[17] Goodwill and other intangible assets
Goodwill breaks down by Operating Unit as follows:
in € million |
Dec. 31, 2021 |
Dec. 31, 2020 |
|---|---|---|
Industrial Trucks & Services |
1,516.4 |
1,495.5 |
KION ITS EMEA |
1,373.8 |
1,365.7 |
KION ITS Americas |
21.3 |
19.9 |
KION ITS APAC |
121.3 |
109.9 |
Supply Chain Solutions |
2,028.4 |
1,912.2 |
Dematic |
2,028.4 |
1,912.2 |
Total goodwill |
3,544.8 |
3,407.6 |
The change in goodwill in 2021 was mainly due to the acquisition of Hans Joachim Jetschke Industriefahrzeuge (GmbH & Co.) KG, which resulted in goodwill of €7.1 million being recognized. Furthermore, exchange-rate effects caused a €130.0 million increase in goodwill in the reporting period.
The total carrying amount for brand names as at December 31, 2021 was €939.7 million (December 31, 2020: €939.1 million). Of this figure, €576.3 million was attributable to the KION ITS EMEA Operating Unit (December 31, 2020: €576.4 million) and €349.8 million to the Dematic Operating Unit (December 31, 2020: €350.0 million).
The annual impairment test of goodwill and brand names with an indefinite useful life carried out in the fourth quarter of 2021 revealed no need to recognize impairment losses as at the reporting date (see also the information provided in note [7]).
The overall changes in intangible assets in 2021 and 2020 were as follows:
in € million |
Goodwill |
Brand names |
Technologies and developments |
Sundry intangible assets |
Total |
|---|---|---|---|---|---|
Balance as at Jan. 1, 2020 |
3,475.8 |
939.8 |
697.9 |
619.0 |
5,732.5 |
Gross carrying amount as at Jan. 1 |
3,475.8 |
946.4 |
1,042.6 |
999.9 |
6,464.8 |
Accumulated depreciation as at Jan. 1 |
– |
–6.6 |
–344.7 |
–381.0 |
–732.3 |
|
|
|
|
|
|
Group changes |
71.8 |
– |
11.7 |
28.1 |
111.6 |
Currency translation adjustments |
–140.0 |
–0.4 |
–28.2 |
–43.1 |
–211.7 |
Additions |
– |
– |
78.5 |
27.5 |
106.0 |
Disposals |
– |
– |
–0.8 |
–0.0 |
–0.8 |
Amortization |
– |
–0.2 |
–97.1 |
–75.1 |
–172.5 |
Impairment |
– |
– |
–5.4 |
– |
–5.4 |
|
|
|
|
|
|
Balance as at Dec. 31, 2020 |
3,407.6 |
939.1 |
656.5 |
556.3 |
5,559.6 |
Gross carrying amount as at Dec. 31 |
3,407.6 |
945.7 |
1,063.9 |
983.8 |
6,401.0 |
Accumulated amortization as at Dec. 31 |
– |
–6.6 |
–407.3 |
–427.5 |
–841.4 |
|
|
|
|
|
|
Balance as at Jan. 1, 2021 |
3,407.6 |
939.1 |
656.5 |
556.3 |
5,559.6 |
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 |
The total carrying amount for technology and development assets as at December 31, 2021 was €680.6 million (December 31, 2020: €656.5 million). Development costs of €98.3 million were capitalized in the reporting year (2020: €78.5 million).
Sundry intangible assets relate in particular to customer relationships amounting to €467.6 million (December 31, 2020: €476.9 million).