Selected notes to the consolidated statement of financial position

Goodwill and other intangible assets

The change in the amount of goodwill in the first six months of 2015 was the result of currency effects.

The total carrying amount for technology and development assets as at 30 June 2015 was €204.6 million (31 December 2014: €210.0 million). Development costs of €9.9 million were capitalised in the second quarter of 2015 (Q2 2014: €11.9 million); the corresponding figure for the first six months of 2015 was €19.5 million (H1 2014: €21.6 million). Total research and development costs of €36.7 million were expensed in the second quarter of 2015 (Q2 2014: €28.7 million), while €70.7 million was expensed in the first half of 2015 (H1 2014: €58.2 million). Of these respective amounts, €13.2 million related to amortisation in the second quarter of 2015 (Q2 2014: €10.7 million) and €26.1 million to amortisation in the first half of 2015 (H1 2014: €20.5 million).

Inventories

The rise in inventories compared with 31 December 2014 was largely attributable to the increase in work in progress (up by 14.0 per cent) and finished goods (up by 23.4 per cent). Impairment losses of €1.3 million were recognised on inventories in the second quarter of 2015 (Q2 2014: €1.5 million) and of €4.0 million in the first six months of 2015 (H1 2014: €6.0 million). Reversals of impairment losses had to be recognised in the amount of €0.8 million in the second quarter of 2015 (Q2 2014: €1.3 million) and in the amount of €1.7 million in the first half of 2015 (H1 2014: €1.7 million) because the reasons for impairment no longer existed.

Trade receivables

The rise in trade receivables compared with 31 December 2014 was primarily due to the increase of €106.4 million in receivables due from third parties and the increase of €8.7 million in receivables due from unconsolidated subsidiaries, equity-accounted investments and other equity investments. Valuation allowances of €40.5 million (31 December 2014: €40.2 million) were recognised for trade receivables.

Assets held for sale

The KION Group holds 30.0 per cent of the shares in Linde Hydraulics GmbH & Co. KG, Aschaffenburg (referred to below as Linde Hydraulics) through Linde Material Handling GmbH, Aschaffenburg. The assets that are classified as held for sale make up 20.0 per cent of the shares in Linde Hydraulics. Through Linde Material Handling GmbH, Aschaffenburg, the KION Group has an exercisable put option vis-à-vis Weichai Power Co., Ltd., Weifang, China, in respect of these shares.

Before being reclassified as held for sale, the 20.0 per cent of the shares in Linde Hydraulics were accounted for under the equity method. Since their reclassification (end of June 2015), they have been required to be recognised at the lower of their carrying amount and fair value less costs of disposal. The remaining 10.0 per cent of the shares in Linde Hydraulics continue to be accounted for under the equity method.

The shares in Linde Hydraulics are allocated to the LMH segment.

Equity

As at 30 June 2015, the Company’s share capital amounted to €98.9 million, which was unchanged on 31 December 2014, and was fully paid up. It was divided into 98.9 million no-par-value shares.

The total number of shares outstanding as at 30 June 2015 was 98,736,438 no-par-value shares (31 December 2014: 98,736,438 no-par-value shares). At the reporting date, KION GROUP AG held 163,562 treasury shares, as it had at 31 December 2014.

The distribution of a dividend of €0.55 per share to the shareholders of KION GROUP AG resulted in an outflow of funds of €54.3 million.

The accumulated other comprehensive income (loss) included expenses of €2.6 million attributable to assets classified as held for sale.

Retirement benefit obligation

For the purposes of the interim report, a qualified estimate of the defined benefit obligation was made based on the change in actuarial parameters in the period under review.

The retirement benefit obligation was lower than it had been at the end of 2014 owing, above all, to actuarial gains resulting from higher discount rates. The estimated present value of the defined benefit obligation was calculated on the basis of the discount rates shown in > TABLE 24.

The change in estimates in relation to defined benefit pension entitlements resulted in an increase of €23.4 million in equity as at 30 June 2015 (after deferred taxes). The net obligation after offsetting the retirement benefit obligation against the pension plan assets recognised under ‘Other non-current financial assets’ therefore increased to €738.3 million (31 December 2014: €765.8 million).