17. Goodwill and Other Intangible Assets

Changes in intangible assets in 2015 were as follows:

Changes in Intangible Assets

 

 

Acquired goodwill

 

Patents and technologies

 

Trademarks

 

Marketing and distribution rights

 

Production rights

 

R&D projects

 

Other rights and advance payments

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

2014 figures restated

Cost of acquisition or generation, December 31, 2014

 

15,347

 

12,827

 

10,242

 

1,808

 

2,168

 

882

 

3,189

 

46,463

Changes in scope of consolidation

 

 

4

 

 

 

 

 

1

 

5

Acquisitions

 

(5)

 

39

 

53

 

 

 

26

 

(20)

 

93

Capital expenditures

 

 

77

 

 

52

 

 

107

 

152

 

388

Retirements

 

 

(33)

 

(35)

 

(55)

 

 

(7)

 

(966)

 

(1,096)

Transfers

 

 

40

 

 

75

 

(2)

 

(113)

 

 

Transfers (IFRS 5)

 

(34)

 

(2)

 

(14)

 

(33)

 

 

 

(20)

 

(103)

Inflation adjustment (IAS 29)

 

7

 

 

 

 

 

 

 

7

Exchange differences

 

781

 

117

 

706

 

97

 

6

 

51

 

264

 

2,022

December 31, 2015

 

16,096

 

13,069

 

10,952

 

1,944

 

2,172

 

946

 

2,600

 

47,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated amortization and impairment losses, December 31, 2014

 

 

7,428

 

2,588

 

1,039

 

1,911

 

153

 

2,344

 

15,463

Changes in scope of consolidation

 

 

4

 

 

 

 

 

 

4

Retirements

 

 

(17)

 

(31)

 

(55)

 

 

(7)

 

(949)

 

(1,059)

Amortization and impairment losses in 2015

 

 

801

 

447

 

148

 

106

 

66

 

183

 

1,751

Amortization

 

 

801

 

422

 

147

 

106

 

 

161

 

1,637

Impairment losses

 

 

 

25

 

1

 

 

66

 

22

 

114

Impairment loss reversals

 

 

 

 

 

 

 

 

Transfers

 

 

 

1

 

1

 

(2)

 

 

 

Transfers (IFRS 5)

 

 

(1)

 

 

(25)

 

 

 

(19)

 

(45)

Exchange differences

 

 

62

 

78

 

26

 

6

 

13

 

206

 

391

December 31, 2015

 

 

8,277

 

3,083

 

1,134

 

2,021

 

225

 

1,765

 

16,505

Carrying amounts, December 31, 2015

 

16,096

 

4,792

 

7,869

 

810

 

151

 

721

 

835

 

31,274

Carrying amounts, December 31, 2014

 

15,347

 

5,399

 

7,654

 

769

 

257

 

729

 

845

 

31,000

The capitalized patents and technologies include an amount pertaining to the active ingredient alemtuzumab (product name: Lemtrada) for the treatment of multiple sclerosis. Bayer gave back the worldwide distribution rights for alemtuzumab to Genzyme Corp., United States, in 2009 and in return received global co-promotion rights and an entitlement to royalties and revenue-based milestone payments. Genzyme Corp. received marketing approval for alemtuzumab in Europe in 2013 and in the United States in 2014. Bayer has decided not to exercise its co-promotion rights.

Impairment losses of €114 million were recognized on intangible assets. In the Pharmaceuticals segment, development activities for an intangible asset in the oncology area were discontinued. A €42 million impairment loss was recognized as a result. In the CropScience segment, impairment losses totaling €20 million were recognized on two research and development projects in the crop protection area due to a delayed market introduction and new research findings. In the Consumer Health reporting segment, impairment losses totaling €17 million were recognized on trademarks based on a portfolio review associated with the closure of a production site.

Impairment losses were also recognized on further intangible assets in the Consumer Health segment (€23 million), the CropScience segment (€9 million) and the Pharmaceuticals segment (€3 million).

Details of acquisitions and divestitures are provided in Notes [6.2] and [6.3]. The impairment testing procedure for goodwill and other intangible assets is explained in Note [4].

Changes in intangible assets in 2014 were as follows:

Changes in Intangible Assets (Previous Year)

 

 

Acquired goodwill

 

Patents and technologies

 

Trademarks

 

Marketing and distribution rights

 

Production rights

 

R&D projects

 

Other rights and advance payments

 

Total

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

2014 figures restated

Cost of acquisition or generation, December 31, 2013

 

9,862

 

11,021

 

4,282

 

1,598

 

2,062

 

775

 

2,994

 

32,594

Changes in scope of consolidation

 

 

 

 

 

 

 

2

 

2

Acquisitions

 

5,169

 

1,762

 

5,672

 

 

71

 

16

 

30

 

12,720

Capital expenditures

 

 

39

 

18

 

124

 

 

115

 

127

 

423

Retirements

 

(38)

