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

Other Intangible Assets


Other intangible assets are separated into those that are internally generated, which consist only of internally-generated software, and purchased intangible assets. Purchased intangible assets are further split into amortized and unamortized other intangible assets.

The changes of other intangible assets by asset class for the years ended December 31, 2009, and 2008, are as follows.

 

Internally generated intangible assets

Purchased intangible assets

Total
other intangible 
assets

 

Amortized

Unamortized

in Mio €

Software

Customer-related intangible 
assets

Value of  business
acquired

Contract-based intangible assets

Other

Total  amortized purchased intangible
assets

Retail investment management agreements

Other

Total  unamortized purchased intangible assets

1

Of which € 181 million were included in general and administrative expenses and € 11 million were recorded in commissions and fee income. The latter related to the amortization of mortgage servicing rights.

2

Of which € 310 million were recorded as impairment of intangible assets and € 1 million was recorded in commissions and fee income. The latter related to an impairment of mortgage servicing rights.

3

Of which € 162 million were included in general and administrative expenses and € 12 million were recorded in commissions and fee income. The latter related to the amortization of mortgage servicing rights.

4

Of which € 5 million were recorded as impairment of intangible assets.

5

€ 291 million were recorded as reversal of a prior year’s impairment and are included under impairment of intangible assets.

Cost of acquisition/ manufacture:

 

 

 

 

 

 

 

 

 

 

Balance as of  January 1, 2008

374

534

863

109

323

1,829

786

11

797

3,000

Additions

46

19

38

19

76

4

4

126

Changes in the group of consolidated companies

5

5

10

4

4

14

Disposals

1

6

7

7

Reclassifications from (to) held for sale

42

562

166

770

770

Exchange rate changes

(9)

(37)

(214)

(7)

(258)

31

(2)

29

(238)

Balance as of  December 31, 2008

411

563

654

708

495

2,420

817

17

834

3,665

Additions

128

37

12

15

35

99

227

Changes in the group of consolidated companies

(1)

(1)

(1)

Disposals

14

28

3

31

45

Reclassifications from (to) held for sale

(11)

(11)

(11)

Transfers

(22)

14

21

35

13

Exchange rate changes

4

9

63

(5)

4

71

(9)

3

(6)

69

Balance as of  December 31, 2009

507

609

743

690

551

2,593

808

9

817

3,917

Accumulated amortization  and impairment:

 

 

 

 

 

 

 

 

 

 

Balance as of  January 1, 2008

328

149

8

52

238

447

74

74

849

Amortization for the year

13

68

42

47

22

179

1921

Disposals

4

4

4

Reclassifications from (to) held for sale

Impairment losses

6

1

7

304

304

3112

Exchange rate changes

(12)

(2)

(10)

(5)

(17)

2

2

(27)

Balance as of  December 31, 2008

329

221

40

100

251

612

380

380

1,321

Amortization for the year

13

61

29

40

31

161

1743

Changes in the group of consolidated companies

(1)

(1)

(1)

Disposals

14

27

2

29

43

Reclassifications from (to) held for sale

(2)

(2)

(2)

Impairment losses

4

4

1

1

54

Reversals of impairment losses

4

4

287

287

2915

Transfers

(1)

(1)

(1)

Exchange rate changes

3

1

4

(3)

4

6

(4)

(3)

6

Balance as of  December 31, 2009

331

279

73

114

282

748

89

89

1,168

Carrying amount:

 

 

 

 

 

 

 

 

 

 

As of December 31, 2008

82

342

614

608

244

1,808

437

17

454

2,344

As of December 31, 2009

176

330

670

576

269

1,845

719

9

728

2,749

Amortized Intangible Assets

In 2009, additions and transfers to amortized intangible assets amounted to € 134 million and mainly included purchased software of € 35 million, the capitalization of deferred policy acquisition costs (DAC) of € 26 million related to incremental costs of acquiring investment management contracts, which are commissions payable to intermediaries and business counterparties of the Group’s insurance business (see Note [39]), and the recognition of customer relationships resulting from the acquisition of Dresdner Bank’s Global Agency Securities Lending business of € 21 million (see Note [34]).

