Due to the particular significance of the amortization of intangible assets to the Merck Group, this item is disclosed separately in the income statement. Amortization of intangible assets increased sharply to € 1,004.7 million in 2011 from € 818.6 million in 2010. This total mainly includes amortization of intangible assets in connection with the purchase price allocations for Serono and Millipore. The increase is due on the one hand to the fact that amortization of intangible assets from the purchase price allocation for the Merck Millipore division is included for a full year, whereas 2010 only included amortization for the second half of 2010. In addition, in 2011, the estimate of the remaining useful life of Rebif® was shortened by two years. As of the second quarter, this increased write-downs by a total of € 51.3 million in 2011. This item additionally includes the following impairment losses: Owing to our decision to no longer pursue the global approval process for cladribine tablets, the residual book value of € 50.4 million was written off. In connection with changes in the development plan for safinamide, a potential add-on therapy for Parkinson’s disease, we wrote off the residual book value of € 63.4 million. Further impairments amounting to € 35.4 million resulted from the decision to discontinue the development of IMO-2055, a candidate for cancer treatment. In addition, owing to the termination of a further research project in the Merck Serono division, an additional impairment loss of € 9.0 million was recorded. Impairment losses of € 8.6 million on various patents in the Performance Materials division were recorded in 2011. Amortization of software is allocated to the respective operating expenses.
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