[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, 2023 |
Dec. 31, 2022 |
|---|---|---|
Industrial Trucks & Services |
1,505.4 |
1,513.2 |
KION ITS EMEA |
1,371.8 |
1,371.9 |
KION ITS Americas |
22.0 |
22.6 |
KION ITS APAC |
111.6 |
118.7 |
Supply Chain Solutions |
2,052.7 |
2,106.2 |
KION SCS |
2,052.7 |
2,106.2 |
Total goodwill |
3,558.0 |
3,619.4 |
The change in goodwill was largely due to negative exchange rate effects of €60.9 million in 2023.
The total carrying amount for brand names as at December 31, 2023 was €938.9 million (December 31, 2022: €939.4 million). Of this figure, €465.0 million (December 31, 2022: €465.0 million) was attributable to the Linde brand name and €107.0 million (December 31, 2022: €107.0 million) to the STILL brand name within the KION ITS EMEA Operating Unit and €349.7 million (December 31, 2022: €349.7 million) to the Dematic brand name within the KION SCS Operating Unit.
The annual impairment test of goodwill and brand names with an indefinite useful life carried out in the fourth quarter of 2023 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 2023 and 2022 were as follows:
in € million |
Goodwill |
Brand |
Technologies and developments |
Sundry intangible assets |
Total |
|---|---|---|---|---|---|
Balance as at Jan. 1, 2022 |
3,544.8 |
939.7 |
680.6 |
545.7 |
5,710.7 |
Gross carrying amount as at Jan. 1 |
3,544.8 |
946.6 |
1,173.4 |
1,052.4 |
6,717.2 |
Accumulated depreciation as at Jan. 1 |
– |
–7.0 |
–492.8 |
–506.7 |
–1,006.5 |
|
|
|
|
|
|
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 |
|
|
|
|
|
|
Balance as at Jan. 1, 2023 |
3,619.4 |
939.4 |
706.3 |
516.5 |
5,781.6 |
Group changes |
2.2 |
– |
– |
– |
2.2 |
Currency translation adjustments |
–60.9 |
–0.5 |
–10.9 |
–10.1 |
–82.5 |
Additions |
– |
– |
116.0 |
43.8 |
159.8 |
Disposals |
–2.7 |
– |
– |
–0.2 |
–2.9 |
Amortization |
– |
– |
–117.6 |
–74.6 |
–192.2 |
Impairment |
– |
– |
–1.1 |
–0.1 |
–1.1 |
|
|
|
|
|
|
Balance as at Dec. 31, 2023 |
3,558.0 |
938.9 |
692.6 |
475.4 |
5,665.0 |
Gross carrying amount as at Dec. 31 |
3,558.2 |
945.8 |
1,363.7 |
1,121.7 |
6,989.4 |
Accumulated amortization as at Dec. 31 |
–0.1 |
–6.9 |
–671.1 |
–646.3 |
–1,324.4 |
The total carrying amount for technology and development assets as at December 31, 2023 was €692.6 million (December 31, 2022: €706.3 million). Development costs of €116.0 million were capitalized in the reporting year (2022: €118.0 million).
Sundry intangible assets relate in particular to customer relationships amounting to €376.7 million (December 31, 2022: €436.9 million).