| XLS |
|
|
Patents, licenses and similar rights, as well as brands, trademarks/Other |
Goodwill |
Software |
Advance |
Total | |
|
€ million |
Finite |
Indefinite |
|
|
|
|
|
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 amorization |
–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 in 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 as of December 31, 2007 |
5,980.8 |
335.7 |
1,792.3 |
46.4 |
9.4 |
8,164.6 |
|
|
|
|
|
|
|
|
|
Acquisition cost January 1, 2008 |
6,833.0 |
426.3 |
1,792.4 |
166.5 |
9.4 |
9,227.6 |
|
Currency translation |
679.0 |
33.1 |
152.7 |
8.2 |
–1.0 |
872.0 |
|
Changes in companies consolidated |
29.4 |
0.7 |
26.1 |
–0.7 |
– |
55.5 |
|
Additions |
8.6 |
88.3 |
– |
25.2 |
18.8 |
140.9 |
|
Disposals |
–8.2 |
–5.1 |
–0.1 |
–38.1 |
–0.5 |
–52.0 |
|
Transfers |
–2.1 |
–0.3 |
– |
16.8 |
–9.6 |
4.8 |
|
Reclassification of assets held for sale |
0.9 |
– |
0.2 |
– |
0.1 |
1.2 |
|
December 31, 2008 |
7,540.6 |
543.0 |
1,971.3 |
177.9 |
17.2 |
10,250.0 |
|
|
|
|
|
|
|
|
|
Accumulated amortization |
–852.2 |
–90.6 |
–0.1 |
–120.1 |
– |
–1,063.0 |
|
Currency translation |
–102.4 |
–8.8 |
–0.4 |
–6.1 |
– |
–117.7 |
|
Changes in companies consolidated |
– |
– |
– |
0.5 |
– |
0.5 |
|
Amortization in impairment losses |
–812.1 |
–30.1 |
–41.7 |
–23.7 |
– |
–907.6 |
|
Disposals |
8.1 |
0.2 |
– |
35.3 |
– |
43.6 |
|
Transfers |
0.3 |
– |
– |
–3.2 |
– |
–2.9 |
|
Write-ups |
0.6 |
– |
– |
– |
– |
0.6 |
|
Reclassification of assets held for sale |
–0.1 |
– |
– |
– |
– |
–0.1 |
|
December 31, 2008 |
–1,757.8 |
–129.3 |
–42.2 |
–117.3 |
– |
–2,046.6 |
|
|
|
|
|
|
|
|
|
Net carrying amount as of December 31, 2008 |
5,782.8 |
413.7 |
1,929.1 |
60.6 |
17.2 |
8,203.4 |
The increase in currency translation differences is due mainly to the translation of intangible assets reported in Swiss francs in connection with the Serono purchase price allocation into euros - the Group currency.
The stated effects resulting from changes in the companies consolidated relate to the additions mentioned under Acquisitions.
The net carrying amount of patents, licenses and similar rights with finite useful lives amounting to € 5,782.8 million mainly include the recognized assets from the Serono purchase price allocation in 2007. The vast majority is attributable to technologies and know-how. The remaining useful lives range between 10 and 13 years. Licenses with remaining useful lives of between 4.5 and 9 years have been recognized and are reported in this item.
In fiscal 2008, impairment losses on intangible assets with finite useful lives totaled € 237.8 million. Of this amount, € 194.5 million is attributable to amounts captailzed in respect of Raptiva® within the scope of the purchase price allocation. These were written off in full due to sharply reduced sales expectations. Based on new estimates concerning the amount and the timing of royalty income, the relevant license rights to Enbrel® (Amgen), which were capitalized within the scope of the Serono purchase price allocation, were written down by € 42.9 million to the lower value in use. Both of these issues are disclosed under Exceptional items.
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 € 71.4 million result in fiscal 2008. Of this amount € 41.7 million is attributable to the goodwill of EMD Lexigen Research Center Corp., which was written off in full in connection with the termination of research projects. The technology and know-how assets in connection with the development of a high-dose recombinant human growth hormone for HIV-associated adipose redistribution syndrome (HARS) amounting to € 20.2 million and capitalized within the scope of the Serono purchase price allocation were written off in full since the development of this indication was discontinued. Both of these issues are disclosed under Exceptional items and had a negative effect on the Merck Serono division.
The remaining impairments are due mainly to the termination of various research projects and the related write-offs of the capitalized assets within the Merck Serono division. These impairment losses are disclosed under Other operating expenses.
Goodwill can be allocated to the divisions as follows:
| XLS |
|
€ million |
Dec. 31, 2008 |
Dec. 31, 2007 |
|
Merck Serono |
1,670.7 |
1,559.5 |
|
Consumer Health Care |
164.3 |
148.0 |
|
Performance & Life Science Chemicals |
90.0 |
80.7 |
|
Liquid Crystals |
4.1 |
4.1 |
|
Total |
1,929.1 |
1,792.3 |
The increase in goodwill at Merck Serono results from the translation of Serono goodwill from Swiss francs into euros – the reporting currency of the Group. This translation effect outweighed the impairment losses. The increase in goodwill attributable to the Consumer Health Care and Performance & Life Science Chemicals division is due to the first-time consolidation of Bio-Fyt Pharma N.V., Solvent Innovation GmbH and SeQuant AB as well as to currency translation effects.
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