SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Balance Sheet F-116
Annual Report 2010 on Form 20-F 24 – Goodwill and Other Intangible Assets
In 2009, additions to goodwill totaled € 3 million and included € 2 million in CB&S resulting from the acquisition
of outstanding noncontrolling interests in an Algerian financial advisory company and € 1 million in Global Transaction
Banking (GTB) related to the acquisition of Dresdner Bank’s Global Agency Securities Lending business.
Effective January 1, 2009 and following a change in management responsibility, goodwill of € 306 million related
to Maher Terminals LLC and Maher Terminals of Canada Corp., collectively and hereafter referred to as Maher
Terminals, was transferred from AWM to Corporate Investments (CI). Due to their reclassification to the held for
sale category in the third quarter 2009, goodwill of € 14 million (CB&S) related to a nonintegrated investment in
a renewable energy development project was transferred as part of a disposal group to other assets (see Note
25 “Assets Held For Sale”).
A goodwill impairment loss of € 151 million was recorded in the second quarter of 2009 in CI related to its nonintegrated
investment in Maher Terminals, following the continued negative outlook for container and business
volumes. The fair value less costs to sell of the investment was determined based on a discounted cash flow
model.
In 2008, a total goodwill impairment loss of € 275 million was recorded. Of this total, € 270 million related to an
investment in AWM and € 5 million related to a listed investment in CB&S. Both impairment losses related to
investments which were not integrated into the primary cash-generating units within AWM and CB&S. The
impairment review of the investment Maher Terminals in AWM was triggered by a significant decline in business
volume as a result of the economic climate at that time. The fair value less costs to sell of the investment was
determined based on a discounted cash flow model. The impairment review of the investment in CB&S was
triggered by write-downs of certain other assets and the negative business outlook of the investment. The fair
value less costs to sell of the listed investment was determined based on its market price.
Goodwill Impairment Test
For the purposes of impairment testing, goodwill acquired in a business combination is allocated to cash generating
units which are the smallest identifiable groups of assets that generate cash inflows largely independent of the
cash inflows from other assets or groups of assets and that are expected to benefit from the synergies of the
combination. In identifying whether cash inflows from an asset (or a group of assets) are largely independent of
the cash inflows from other assets (or groups of assets) various factors are considered, including how management
monitors the entity’s operations or makes decisions about continuing or disposing of the entity’s assets and
operations.
Following a transfer in responsibility for leadership of the Corporate & Investment Bank (CIB) announced in
mid-2010, the reorganization to create an integrated CIB structure has significantly progressed. This integration
is expected to deliver synergies including more coordinated corporate client coverage, maximizing cross selling
opportunities and bringing together best practices from across the franchise. As a consequence, the two former
cash-generating units Global Markets and Corporate Finance have been merged into one single CGU Corporate
Banking & Securities effective October 1, 2010.The Group verified that the change in the cash-generating unit
structure within the CB&S segment did not trigger, defer or avoid an impairment of goodwill.