Chrysler 2012 Annual Report Download - page 159

Notes
158 Consolidated
Financial
Statements
at 31 December
2012
14. Goodwill and intangible assets with indefinite useful lives
In 2012 and 2011, changes in the gross carrying amount of Goodwill and intangible assets with indefinite useful lives were as follows:
(€ million)
At 31
December
2011 Additions
Change in
the scope of
consolidation
Impairment
losses
Translation
differences
and other
changes
At 31
December
2012
Gross amount 10,864 - - - (220) 10,644
Accumulated impairment losses (421) - - - 7 (414)
Goodwill 10,443 - - - (213) 10,230
Brands 2,770 - - - (53) 2,717
Goodwill and intangible assets with indefinite useful lives 13,213 - - - (266) 12,947
(€ million)
At 31
December
2010 (*) Additions
Change in
the scope of
consolidation
Impairment
losses
Translation
differences
and other
changes
At 31
December
2011
Gross amount 1,272 - 8,621 - 971 10,864
Accumulated impairment losses (192) - - (224) (5) (421)
Goodwill 1,080 - 8,621 (224) 966 10,443
Brands 3 - 2,489 - 278 2,770
Goodwill and intangible assets with indefinite useful lives 1,083 - 11,110 (224) 1,244 13,213
(*) The balances at 31 December 2010 relate to Fiat Group post demerger to Fiat Industrial.
Net foreign exchange effects in 2012 arose mainly from changes in the Us Dollar/Euro rate.
The increases in Goodwill and Brands in 2011 arise from the acquisition of the control of Chrysler and its subsequent consolidation.
The Impairment loss recognised in 2011 mainly related to Production Systems (€130 million) and Components (€69 million).
Brands
Brands arise almost exclusively from the NAFTA region. The amount of €2,717 million at 31 December 2012 (€2,770 million at 31 December 2011) mainly
comprises the net carrying amount of the brands Chrysler, Jeep, Dodge, Ram and Mopar. These rights are protected legally through registration with
government agencies and through the continuous use in commerce. As these rights have no legal, contractual, competitive or economic term that limits
their useful lives, they were classified as intangible assets with indefinite useful lives.
The carrying amount of brands is tested annually and the Group recognises an impairment loss if book value exceeds the recoverable amount. For the
purpose of impairment testing, the Brands are allocated to the NAFTA cash-generating unit; the principal assumptions used in the calculation of the value
in use of this cash generating unit are discussed below.
Goodwill
Goodwill consists principally of goodwill resulting from the acquisition of the control of Chrysler for €9,372 million (€9,585 million at 31 December 2011)
and the purchase of certain interests in Ferrari S.p.A. for €786 million (€786 million at 31 December 2011).
Goodwill is allocated to the Group’s cash-generating units that are expected to benefit from synergies of the business combination that generated it.