011

1,507,010

591,018

261,194

134,198

2,493,420

 

 

 

 

 

 

Group changes

31,535

2,982

0

7,634

42,151

Currency translation adjustments

150

524

-14

225

885

Additions

0

99

53,363

16,755

70,217

Disposals

-699

0

-1

-163

-863

Amortisation

0

-244

-52,544

-27,359

-80,147

Impairment

0

0

-10,236

-25

-10,261

Reclassification

0

0

-39

188

149

 

 

 

 

 

 

Balance as at 31/12/2011

1,537,996

594,379

251,723

131,453

2,515,551

 

 

 

 

 

 

Gross carrying amount as at 31/12/2011

1,537,996

594,609

449,864

236,275

2,818,744

Accumulated amortisation

0

-230

-198,141

-104,822

-303,193

The Group intends to retain and further strengthen the Linde, STILL, OM and KION brand names on a long-term basis. Brand names worth €473,782 thousand (31 December 2010: €471,918 thousand) are assigned to the LMH segment. The value of brand names allocated to the STILL segment was unchanged year over year at €114,000 thousand. These assets are not amortised as they have an indefinite useful life. A value of €1,830 thousand was attributed to the Voltas brand name in 2011 as part of the purchase price allocation. Unlike the other brand names, the Voltas brand is amortised over its useful life. Brand names worth €6,597 thousand (31 December 2010: €5,100 thousand) have been allocated to the 'Other' segment.

The total carrying amount for technology and development assets as of 31 December 2011 was €251,723 thousand (31 December 2010: €261,194 thousand). Development costs of €53,363 thousand were capitalised in the reporting year (31 December 2010: €47,538 thousand). Total research and development costs of €119,526 thousand (31 December 2010: €103,255 thousand) were expensed. Of this amount, €62,780 thousand (31 December 2010: €50,372 thousand) related to amortisation and impairment losses.

Impairment losses of €10,261 thousand were recognised on these assets in 2011 to reflect the lack of opportunities to use them in future as a result of the planned transfers of production. €10,236 thousand of this amount was attributable to technology and development assets. The impairment losses related to the STILL segment.

Other intangible assets relate primarily to the intangible assets identified through the 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.

to pagetop