v3.10.0.1
Intangible assets including goodwill
12 Months Ended
Dec. 31, 2018
Intangible Assets And Goodwill [Abstract]  
Intangible assets including goodwill

13.

Intangible assets including goodwill

 

 

 

Internal

development

costs and

patents

 

 

Acquired

intangible

assets

 

 

Total

 

 

Goodwill

 

 

Total

 

 

 

(in € millions)

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2017

 

 

8

 

 

 

12

 

 

 

20

 

 

 

73

 

 

 

93

 

Additions

 

 

12

 

 

 

 

 

 

12

 

 

 

 

 

 

12

 

Acquisition, business combination (Note 5)

 

 

 

 

 

17

 

 

 

17

 

 

 

71

 

 

 

88

 

Write off of fully amortized intangibles

 

 

(2

)

 

 

(11

)

 

 

(13

)

 

 

 

 

 

(13

)

Exchange differences

 

 

 

 

 

(1

)

 

 

(1

)

 

 

(9

)

 

 

(10

)

At December 31, 2017

 

 

18

 

 

 

17

 

 

 

35

 

 

 

135

 

 

 

170

 

Additions

 

 

8

 

 

 

 

 

 

8

 

 

 

 

 

 

8

 

Acquisition, business combination

 

 

 

 

 

3

 

 

 

3

 

 

 

8

 

 

 

11

 

Exchange differences

 

 

 

 

 

1

 

 

 

1

 

 

 

3

 

 

 

4

 

At December 31, 2018

 

 

26

 

 

 

21

 

 

 

47

 

 

 

146

 

 

 

193

 

Accumulated amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 1, 2017

 

 

(3

)

 

 

(10

)

 

 

(13

)

 

 

 

 

 

(13

)

Amortization charge

 

 

(5

)

 

 

(3

)

 

 

(8

)

 

 

 

 

 

(8

)

Write off of fully amortized intangibles

 

 

2

 

 

 

11

 

 

 

13

 

 

 

 

 

 

13

 

At December 31, 2017

 

 

(6

)

 

 

(2

)

 

 

(8

)

 

 

 

 

 

(8

)

Amortization charge

 

 

(6

)

 

 

(5

)

 

 

(11

)

 

 

 

 

 

(11

)

At December 31, 2018

 

 

(12

)

 

 

(7

)

 

 

(19

)

 

 

 

 

 

(19

)

Cost, net accumulated amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At December 31, 2017

 

 

12

 

 

 

15

 

 

 

27

 

 

 

135

 

 

 

162

 

At December 31, 2018

 

 

14

 

 

 

14

 

 

 

28

 

 

 

146

 

 

 

174

 

 

Amortization of €11 million, €8 million and €5 million in 2018, 2017, and 2016, respectively, is included in research and development in the consolidated statement of operations. Research and development costs that are not eligible for capitalization have been expensed in the period incurred.

Goodwill is tested for impairment on an annual basis or when there are indications the carrying amount may be impaired. Goodwill is allocated to the Group’s two operating segments, Premium and Ad-Supported, based on the units that are expected to benefit from the business combination. The Group monitors goodwill at the operating segment level for internal purposes, consistent with the way it assesses performance and allocates resources. The carrying amount of goodwill allocated to each of the operating segments is as follows:

 

 

 

Premium

 

 

Ad-Supported

 

 

Premium

 

 

Ad-Supported

 

 

 

2018

 

 

2018

 

 

2017

 

 

2017

 

 

 

(in € millions)

 

Goodwill

 

 

128

 

 

 

18

 

 

 

119

 

 

 

16

 

 

The detailed calculations of recoverable amounts performed in 2016, which noted substantial headroom, were used in the 2018 impairment test as there have been no adverse significant changes in the industry and competitive environment, market capitalization, stock price and overall financial performance such that the recoverable amounts would be less than the carrying amount in 2018. Therefore, the Group concluded that goodwill was not impaired.