Goodwill is allocated to the segments as follows:
Goodwill broken down by segment |
||
€ thousand |
2012 |
2011 |
|
|
|
LMH |
907,835 |
971,873 |
STILL |
552,208 |
552,208 |
Other |
13,202 |
13,915 |
Total goodwill |
1,473,245 |
1,537,996 |
The change in goodwill was the result of the disposal of goodwill amounting to €80,700 thousand in the LMH segment in connection with the sale of the controlling interest (70 per cent) in Linde Hydraulics. In addition, goodwill of €16,306 thousand arose from the acquisition of the UK dealer Creighton. It was allocated to the LMH segment.
Intangible assets |
|||||
€ thousand |
Goodwill |
Brand |
Technology |
Sundry |
Total |
|
|
|
|
|
|
Balance as at 1/1/2011 |
1,507,010 |
591,018 |
261,194 |
134,198 |
2,493,420 |
|
|
|
|
|
|
Group changes |
31,535 |
2,982 |
0 |
7,634 |
42,151 |
Currency translation adjustments |
150 |
524 |
-14 |
225 |
885 |
Additions |
0 |
99 |
53,363 |
16,755 |
70,217 |
Disposals |
-699 |
0 |
-1 |
-163 |
-863 |
Amortisation |
0 |
-244 |
-52,544 |
-27,359 |
-80,147 |
Impairment |
0 |
0 |
-10,236 |
-25 |
-10,261 |
Reclassification |
0 |
0 |
-39 |
188 |
149 |
|
|
|
|
|
|
Balance as at 31/12/2011 |
1,537,996 |
594,379 |
251,723 |
131,453 |
2,515,551 |
|
|
|
|
|
|
Gross carrying amount as at 31/12/2011 |
1,537,996 |
594,609 |
449,864 |
236,275 |
2,818,744 |
Accumulated amortisation |
0 |
-230 |
-198,141 |
-104,822 |
-303,193 |
|
|
|
|
|
|
Balance as at 1/1/2012 |
1,537,996 |
594,379 |
251,723 |
131,453 |
2,515,551 |
|
|
|
|
|
|
Group changes |
16,306 |
0 |
0 |
4,691 |
20,997 |
Currency translation adjustments |
-542 |
-85 |
366 |
230 |
-31 |
Additions |
185 |
0 |
51,247 |
18,923 |
70,355 |
Disposals |
-80,700 |
0 |
-25,094 |
-3,433 |
-109,227 |
Amortisation |
0 |
-346 |
-55,527 |
-29,828 |
-85,701 |
Impairment |
0 |
0 |
-4,758 |
-67 |
-4,825 |
Reclassification |
0 |
0 |
-65 |
152 |
87 |
|
|
|
|
|
|
Balance as at 31/12/2012 |
1,473,245 |
593,948 |
217,892 |
122,121 |
2,407,206 |
|
|
|
|
|
|
Gross carrying amount as at 31/12/2012 |
1,473,245 |
594,494 |
426,727 |
232,942 |
2,727,408 |
Accumulated amortisation |
0 |
-546 |
-208,835 |
-110,821 |
-320,202 |
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 €473,755 thousand (31 December 2011: €473,782 thousand) are assigned to the LMH segment. The value of brand names allocated to the STILL segment was unchanged year on year at €114,000 thousand. These assets are not amortised as they have an indefinite useful life. An amount of €1,830 thousand had been allocated to the Voltas brand name and is reported in the 'Other' segment in 2011 as part of the purchase price allocation. Unlike the other brand names, the Voltas brand name is amortised over its useful life. As at 31 December 2012 the brand names allocated to the 'Other' segment had a carrying amount of €6,193 thousand (31 December 2011: €6,597 thousand).
The total carrying amount for technology and development assets as at 31 December 2012 was €217,892 thousand (31 December 2011: €251,723 thousand). Development costs of €51,247 thousand were capitalised in the reporting year (2011: €53,363 thousand). Total research and development costs of €124,454 thousand (2011: €119,526 thousand) were expensed. Of this amount, €60,285 thousand (2011: €62,780 thousand) related to amortisation and impairment losses.
Impairment losses of €4,825 thousand were recognised on these assets in 2012 to reflect the lack of opportunities to use them in future as a result of the planned closure of production sites. Of this amount, €4,741 thousand relates to capitalised development costs. The impairment losses related to the LMH segment.
Other intangible assets relate primarily to the intangible assets identified through the purchase price allocation for the acquisition of the KION Group, such as the customer base.
The amortisation expense and impairment losses on intangible assets are reported under the functional costs.
