13. Intangible non-current assets
(in millions of euros) | Goodwill | Software | TotaL |
Composition per 1 January 2016 | | | |
| | | |
Cost | 38 | 361 | 404 |
Cumulative depreciation and impairment | 5 | 169 | 179 |
Carrying amount as at 1 January 2016 | 33 | 192 | 225 |
| | | |
Changes in 2016 | | | |
Additions | - | 86 | 86 |
Depreciation | - | -40 | -40 |
Divestments | - | - | - |
Impairment | - | - | - |
Reversal impairment | - | - | - |
Other changes | -13 | -1 | -14 |
Total changes | -13 | 45 | 32 |
| | | |
Composition per 31 December 2016 | | | |
| | | |
Cost | 20 | 469 | 489 |
Cumulative depreciation and impairment | - | 232 | 232 |
Carrying amount as at 31 December 2016 | 20 | 237 | 257 |
| | | |
Changes in 2017 | | | |
Additions | - | 103 | 103 |
Acquistions | 18 | 28 | 46 |
Depreciation | - | -45 | -45 |
Divestments | - | - | - |
Impairments | - | - | - |
Reversal impairment | - | - | - |
Other changes | - | -4 | -4 |
Total changes | 18 | 82 | 100 |
| | | |
Composition per 31 December 2017 | | | |
| | | |
Cost | 38 | 604 | 642 |
Cumulative depreciation and impairment | - | 285 | 285 |
Carrying amount as at 31 December 2017 | 38 | 319 | 357 |
The increase in the goodwill in 2017 relates to the increase in the stake in WestfalenBahn from 25% to 100%.
The ‘Other changes’ in 2016 are mainly the result of goodwill being transferred to ‘assets held for sale’. The remaining goodwill concerns our operations in the United Kingdom and Germany.
Accounting policies
Goodwill
All business combinations are accounted for using the acquisition method. Goodwill is the amount deriving from the acquisition of subsidiaries, associates and joint ventures. The goodwill is the difference between the cost of the acquisition and the fair value of the identifiable assets and liabilities on the date on which they are acquired. Goodwill is measured at cost less cumulative impairment.
Negative goodwill from an acquisition is taken directly to the income statement.
Other intangible non-current assets
Other intangible non-current assets with a limited useful life and acquired or produced by the Group are recognised at cost less cumulative amortisation and cumulative impairment.
Subsequent to initial recognition, expenditure on capitalised intangible non-current assets is only capitalised if it leads to an increase in the future economic rewards associated with the specific asset involved. All other expenditure, including internally generated goodwill and trademarks, is charged to the income statement when it occurs.
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives of the intangible non-current assets, with the exception of goodwill, from the date on which they become available for use. The estimated useful lives are as follows:
• Software 3-10 years
• Contracts 5-10 years