Intangible assets

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Goodwill

Customer databases

Licences and software

Concessions, permits and rights

Development costs

Total

Cost

At 1 January 2012

167

182

72

245

4

670

Investments

1

1

2

Disposals

– 3

– 1

– 4

Reclassification other

1

10

– 1

10

At 31 December 2012

168

182

80

244

4

678

Investments

7

1

8

Acquisitions

2

1

3

6

Disposals

– 3

– 3

At 31 December 2013

170

180

90

245

4

689

Accumulated depreciation and impairment

At 1 January 2012

58

52

106

4

220

Annual depreciation and impairment

14

8

20

42

Disposals

– 2

– 2

Reclassification other

3

– 1

2

At 31 December 2012

72

61

125

4

262

Annual depreciation and impairment

10

20

7

16

53

Disposals

– 3

– 3

At 31 December 2013

10

89

68

141

4

312

Carrying amount

At 31 December 2012

168

110

19

119

416

At 31 December 2013

160

91

22

104

377

In principle, goodwill is allocated to one or more cash-generating units which independently or in aggregate form a business segment. The structure of the cash-generating units in the Eneco segment was changed in 2013, establishing a separate cash-generating unit for Ecofys. An impairment analysis has shown that the value in use of the related assets is lower than their carrying amount. The value in use of the Ecofys cash-generating unit is based on expected 5-year cash flows as used in Eneco’s long-term plans, and thereafter, the ‘terminal value’. No account is taken of long-term growth. The pre-tax discount rate, which assumes the same theoretical debt/equity ratio as in 2012 and reflects the risks of the activities, was 9% (2012: 9%). Based on this analysis, impairment of € 10 million of goodwill has been recognised in the income statement in Amortisation and impairment of intangible assets. The remaining goodwill of €160 million at 31 December 2013 was fully attributable to the group of cash-generating units which, in addition to Ecofys, form the Eneco business segment. An impairment analysis was also performed on this goodwill which showed that the value in use of this group of cash-generating units was higher than their book value. The value in use was established using the same criteria as for the impairment analysis for Ecofys as explained above.

See Note 13 (Property, plant and equipment) for information on the impairment analysis and impairment of the intangible electricity-related assets of the Netherlands and Belgium Electricity cash-generating unit.

Customer databases relate mainly to Oxxio, which was acquired in 2011, and to REMU N.V., which was acquired in 2003. A change of estimate was made in 2013 which reduced the expected economic life of part of the customer databases (effect of € 8 million annually).

Concessions, permits and rights consist of € 150 million paid in 2005 to take over an agreement covering the delivery of up to 820 MW of electricity by Rijnmond Energy C.V. There was an addition of € 45 million in 2008 for licences granted for existing and future wind farms in Belgium on the acquisition of Eneco Wind Belgium S.A. (formerly: Air Energy S.A.).