Groupe Renault - 2019 Universal Registration Document

04

CONSOLIDATED FINANCIAL STATEMENTS FINANCIAL STATEMENTS

Operating assets and liabilities, shareholders’ equity

4.2.6.4

INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT NOTE 10

Intangible assets and goodwill 10 – A – Changes in intangible assets and goodwill A1 Changes in 2019 in intangible assets were as follows:

Acquisitions/ (amortization and impairment)

Change in scope of consolidation

(Disposals)/ reversals

Translation adjustment

and other December 31, 2019

December 31, 2018

(€ million)

Capitalized development expenses

9,671

1,985

(69)

14

12 43

11,613

Goodwill

996

-

-

112

1,151 1,160

Other intangible assets Intangible assets, gross

1,044

101

(14) (83)

23

6

11,711 (5,078)

2,086

149

61

13,924 (6,134)

Capitalized development expenses

(1,123)

69

(2)

- - - -

Goodwill

(24)

-

-

(24)

Other intangible assets

(720)

(109)

14 83

(2) (4) 12

(817)

Amortization and impairment Capitalized development expenses

(5,798)

(1,256)

(6,975)

4,593

862 (24)

- - - -

12 43

5,479 1,127

Goodwill

996 324

112

Other intangible assets INTANGIBLE ASSETS, NET

(8)

21

6

343

5,913

830

145

61

6,949

Most goodwill is located in Europe and Eurasia. Acquisitions of intangible assets in 2019 comprise €1,985 million of self-produced assets and €101 million of purchased assets (respectively €1,717 million and €55 million in 2018).

In 2019, amortization and impairment of intangible assets include €206 million of impairment concerning vehicles (including components), compared to €42 million of impairment in 2018 (note 6-B).

Changes in 2018 in intangible assets were as follows:

Gross value

Amortization and impairment

Net value

(€ million)

Value at December 31, 2017

10,721

(5,481)

5,240

Acquisitions/(amortization and impairment)*

1,772 (623) (159)

(950)

822

(Disposals)/reversals Translation adjustment

623

-

10

(149)

Change in scope of consolidation and other

-

-

-

Value at December 31, 2018

11,711

(5,798)

5,913

Including impairment of €42 million concerning intangible assets. *

Research and Development expenses included in income A2 (€ million)

2019

2018

Research and Development expenses Capitalized development expenses

(3,697)

(3,516)

1,985 (946)

1,717 (799)

Amortization of capitalized development expenses

TOTAL INCLUDED IN INCOME

(2,658)

(2,598)

Research and Development expenses are reported net of research tax credits for the vehicle development activity. The rise in Research and Development expenses is explained by efforts to respond to new issues for connected, driverless and electric vehicles, and ensure that engines comply with new regulations applicable, particularly in Europe. In addition to

reflecting this rise in development expenses, the increase in capitalized development expenses is also attributable to the start of the capitalization phase for development expenses on significant programs, and resumption of capitalization of development

expenses concerning electric vehicles.

372 GROUPE RENAULT I UNIVERSAL REGISTRATION DOCUMENT 2019

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