SEC Form 20-F - Deutsche Bank Annual Report 2012

Deutsche Bank Notes to the Consolidated Balance Sheet F-117
Annual Report 2010 on Form 20-F 24 – Goodwill and Other Intangible Assets
On this basis, the Group’s primary cash-generating units are Corporate Banking & Securities, Global Transaction
Banking, Asset Management and Private Wealth Management within the Asset and Wealth Management
segment, Private & Business Clients and Corporate Investments.
The carrying amounts of goodwill as well as their relative share by cash-generating unit for the years ended
December 31, 2010, and 2009, are as follows.
Corporate
Banking &
Securities
Global
Transaction
Banking
Asset
Management
Private
Wealth
Management
Private &
Business
Clients
Corporate
Investments Others
Total
Goodwill
As of December 31, 2009
in € m. 3,105 453 1,788 927 974 – 174 7,420
in % 42 % 6 % 24 % 12 % 13 % N/M 2 % 100 %
As of December 31, 2010
in € m. 3,332 487 1,988 1,736 3,025 – 194 10,762
in % 31 % 5 % 18 % 16 % 28 % N/M 2 % 100 %
N/M – not meaningful
In addition to the primary CGUs, the segments CB&S and CI carry goodwill resulting from the acquisition of
nonintegrated investments which are not allocated to the respective segments’ primary cash-generating units.
Such goodwill is tested individually for impairment on the level of each of the nonintegrated investments and
summarized as Others in the table above. The nonintegrated investment in CI constitutes Maher Terminals,
which was transferred from AWM to CI effective January 1, 2009.
Goodwill is tested for impairment annually in the fourth quarter by comparing the recoverable amount of each
goodwill carrying cash-generating unit with its carrying amount. The carrying amount of a cash-generating unit
is derived based on the amount of equity allocated to a cash-generating unit. The carrying amount also considers
the amount of goodwill and unamortized intangible assets of a cash-generating unit. The recoverable amount
is the higher of a cash-generating unit’s fair value less costs to sell and its value in use. The annual goodwill
impairment tests in 2010, 2009 and 2008 did not result in an impairment loss of goodwill of the Group’s primary
cash-generating units as the recoverable amount for these cash-generating units was higher than their
respective carrying amount.
The following sections describe how the Group determines the recoverable amount of its primary goodwill
carrying cash-generating units and provides information on certain key assumptions on which management
based its determination of the recoverable amount.
Recoverable Amount
The Group determines the recoverable amount of its primary cash-generating units on the basis of value in use
and employs a valuation model based on discounted cash flows (“DCF”). The DCF model employed by the
Group reflects the specifics of the banking business and its regulatory environment. The model calculates the
present value of the estimated future earnings that are distributable to shareholders after fulfilling the respective
regulatory capital requirements.