15. Intangible assets

The development of the costs of acquisition or generation and the accumulated amortization and impairment-related write-downs of the intangible assets are as follows:

Costs of acquisition or generation

T 049
 
in € thousand 10/1/2015 Additions Disposals Transfers 9/30/2016
           
Intangible assets          
Franchises, industrial property rights and licenses 103,849 1,068 (134) 1,019 105,802
Goodwill 43,170 0 0 0 43,170
Payments on account for intangible assets 1,086 1,526 1 (1,019) 1,594
 
  148,105 2,594 (133) 0 150,566

Amortization and impairment losses

T 050
 
in € thousand 10/1/2015 Amortization
and impairment
losses for the
fiscal year
Disposals Transfers 9/30/2016
           
Intangible assets          
Franchises, industrial property rights and licenses (39,685) (1,752) 133 0 (41,304)
Goodwill (24,522) 0 0 0 (24,522)
Payments on account for intangible assets 0 0 0 0 0
 
  (64,207) (1,752) 133 0 (65,826)

Carrying amount

T 051
 
in € thousand 9/30/2016 9/30/2015
     
Intangible assets    
Franchises, industrial property rights and licenses 64,498 64,164
Goodwill 18,648 18,648
Payments on account for intangible assets 1,594 1,086
 
  84,740 83,898

Costs of acquisition or generation

T 052
 
in € thousand 10/1/2014 Additions Disposals Transfers 9/30/2015
           
Intangible assets          
Franchises, industrial property rights and licenses 102,418 1,274 (645) 802 103,849
Goodwill 43,170 0 0 0 43,170
Payments on account for intangible assets 976 912 0 (802) 1,086
 
  146,564 2,186 (645) 0 148,105

Amortization and impairment losses

T 053
 
in € thousand 10/1/2014 Amortization
and impairment
losses for the
fiscal year
Disposals Transfers 9/30/2015
           
Intangible assets          
Franchises, industrial property rights and licenses (38,714) (1,508) 537 0 (39,685)
Goodwill (24,522) 0 0 0 (24,522)
Payments on account for intangible assets 0 0 0 0 0
 
  (63,236) (1,508) 537 0 (64,207)

Carrying amount

T 054
 
in € thousand 9/30/2015 9/30/2014
     
Intangible assets    
Franchises, industrial property rights and licenses 64,164 63,704
Goodwill 18,648 18,648
Payments on account for intangible assets 1,086 976
 
  83,898 83,328

Intangible assets comprise licenses acquired for a consideration, primarily in connection with a contribution made to the investment costs for a power plant, as well as goodwill on consolidation arising in the Aurubis Group. As in the prior year, most of the goodwill (€ 17,439 thousand) was attributable to the Aurubis Hamburg Copper Products cash-generating unit (CGU).

Aurubis carries out an impairment test on goodwill at least annually. For the impairment test on goodwill, the goodwill acquired in conjunction with a business combination is allocated to the CGU that is expected to benefit from the synergies of the business combination. If the carrying amount of the CGU to which the goodwill was allocated exceeds its recoverable amount, a commensurate impairment loss is recognized on the allocated goodwill.

As in the prior year, there was no requirement to recognize an impairment loss for the Aurubis Hamburg Copper Products CGU.

The recoverable amount is the higher of the fair value less costs to sell and the value in use. Aurubis determines the recoverable amount on the basis of the value in use. The value in use is determined by means of discounting future cash flows after taxes with a risk-adjusted discount rate (WACC) after taxes (discounted cash flow method).

The cash flow estimates cover a planning horizon of four years before transferring to perpetuity. The cash flows were established within the scope of a qualified planning process including use of internal company values based on past experience and extensive market knowledge, and they take into consideration management’s assessment and estimates regarding the future development of the regional market.

In addition to the weighted capital costs, the significant assumptions used to calculate the value in use were the forecast earnings trend and the sustainable growth rate of the terminal value at a level of 1 %.The growth rate was derived from future expectations and did not exceed the long-term average growth rates of the respective markets.

The WACC used for discounting purposes amounted to 5.7 % after taxes or 8.1 % before taxes as at September 30, 2016 (previous year: 6.5 % after taxes or 9.3 % before taxes).

As in the prior year, there was no requirement to recognize impairment losses on intangible assets with a limited useful life.

As in the prior year, no capitalized development costs were recognized in the Group as at September 30, 2016. Research costs were recognized in profit or loss for the respective periods (see Note 31).