search results for 
Logo

18. 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, 2011 Foreign currency translation Changes in entities consolidated Additions Reclassifications 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
Tradenames 173 5 0 - 1 1 178
Technology 83 3 - 0 0 0 86
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 Reclassifications 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
Tradenames 173 5 0 - 1 1 178
Technology 83 3 - 0 0 0 86
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 Reclassifications 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
Tradenames 0 0 0 0 0 0 0
Technology 19 1 0 5 0 0 25
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 Reclassifications 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
Tradenames 0 0 0 0 0 0 0
Technology 19 1 0 5 0 0 25
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

ACQUISITION COST



€ in millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Goodwill 10,356 587 355 4 162 0 11,464
Patents, product and distribution rights 538 35 4 39 2 1 617
Tradenames 161 12 - - - 0 173
Technology 69 6 8 0 0 0 83
Non-compete agreements 157 12 20 - - 5 184
Management contracts 153 13 0 0 -162 0 4
Other 423 32 15 35 - 21 484
Goodwill and other intangible assets 11,857 697 402 78 2 27 13,009

€ in millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Goodwill 10,356 587 355 4 162 0 11,464
Patents, product and distribution rights 538 35 4 39 2 1 617
Tradenames 161 12 - - - 0 173
Technology 69 6 8 0 0 0 83
Non-compete agreements 157 12 20 - - 5 184
Management contracts 153 13 0 0 -162 0 4
Other 423 32 15 35 - 21 484
Goodwill and other intangible assets 11,857 697 402 78 2 27 13,009

AMORTIZATION



€ in millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Goodwill 0 0 0 0 0 0 0
Patents, product and distribution rights 93 4 - 43 - 1 139
Tradenames 0 0 0 0 0 0 0
Technology 12 1 0 6 0 0 19
Non-compete agreements 109 8 0 13 - 5 125
Management contracts 0 0 0 0 0 0 0
Other 234 22 - 43 - 21 278
Goodwill and other intangible assets 448 35 - 105 - 27 561

€ in millions As of Jan. 1, 2010 Foreign currency translation Changes in entities consolidated Additions Reclassifications Disposals As of Dec. 31, 2010
Goodwill 0 0 0 0 0 0 0
Patents, product and distribution rights 93 4 - 43 - 1 139
Tradenames 0 0 0 0 0 0 0
Technology 12 1 0 6 0 0 19
Non-compete agreements 109 8 0 13 - 5 125
Management contracts 0 0 0 0 0 0 0
Other 234 22 - 43 - 21 278
Goodwill and other intangible assets 448 35 - 105 - 27 561

CARRYING AMOUNTS


€ in millions Dec. 31, 2011 Dec. 31, 2010
Goodwill 12,669 11,464
Patents, product and distribution rights 400 478
Tradenames 178 173
Technology 61 64
Non-compete agreements 57 59
Management contracts 6 4
Other 279 206
Goodwill and other intangible assets 13,650 12,448

€ in millions Dec. 31, 2011 Dec. 31, 2010
Goodwill 12,669 11,464
Patents, product and distribution rights 400 478
Tradenames 178 173
Technology 61 64
Non-compete agreements 57 59
Management contracts 6 4
Other 279 206
Goodwill and other intangible assets 13,650 12,448

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

AMORTIZABLE INTANGIBLE ASSETS



  Dec. 31, 2011 Dec. 31, 2010
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Patents, product and distribution rights 582 182 400 617 139 478
Technology 86 25 61 83 19 64
Non-compete agreements 201 144 57 184 125 59
Other 596 317 279 484 278 206
Total 1,465 668 797 1,368 561 807

  Dec. 31, 2011 Dec. 31, 2010
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Patents, product and distribution rights 582 182 400 617 139 478
Technology 86 25 61 83 19 64
Non-compete agreements 201 144 57 184 125 59
Other 596 317 279 484 278 206
Total 1,465 668 797 1,368 561 807

NON-AMORTIZABLE INTANGIBLE ASSETS



  Dec. 31, 2011 Dec. 31, 2010
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Tradenames 178 0 178 173 0 173
Management contracts 6 0 6 4 0 4
Goodwill 12,669 0 12,669 11,464 0 11,464
Total 12,853 0 12,853 11,641 0 11,641

  Dec. 31, 2011 Dec. 31, 2010
€ in millions Acquisition cost Accumulated amortization Carrying amount Acquisition cost Accumulated amortization Carrying amount
Tradenames 178 0 178 173 0 173
Management contracts 6 0 6 4 0 4
Goodwill 12,669 0 12,669 11,464 0 11,464
Total 12,853 0 12,853 11,641 0 11,641

In the second quarter of 2010, administrative services agreements of Fresenius Medical Care in an amount of US$215 million (€162 million) were reclassified from the category management contracts to goodwill due to a change in New York state regulations that allowed Fresenius Medical Care, beginning in April 2010, to directly own the managed facilities in that state.

Amortization on intangible assets amounted to €106 million and €105 million for the years 2011 and 2010, 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.

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

€ in millions 2012 2013 2014 2015 2016
Estimated amortization expenses 102 96 89 80 76

€ in millions 2012 2013 2014 2015 2016
Estimated amortization expenses 102 96 89 80 76

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, 2010 5,214 3,466 1,626 44 6 10,356
Additions 324 30 1 4 0 359
Reclassifications 162 0 0 0 0 162
Foreign currency translation 392 195 0 0 0 587
Carrying amount as of December 31, 2010 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

€ in millions Fresenius Medical Care Fresenius Kabi Fresenius Helios Fresenius Vamed Corporate/Other Fresenius Group
Carrying amount as of January 1, 2010 5,214 3,466 1,626 44 6 10,356
Additions 324 30 1 4 0 359
Reclassifications 162 0 0 0 0 162
Foreign currency translation 392 195 0 0 0 587
Carrying amount as of December 31, 2010 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

As of December 31, 2011 and December 31, 2010, the carrying amounts of the other non-amortizable intangible assets were €168 million and €161 million, respectively, for Fresenius Medical Care as well as €16 million, respectively, for Fresenius Kabi.

Continue reading:
19. Other accrued expenses

QUICKFINDER

History

Tools