Mercedes 2006 Annual Report Download - page 186

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11. Goodwill
Information with respect to changes in the Group’s goodwill
is presented in the Consolidated Fixed Asset Schedule included
herein.
The carrying amount of goodwill as of December 31, 2006
decreased by €198 million compared to the previous year.
This decrease relates to a large degree to currency translation
effects.
At December 31, 2006 and 2005, the carrying values of goodwill
allocated to the Group’s reporting segments are (excluding
investor level goodwill of €55 million):
The company conducts a goodwill impairment test at least
annually to identify potential goodwill impairment. In this regard,
the company compares the fair value of a reporting unit with
its carrying amount, including goodwill allocated to the respective
reporting unit. The fair values of the reporting units are calcu-
lated using discounted future cash flows. If the carrying amount
of a reporting unit exceeds its fair value, a second step of the
goodwill impairment test is performed to measure the amount of
goodwill impairment loss. As a result of the 2005 goodwill
impairment test, a goodwill impairment charge of €30 million
was recognized at smart.
12. Other Intangible Assets
Information with respect to changes in the Group’s other
intangible assets is presented in the Consolidated Fixed Asset
Schedule included herein.
Other intangible assets comprise:
DaimlerChrysler’s other intangible assets subject to amortization
comprise concessions, industrial property rights and similar
rights (€297 million) as well as software developed or obtained
for internal use (€276 million). The additions in 2006 of €257
million (2005: €244 million) with a weighted average useful life
of 5 years primarily include concessions, industrial property
rights and similar rights. The aggregate amortization expense for
the years ended December 2006, 2005 and 2004, was €255
million, €201 million and €169 million, respectively.
Estimated aggregate amortization expense for other intangible
assets for the next 5 years is:
Other intangible assets not subject to amortization primarily
comprise trademarks, which the Group can utilize without
restriction.
Notes to the Consolidated Balance Sheets
Total
Van, Bus,
Other
Financial
Services
Truck
Group
Chrysler
Group
192 927 386 71 107 1,683
199 1,035 469 63 115 1,881
2006
2005
(in millions of €)
Mercedes
Car Group
At December 31,
2005
2006
1,722
(1,067)
655
–
110
765
1,628
(941)
687
2,375
129
3,191
Other intangible assets subject to amortization
Gross carrying amount
Accumulated amortization
Net carrying amount
Intangible pension asset
Other intangible assets not subject to amortization
(in millions of €)
20112010200920082007
190 137 97 54 35Amortization expense
(in millions of €)