[16] Goodwill and other intangible assets
Goodwill is broken down by segment as follows: > TABLE 068
Goodwill broken down by segment |
|
068 |
in € million |
2018 |
2017 |
Industrial Trucks & Services |
1,500.7 |
1,511.0 |
LMH EMEA |
817.2 |
817.7 |
STILL EMEA |
549.2 |
549.7 |
KION Americas |
21.3 |
23.5 |
KION APAC |
112.9 |
120.1 |
Supply Chain Solutions |
1,924.2 |
1,871.5 |
Dematic |
1,924.2 |
1,871.5 |
Total goodwill |
3,424.8 |
3,382.5 |
The change in goodwill in 2018 mainly resulted from currency effects.
The Group intends to retain and further strengthen the Linde, STILL, OM and KION brand names on a long-term basis. Brand names worth €466.2 million are assigned to the LMH EMEA CGU (31 December 2017: €466.2 million) and brand names worth €114.6 million to the STILL EMEA CGU (31 December 2017: €114.8 million). These assets are not amortised as they have an indefinite useful life. As at 31 December 2018, the brand names allocated to the KION APAC CGU had a carrying amount of €7.8 million (31 December 2017: €7.8 million) and had an indefinite useful life. The brand names allocated to the Supply Chain Solutions segment were worth €350.6 million as at 31 December 2018 (31 December 2017: €350.6 million) and essentially had an indefinite useful life. > TABLE 069
Intangible assets |
|
|
|
|
069 |
in € million |
Goodwill |
Brand names |
Technology and development |
Sundry intangible assets |
Total |
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 |
28.8 |
104.2 |
Disposals |
– |
– |
– |
–0.3 |
–0.3 |
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 |
5,716.5 |
Gross carrying amount as at 31/12/2017 |
3,382.5 |
955.2 |
917.2 |
1,049.5 |
6,304.4 |
Accumulated amortisation |
– |
–10.6 |
–246.9 |
–330.5 |
–588.0 |
|
|
|
|
|
|
Balance as at 01/01/2018 |
3,382.5 |
944.6 |
670.3 |
719.0 |
5,716.5 |
Group changes |
0.2 |
– |
– |
0.1 |
0.3 |
Currency translation adjustments |
42.1 |
–0.2 |
16.1 |
21.0 |
78.9 |
Additions |
– |
– |
84.0 |
26.7 |
110.7 |
Disposals |
– |
– |
–0.2 |
–0.0 |
–0.2 |
Amortisation |
– |
–0.1 |
–76.6 |
–106.1 |
–182.8 |
Impairment |
– |
– |
– |
–1.7 |
–1.7 |
Reclassification |
– |
– |
–4.0 |
4.0 |
– |
|
|
|
|
|
|
Balance as at 31/12/2018 |
3,424.8 |
944.3 |
689.7 |
662.9 |
5,721.6 |
Gross carrying amount as at 31/12/2018 |
3,424.8 |
954.9 |
992.4 |
1,000.1 |
6,372.2 |
Accumulated amortisation |
– |
–10.6 |
–302.7 |
–337.3 |
–650.6 |
The total carrying amount for technology and development assets as at 31 December 2018 was €689.7 million (31 December 2017: €670.3 million). Development costs of €84.0 million were capitalised in the reporting year (2017: €75.4 million). Amortisation expenses of €76.6 million were also recognised (2017: €69.0 million); these expenses are reported under cost of sales. Research and development costs totalling €137.7 million (2017: €137.0 million) were expensed.
Other intangible assets relate in particular to licences, patents, software and customer relationships.