| XLS |
|
|
|
|
|
|
|
|
|
|
Patents, licenses and similar rights, brands, trademarks and other |
Goodwill |
Software |
Advance |
Total | |
|
€ million |
Finite useful life |
Indefinite useful life |
|
|
|
|
|
Acquisition cost January 1, 2010 |
7,598.7 |
501.3 |
1,982.7 |
212.8 |
32.9 |
10,328.4 |
|
Currency translation |
704.5 |
37.0 |
89.4 |
14.5 |
1.7 |
847.1 |
|
Changes in scope of consolidation |
2,534.9 |
9.3 |
2,545.3 |
11.3 |
– |
5,100.8 |
|
Additions |
23.0 |
20.8 |
– |
17.3 |
43.1 |
104.2 |
|
Disposals |
–10.1 |
–0.5 |
– |
–27.2 |
–0.1 |
–37.9 |
|
Transfers |
76.5 |
–76.3 |
4.9 |
48.4 |
–35.7 |
17.8 |
|
Reclassification to assets held for sale |
–29.8 |
– |
– |
–0.3 |
– |
–30.1 |
|
December 31, 2010 |
10,897.7 |
491.6 |
4,622.3 |
276.8 |
41.9 |
16,330.3 |
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment losses January 1, 2010 |
–2,419.2 |
–138.9 |
–38.8 |
–133.1 |
– |
–2,730.0 |
|
Currency translation |
–234.8 |
–10.3 |
0.2 |
–11.2 |
– |
–256.1 |
|
Changes in scope of consolidation |
1.2 |
– |
– |
2.2 |
– |
3.4 |
|
Amortization and impairment losses |
–701.7 |
–164.4 |
– |
–40.1 |
– |
–906.2 |
|
Disposals |
7.7 |
– |
– |
26.3 |
– |
34.0 |
|
Transfers |
0.1 |
– |
–3.6 |
–4.5 |
– |
–8.0 |
|
Write-ups |
– |
– |
– |
– |
– |
– |
|
Reclassification to assets held for sale |
16.4 |
– |
– |
0.3 |
– |
16.7 |
|
December 31, 2010 |
–3,330.3 |
–313.6 |
–42.2 |
–160.1 |
– |
–3,846.2 |
|
|
|
|
|
|
|
|
|
Net carrying amount as of December 31, 2010 |
7,567.4 |
178.0 |
4,580.1 |
116.7 |
41.9 |
12,484.1 |
|
|
|
|
|
|
|
|
|
Acquisition cost January 1, 2011 |
10,897.7 |
491.6 |
4,622.3 |
276.8 |
41.9 |
16,330.3 |
|
Currency translation |
60.6 |
–0.3 |
45.1 |
1.9 |
–0.1 |
107.2 |
|
Changes in scope of consolidation |
79.1 |
– |
91.4 |
0.1 |
– |
170.6 |
|
Additions |
8.1 |
31.2 |
– |
11.8 |
28.6 |
79.7 |
|
Disposals |
–0.3 |
–0.3 |
– |
–6.5 |
–0.4 |
–7.5 |
|
Transfers |
11.9 |
–9.0 |
– |
48.1 |
–44.0 |
7.0 |
|
Reclassification to assets held for sale |
– |
– |
– |
– |
– |
– |
|
December 31, 2011 |
11,057.1 |
513.2 |
4,758.8 |
332.2 |
26.0 |
16,687.3 |
|
|
|
|
|
|
|
|
|
Accumulated amortization and impairment losses January 1, 2011 |
–3,330.3 |
–313.6 |
–42.2 |
–160.1 |
– |
–3,846.2 |
|
Currency translation |
–16.7 |
–0.1 |
–0.2 |
–1.4 |
– |
–18.4 |
|
Changes in scope of consolidation |
– |
– |
– |
– |
– |
– |
|
Amortization and impairment losses |
–898.1 |
–111.4 |
– |
–51.5 |
– |
–1,061.0 |
|
Disposals |
0.3 |
0.3 |
– |
6.0 |
– |
6.6 |
|
Transfers |
–0.2 |
–0.5 |
– |
–3.3 |
– |
–4.0 |
|
Write-ups |
– |
– |
– |
– |
– |
– |
|
Reclassification to assets held for sale |
– |
– |
– |
– |
– |
– |
|
December 31, 2011 |
–4,245.0 |
–425.3 |
–42.4 |
–210.3 |
– |
–4,923.0 |
|
|
|
|
|
|
|
|
|
Net carrying amount as of December 31, 2011 |
6,812.1 |
87.9 |
4,716.4 |
121.9 |
26.0 |
11,764.3 |
The changes in scope of consolidation include additions amounting to € 170.6 million (2010: € 5,263.9 million). The additions relate to the acquisitions of the microbiology business of Biotest AG as well as Amnis Corporation, Seattle, WA (USA), and the first-time consolidation of Beijing Skywing Technology Co., Ltd., Beijing, China. Details of these transactions are presented under “Scope of consolidation – Acquisitions.” In 2010, changes in the scope of consolidation included disposals of € 159.7 million.
