12. Intangible assets

Excel

(€ in thousands)

2014

2013

Goodwill

381,569

381,569

Other intangible assets

800,583

803,635

TOTAL INTANGIBLE ASSETS

1,182,152

1,185,204

The movements in the intangible assets are as follows:

Excel

(€ in thousands)

Goodwill

Database and tools

Internally generated

Other1

Total

BALANCE AS AT 31 DECEMBER 2012

Investment cost

1,902,489

967,729

131,527

221,612

3,223,357

Accumulated amortisation and impairment

–1,520,920

–236,139

–82,908

–180,588

–2,020,555

381,569

731,590

48,619

41,024

1,202,802

Movements

Investments

0

29,502

34,040

4,376

67,918

Acquisitions through business combination

0

4,387

0

13,754

18,141

Amortisation charges

0

–64,726

–22,984

–12,694

–100,404

Currency translation differences

0

–3,047

–12

–194

–3,253

0

–33,884

11,044

5,242

–17,598

BALANCE AS AT 31 DECEMBER 2013

Investment cost

1,902,489

997,021

143,319

238,172

3,281,001

Accumulated amortisation and impairment

–1,520,920

–299,315

–83,656

–191,906

–2,095,797

381,569

697,706

59,663

46,266

1,185,204

Movements2

Investments

0

38,114

30,434

5,203

73,751

Acquisitions through business combination

0

381

0

24,167

24,548

Disposal (net)

0

–17

–125

–63

–205

Amortisation charges3

0

–66,972

–26,801

–8,317

–102,090

Currency translation differences

0

720

82

142

944

0

–27,774

3,590

21,132

–3,052

BALANCE AS AT 31 DECEMBER 2014

Investment cost

1,902,489

1,036,892

139,741

250,795

3,329,917

Accumulated amortisation and impairment

–1,520,920

–366,960

–76,488

–183,397

–2,147,765

381,569

669,932

63,253

67,398

1,182,152

  1. Other intangible assets include technology, customer relationships, brand name and software.
  2. During the year we disposed certain intangibles. The total gross amount of the assets disposed across all asset classes was €51.8 million (2013: €23.7 million).
  3. The database as acquired at acquisition date (June 2008) represents geographical content data used for the group's digital maps and has a remaining useful life of 12 years and 5 months.
Accounting policy

Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the group's share of the net identifiable assets of the acquired subsidiary/associate at the date of acquisition and is carried at cost less accumulated impairment losses.

Intangible assets other than goodwill

Intangible assets other than goodwill comprise of assets that have been acquired separately either through separate asset acquisitions or business combinations and assets that have been generated internally such as the group's core technology and geographical content database.

Internally generated intangible assets

Internal development costs for core technology are recognised as an intangible asset if, and only if, all of the following have been demonstrated:

Internally generated databases are capitalised until a certain level of map coverage is reached and ongoing activities focus on maintenance. At this point, capitalisation is discontinued.

Internal software costs relating to development of non-core software with an estimated average useful life of less than one year and engineering costs relating to the detailed manufacturing design of new products are expensed in the period in which they are incurred.

The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred from the date when the intangible asset first meets the recognition criteria listed above.

All expenditures on research activities are expensed in the income statement as incurred.

Acquired intangible assets

Definite-lived intangible assets acquired separately are initially recognised at cost. The cost of assets acquired separately includes directly attributable costs to bring the asset to its intended use. Intangible assets acquired in a business combination are identified and recognised separately from goodwill where they satisfy the definition of an intangible asset and their fair values can be measured reliably. The cost of such intangible assets is their fair value at the acquisition date.

Subsequent to initial recognition, all intangible assets other than goodwill are carried at cost less accumulated amortisation and accumulated impairment losses.

The amortisation of other intangible assets is recorded on a straight-line basis over the following estimated useful lives as follows:

Customer relationships include customers for maps; there is a high cost involved in changing map providers and historically there is a high customer retention.

Significant estimates

Management made use of assumptions and judgement in assessing the expected future economic benefits that can be attributed to the internally generated technology, databases and tools, as well as their expected useful lives. For internally generated databases, assumption is also made on the level of completion, at which point the capitalisation is discontinued and future activities are considered as maintenance.

Such estimates are made on a regular basis, as they can be significantly affected by changes in technology and other factors.