[17] Goodwill and other intangible assets

Goodwill is allocated to the segments as follows: >> Table 054

Goodwill broken down by segment

 

>> TABLE 054

in € million

2013

2012

 

 

 

LMH

925.1

907.8

STILL

556.5

552.2

Other

13.1

13.2

Total goodwill

1,494.7

1,473.2

The change in goodwill in 2013 mainly resulted from the acquisition of Willenbrock and STILL Arser, from which goodwill of €18.1 million and €5.0 million arose respectively, and from countervailing currency effects. The goodwill arising from the acquisition of Willenbrock is allocated to the LMH segment, while the goodwill from the acquisition of STILL Arser is allocated to the STILL segment.

Intangible assets

 

 

 

>> TABLE 055

in € million

Goodwill

Brand names

Technology & develop­ment

Sundry intangible assets

Total

 

 

 

 

 

 

Balance as at 01/01/2012

1,538.0

594.4

251.7

131.5

2,515.6

Group changes

16.3

–

–

4.7

21.0

Currency translation adjustments

–0.5

–0.1

0.4

0.2

–0.0

Additions

0.2

–

51.2

18.9

70.4

Disposals

–80.7

–

–25.1

–3.4

–109.2

Amortisation

–

–0.3

–55.5

–29.8

–85.7

Impairment

–

–

–4.8

–0.1

–4.8

Reclassification

–

–

–0.1

0.2

0.1

 

 

 

 

 

 

Balance as at 31/12/2012

1,473.2

593.9

217.9

122.1

2,407.2

Gross carrying amount as at 31/12/2012

1,473.2

594.5

426.7

232.9

2,727.4

Accumulated amortisation

–

–0.5

–208.8

–110.8

–320.2

 

 

 

 

 

 

Balance as at 01/01/2013

1,473.2

593.9

217.9

122.1

2,407.2

Group changes

23.1

1.5

–

13.8

38.4

Currency translation adjustments

–1.6

–0.5

–0.4

–1.4

–3.8

Additions

–0.0

–

45.7

17.0

62.6

Disposals

–

–

–0.0

–0.9

–0.9

Amortisation

–

–0.3

–45.1

–28.2

–73.6

Impairment

–

–

–1.2

–

–1.2

 

 

 

 

 

 

Balance as at 31/12/2013

1,494.7

594.7

216.9

122.4

2,428.7

Gross carrying amount as at 31/12/2013

1,494.7

595.4

470.4

253.4

2,813.9

Accumulated amortisation

–0.0

–0.7

–253.5

–131.0

–385.2

The Group intends to retain and further strengthen the Linde, STILL, OM STILL and KION brand names on a long-term basis. Brand names worth €473.6 million are assigned to the LMH segment (31 December 2012: €473.8 million) and brand names worth €115.3 million to the STILL segment (31 December 2012: €114.0 million). These assets are not amortised as they have an indefinite useful life. A value of €1.8 million was attributed to the Voltas brand name and allocated to the Other segment. This brand name is amortised over its useful life of five years. As at 31 December 2013, the brand names allocated to the Other segment had a residual value of €5.8 million (31 December 2012: €6.2 million).

The total carrying amount for technology and development assets as at 31 December 2013 was €216.9 million (31 December 2012: €217.9 million). Development costs of €45.7 million were capitalised in the reporting year (2012: €51.2 million). Total research and development costs of €113.6 million (2012: €124.5 million) were expensed. Of this amount, €45.1 million (2012: €55.5 million) related to depreciation and amortisation.

Impairment losses of €1.2 million were recognised on capitalised development costs and reported within the other expenses in 2013 to reflect the lack of opportunities to use them in future as a result of the planned closure of a production site. This relates to further impairment losses in connection with the closure of the heavy truck plant in Merthyr Tydfil (LMH 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.