13.Goodwill and Other Intangible Assets

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Changes in intangible assets in fiscal 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2020

 

257

 

28

 

40

 

132

 

170

 

203

 

34

 

864

Acquisitions

 

489

 

176

 

412

 

–

 

–

 

37

 

–

 

1,114

Capital expenditures

 

–

 

–

 

–

 

–

 

2

 

2

 

15

 

19

Retirements

 

–

 

–

 

–

 

–

 

–

 

(1)

 

–

 

(1)

Transfers

 

–

 

–

 

1

 

–

 

1

 

–

 

–

 

2

Transfers (IFRS 5)

 

–

 

–

 

–

 

–

 

–

 

–

 

–

 

–

Exchange differences

 

13

 

4

 

10

 

1

 

(1)

 

3

 

–

 

30

Cost of acquisition or generation, December 31, 2021

 

759

 

208

 

463

 

133

 

172

 

244

 

49

 

2,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated amortization, impairment losses and impairment loss reversals, December 31, 2021

 

2

 

27

 

64

 

132

 

157

 

183

 

–

 

565

Carrying amounts, December 31, 2021

 

757

 

181

 

399

 

1

 

15

 

61

 

49

 

1,463

Amortization and impairment losses in 2021

 

–

 

13

 

30

 

2

 

8

 

10

 

–

 

63

Amortization

 

–

 

13

 

30

 

1

 

8

 

10

 

–

 

62

Impairment losses

 

–

 

–

 

–

 

1

 

–

 

–

 

–

 

1

Impairment loss reversals in 2021

 

–

 

–

 

–

 

–

 

–

 

–

 

–

 

–

The acquisition of the Resins & Functional Materials (RFM) business from Koninklijke DSM N.V., Heerlen (Netherlands), led to significant additions of goodwill and other intangible assets.

See note 5.2 “Acquisitions and Divestitures.“

In the reporting year, impairment losses of €1 million (previous year: €1 million) were recognized on goodwill and other intangible assets. As in the prior year, there were no impairment loss reversals.

The items of goodwill significant for the Covestro Group and a detailed description of the method for impairment testing goodwill and other intangible assets are presented in section “Impairment Testing”.

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Changes in intangible assets in fiscal 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 2020

 

1

 

1

 

6

 

2

 

7

 

5

 

–

 

22

Amortization

 

–

 

1

 

6

 

2

 

7

 

5

 

–

 

21

Impairment losses

 

1

 

–

 

–

 

–

 

–

 

–

 

–

 

1

Impairment loss reversals in 2020

 

–

 

–

 

–

 

–

 

–

 

–

 

–

 

–