 

(33)

 

(21)

 

(21)

 

(6)

 

(61)

 

(143)

 

(323)

Transfers

 

 

9

 

 

18

 

34

 

(17)

 

(44)

 

Transfers (IFRS 5)

 

(254)

 

(126)

 

(27)

 

 

 

 

 

(407)

Inflation adjustment (IAS 29)

 

6

 

 

 

 

 

 

 

6

Exchange differences

 

602

 

155

 

318

 

89

 

7

 

54

 

223

 

1,448

December 31, 2014

 

15,347

 

12,827

 

10,242

 

1,808

 

2,168

 

882

 

3,189

 

46,463

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated amortization and impairment losses, December 31, 2013

 

 

6,653

 

2,262

 

834

 

1,773

 

131

 

2,165

 

13,818

Changes in scope of consolidation

 

 

 

 

 

 

 

2

 

2

Retirements

 

(6)

 

(22)

 

(2)

 

(20)

 

(6)

 

(4)

 

(135)

 

(195)

Amortization and impairment losses in 2014

 

6

 

803

 

269

 

188

 

104

 

15

 

182

 

1,567

Amortization

 

 

800

 

228

 

135

 

104

 

 

171

 

1,438

Impairment losses

 

6

 

3

 

41

 

53

 

 

15

 

11

 

129

Impairment loss reversals

 

 

(2)

 

 

 

 

 

 

(2)

Transfers

 

 

 

 

1

 

34

 

 

(35)

 

Transfers (IFRS 5)

 

 

(67)

 

(11)

 

 

 

 

 

(78)

Exchange differences

 

 

63

 

70

 

36

 

6

 

11

 

165

 

351

December 31, 2014

 

 

7,428

 

2,588

 

1,039

 

1,911

 

153

 

2,344

 

15,463

Carrying amounts, December 31, 2014

 

15,347

 

5,399

 

7,654

 

769

 

257

 

729

 

845

 

31,000

Carrying amounts, December 31, 2013

 

9,862

 

4,368

 

2,020

 

764

 

289

 

644

 

829

 

18,776

Changes in the carrying amounts of goodwill for the reporting segments in 2015 and 2014 were as follows:

Goodwill by Reporting Segment

 

 

Pharma­ceuticals

 

Consumer Health

 

HealthCare

 

CropScience

 

Covestro

 

Bayer Group

 

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

 

€ million

2014 figures restated

Carrying amounts, January 1, 2014

 

5,238

 

2,435

 

7,673

 

1,951

 

238

 

9,862

Change in scope of consolidation

 

 

 

 

 

 

Acquisitions

 

751

 

4,349

 

5,100

 

69

 

 

5,169

Retirements

 

(30)

 

(2)

 

(32)

 

 

 

(32)

Impairment losses in 2014

 

 

 

 

 

(6)

 

(6)

Transfers

 

 

 

 

 

 

Transfers (IFRS 5)

 

(143)

 

(111)

 

(254)

 

 

 

(254)

Inflation adjustment (IAS 29)

 

 

6

 

6

 

 

 

6

Exchange differences

 

185

 

289

 

474

 

117

 

11

 

602

Carrying amounts, December 31, 2014

 

6,001

 

6,966

 

12,967

 

2,137

 

243

 

15,347

Change in scope of consolidation

 

 

 

 

 

 

Acquisitions

 

(111)

 

49

 

(62)

 

50

 

7

 

(5)

Retirements

 

 

 

 

 

 

Impairment losses in 2015

 

 

 

 

 

 

Transfers

 

 

 

 

 

 

Transfers (IFRS 5)

 

 

(34)

 

(34)

 

 

 

(34)

Inflation adjustment (IAS 29)

 

1

 

7

 

8

 

 

 

8

Exchange differences

 

165

 

514

 

679

 

90

 

11

 

780

Carrying amounts, December 31, 2015

 

6,056

 

7,502

 

13,558

 

2,277

 

261

 

16,096

Goodwill and other intangible assets with an indefinite useful life that are of material significance for the Bayer Group are allocated to the following cash-generating units or unit groups as of the end of the reporting period:

Intangible Assets with an Indefinite Useful Life

 

 

Cash-generating unit / unit group

 

Goodwill

 

Material intangible assets with an indefinite useful life

Reporting segment

 

 

 

€ million

 

€ million

Pharmaceuticals

 

Pharmaceuticals

 

6,056

 

485

Consumer Health

 

Consumer Care

 

6,187

 

22

CropScience

 

Crop Protection

 

1,287

 

74

CropScience

 

Seeds

 

507

 

149

In the case of research and development projects, the point in time from which a capitalized asset can be expected to generate an economic benefit for the company cannot be determined. Such assets are therefore classified as having an indefinite useful life. Development projects were capitalized at a total amount of €721 million as of the end of 2015 (2014: €729 million).

