[17] Goodwill and other intangible assets

Goodwill is allocated to the segments as follows: > TABLE 056

Goodwill broken down by segment

 

056

in € million

2015

2014

LMH

941.0

927.8

STILL

556.2

556.7

Other

50.9

12.5

Total goodwill

1,548.1

1,497.1

The change in the amount of goodwill in 2015 mainly resulted from the acquisition of Egemin Automation, from which goodwill arose of €50.9 million. Currency effects also had an impact. In addition, goodwill of €12.5 million for KION India was reclassified from the Other segment to the LMH segment. The change in the amount of goodwill in 2014 had been the result of currency effects.

The Group intends to retain and further strengthen the Linde, STILL, OM STILL and KION brand names on a long-term basis. A value of €1.8 million was originally attributed to the Voltas brand name, which was integrated into the LMH segment with effect from 1 January 2015. This brand name is amortised over its useful life of five years. As at 31 December 2015, the brand names allocated to the LMH segment (Linde and Voltas) had a residual value of €475.2 million (31 December 2014: €474.5 million without the Voltas brand name), of which €475.1 million (31 December 2014: €474.5 million) was attributable to brand names with an indefinite useful life. In 2015, a value of €8.6 million was attributed to the Egemin Automation brand name and allocated to the Other segment as part of the purchase price allocation. As at 31 December 2015, the value of the brand names allocated to the Other segment had therefore risen to €13.7 million (31 December 2014: €5.5 million for the KION and Voltas brand names), of which €13.7 million (31 December 2014: €5.1 million) was attributable to brand names with an indefinite useful life. Brand names worth €115.2 million were assigned to the STILL segment (31 December 2014: €115.3 million). These assets are not amortised as they have an indefinite useful life. > TABLE 057

Intangible assets

 

 

 

 

057

in € million

Goodwill

Brand names

Technology & develop­ment

Sundry intangible assets

Total

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

 

 

 

 

 

 

Balance as at 01/01/2015

1,497.1

595.4

210.0

110.1

2,412.5

Group changes

48.9

8.6

–

16.3

73.7

Currency translation adjustments

2.2

0.4

0.9

0.7

4.2

Additions

–

–

40.9

13.0

53.8

Disposals

–

–

–0.3

–0.6

–0.9

Amortisation

–

–0.3

–53.3

–33.2

–86.9

Impairment

–

–

–4.1

–

–4.1

 

 

 

 

 

 

Balance as at 31/12/2015

1,548.1

604.1

194.1

106.2

2,452.5

Gross carrying amount as at 31/12/2015

1,548.1

605.6

451.3

297.0

2,902.1

Accumulated amortisation

–

–1.5

–257.3

–190.8

–449.6

The total carrying amount for technology and development assets as at 31 December 2015 was €194.1 million (31 December 2014: €210.0 million). Development costs of €40.9 million were capitalised in the reporting year (2014: €43.7 million). Total research and development costs of €143.0 million (2014: €125.7 million) were expensed. Of this amount, €53.3 million (2014: €49.7 million) related to amortisation.

Impairment losses of €4.1 million were recognised on capitalised development costs in 2015 to reflect the lack of opportunities to use them in future following the early discontinuation of production of a model series. They are reported in other expenses. The impairment losses related to the STILL segment.

Other intangible assets relate in particular to licences, patents, software and customer relationships.

The change to the basis of consolidation in 2015 was due almost entirely to the acquisition of Egemin Automation.