Chrysler 2015 Annual Report Download - page 178

178 2015 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
10. Goodwill and intangible assets with indefinite useful lives
Goodwill and intangible assets with indefinite useful lives at December31, 2015 and December31, 2014 are
summarized below:
Balance at
January 1,
2015
Changeinthe
scope of
consolidation
Translation
differences
Transfer to
Assets held
for distribution
Balance at
December 31,
2015
(€ million)
Gross amount 11,501 54 1,198 (787) 11,966
Accumulated impairment losses (442) — (28) 1 (469)
Goodwill 11,059 54 1,170 (786) 11,497
Brands 2,953 — 340 — 3,293
Total Goodwill and intangible assets with
indefinite useful lives 14,012 54 1,510 (786) 14,790
Balance at
January 1, 2014
Translation
differences
Balance at
December 31,
2014
(€ million)
Gross amount 10,283 1,218 11,501
Accumulated impairment losses (443) 1 (442)
Goodwill 9,840 1,219 11,059
Brands 2,600 353 2,953
Total Goodwill and intangible assets with indefinite useful lives 12,440 1,572 14,012
Foreign exchange effects in 2015 and in 2014 amounted to €1,510 million and €1,572 million, respectively, and arose
mainly from changes in the U.S.$/Euro rate.
Brands
Brands are composed of the Chrysler, Jeep, Dodge, Ram and Mopar brands which resulted from the acquisition of
FCA US. 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 are classified as intangible assets with indefinite useful lives, and are therefore not amortized but are instead
tested annually for impairment.
For the purpose of impairment testing, the carrying value of Brands, which is allocated to the NAFTA segment, is
tested jointly with the Goodwill allocated to the NAFTA segment.
Goodwill
At December31, 2015, goodwill included €11,359 million from the acquisition of FCA US (€10,185 million at December
31, 2014). At December 31, 2015, €786 million of goodwill related to Ferrari has been classified within Assets held for
distribution as a result of Ferrari meeting the held for sale criteria noted within IFRS 5 - Non-current Assets Held for Sale
and Discontinued Operations on December 3, 2015 (refer to the section —Principal Activities above).
There were no impairment charges recognized in respect of goodwill and intangible assets with indefinite lives during
the years ended December 31, 2015, 2014 and 2013.