Due to the particular significance of the amortization of intangible assets, this item is disclosed separately in the income statement. It primarily comprises amortization and impairment losses in connection with the purchase price allocations resulting from the Serono and Millipore acquisitions. In 2010, this amount includes EUR 579.4 million for the amortization of intangible assets of Merck Serono and EUR 95.8 million for the first-time amortization of intangible assets of Merck Millipore. Additionally, impairment losses of EUR 134.0 million were incurred owing to a reassessment of the future sales potential of safinamide. The reassessment was based on the results of a Phase III study conducted by our development partner Newron, which led to a reevaluation of the market potential, especially with regard to the achievable indications. The decision also takes into account a delay in the project and an increase in R&D costs due to more stringent regulatory requirements. To a lesser extent this item also includes amortization of other intangible assets, for example from milestone payments. Amortization of software is allocated to functional costs instead.
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