13.Goodwill and Other Intangible Assets

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Changes in intangible assets in 2019

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

 

  

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, 2018

  

256

  

28

  

105

  

97

  

157

  

176

  

15

  

834

Acquisitions

  

10

  

–

  

–

  

–

  

–

  

29

  

–

  

39

Capital expenditures

  

–

  

–

  

–

  

–

  

2

  

1

  

23

  

26

Retirements

  

–

  

–

  

–

  

–

  

(2)

  

–

  

–

  

(2)

Transfers

  

–

  

–

  

1

  

–

  

1

  

–

  

(2)

  

–

Transfers (IFRS 5)

  

(3)

  

–

  

(14)

  

(8)

  

(4)

  

–

  

–

  

(29)

Exchange differences

  

2

  

–

  

–

  

1

  

2

  

(1)

  

–

  

4

Cost of acquisition or generation, December 31, 2019

  

265

  

28

  

92

  

90

  

156

  

205

  

36

  

872

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

  

 

Accumulated amortization, impairment losses and impairment loss reversals, December 31, 2019

  

1

  

14

  

78

  

86

  

147

  

168

  

–

  

494

Carrying amounts, December 31, 2019

  

264

  

14

  

14

  

4

  

9

  

37

  

36

  

378

Amortization and impairment losses in 2019

  

1

  

1

  

7

  

2

  

5

  

4

  

–

  

20

Amortization

  

–

  

1

  

7

  

2

  

5

  

4

  

–

  

19

Impairment losses

  

1

  

–

  

–

  

–

  

–

  

–

  

–

  

1

The impairment losses amounted to €1 million (previous year: €0 million) in the reporting year. No reversals of impairment losses were recognized 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 “Accounting Policies and Valuation Principles.”

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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

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

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:

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Material goodwill by cash-generating unit

 

  

 

  

 

  

 

 

  

Cash-generating unit

  

Dec. 31, 2018

  

Dec. 31, 2019

Reporting segment

  

 

  

€ million

  

€ million

Polyurethanes (PUR)

  

MDI

  

61

  

60

Polyurethanes (PUR)

  

Polyether polyol

  

23

  

22

Polycarbonates (PCS)

  

PCS

  

121

  

121

Coatings, Adhesives, Specialties (CAS)

  

BMI

  

38

  

48

Coatings, Adhesives, Specialties (CAS)

  

Resins

  

10

  

10

The increase of €10 million in the goodwill of the cash-generating unit BMI is attributable to the acquisition of DIC Covestro Polymer Ltd., Tokyo (Japan).