[16] Goodwill and other intangible assets
Goodwill breaks down by Operating Unit (the Operating Units equate to the CGUs or groups of CGUs) as follows:
in € million |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
Industrial Trucks & Services |
1,513.2 |
1,516.4 |
KION ITS EMEA |
1,371.9 |
1,373.8 |
KION ITS Americas |
22.6 |
21.3 |
KION ITS APAC |
118.7 |
121.3 |
Supply Chain Solutions |
2,106.2 |
2,028.4 |
KION SCS |
2,106.2 |
2,028.4 |
Total goodwill |
3,619.4 |
3,544.8 |
The change in goodwill was due to positive exchange rate effects of €74.8 million.
The total carrying amount for brand names as at December 31, 2022 was €939.4 million (December 31, 2021: €939.7 million). Of this figure, €576.3 million (December 31, 2021: €576.3 million) was attributable to the KION ITS EMEA Operating Unit (Linde, STILL, and OM brands) and €349.7 million (December 31, 2021: €349.8 million) to the KION SCS Operating Unit (Dematic brand).
The annual impairment test of goodwill and brand names with an indefinite useful life carried out in the fourth quarter of 2022 revealed no need to recognize impairment losses as at the reporting date (see also the information provided in note [6]).
The overall changes in intangible assets in 2022 and 2021 were as follows:
in € million |
Goodwill |
Brand names |
Technologies and developments |
Sundry intangible assets |
Total |
|---|---|---|---|---|---|
Balance as at Jan. 1, 2021 |
3,407.6 |
939.1 |
656.5 |
556.3 |
5,559.6 |
Gross carrying amount as at Jan. 1 |
3,407.6 |
945.7 |
1,063.9 |
983.8 |
6,401.0 |
Accumulated depreciation as at Jan. 1 |
– |
–6.6 |
–407.3 |
–427.5 |
–841.4 |
|
|
|
|
|
|
Group changes |
7.1 |
– |
– |
8.5 |
15.6 |
Currency translation adjustments |
130.0 |
0.7 |
26.5 |
32.3 |
189.6 |
Additions |
– |
– |
98.3 |
19.7 |
118.0 |
Disposals |
– |
– |
–0.1 |
–0.4 |
–0.5 |
Amortization |
– |
–0.2 |
–99.9 |
–70.4 |
–170.5 |
Impairment |
– |
– |
–0.8 |
–0.3 |
–1.1 |
|
|
|
|
|
|
Balance as at Dec. 31, 2021 |
3,544.8 |
939.7 |
680.6 |
545.7 |
5,710.7 |
Gross carrying amount as at Dec. 31 |
3,544.8 |
946.6 |
1,173.4 |
1,052.4 |
6,717.2 |
Accumulated amortization as at Dec. 31 |
– |
–7.0 |
–492.8 |
–506.7 |
–1,006.5 |
|
|
|
|
|
|
Balance as at Jan. 1, 2022 |
3,544.8 |
939.7 |
680.6 |
545.7 |
5,710.7 |
Currency translation adjustments |
74.8 |
–0.2 |
20.8 |
22.5 |
117.9 |
Additions |
– |
– |
118.0 |
26.8 |
144.7 |
Disposals |
– |
– |
–0.3 |
–0.1 |
–0.4 |
Amortization |
– |
–0.0 |
–112.6 |
–76.3 |
–189.0 |
Impairment |
–0.2 |
– |
–0.2 |
–2.0 |
–2.4 |
|
|
|
|
|
|
Balance as at Dec. 31, 2022 |
3,619.4 |
939.4 |
706.3 |
516.5 |
5,781.6 |
Gross carrying amount as at Dec. 31 |
3,619.6 |
946.4 |
1,301.6 |
1,111.7 |
6,979.3 |
Accumulated amortization as at Dec. 31 |
–0.2 |
–7.0 |
–595.4 |
–595.2 |
–1,197.7 |
The total carrying amount for technology and development assets as at December 31, 2022 was €706.3 million (December 31, 2021: €680.6 million). Development costs of €118.0 million were capitalized in the reporting year (2021: €98.3 million).
Sundry intangible assets relate in particular to customer relationships amounting to €436.9 million (December 31, 2021: €467.6 million).