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3. Notes

20. Intangible assets

20. Intangible assets

2020

Trademarks, patents and licences

Other

Total

€ million

Gross carrying amount at January 1

2 760

397

3 157

Additions

54

20

74

Disposals

- 6

- 5

- 11

Business Combinations

2 519

0

2 519

FX on Business Combinations

-110

0

- 110

Transfer from one heading to another

0

40

40

Effect of movements in exchange rates

- 257

- 3

- 260

Gross carrying amount at December 31

4 960

449

5 409

Accumulated amortization and impairment losses at January 1

-2 050

- 268

-2 318

Amortization charge for the year

- 180

- 35

- 215

Disposals

3

3

6

Impairment losses recognized in the income statement

0

0

0

Transfer from one heading to another

0

0

0

Effect of movements in exchange rates

89

2

91

Accumulated amortization and impairment losses at December 31

-2 138

- 298

-2 436

Net carrying amount at December 31

2 822

151

2 973

2019

Trademarks, patents and licences

Other

Total

€ million

Gross carrying amount at January 1

2 737

358

3 095

Additions

149

24

173

Disposals

- 25

- 3

- 28

Business Combinations

1

0

1

Transfer from one heading to another

0

17

17

Transfer to assets held for sale

- 147

0

- 147

Effect of movements in exchange rates

45

1

46

Gross carrying amount at December 31

2 760

397

3 157

Accumulated amortization and impairment losses at January 1

-1 992

- 233

-2 225

Amortization charge for the year

- 155

- 35

- 190

Disposals

25

1

26

Impairment losses recognized in the income statement

- 1

0

- 1

Transfer from one heading to another

0

0

0

Transfer to assets held for sale

112

0

112

Effect of movements in exchange rates

- 39

- 1

- 40

Accumulated amortization and impairment losses at December 31

-2 050

- 268

-2 318

Net carrying amount at December 31

710

129

839

The Group amortizes all intangible assets once they are placed in service. The amortization of intangible assets is allocated to cost of sales for all intangible assets that are related to compounds. The amortization charges related to software are allocated to the functions that use this software.

The majority of the Group intangible assets arose from previous acquisitions. During 2020, the Group acquired intangible assets totaling € 74 million (2019: € 173 million). These additions stem from in-licencing deals, software and capitalized eligible development costs, maily related to Cimzia® milestones (€ 13 million), buyback of Keppra® Japan from Otsuka (€ 15 million), and € 12 million capitalization of external development expenses for post approval studies.

UCB recognized intangibles assets of € 2 519 million from business combinations (refer to Note 8 ). 

Disposals in 2020 mainly relate to divestment of Alprostadil license. For 2019, disposals were mainly in respect of an old license not used anymore.

During the year, the Group recognized total impairment charges of € 0 million (2019: € 1 million). The impairment charges are detailed in Note 14  and have been presented in the income statement under the caption “Impairment of non-financial assets”.

Other intangible assets are primarily comprised of software and in-process development projects. The in-process development project assets are not amortized until they are available for use (i.e. when related products are launched for sale) and transferred to the licenses caption.