Notes

12 Intangible assets

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CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2021
€ million	Brand names	Goodwill	Capitalized development costs for products under development	Capitalized development costs for products currently in use	Other intangible assets	Total

Cost Balance at Jan. 1, 2021	16,911	23,318	6,438	41,316	10,334	98,317
Foreign exchange differences	14	82	35	312	194	636
Changes in consolidated Group	736	2,835	215	235	2,380	6,402
Additions	–	–	6,513	1,323	1,223	9,059
Transfers	–	–	–2,904	2,904	35	35
Classified as held for sale	–	22	1	146	18	188
Disposals	–	11	10	1,138	358	1,517
Balance at Dec. 31, 2021	17,661	26,203	10,287	44,806	13,789	112,745
Amortization and impairment Balance at Jan. 1, 2021	83	–	87	22,133	8,046	30,349
Foreign exchange differences	0	0	0	185	53	238
Changes in consolidated Group	–	–	–	–63	–14	–77
Additions to cumulative amortization	0	–	–	4,987	842	5,829
Additions to cumulative impairment losses	6	39	8	56	25	133
Transfers	–	–	–	0	–2	–1
Classified as held for sale	–	–	–	110	16	127
Disposals	–	11	7	1,068	204	1,289
Reversal of impairment losses	–	–	–	0	–	0
Balance at Dec. 31, 2021	89	29	88	26,120	8,731	35,056
Carrying amount at Dec. 31, 2021	17,572	26,174	10,199	18,685	5,058	77,689

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CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2020
€ million	Brand names	Goodwill	Capitalized development costs for products under development	Capitalized development costs for products currently in use	Other intangible assets	Total

Cost Balance at Jan. 1, 2020	16,878	23,247	6,188	36,895	9,889	93,098
Foreign exchange differences	33	77	–77	–299	–281	–548
Changes in consolidated Group	–	31	8	15	56	111
Additions	–	–	4,576	1,897	1,038	7,511
Transfers	–	–	–4,150	4,150	–58	–58
Disposals	–	37	107	1,341	310	1,795
Balance at Dec. 31, 2020	16,911	23,318	6,438	41,316	10,334	98,317
Amortization and impairment Balance at Jan. 1, 2020	86	–	45	19,053	7,700	26,884
Foreign exchange differences	–5	–	0	–172	–232	–409
Changes in consolidated Group	–	–	–	–	9	9
Additions to cumulative amortization	3	–	–	4,514	733	5,249
Additions to cumulative impairment losses	–	37	55	75	62	229
Transfers	–	–	–6	7	0	1
Disposals	–	37	–	1,344	226	1,606
Reversal of impairment losses	–	–	7	–	0	7
Balance at Dec. 31, 2020	83	–	87	22,133	8,046	30,349
Carrying amount at Dec. 31, 2020	16,828	23,318	6,351	19,183	2,288	67,968

Other intangible assets comprise in particular concessions, purchased customer lists and dealer relationships, industrial and similar rights, and licenses in such rights and assets.

The allocation of the brand names and goodwill to the operating segments is shown in the following table:

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€ million	2021	2020

Brand names by operating segment
Porsche	13,823	13,823
Scania Vehicles and Services	949	971
MAN Truck & Bus	1,127	1,127
MAN Energy Solutions	415	415
Navistar	771	–
Ducati	404	404
Other	84	89
	17,572	16,828
Goodwill by operating segment
Porsche	18,825	18,825
Scania Vehicles and Services	2,749	2,808
MAN Truck & Bus	587	587
MAN Energy Solutions	264	263
Navistar	2,917	–
Ducati	290	290
ŠKODA	163	155
Porsche Holding Salzburg	127	130
Other	252	260
	26,174	23,318

The impairment test for recognized goodwill and brand names is based on value in use, which has been determined at the level of the respective brand. In this process, the WACC rates, based on the risk-free rate of interest, a market risk premium and the cost of debt, are applied. For more information on the general approach and key assumptions, please refer to the details provided on intangible assets in the “Accounting policies” section.

Moreover, the following aspects were of significance for the brands with material recognized brand names and goodwill:

The planning of the Porsche cash-generating unit is based on the future product strategy and other core elements of the 2030 strategy, which covers in particular increasing electrification of the model range, faster decarbonization and expanded digitalization.

For the Commercial Vehicles reporting segment, the planning reflects an expansion of e-mobility in all segments. At MAN Truck & Bus, the plan reflects positive effects in the planning period from the realignment program initiated in 2021. Moreover, Navistar is to be taken to new levels of strength. The measures applied to this end range from using the powerful component and technology organization within the TRATON GROUP through expanding the financial services business down to making even more effective use of the largest dealer and service network in the North American market that Navistar has already established.

For all cash-generating units, recoverability is not affected by a variation in the growth forecast with respect to the perpetual annuity or in the discount rate of +/−0.5 percentage points.

Research and development costs developed as follows:

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€ million	2021	2020	%

Total research and development costs	15,583	13,885	12.2
of which: capitalized development costs	7,843	6,473	21.2
Capitalization ratio in %	50.3	46.6
Amortization of capitalized development costs	5,050	4,644	8.8
Research and development costs recognized in profit or loss	12,790	12,056	6.1