13. Goodwill and Other Intangible Assets

Enlarge table

(XLS:) Download

Changes in Intangible Assets in 2018

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

Acquired goodwill

  

Patents and technologies

  

Marketing and distribution rights

  

Production rights

  

Software

  

Other rights

  

Advance payments

  

Total

 

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

Cost of acquisition or generation, December 31, 2017

  

253

  

30

  

105

  

96

  

147

  

176

  

9

  

816

Acquisitions

  

–

  

–

  

–

  

–

  

–

  

–

  

–

  

–

Capital expenditures

  

–

  

–

  

–

  

–

  

3

  

1

  

12

  

16

Retirements

  

–

  

–

  

–

  

–

  

(1)

  

(1)

  

–

  

(2)

Transfers

  

–

  

–

  

–

  

–

  

6

  

–

  

(6)

  

–

Transfers (IFRS 5)

  

(1)

  

(2)

  

–

  

–

  

–

  

(1)

  

–

  

(4)

Exchange differences

  

4

  

–

  

–

  

1

  

2

  

1

  

–

  

8

Cost of acquisition or generation, December 31, 2018

  

256

  

28

  

105

  

97

  

157

  

176

  

15

  

834

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Accumulated amortization, impairment losses and impairment loss reversals, December 31, 2018

  

–

  

13

  

85

  

92

  

147

  

164

  

–

  

501

Carrying amounts, December 31, 2018

  

256

  

15

  

20

  

5

  

10

  

12

  

15

  

333

Amortization and impairment losses in 2018

  

–

  

1

  

7

  

2

  

9

  

2

  

–

  

21

Amortization

  

–

  

1

  

7

  

2

  

9

  

2

  

–

  

21

Impairment losses

  

–

  

–

  

–

  

–

  

–

  

–

  

–

  

–

No impairment losses were recognized or reversed either in the reporting period or in the reference period.

The impairment testing procedure for goodwill and other intangible assets is explained under “Procedure used in global impairment testing and its impact” in note 3.

Enlarge table

(XLS:) Download

Changes in Intangible Assets in 2017

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

Acquired goodwill

  

Patents and technologies

  

Marketing and distribution rights

  

Production rights

  

Software

  

Other rights

  

Advance payments

  

Total

 

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

  

€ million

Cost of acquisition or generation, December 31, 2016

  

264

  

38

  

114

  

98

  

144

  

321

  

7

  

986

Acquisitions

  

2

  

–

  

–

  

–

  

–

  

–

  

–

  

2

Capital expenditures

  

–

  

–

  

–

  

–

  

2

  

–

  

9

  

11

Retirements

  

–

  

–

  

(1)

  

–

  

(3)

  

(140)

  

–

  

(144)

Transfers

  

–

  

–

  

1

  

–

  

6

  

–

  

(7)

  

–

Transfers (IFRS 5)

  

–

  

(6)

  

(8)

  

–

  

–

  

–

  

–

  

(14)

Exchange differences

  

(13)

  

(2)

  

(1)

  

(2)

  

(2)

  

(5)

  

–

  

(25)

Cost of acquisition or generation, December 31, 2017

  

253

  

30

  

105

  

96

  

147

  

176

  

9

  

816

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Accumulated amortization, impairment losses and impairment loss reversals, December 31, 2017

  

–

  

13

  

78

  

90

  

138

  

163

  

–

  

482

Carrying amounts, December 31, 2017

  

253

  

17

  

27

  

6

  

9

  

13

  

9

  

334

Amortization and impairment losses in 2017

  

–

  

1

  

7

  

2

  

10

  

5

  

–

  

25

Amortization

  

–

  

1

  

7

  

2

  

10

  

5

  

–

  

25

Impairment losses

  

–

  

–

  

–

  

–

  

–

  

–

  

–

  

–

Goodwill that is of material significance for the Covestro Group was allocated to the following cash-generating units at the end of the reporting period:

Enlarge table

(XLS:) Download

Material Goodwill by Cash-Generating Unit

 

  

 

  

 

  

 

 

  

Cash-generating unit

  

Dec. 31, 2017

  

Dec. 31, 2018

Reporting segment

  

 

  

€ million

  

€ million

PUR

  

MDI

  

59

  

61

PUR

  

Polyether polyols

  

22

  

23

PCS

  

PCS

  

121

  

121

CAS

  

BMI

  

37

  

38

CAS

  

Resins

  

10

  

10

The transfer of the specialty elastomers business from the Polyurethanes segment to the Coatings, Adhesives, Specialties segment as of January 1, 2018, led to the transfer of goodwill amounting to €6 million between the MDI and BMI cash-generating units. The prior-year figures were adjusted in the MDI (€-6 million) and BMI (€+6 million) cash-generating units.