12 Intangible assets

CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2016
€ 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, 2016	17,062	23,646	6,781	23,681	8,529	79,699
Foreign exchange differences	−37	−86	−12	−90	137	−89
Changes in consolidated Group	–	9	–	–	29	37
Additions	–	–	4,857	893	385	6,135
Transfers	–	–	−4,324	4,324	12	12
Disposals	–	10	17	1,442	456	1,925
Balance at Dec. 31, 2016	17,024	23,559	7,285	27,366	8,637	83,870
Amortization and impairment Balance at Jan. 1, 2016	76	–	37	12,968	5,472	18,553
Foreign exchange differences	5	0	0	−80	84	9
Changes in consolidated Group	–	–	–	–	7	7
Additions to cumulative amortization	3	–	–	3,278	906	4,187
Additions to cumulative impairment losses	–	10	16	293	55	375
Transfers	–	–	0	–	−3	−3
Disposals	–	10	14	1,419	412	1,855
Reversal of impairment losses	–	–	–	1	0	1
Balance at Dec. 31, 2016	84	0	39	15,040	6,109	21,271
Carrying amount at Dec. 31, 2016	16,941	23,558	7,246	12,326	2,527	62,599

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CHANGES IN INTANGIBLE ASSETS IN THE PERIOD JANUARY 1 TO DECEMBER 31, 2017
€ 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, 2017	17,024	23,559	7,285	27,366	8,637	83,870
Foreign exchange differences	−30	−91	−44	−183	−192	−539
Changes in consolidated Group	–	−18	–	–	−112	−130
Additions	–	–	4,080	1,180	528	5,788
Transfers	–	–	−4,197	4,197	−7	−7
Disposals	–	7	10	3,607	266	3,890
Balance at Dec. 31, 2017	16,995	23,443	7,115	28,952	8,588	85,093
Amortization and impairment Balance at Jan. 1, 2017	84	0	39	15,040	6,109	21,271
Foreign exchange differences	−3	0	0	−122	−138	−263
Changes in consolidated Group	–	0	–	–	−84	−84
Additions to cumulative amortization	3	–	–	3,345	831	4,178
Additions to cumulative impairment losses	–	7	57	332	1	397
Transfers	–	–	–	–	2	2
Disposals	–	7	–	3,595	226	3,827
Reversal of impairment losses	–	–	–	–	–	–
Balance at Dec. 31, 2017	83	0	95	14,999	6,496	21,674
Carrying amount at Dec. 31, 2017	16,911	23,442	7,020	13,953	2,093	63,419

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	2017	2016

Brand names by operating segment
Porsche	13,823	13,823
Scania Vehicles and Services	990	1,017
MAN Truck & Bus	1,127	1,127
MAN Diesel & Turbo	415	415
Ducati	404	404
Other	153	155
	16,911	16,941
Goodwill by operating segment
Porsche	18,825	18,825
Scania Vehicles and Services	2,866	2,947
MAN Truck & Bus	595	608
MAN Diesel & Turbo	268	249
Ducati	290	290
ŠKODA	159	150
Porsche Holding Salzburg	151	197
Other	289	293
	23,442	23,558

The impairment test for recognized goodwill is based on value in use. 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	2017	2016	%

Total research and development costs	13,141	13,672	−3.9
of which: capitalized development costs	5,260	5,750	−8.5
Capitalization ratio in %	40.0	42.1	–
Amortization of capitalized development costs	3,734	3,587	4.1
Research and development costs recognized in profit or loss	11,614	11,509	0.9

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12 Intangible assets