The net carrying amount of “Patents, licenses and similar rights, brands, trademarks and other” with finite useful lives amounting to € 6,812.1 million mainly includes the recognized assets from the Millipore purchase price allocation in 2010 and the Serono purchase price allocation in 2007. The vast majority is attributable to technologies and know-how. The remaining useful lives of these assets range between 7.0 and 14.5 years. This item also includes licenses from this acquisition with remaining useful lives of between 1.0 and 6.0 years. In response to the increasing market impact of oral therapies for multiple sclerosis, the amortization period of Rebif® was shortened by two years. In 2011, this led to higher expenses of € 51.3 million as of the second quarter due to amortization. In fiscal 2012, this change will increase amortization by a total of € 68.4 million.
In fiscal 2011, impairment losses on intangible assets with finite useful lives totaled € 59.0 million. Of this amount, € 50.4 million was attributable to the Merck Serono division for cladribine, and € 8.6 million to the Performance Materials division. These impairments are disclosed in the income statement under “Amortization of intangible assets”.
The changes in goodwill caused by foreign exchange rates resulted almost exclusively from translating the goodwill for Millipore, half of which is carried in U.S. dollars, into the reporting currency.
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 € 111.4 million on intangible assets resulted in fiscal 2011. Within the Merck Serono division, € 63.4 million of this amount was attributable to safinamide and € 35.4 million to the cancer drug candidate IMO-2055, which we will not be developing further. In addition, an impairment loss of € 9.0 million was incurred in connection with the termination of a further research project. This is disclosed in the income statement under “Amortization of intangible assets.”
The book values of “Patents, licenses and similar rights, brands, trademarks and other” as well as goodwill can be attributed to the divisions as follows:
| XLS |
|
|
|
|
|
|
|
|
|
|
€ million |
Remaining |
Merck Serono |
Consumer Health Care |
Merck Millipore |
Performance Materials |
Total Dec. 31, 2011 |
Total Dec. 31, 2010 |
|
Patents, licenses and similar rights, brands, trademarks and other |
|
|
|
|
|
|
|
|
Finite useful life |
|
4,480.9 |
21.4 |
2,304.0 |
5.8 |
6,812.1 |
7,567.4 |
|
Rebif® |
8.0 |
2,944.9 |
– |
– |
– |
2,944.9 |
3,296.5 |
|
Gonal-f® |
7.0 |
664.6 |
– |
– |
– |
664.6 |
759.6 |
|
Saizen® |
8.0 |
245.9 |
– |
– |
– |
245.9 |
276.6 |
|
Humira® |
6.0 |
223.7 |
– |
– |
– |
223.7 |
257.3 |
|
Avonex® |
1.5 |
72.2 |
– |
– |
– |
72.2 |
120.3 |
|
Enbrel® |
1.0 |
38.0 |
– |
– |
– |
38.0 |
74.9 |
|
Puregon® |
3.0 |
34.4 |
– |
– |
– |
34.4 |
45.8 |
|
Cladribine |
– |
– |
– |
– |
– |
– |
51.7 |
|
Technologies |
1.0–14.5 |
255.1 |
1.8 |
528.8 |
3.5 |
789.2 |
828.0 |
|
Brands |
2.6–12.5 |
0.5 |
19.6 |
313.3 |
– |
333.4 |
334.6 |
|
Customer relationships |
0.8–15.5 |
1.6 |
– |
1,461.9 |
2.3 |
1,465.8 |
1,522.1 |
|
|
|
|
|
|
|
|
|
|
Indefinite useful life |
|
87.5 |
– |
– |
0.4 |
87.9 |
178.0 |
|
Safinamide |
– |
– |
– |
– |
– |
– |
63.4 |
|
Other |
– |
87.5 |
– |
– |
0.4 |
87.9 |
114.6 |
|
|
|
|
|
|
|
|
|
|
Goodwill |
– |
1,681.7 |
164.7 |
2,846.1 |
23.9 |
4,716.4 |
4,580.1 |
Intangible assets with an indefinite useful life primarily relate to rights that Merck has acquired for products or technologies that are still in the research and development stage. Amortization will only begin once the products start to be marketed.
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