[17] Goodwill and other intangible assets
Goodwill is broken down by segment as follows: > TABLE 061
Goodwill broken down by segment |
|
061 |
in € million |
2017 |
2016 |
Industrial Trucks & Services |
1,511.0 |
1,504.9 |
LMH EMEA |
817.7 |
813.4 |
STILL EMEA |
549.7 |
546.5 |
KION Americas |
23.5 |
23.5 |
KION Asia Pacific |
120.1 |
121.6 |
Supply Chain Solutions |
1,871.5 |
2,068.0 |
Dematic |
1,871.5 |
2,068.0 |
Total goodwill |
3,382.5 |
3,572.9 |
The change in goodwill in 2017 mainly resulted from currency effects. There was also an impact from the acquisitions of Eisengiesserei Dinklage GmbH and Nordtruck AB, from which goodwill totalling €9.5 million arose. In 2016, the change in goodwill was mainly due to the acquisition of Dematic and other businesses, from which goodwill totalling €1,949.1 million arose.
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 €466.2 million are assigned to the LMH EMEA CGU (31 December 2016: €466.3 million) and brand names worth €114.8 million to the STILL EMEA CGU (31 December 2016: €115.0 million). These assets are not amortised as they have an indefinite useful life. As at 31 December 2017, the brand names allocated to the KION APAC CGU had a residual value of €7.8 million (31 December 2016: €8.3 million) and had an indefinite useful life. In 2016, a value of €349.7 million was attributed to the Dematic brand name and allocated to the Supply Chain Solutions segment as part of the purchase price allocation. A value of €8.6 million was attributed to the Egemin Automation brand name and allocated to the Supply Chain Solutions segment as part of the original purchase price allocation. In 2017, impairment losses of €8.6 million were recognised due to the Egemin Automation brand name being subsumed within the Dematic brand name. As a result, the brand names allocated to the Supply Chain Solutions segment decreased to a carrying amount of €350.6 million as at 31 December 2017 (31 December 2016: €359.6 million), of which €349.7 million was attributable to brand names with an indefinite useful life (31 December 2016: €358.3 million). The KION brand name is allocated to the Corporate Services segment and had a carrying amount as at 31 December 2017 of €5.1 million (31 December 2016: €5.1 million). This asset is not amortised as it has an indefinite useful life. > TABLE 062
Intangible assets |
|
|
|
|
062 |
in € million |
Goodwill |
Brand names |
Technology & development |
Sundry intangible assets |
Total |
Balance as at 01/01/2016 |
1,548.1 |
604.1 |
194.1 |
106.2 |
2,452.5 |
Group changes |
1,961.8 |
353.5 |
519.1 |
824.3 |
3,658.7 |
Currency translation adjustments |
63.0 |
–3.0 |
17.0 |
30.0 |
107.1 |
Additions |
– |
– |
50.6 |
22.1 |
72.6 |
Disposals |
– |
– |
–0.0 |
–0.1 |
–0.1 |
Amortisation |
– |
–0.3 |
–57.0 |
–57.9 |
–115.2 |
|
|
|
|
|
|
Balance as at 31/12/2016 |
3,572.9 |
954.3 |
723.7 |
924.6 |
6,175.6 |
Gross carrying amount as at 31/12/2016 |
3,572.9 |
956.2 |
933.1 |
1,154.7 |
6,616.8 |
Accumulated amortisation |
– |
–1.9 |
–209.3 |
–230.0 |
–441.2 |
|
|
|
|
|
|
Balance as at 01/01/2017 |
3,572.9 |
954.3 |
723.7 |
924.6 |
6,175.6 |
Group changes |
9.5 |
– |
– |
0.1 |
9.6 |
Currency translation adjustments |
–199.8 |
–0.9 |
–59.8 |
–86.0 |
–346.5 |
Additions |
– |
– |
75.4 |
24.8 |
100.2 |
Disposals |
0.0 |
– |
– |
3.7 |
3.7 |
Amortisation |
– |
–0.2 |
–69.0 |
–148.2 |
–217.5 |
Impairment |
– |
–8.6 |
– |
– |
–8.6 |
|
|
|
|
|
|
Balance as at 31/12/2017 |
3,382.5 |
944.6 |
670.3 |
719.0 |
5,716.4 |
Gross carrying amount as at 31/12/2017 |
3,382.5 |
955.2 |
917.2 |
1,049.5 |
6,304.3 |
Accumulated amortisation |
–0.0 |
–10.6 |
–246.9 |
–330.5 |
–587.9 |
The total carrying amount for technology and development assets as at 31 December 2017 was €670.3 million (31 December 2016: €723.7 million). Development costs of €75.4 million were capitalised in the reporting year (2016: €50.6 million). Research and development costs totalling €137.0 million (2016: €96.5 million) were expensed. Furthermore, amortisation expenses of €69.0 million were recognised (31 December 2016: €57.0 million); these expenses are reported under cost of sales.
Other intangible assets relate in particular to licences, patents, software and customer relationships.
The change to the basis of consolidation in 2016 had been due almost entirely to the acquisition of the Dematic Group.