Notes

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12 Intangible assets

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

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:

€ 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:

€ 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