20. Other intangible assets
€ million |
Intangible assets without goodwill |
(thereof internally generated intangible assets) |
|---|---|---|
Acquisition or production costs |
|
|
As of 1/10/2019 |
1,967 |
(1,106) |
Currency translation |
−20 |
(−2) |
Additions to consolidation group |
0 |
(0) |
Additions |
154 |
(122) |
Disposals |
−35 |
(−15) |
Reclassifications in accordance with IFRS 5 |
0 |
(0) |
Transfers |
4 |
(18) |
As of 30/9/2020 and 1/10/2020 |
2,069 |
(1,229) |
Currency translation |
3 |
(0) |
Additions to consolidation group |
7 |
(0) |
Additions |
138 |
(115) |
Disposals |
−9 |
(−1) |
Reclassifications in accordance with IFRS 5 |
−15 |
(0) |
Transfers |
5 |
(−3) |
As of 30/9/2021 |
2,199 |
(1,340) |
Depreciation |
|
|
As of 1/10/2019 |
1,405 |
(864) |
Currency translation |
−10 |
(−2) |
Additions, scheduled |
128 |
(69) |
Additions, impairment |
4 |
(4) |
Disposals |
−34 |
(−15) |
Reclassifications in accordance with IFRS 5 |
0 |
(0) |
Reversals of impairment losses |
0 |
(0) |
Transfers |
0 |
(13) |
As of 30/9/2020 and 1/10/2020 |
1,493 |
(933) |
Currency translation |
2 |
(0) |
Additions, scheduled |
145 |
(86) |
Additions, impairment |
9 |
(7) |
Disposals |
−8 |
(−2) |
Reclassifications in accordance with IFRS 5 |
−12 |
(0) |
Reversals of impairment losses |
0 |
(0) |
Transfers |
2 |
(−1) |
As of 30/9/2021 |
1,631 |
(1,023) |
Carrying amount as of 1/10/2019 |
562 |
(242) |
Carrying amount as of 30/9/2020 |
576 |
(296) |
Carrying amount as of 30/9/2021 |
568 |
(317) |
The other intangible assets have both finite and indefinite expected useful lives. Intangible assets with a finite expected useful life are subject to scheduled depreciation/amortisation. Intangible assets with an indefinite expected useful life are subjected to annual impairment tests. Assets with an indefinite useful life relate to acquired brand rights. The carrying amount is €101 million (30/9/2020: €95 million). The expected useful life of the trademark rights is indeterminable, because METRO can use these rights without restrictions and abandoning them is not envisaged in the future. The carrying amounts of the brands are reviewed annually for units to which goodwill is not simultaneously allocated in line with the procedure for the respective purchase price allocations using the licence price analogy method. Level 3 input parameters of the fair value hierarchy are applied here. This involves applying licence rates of between 0.2% and 1.0% and WACC of between 4.3% and 4.8%. The mandatory annual impairment test confirmed the recoverability of the carrying amounts. In addition, sensitivity analyses were carried out, assuming a 10% reduction in the sustainable expected sales of the respective units or a 10% increase in WACC. Even in these scenarios, no impairment would have resulted.
Additions in the amount of €138 million (2019/20: €154 million) concern internally generated software at €115 million (2019/20: €122 million), software purchased from third parties and still in development at €12 million (2019/20: €19 million), and concessions, rights and licences at €11 million (2019/20: €13 million).
Research and development expenses recognised in expenses essentially concern internally generated software and amounted to €43 million (2019/20: €30 million).
As in the previous year, there are no material restrictions on title or right to dispose of intangible assets. Purchasing obligations for intangible assets amounting to €1 million (30/9/2020: €1 million) were recorded.