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19. Goodwill and other intangible assets

As of December 31, the acquisition cost and accumulated amortization of intangible assets consisted of the following:

Acquisition cost



€ in millions As of Jan. 1, 2012 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2012
Goodwill 12,669 -215 2,555 6 0 1 15,014
Patents, product and distribution rights 582 -9 13 2 1 4 585
Technology 86 -2 240 0 -3 0 321
Tradenames 178 -3 0 - - - 175
Non-compete agreements 201 -5 46 - 0 - 242
Management contracts 6 - 0 0 0 - 6
Other 596 -14 122 48 -58 10 684
Goodwill and other intangible assets 14,318 -248 2,976 56 -60 15 17,027

€ in millions As of Jan. 1, 2012 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2012
Goodwill 12,669 -215 2,555 6 0 1 15,014
Patents, product and distribution rights 582 -9 13 2 1 4 585
Technology 86 -2 240 0 -3 0 321
Tradenames 178 -3 0 - - - 175
Non-compete agreements 201 -5 46 - 0 - 242
Management contracts 6 - 0 0 0 - 6
Other 596 -14 122 48 -58 10 684
Goodwill and other intangible assets 14,318 -248 2,976 56 -60 15 17,027

Amortization



€ in millions As of Jan. 1, 2012 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2012
Goodwill 0 0 0 0 0 0 0
Patents, product and distribution rights 182 -3 1 41 -1 4 216
Technology 25 -1 0 8 - 0 32
Tradenames 0 0 0 0 0 0 0
Non-compete agreements 144 -3 -1 22 0 - 162
Management contracts 0 0 0 0 0 0 0
Other 317 2 - 56 -47 9 319
Goodwill and other intangible assets 668 -5 - 127 -48 13 729

€ in millions As of Jan. 1, 2012 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2012
Goodwill 0 0 0 0 0 0 0
Patents, product and distribution rights 182 -3 1 41 -1 4 216
Technology 25 -1 0 8 - 0 32
Tradenames 0 0 0 0 0 0 0
Non-compete agreements 144 -3 -1 22 0 - 162
Management contracts 0 0 0 0 0 0 0
Other 317 2 - 56 -47 9 319
Goodwill and other intangible assets 668 -5 - 127 -48 13 729

Acquisition cost



€ in millions As of Jan. 1, 2011 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2011
Goodwill 11,464 274 875 56 - - 12,669
Patents, product and distribution rights 617 13 2 5 - 55 582
Technology 83 3 - 0 0 0 86
Tradenames 173 5 0 - 1 1 178
Non-compete agreements 184 6 11 0 0 - 201
Management contracts 4 - - 0 2 0 6
Other 484 7 72 36 5 8 596
Goodwill and other intangible assets 13,009 308 960 97 8 64 14,318

€ in millions As of Jan. 1, 2011 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2011
Goodwill 11,464 274 875 56 - - 12,669
Patents, product and distribution rights 617 13 2 5 - 55 582
Technology 83 3 - 0 0 0 86
Tradenames 173 5 0 - 1 1 178
Non-compete agreements 184 6 11 0 0 - 201
Management contracts 4 - - 0 2 0 6
Other 484 7 72 36 5 8 596
Goodwill and other intangible assets 13,009 308 960 97 8 64 14,318

Amortization



€ in millions As of Jan. 1, 2011 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2011
Goodwill 0 0 0 0 0 0 0
Patents, product and distribution rights 139 4 0 45 0 6 182
Technology 19 1 0 5 0 0 25
Tradenames 0 0 0 0 0 0 0
Non-compete agreements 125 5 - 14 0 0 144
Management contracts 0 0 0 0 0 0 0
Other 278 4 - 42 - 7 317
Goodwill and other intangible assets 561 14 - 106 - 13 668

€ in millions As of Jan. 1, 2011 Foreign currency translation Changes in entities consolidated Additions Reclassifi-
cations
Disposals As of Dec. 31, 2011
Goodwill 0 0 0 0 0 0 0
Patents, product and distribution rights 139 4 0 45 0 6 182
Technology 19 1 0 5 0 0 25
Tradenames 0 0 0 0 0 0 0
Non-compete agreements 125 5 - 14 0 0 144
Management contracts 0 0 0 0 0 0 0
Other 278 4 - 42 - 7 317
Goodwill and other intangible assets 561 14 - 106 - 13 668

