15.Goodwill and Other Intangible Assets

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Changes in intangible assets in 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2019

 

265

 

28

 

92

 

90

 

156

 

205

 

36

 

872

Acquisitions

 

–

 

–

 

–

 

–

 

–

 

–

 

–

 

–

Capital expenditures

 

–

 

–

 

–

 

–

 

2

 

1

 

14

 

17

Retirements

 

–

 

–

 

–

 

–

 

(4)

 

(2)

 

–

 

(6)

Transfers

 

–

 

–

 

(48)

 

48

 

16

 

–

 

(16)

 

–

Transfers (IFRS 5)

 

–

 

–

 

(4)

 

(4)

 

–

 

–

 

–

 

(8)

Exchange differences

 

(8)

 

–

 

–

 

(2)

 

–

 

(1)

 

–

 

(11)

Cost of acquisition or generation,
December 31, 2020

 

257

 

28

 

40

 

132

 

170

 

203

 

34

 

864

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated amortization, impairment losses and impairment loss reversals,
December 31, 2020

 

2

 

14

 

33

 

130

 

150

 

171

 

–

 

500

Carrying amounts,
December 31, 2020

 

255

 

14

 

7

 

2

 

20

 

32

 

34

 

364

Amortization and impairment losses in fiscal 2020

 

1

 

1

 

6

 

2

 

7

 

5

 

–

 

22

Amortization

 

–

 

1

 

6

 

2

 

7

 

5

 

–

 

21

Impairment losses

 

1

 

–

 

–

 

–

 

–

 

–

 

–

 

1

Impairment loss reversals in fiscal 2020

 

–

 

–

 

–

 

–

 

–

 

–

 

–

 

–

The impairment losses amounted to €1 million in the reporting year (previous year: €1 million) and related to goodwill previously recognized on a pro rata basis for the systems house business in the Middle East held for sale in the Polyurethanes reportable segment. No reversals of impairment losses were recognized either in the reporting period or in the reference period.

See note 7.2 „Acquisitions and divestitures.“

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

See note 3 “Accounting policies and valuation principles.“

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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 fiscal 2019

 

1

 

1

 

7

 

2

 

5

 

4

 

–

 

20

Amortization

 

–

 

1

 

7

 

2

 

5

 

4

 

–

 

19

Impairment losses

 

1

 

–

 

–

 

–

 

–

 

–

 

–

 

1

Impairment loss reversals in fiscal 2019

 

–

 

–

 

–

 

–

 

–

 

–

 

–

 

–

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, 2019

 

Dec. 31, 2020

Reporting segment

 

 

 

€ million

 

€ million

Polyurethanes (PUR)

 

MDI

 

60

 

56

Polyurethanes (PUR)

 

PET

 

22

 

21

Polycarbonates (PCS)

 

PCS

 

121

 

119

Coatings, Adhesives, Specialties (CAS)

 

ALI

 

25

 

25

Coatings, Adhesives, Specialties (CAS)

 

PRD

 

10

 

10

Coatings, Adhesives, Specialties (CAS)

 

TPU

 

17

 

16