Part of the Consolidated Financial Statements as of 31 December 2009; audited by KPMG AG Wirtschaftsprüfungsgesellschaft.

Changes in Goodwill


The changes in the carrying amount of goodwill, as well as gross amounts and accumulated impairment losses of goodwill, for the years ended December 31, 2009, and 2008, are shown below by business segment.

in € m.

Corporate  Banking &  Securities

Global Transaction Banking

Asset and Wealth Management

Private & Business 
Clients

Corporate Investments

Total

1

Impairment losses of goodwill are recorded as impairment of intangible assets in the income statement.

2

Includes € 10 million of reduction in goodwill related to a prior year’s disposition.

Balance as of January 1, 2008

3,076

416

2,769

971

7,232

Purchase accounting adjustments

Goodwill acquired during the year

1

28

33

2

64

Reclassifications from (to) held for sale

564

564

Goodwill related to dispositions without being classified as held for sale

(21)

(21)

Impairment losses1

(5)

(270)

(275)

Exchange rate changes/other

56

12

(100)2

1

(31)

Balance as of December 31, 2008

3,128

456

2,975

974

7,533

Gross amount of goodwill

3,133

456

3,245

974

261

8,069

Accumulated impairment losses

(5)

(270)

(261)

(536)

Balance as of January 1, 2009

3,128

456

2,975

974

7,533

Purchase accounting adjustments

Goodwill acquired during the year

2

1

3

Transfers

(306)

306

Reclassifications from (to) held for sale

(14)

(14)

Goodwill related to dispositions without being classified as held for sale

Impairment losses1

(151)

(151)

Exchange rate changes/other

(11)

(4)

46

18

49

Balance as of December 31, 2009

3,105

453

2,715

974

173

7,420

Gross amount of goodwill

3,109

453

2,715

974

849

8,100

Accumulated impairment losses

(4)

(676)

(680)

In 2009, additions to goodwill totaled € 3 million and included € 2 million in Corporate Banking & Securities (CB&S) resulting from the acquisition of outstanding minority interest in an Algerian financial advisory company and € 1 million in Global Transaction Banking (GTB) related to the acquisition of Dresdner Bank’s Global Agency Securities Lending business. Effective January 1, 2009 and following a change in management responsibility, goodwill of € 306 million related to Maher Terminals LLC and Maher Terminals of Canada Corp., collectively and hereafter referred to as Maher Terminals, was transferred from Asset and Wealth Management (AWM) to Corporate Investments (CI). Due to their reclassification to the held for sale category in the third quarter 2009, goodwill of € 14 million (CB&S) related to a nonintegrated investment in a renewable energy development project was transferred as part of a disposal group to other assets (see Note [24]).

In 2008, the main addition to goodwill in AWM was € 597 million related to Maher Terminals. The total of € 597 million consisted of an addition to goodwill amounting to € 33 million which resulted from the reacquisition of a minority interest stake in Maher Terminals. Further, discontinuing the held for sale accounting of Maher Terminals resulted in a transfer of € 564 million to goodwill from assets held for sale. The main addition to goodwill in GTB was € 28 million related to the acquisition of HedgeWorks LLC.

In the second quarter of 2009, a goodwill impairment loss of € 151 million was recorded in CI related to its nonintegrated investment in Maher Terminals, following the continued negative outlook for container and business volumes. The fair value less costs to sell of the investment was determined based on a discounted cash flow model.

In 2008, a total goodwill impairment loss of € 275 million was recorded. Of this total, € 270 million related to an investment in AWM and € 5 million related to a listed investment in CB&S. Both impairment losses related to investments which were not integrated into the primary cash-generating units within AWM and CB&S. The impairment review of the investment Maher Terminals in AWM was triggered by a significant decline in business volume as a result of the economic climate at that time. The fair value less costs to sell of the investment was determined based on a discounted cash flow model. The impairment review of the investment in CB&S was triggered by write-downs of certain other assets and the negative business outlook of the investment. The fair value less costs to sell of the investment was determined based on the market price of the listed investment.

In the first quarter of 2007, an impairment review of goodwill was triggered in CI after the division realized a gain of € 178 million related to its equity method investment in Deutsche Interhotel Holding GmbH & Co. KG. As a result of this review, a goodwill impairment loss totaling € 54 million was recognized.

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