Carrying amounts



€ in millions Dec. 31, 2012 Dec. 31, 2011
Goodwill 15,014 12,669
Patents, product and distribution rights 369 400
Technology 289 61
Tradenames 175 178
Non-compete agreements 80 57
Management contracts 6 6
Other 365 279
Goodwill and other intangible assets 16,298 13,650

€ in millions Dec. 31, 2012 Dec. 31, 2011
Goodwill 15,014 12,669
Patents, product and distribution rights 369 400
Technology 289 61
Tradenames 175 178
Non-compete agreements 80 57
Management contracts 6 6
Other 365 279
Goodwill and other intangible assets 16,298 13,650

The split of intangible assets into amortizable and non-amortizable intangible assets is shown in the following tables:

Amortizable intangible assets



  Dec. 31, 2012 Dec. 31, 2011
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Patents, product and distribution rights 585 216 369 582 182 400
Technology 321 32 289 86 25 61
Non-compete agreements 242 162 80 201 144 57
Other 684 319 365 596 317 279
Total 1,832 729 1,103 1,465 668 797

  Dec. 31, 2012 Dec. 31, 2011
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Patents, product and distribution rights 585 216 369 582 182 400
Technology 321 32 289 86 25 61
Non-compete agreements 242 162 80 201 144 57
Other 684 319 365 596 317 279
Total 1,832 729 1,103 1,465 668 797

Estimated regular amortization expenses of intangible assets for the next five years are shown in the following table:


€ in millions 2013 2014 2015 2016 2017
Estimated amortization expenses 137 131 124 118 113

€ in millions 2013 2014 2015 2016 2017
Estimated amortization expenses 137 131 124 118 113

Non-amortizable intangible assets



  Dec. 31, 2012 Dec. 31, 2011
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Tradenames 175 0 175 178 0 178
Management contracts 6 0 6 6 0 6
Goodwill 15,014 0 15,014 12,669 0 12,669
Total 15,195 0 15,195 12,853 0 12,853

  Dec. 31, 2012 Dec. 31, 2011
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Tradenames 175 0 175 178 0 178
Management contracts 6 0 6 6 0 6
Goodwill 15,014 0 15,014 12,669 0 12,669
Total 15,195 0 15,195 12,853 0 12,853

Amortization on intangible assets amounted to €127 million and €106 million for the years 2012 and 2011, respectively. It is allocated within cost of sales, selling, general and administrative expenses and research and development expenses, depending upon the use of the asset.

The carrying amount of goodwill has developed as follows:


€ in millions Fresenius Medical Care Fresenius Kabi Fresenius Helios Fresenius Vamed Corporate/Other Fresenius Group
Carrying amount as of January 1, 2011 6,092 3,691 1,627 48 6 11,464
Additions 822 14 95 0 0 931
Foreign currency translation 186 88 0 0 0 274
Carrying amount as of December 31, 2011 7,100 3,793 1,722 48 6 12,669
Additions 1,707 396 447 11 0 2,561
Disposals 0 -1 - 0 0 -1
Reclassifications 0 0 -18 18 0 0
Foreign currency translation -150 -65 0 0 0 -215
Carrying amount as of December 31, 2012 8,657 4,123 2,151 77 6 15,014

€ in millions Fresenius Medical Care Fresenius Kabi Fresenius Helios Fresenius Vamed Corporate/Other Fresenius Group
Carrying amount as of January 1, 2011 6,092 3,691 1,627 48 6 11,464
Additions 822 14 95 0 0 931
Foreign currency translation 186 88 0 0 0 274
Carrying amount as of December 31, 2011 7,100 3,793 1,722 48 6 12,669
Additions 1,707 396 447 11 0 2,561
Disposals 0 -1 - 0 0 -1
Reclassifications 0 0 -18 18 0 0
Foreign currency translation -150 -65 0 0 0 -215
Carrying amount as of December 31, 2012 8,657 4,123 2,151 77 6 15,014

As of December 31, 2012 and December 31, 2011, the carrying amounts of the other non-amortizable intangible assets were €165 million and €168 million, respectively, for Fresenius Medical Care as well as €16 million, respectively, for Fresenius Kabi.

Continue reading:
20. Accrued expenses

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