[17] Goodwill and other intangible assets
Goodwill is allocated to the segments as follows: > TABLE 053
|
Goodwill broken down by segment |
|
053 |
|
in € million |
2014 |
2013 |
|
LMH |
927.8 |
925.1 |
|
STILL |
556.7 |
556.5 |
|
Other |
12.5 |
13.1 |
|
Total goodwill |
1,497.1 |
1,494.7 |
The change in the amount of goodwill in 2014 was the result of currency effects. In the previous year, the change in goodwill 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 Group intends to retain and further strengthen the Linde, STILL, OM STILL and KION brand names on a long-term basis. Brand names worth €474.5 million are assigned to the LMH segment (31 December 2013: €473.6 million) and brand names worth €115.3 million to the STILL segment (31 December 2013: €115.3 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 2014, the brand names allocated to the Other segment (KION and Voltas) had a residual value of €5.5 million (31 December 2013: €5.8 million), of which €5.1 million was attributable to brand names with an indefinite useful life (31 December 2013: €5.1 million). > TABLE 054
|
Intangible assets |
|
|
|
|
054 |
|
in € million |
Goodwill |
Brand names |
Technology & development |
Sundry intangible assets |
Total |
|
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 |
|
|
|
|
|
|
|
|
Balance as at 01/01/2014 |
1,494.7 |
594.7 |
216.9 |
122.4 |
2,428.7 |
|
Group changes |
– |
– |
– |
–0.0 |
–0.0 |
|
Currency translation adjustments |
2.3 |
1.0 |
1.5 |
1.2 |
6.0 |
|
Additions |
– |
– |
43.7 |
17.2 |
60.9 |
|
Disposals |
– |
– |
–2.4 |
–0.1 |
–2.5 |
|
Amortisation |
– |
–0.3 |
–49.7 |
–30.5 |
–80.5 |
|
|
|
|
|
|
|
|
Balance as at 31/12/2014 |
1,497.1 |
595.4 |
210.0 |
110.1 |
2,412.5 |
|
Gross carrying amount as at 31/12/2014 |
1,497.1 |
596.5 |
492.5 |
270.0 |
2,856.0 |
|
Accumulated amortisation |
–0.0 |
–1.1 |
–282.5 |
–159.9 |
–443.5 |
The total carrying amount for technology and development assets as at 31 December 2014 was €210.0 million (31 December 2013: €216.9 million). Development costs of €43.7 million were capitalised in the reporting year (2013: €45.7 million). Total research and development costs of €125.7 million (2013: €113.6 million) were expensed. Of this amount, €49.7 million (2013: €45.1 million) related to amortisation.
Impairment losses of €1.2 million were recognised on capitalised development costs in the previous year to reflect the lack of opportunities to use them in future as a result of 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.