Another intangible asset classified as having an indefinite useful life is the Bayer Cross, which was reacquired for the North America region in 1994, having been awarded to the United States and Canada under the reparations agreements at the end of the First World War. The period for which the Bayer Group will derive an economic benefit from this name cannot be determined as Bayer intends to make continuous use of it. The Bayer Cross is capitalized at €107 million.

Patents

The Bayer Group endeavors to obtain patent protection for its products and technologies in the major markets.

The following table sets forth the expiration dates in our major markets of the most important patents covering Adempas™, Avalox™ / Avelox™, Betaferon™ / Betaseron™, Eylea™, Kogenate™, Levitra™, Mirena™, Nexavar™, Stivarga™, Xarelto™, Xofigo™, YAZ™, Yasmin™ and Yasminelle™:

Patent Expiration Dates

 

 

Market

 

 

Germany

 

France

 

U.K.

 

Italy

 

Spain

 

Japan

 

China

 

U.S.A.

 

Canada

a

Current expiration date; patent term extension applied for

b

Patent application pending

c

Patent term revised

d

Opposition to EP patent terminated; appeal possible

e

Additional patent term adjustment being calculated

f

Indication-specific term extensions until 2021 for AMD, until 2022 for CRVO and until 2023 for mCNV and DME

g

Patent term extension granted for kidney cancer until 2021, liver cancer until 2022, and thyroid cancer until 2025

h

Patent term extension granted for thyroid cancer until 2026 (polymorph) and 2027 (tablet)

i

Patent term extension granted

j

Patent term extension granted for colorectal cancer and GIST until 2026

k

Notice of allowance received

l

Patent term revised due to a terminal disclaimer; extension applied for

Products

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adempas™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2023a

 

2028i

 

2023a

 

2028i

 

2028i

 

2027i

 

2023

 

2023a

 

2023

Production process / intermediate

 

2030

 

2030

 

2030

 

2030

 

2030

 

2030b

 

2030

 

2030

 

2030b

Avalox™ / Avelox™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

 

 

 

 

 

 

 

 

2015

Active ingredient monohydrate

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

 

2016

Tablets

 

2019

 

2019

 

2019

 

2019

 

2019

 

2019

 

2019

 

2019

 

2019

Betaferon™ / Betaseron™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

 

 

 

 

 

 

 

 

2016

Eylea™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2020a

 

2025

 

2020a

 

2025

 

2025

 

2021a/f

 

2020

 

 

2020

Kogenate™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

 

 

 

 

 

 

 

 

2021

Formulation

 

2017

 

2017

 

2017

 

2017

 

2017

 

2020

 

2017

 

2016

 

2017

Levitra™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2018

 

2018

 

2018

 

2018

 

2018

 

2020

 

2018

 

2018

 

2018

Mirena™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inserter

 

2015

 

2015

 

2015

 

2015

 

2015

 

 

2015

 

2015

 

2015

Inserter (improved)

 

2029d

 

2029d

 

2029d

 

2029d

 

2029d

 

2029

 

2029

 

2029b

 

2029b

Nexavar™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2021

 

2021

 

2021

 

2021

 

2021

 

2021g

 

2020

 

2020

 

2020

Polymorph

 

2025

 

2025

 

2025

 

2025

 

2025

 

2025h

 

2025

 

2027

 

2025

Formulation

 

2026

 

2026

 

2026

 

2026

 

2026

 

2026h

 

2026

 

2026k

 

2026

Stivarga™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2028i

 

2028

 

2024a

 

2028

 

2028

 

2026j

 

2024

 

2031c

 

2024

Formulation

 

2025

 

2025

 

2025

 

2025

 

2025

 

2026j

 

2025

 

2025b

 

2025

Production process

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

 

2031

Xarelto™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active ingredient

 

2023

 

2023

 

2023

 

2023

 

2023

 

2024

 

2020

 

2020l

 

2020

Formulation

 

2024

 

2024

 

2024

 

2024

 

2024

 

2025

 

2024

 

2024b

 

2024

Xofigo™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Use

 

2024i

 

2024i

 

2024i

 

2024i

 

2024i

 

2019

 

2019

 

2020a

 

2019

Production process

 

2031k

 

2031k

 

2031k

 

2031k

 

2031k

 

2031b

 

2031b

 

2031

 

2031b

YAZ™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Formulation

 

 

 

 

 

 

2021

 

2020

 

 

2020

Production process

 

2025

 

2025

 

2025

 

2025

 

2025

 

2026

 

2026

 

2026c

 

2026

Yasmin™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Formulation

 

 

 

 

 

 

2020

 

2020

 

 

2020

Production process

 

2025

 

2025

 

2025

 

2025

 

2025

 

2026

 

2026

 

2026c

 

2026

Yasminelle™

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Formulation

 

 

 

 

 

 

2020

 

2020

 

 

2020

Production process

 

2025

 

2025

 

2025

 

2025

 

2025

 

2026

 

2026

 

2026c

 

2026