12 Intangible assets

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CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2019
€ 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, 2019	16,952	23,318	7,215	32,020	8,992	88,496
Foreign exchange differences	−18	−57	33	77	12	46
Changes in consolidated Group	5	17	–	–	234	256
Additions	–	–	3,251	1,920	770	5,940
Transfers	–	–	−4,301	4,299	54	52
Classified as held for sale	61	15	–	–	47	122
Disposals	–	16	8	1,421	126	1,571
Balance at Dec. 31, 2019	16,878	23,247	6,188	36,895	9,889	93,098
Amortization and impairment Balance at Jan. 1, 2019	84	1	42	16,768	6,989	23,883
Foreign exchange differences	0	–	0	45	6	51
Changes in consolidated Group	–	–	–	–	147	147
Additions to cumulative amortization	3	–	–	4,049	680	4,731
Additions to cumulative impairment losses	–	15	7	8	4	34
Transfers	–	–	−1	1	2	2
Classified as held for sale	0	–	–	–	12	12
Disposals	–	16	–	1,422	114	1,551
Reversal of impairment losses	–	–	3	396	3	402
Balance at Dec. 31, 2019	86	–	45	19,053	7,700	26,884
Carrying amount at Dec. 31, 2019	16,793	23,247	6,143	17,842	2,189	66,214

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CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2020
€ 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, 2020	16,878	23,247	6,188	36,895	9,889	93,098
Foreign exchange differences	33	77	−77	−299	−281	−548
Changes in consolidated Group	–	31	8	15	56	111
Additions	–	–	4,576	1,897	1,038	7,511
Transfers	–	–	−4,150	4,150	−58	−58
Disposals	–	37	107	1,341	310	1,795
Balance at Dec. 31, 2020	16,911	23,318	6,438	41,316	10,334	98,317
Amortization and impairment Balance at Jan. 1, 2020	86	–	45	19,053	7,700	26,884
Foreign exchange differences	−5	–	0	−172	−232	−409
Changes in consolidated Group	–	–	–	–	9	9
Additions to cumulative amortization	3	–	–	4,514	733	5,249
Additions to cumulative impairment losses	–	37	55	75	62	229
Transfers	–	–	−6	7	0	1
Disposals	–	37	–	1,344	226	1,606
Reversal of impairment losses	–	–	7	–	0	7
Balance at Dec. 31, 2020	83	–	87	22,133	8,046	30,349
Carrying amount at Dec. 31, 2020	16,828	23,318	6,351	19,183	2,288	67,968

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	2020	2019

Brand names by operating segment
Porsche	13,823	13,823
Scania Vehicles and Services	971	932
MAN Truck & Bus	1,127	1,127
MAN Energy Solutions	415	415
Ducati	404	404
Other	89	93
	16,828	16,793
Goodwill by operating segment
Porsche	18,825	18,825
Scania Vehicles and Services	2,808	2,699
MAN Truck & Bus	587	587
MAN Energy Solutions	263	265
Ducati	290	290
ŠKODA	155	160
Porsche Holding Salzburg	130	151
Other	260	271
	23,318	23,247

The impairment test for recognized goodwill and brand names is 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 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:

The planning of the Porsche cash-generating unit is based on a significant increase in the proportion of electric vehicles over the planning period and the implementation of further optimization measures.

Planning at Scania Vehicles and Services is based on the growing share of electric vehicles in the fleet, against a backdrop of market demand for electric models, which tend to be more expensive.

For MAN Truck & Bus, the planning assumes a continuous improvement in the operating result in the course of the detailed planning period.

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

Research and development costs developed as follows:

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€ million	2020	2019	%

Total research and development costs	13,885	14,306	−2.9
of which: capitalized development costs	6,473	5,171	25.2
Capitalization ratio in %	46.6	36.1
Amortization of capitalized development costs	4,644	4,064	14.3
Research and development costs recognized in profit or loss	12,056	13,199	−8.7

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12 Intangible assets