Notes

12 Intangible assets

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CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2022
€ million	Brand names	Goodwill	Capitalized development costs for products under development	Capitalized development costs for products currently in use	Other intangible assets	Total

Cost Balance at Jan. 1, 2022	17,661	26,203	10,287	44,806	13,789	112,745
Foreign exchange differences	−22	−17	16	−125	155	7
Changes in consolidated Group	5	75	1	40	110	232
Additions	–	–	9,057	666	1,945	11,668
Transfers	0	–	−1,728	1,738	55	65
Classified as held for sale	0	–	4	65	30	99
Disposals	11	50	33	2,111	560	2,764
Balance at Dec. 31, 2022	17,633	26,211	17,595	44,949	15,464	121,853
Amortization and impairment Balance at Jan. 1, 2022	89	29	88	26,120	8,731	35,056
Foreign exchange differences	0	0	0	−118	29	−89
Changes in consolidated Group	–	–	–	7	9	16
Additions to cumulative amortization	2	–	–	5,058	1,111	6,171
Additions to cumulative impairment losses	16	30	21	65	15	147
Transfers	–	–	0	1	−5	−4
Classified as held for sale	–	–	0	18	25	43
Disposals	2	50	15	2,095	481	2,642
Reversal of impairment losses	–	–	–	–	–	–
Balance at Dec. 31, 2022	105	9	93	29,021	9,385	38,612
Carrying amount at Dec. 31, 2022	17,528	26,202	17,502	15,929	6,079	83,241

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CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2021
€ million	Brand names	Goodwill	Capitalized development costs for products under development	Capitalized development costs for products currently in use	Other intangible assets	Total

Cost Balance at Jan. 1, 2021	16,911	23,318	6,438	41,316	10,334	98,317
Foreign exchange differences	14	82	35	312	194	636
Changes in consolidated Group	736	2,835	215	235	2,380	6,402
Additions	–	–	6,513	1,323	1,223	9,059
Transfers	–	–	−2,904	2,904	35	35
Classified as held for sale	–	22	1	146	18	188
Disposals	–	11	10	1,138	358	1,517
Balance at Dec. 31, 2021	17,661	26,203	10,287	44,806	13,789	112,745
Amortization and impairment Balance at Jan. 1, 2021	83	–	87	22,133	8,046	30,349
Foreign exchange differences	0	0	0	185	53	238
Changes in consolidated Group	–	–	–	−63	−14	−77
Additions to cumulative amortization	0	–	–	4,987	842	5,829
Additions to cumulative impairment losses	6	39	8	56	25	133
Transfers	–	–	–	0	−2	−1
Classified as held for sale	–	–	–	110	16	127
Disposals	–	11	7	1,068	204	1,289
Reversal of impairment losses	–	–	–	0	–	0
Balance at Dec. 31, 2021	89	29	88	26,120	8,731	35,056
Carrying amount at Dec. 31, 2021	17,572	26,174	10,199	18,685	5,058	77,689

Other intangible assets comprise in particular concessions, purchased customer lists and dealer relationships, industrial and similar rights, and licenses in such rights and assets.

The allocation of the brand names and goodwill to the operating segments is shown in the following table:

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€ million	2022	2021

Brand names by operating segment
Porsche	13,823	13,823
Scania Vehicles and Services	878	949
MAN Truck & Bus	1,127	1,127
MAN Energy Solutions	415	415
Navistar	813	771
Ducati	404	404
Other	68	84
	17,528	17,572
Goodwill by operating segment
Porsche	18,825	18,825
Scania Vehicles and Services	2,548	2,749
MAN Truck & Bus	587	587
MAN Energy Solutions	263	264
Navistar	3,101	2,917
Ducati	290	290
ŠKODA	168	163
Porsche Holding Salzburg	126	127
Other	294	252
	26,202	26,174

The impairment test for recognized goodwill and brand names is always based on value in use, which has been determined at the level of the respective brand. In this process, the WACC rates, based on the risk-free rate of interest, a market risk premium and the cost of debt, are applied. For the Porsche cash generating unit, the recoverable amount corresponds to fair value less costs of disposal, which is determined according to the price of Porsche AG shares. For more information on the general approach and key assumptions, please refer to the details provided on intangible assets in the “Accounting policies” section.

Moreover, the following aspects were of significance for the brands with material recognized brand names and goodwill:

In the Commercial Vehicles reporting segment, the five-year planning reflects an expansion of e-mobility for all cash generating units. The foundation for the electrification of the commercial vehicle sector in Europe was laid in fiscal year 2022 with the establishment of the Milence joint venture. The purpose of the joint venture, which the TRATON GROUP has formed together with Daimler Truck and the Volvo Group, is to create a charging infrastructure for heavy-duty trucks and coach buses.

Furthermore, at MAN Truck & Bus, the planning reflects positive effects in the planning period from the realignment program initiated in fiscal year 2022. Moreover, Navistar is to be taken to new levels of strength. The measures applied to this end range from using the powerful component and technology organization within the TRATON GROUP through expanding the financial services business down to making even more effective use of one of the largest independent dealer and service networks in the North American market that Navistar has already established.

For all cash-generating units, recoverability is not affected by a variation in the growth forecast of – 0.5 percentage points with respect to the perpetual annuity or of +1 percentage point with respect to the discount rate.

Research and development costs developed as follows:

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€ million	2022	2021	%

Total research and development costs	18,908	15,583	21.3
of which: capitalized development costs	9,723	7,843	24.0
Capitalization ratio in %	51.4	50.3
Amortization of capitalized development costs	5,144	5,050	1.9
Research and development costs recognized in profit or loss	14,329	12,790	12.0