Deutsche Post Annual Report 2006

Intangible assets
€m	Internally generated intangible assets	Purchased intangible assets	Goodwill	Advance payments, intangible assets under development	Total

Historical cost
Opening balance at January 1, 2005	980	1,018	5,856	84	7,938
Changes in consolidated group	–24	1,332	4,829	0	6,137
Additions	175	200	259	191	825
Reclassifications	–72	67	8	9	12
Disposals	–52	–48	–6	–12	–118
Currency translation differences	13	37	114	1	165
Closing balance at December 31, 2005/ opening balance at January 1, 2006	1,020	2,606	11,060	273	14,959
Changes in consolidated group	21	888	880	52	1,841
Additions	137	387	98	150	772
Reclassifications	130	267	0	–259	138
Disposals	–112	–340	–8	–84	–544
Reclassifications to current assets (held for sale)	0	–1	0	0	–1
Currency translation differences	–11	–41	–287	–2	–341
Closing balance at December 31, 2006	1,185	3,766	11,743	130	16,824

Amortization and impairment losses/reversals
Opening balance at January 1, 2005	485	607	0	0	1,092
Changes in consolidated group	–15	89	0	0	74
Amortization and impairment losses	93	175	440	101	809
Reclassifications	10	–10	0	0	0
Disposals	–47	–8	0	–7	–62
Currency translation differences	7	13	0	0	20
Closing balance at December 31, 2005/ opening balance at January 1, 2006	533	866	440	94	1,933
Changes in consolidated group	–6	6	0	0	0
Amortization and impairment losses	133	346	0	0	479
Reclassifications	18	–16	0	0	2
Disposals	–90	–55	0	–75	–220
Currency translation differences	–6	–15	0	–1	–22
Closing balance at December 31, 2006	582	1,132	440	18	2,172

Carrying amount at December 31, 2006	603	2,634	11,303	112	14,652
Carrying amount at December 31, 2005	487	1,740	10,620	179	13,026¹⁾

1)	Prior-period amount restated, see Note 5.

Purchased software, concessions, industrial rights, licenses and similar rights and assets, as well as customer lists and brand names identified during purchase price allocations are reported under purchased intangible assets. Internally generated intangible assets relate to development costs for internally developed software.

The increase in purchased intangible assets is related to the customer lists and brand names identified during the purchase price allocation with Exel, BHW, and Williams Lea. They developed as follows during the fiscal year:

Customer lists and brand names
€m	Customer lists			Brand names			Total
	Exel	WL¹⁾	BHW²⁾	Exel	WL¹⁾	BHW

Historical cost
Opening balance at January 1, 2006	576	0	0	540	0	0	1,116
Changes in consolidated group	0	232	253	0	26	319	830
Additions	0	0	0	0	0	0	0
Reclassifications	0	0	0	0	0	0	0
Disposals	0	0	0	0	0	0	0
Currency translation differences	–19	–2	0	12	1	0	–8
Closing balance at December 31, 2006	557	230	253	552	27	319	1,938

Amortization and impairment losses/reversals
Opening balance at January 1, 2006	0	0	0	0	0	0	0
Changes in consolidated group	0	0	0	0	0	0	0
Amortization and impairment losses	–64	–10	–15	0	0	0	–89
Reclassifications	0	0	0	0	0	0	0
Disposals	0	0	0	0	0	0	0
Currency translation differences	1	0	0	0	0	0	1
Closing balance at December 31, 2006	–63	–10	–15	0	0	0	–88
Carrying amount at December 31, 2006	494	220	238	552	27	319	1,850

1)	WL = Williams Lea.
2)	Including beneficial contracts.

€499 million of the increase in goodwill at the time of acquisition relates to Williams Lea, €554 million to BHW and €39 million to PPL.

The following diagram presents the goodwill allocation to cash-generating units (CGUs) (see also Note 7):

Cash-Generating Units (CGU) (organisational chart)

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23. Intangible assets

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