In 2008, the main addition to other intangible assets related to Maher Terminals, a privately held operator of port terminal facilities in North America. When held for sale accounting for Maher Terminals ceased as of September 30, 2008, € 770 million of intangible assets were reclassified from assets held for sale to amortized intangible assets. The total comprised contract-based (lease rights to operate the ports), other (trade names) and customer-related intangible assets. As of December 31, 2009 and December 31, 2008, respectively, the carrying values were € 520 million and € 551 million for the lease rights, € 153 million and € 161 million for the trade names, and € 35 million and € 35 million for the customer-related intangible assets. The amortization of these intangible assets is expected to end in 2030 for the lease rights, in 2027 for the trade names and between 2012 and 2022 for the customer-related intangible assets.

In 2009, impairment of intangible assets in the income statement included an impairment loss of € 4 million relating to contract-based intangible assets as well as a reversal of an impairment loss of € 4 million relating to customer-related intangible assets, which had been taken in the fourth quarter of 2008. The impairment loss was included in CB&S, the impairment reversal was recorded in AWM.

In 2008, impairment losses relating to customer-related intangible assets and contract-based intangible assets (mortgage servicing rights) amounting to € 6 million and € 1 million were recognized as impairment of intangible assets and in commissions and fee income, respectively, in the income statement. The impairment of customer-related intangible assets was recorded in AWM and the impairment of contract-based intangible assets was recorded in CB&S.

In 2007, impairment losses relating to purchased software and customer-related intangible assets amounting to € 3 million and € 2 million, respectively, were recognized as general and administrative expenses in the income statement. The impairment of the purchased software was recorded in AWM and the impairment of the customer-related intangible assets was recorded in GTB.

Other intangible assets with finite useful lives are generally amortized over their useful lives based on the straight-line method (except for the VOBA, as explained in Notes [1] and [39], and for mortgage servicing rights).

Mortgage servicing rights are amortized in proportion to and over the estimated period of net servicing revenues. The useful lives of other amortized intangible assets by asset class are as follows.



 

Useful lives in years

Internally generated intangible assets:

 

Software

up to 3

Purchased intangible assets:

 

Customer-related intangible assets

up to 20

Contract-based intangible assets

up to 35

Value of business acquired

up to 30

Other

up to 20

Unamortized Intangible Assets

Almost 99 % of unamortized intangible assets, amounting to € 719 million, relate to the Group’s U.S. retail mutual fund business and are allocated to the Asset Management cash-generating unit. This asset comprises retail investment management agreements, which are contracts that give DWS Investments the exclusive right to manage a variety of mutual funds for a specified period. Since the contracts are easily renewable, the cost of renewal is minimal, and they have a long history of renewal, these agreements are not expected to have a foreseeable limit on the contract period. Therefore, the rights to manage the associated assets under management are expected to generate cash flows for an indefinite period of time. The intangible asset was valued at fair value based upon a third party valuation at the date of the Group’s acquisition of Zurich Scudder Investments, Inc. in 2002.

In 2009, a reversal of an impairment loss of € 287 million was recognized and recorded as impairment of intangible assets in the income statement. A related impairment loss had been taken in the fourth quarter of 2008. The impairment reversal was related to retail investment management agreements for certain open end funds and was recorded in AWM. The impairment reversal was due to an increase in fair value as a result of increases in market values of invested assets as well as current and projected operating results and cash flows of investment management agreements, which had been acquired from Zurich Scudder Investments, Inc. The recoverable amount of the asset was calculated as fair value less costs to sell. As market prices are ordinarily not observable for such assets, the fair value was determined based on the income approach, using a post-tax discounted cash flow calculation (multi-period excess earnings method).

In 2008 and 2007, impairment losses of € 304 million and € 74 million, respectively, were recognized in the income statement as impairment of intangible assets. The losses were related to retail investment management agreements and were recorded in AWM. The impairment losses were due to a decrease in fair values as a result of declines in market values of invested assets as well as current and projected operating results and cash flows of investment management agreements, which had been acquired from Zurich Scudder Investments, Inc. The impairment recorded in 2008 related to certain open end and closed end funds whereas the impairment recorded in 2007 related to certain closed end funds and variable annuity funds. The recoverable amounts of the assets were calculated as fair value less costs to sell.

Service Functions

Download PDF (Notes to the Consolidated Financial Statements, 997 kB) Download XLS (Changes of Other Intangible Assets, 27 kB)

Download pdf

Download xls

Add file

Print

e-mail

Key Figures Comparison

Compare keyfigures of the last four years [more]