| [ XLS ] |
|
Patents, licenses |
Goodwill |
Software |
Advance |
Total |
|
€ million |
Finite |
Indefinite |
|
|
|
|
Acquisition cost January 1, 2006 |
295.1 |
– |
839.2 |
88.7 |
7.4 |
1,230.4 |
Currency translation |
–1.1 |
– |
0.7 |
–2.8 |
– |
–3.2 |
Changes in companies consolidated |
38.8 |
14.9 |
14.1 |
– |
– |
67.8 |
Additions |
10.1 |
27.4 |
– |
6.9 |
12.2 |
56.6 |
Disposals |
–6.1 |
– |
– |
–11.7 |
–0.7 |
–18.5 |
Transfers |
5.6 |
– |
– |
4.7 |
–9.5 |
0.8 |
December 31, 2006 |
342.4 |
42.3 |
854.0 |
85.8 |
9.4 |
1,333.9 |
|
|
|
|
|
|
|
Accumulated amortization and |
–176.1 |
– |
–0.3 |
–67.6 |
– |
–244.0 |
Currency translation |
1.1 |
– |
– |
2.1 |
– |
3.2 |
Changes in companies consolidated |
1.3 |
– |
– |
– |
– |
1.3 |
Amortization and impairment losses |
–34.7 |
– |
–0.1 |
–12.4 |
– |
–47.2 |
Disposals |
5.2 |
– |
– |
11.3 |
– |
16.5 |
Transfers |
1.0 |
– |
– |
–1.2 |
– |
–0.2 |
December 31, 2006 |
–202.2 |
– |
–0.4 |
–67.8 |
– |
–270.4 |
|
|
|
|
|
|
|
Net carrying amount |
140.2 |
42.3 |
853.6 |
18.0 |
9.4 |
1,063.5 |
|
|
|
|
|
|
|
Acquisition cost January 1, 2007 |
342.4 |
42.3 |
854.0 |
85.8 |
9.4 |
1,333.9 |
Currency translation |
0.7 |
– |
–35.9 |
–0.9 |
0.1 |
–36.0 |
Changes in companies consolidated |
6,482.7 |
321.2 |
974.5 |
63.8 |
–3.3 |
7,838.9 |
Additions |
25.2 |
63.0 |
– |
15.6 |
17.3 |
121.1 |
Disposals |
–19.9 |
–1.2 |
– |
–13.0 |
–1.6 |
–35.7 |
Transfers |
2.8 |
1.0 |
– |
15.2 |
–12.4 |
6.6 |
Reclassification to assets held for sale |
–0.9 |
– |
–0.2 |
– |
–0.1 |
–1.2 |
December 31, 2007 |
6,833.0 |
426.3 |
1,792.4 |
166.5 |
9.4 |
9,227.6 |
|
|
|
|
|
|
|
Accumulated amortization and |
–202.2 |
– |
–0.4 |
–67.8 |
– |
–270.4 |
Currency translation |
0.4 |
– |
0.1 |
0.6 |
– |
1.1 |
Changes in companies consolidated |
–148.9 |
0.1 |
0.2 |
–32.0 |
– |
–180.6 |
Amortization and impairment losses |
–522.6 |
–90.1 |
– |
–23.4 |
– |
–636.1 |
Disposals |
18.0 |
– |
– |
11.9 |
– |
29.9 |
Transfers |
3.0 |
–0.6 |
– |
–9.4 |
– |
–7.0 |
Reclassification to assets held for sale |
0.1 |
– |
– |
– |
– |
0.1 |
December 31, 2007 |
–852.2 |
–90.6 |
–0.1 |
–120.1 |
– |
–1,063.0 |
|
|
|
|
|
|
|
Net carrying amount |
5,980.8 |
335.7 |
1,792.3 |
46.4 |
9.4 |
8,164.6 |
The changes in the companies consolidated relate almost exclusively to the acquisition of Serono as well as the disposal of the Generics division. A detailed presentation of both transactions can be found in the sections on acquisitions and disposals/discontinued operations. As of December 31, 2007, goodwill from Serono (including exchange differences) totaled €1,303.5 million. The net carrying amount of the remaining intangible assets including the purchase price allocation was €6,212.3 million.
As a result of the disposal of the Generics division, intangible assets declined by €423.1 million (€357.4 million of which was goodwill).
In fiscal 2007, impairment losses on intangible assets with definite useful lives totaled €8.7 million. The majority of these impairment losses became necessary since the value in use of technologies and patents declined due to lower sales expectations of a business field within the Performance & Life Science Chemicals division.
Since goodwill and intangible assets with indefinite useful lives are not amortized, these are subjected to an annual impairment test. Here, book values were compared with values in use. Consequently, impairment losses of €90.1 million result in fiscal 2007. Due to changes in sales expectations for a product from the Merck Serono division, capitalized technologies were written down by €57.4 million to the lower value in use. Owing to the restructuring of diabetes research (Merck Serono division) and the related termination of a project, rights worth €27.9 million were written off. The remaining impairment losses of €4.8 million result mainly from the termination of research projects and the related write-off of the capitalized assets.
Impairment losses are recorded under other operating expenses.
Goodwill can be allocated to the divisions as follows:
| [ XLS ] |
€ million |
Dec. 31, 2007 |
Dec. 31, 2006 |
Merck Serono |
1,559.5 |
255.4 |
Consumer Health Care |
148.0 |
148.0 |
Performance & Life Science Chemicals |
80.7 |
88.7 |
Liquid Crystals |
4.1 |
4.1 |
Discontinued operations |
– |
357.4 |
Total |
1,792.3 |
853.6 |
