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 & |
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.
