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Intangible assets | 12 Months Ended
--- | ---
Dec. 31, 2020
Intangible assets |
Intangible assets | 13 Intangible assets
|  |  |  | Industrial patents and |  | Other |  | Intangible assets |  |  |  |
|  | Exploration |  | intellectual property |  | intangible |  | with finite useful |  |  |  |
(€ million) |  | rights |  | rights |  | assets |  | lives |  | Goodwill |  | Total
2020 |  |  |  |  |  |  |  |  |  |  |  |
Net carrying amount - beginning of the year |  | 1,031 |  | 195 |  | 568 |  | 1,794 |  | 1,265 |  | 3,059
Additions |  | 18 |  | 23 |  | 196 |  | 237 |  |  |  | 237
Amortization |  | (53) |  | (92) |  | (130) |  | (275) |  |  |  | (275)
Impairments |  | (23) |  |  |  | (7) |  | (30) |  | (24) |  | (54)
Reversals |  |  |  |  |  | 24 |  | 24 |  |  |  | 24
Write-off |  | (19) |  | (5) |  |  |  | (24) |  |  |  | (24)
Changes in the scope of consolidation |  |  |  |  |  | 7 |  | 7 |  | 70 |  | 77
Currency translation differences |  | (66) |  |  |  | (3) |  | (69) |  | (14) |  | (83)
Other changes |  |  |  | 41 |  | (66) |  | (25) |  |  |  | (25)
Net carrying amount at the end of the year |  | 888 |  | 162 |  | 589 |  | 1,639 |  | 1,297 |  | 2,936
Gross carrying amount at the end of the year |  | 1,613 |  | 1,623 |  | 4,399 |  | 7,635 |  |  |  |
Provisions for amortization and impairment |  | 725 |  | 1,461 |  | 3,810 |  | 5,996 |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  |
Net carrying amount - beginning of the year |  | 1,081 |  | 221 |  | 584 |  | 1,886 |  | 1,284 |  | 3,170
Additions |  | 78 |  | 23 |  | 210 |  | 311 |  |  |  | 311
Amortization |  | (81) |  | (93) |  | (117) |  | (291) |  |  |  | (291)
Impairments |  | (19) |  |  |  | (72) |  | (91) |  | (26) |  | (117)
Write-off |  | (28) |  | (1) |  | (1) |  | (30) |  |  |  | (30)
Currency translation differences |  | 18 |  |  |  | 1 |  | 19 |  | 3 |  | 22
Other changes |  | (18) |  | 45 |  | (37) |  | (10) |  | 4 |  | (6)
Net carrying amount at the end of the year |  | 1,031 |  | 195 |  | 568 |  | 1,794 |  | 1,265 |  | 3,059
Gross carrying amount at the end of the year |  | 1,748 |  | 1,597 |  | 4,373 |  | 7,718 |  |  |  |
Provisions for amortization and impairment |  | 717 |  | 1,402 |  | 3,805 |  | 5,924 |  |  |  |
Exploration rights comprised the residual book value of license and leasehold property acquisition costs relating to areas with proved reserves, which are amortized based on UOP criteria and are regularly reviewed for impairment. Furthermore, they include the cost of unproved areas which are suspended pending a final determination of the success of the exploration activity or until management confirms its commitment to the initiative. Additions for the year related to signature bonuses paid for the acquisition of new exploration acreage in Angola, Albania, United Arab Emirates, Egypt, Oman and the extension of a licence in Gabon. The breakdown of exploration rights by type of asset was as follows:
(€ million) |  | December 31, 2020 |  | December 31, 2019
Proved licence and leasehold property acquisition costs |  | 225 |  | 291
Unproved licence and leasehold property acquisition costs |  | 653 |  | 709
Other mineral interests |  | 10 |  | 31
|  | 888 |  | 1,031
Industrial patents and intellectual property rights mainly regarded the acquisition and internal development of software and rights for the use of production processes and software. Other intangible assets comprised: (i) customer acquisition costs relating to Eni gas e luce business line for €262 million (€226 million at December 31, 2019); (ii) concessions, licenses, trademarks and similar items for €88 million (€102 million at December 31, 2019) comprised transmission rights for natural gas imported from Algeria for €25 million (€30 million at December 31, 2019); (iii) capital expenditures in progress on natural gas pipelines for which Eni has acquired transport rights for €78 million (same amount as of December 31, 2019). The main amortization rates used were substantially unchanged from the previous year and ranged as follows:
(%) |  |
Exploration rights |  | UOP
Transport rights of natural gas |  | 3
Other concessions, licenses, trademarks and similar items |  | 3 - 33
Service concession arrangements |  | 20 - 33
Capitalized costs for customer acquisition |  | 17 - 33
Other intangible assets |  | 4 - 20
Cumulative impairment charges at the end of the year amounted to €2,457 million. The breakdown of goodwill by segment is provided below:
(€ million) |  | December 31, 2020 |  | December 31, 2019
Eni gas e luce |  | 1,046 |  | 981
Exploration & Production |  | 146 |  | 190
Refining & Marketing |  | 93 |  | 93
Corporate and Other activities |  | 11 |  |
Renewables |  | 1 |  | 1
|  | 1,297 |  | 1,265
An impairment loss of goodwill was recorded in relation to a business combination of the Exploration & Production segment. Change in the scope of consolidation of goodwill related for €66 million to the acquisition of the 70% stake in Evolvere, a group operating in the business of distributed generation from renewable sources. Goodwill acquired through business combinations has been allocated to the CGUs that are expected to benefit from the synergies of the acquisition. With regard to the Eni gas e luce business line, which has significant allocated goodwill, the allocation of CGU was carried out as follows:
(€ million) |  | December 31, 2020 |  | December 31, 2019
Domestic market |  | 904 |  | 839
Foreign market |  | 142 |  | 142
|  | 1,046 |  | 981
Goodwill allocated to the CGU Domestic market was recognized upon the buy-out of the former Italgas SpA minorities in 2003 through a public offering (€706 million). The acquired entity engaged in the retail sale of gas to the residential sector and middle and small-sized businesses in Italy. In addition, further goodwill amounts have been allocated over the years following business combinations with small, local companies selling gas to residential customers in focused territorial reach and municipalities synergic to Eni’s activities, the latest of which was the acquisition of 70% of Evolvere group, operating in the business of distributed generation from renewable sources, in line with the strategy of growing the market share in the retail sector through the diversification of the product mix by offering green electricity. The impairment review performed at the balance sheet date confirmed the recoverability of the carrying amount of this CGU, including the allocated goodwill. The recoverability of the carrying amount of the CGU Domestic market, including the allocated portion of goodwill, was verified comparing the value in use of the CGU, which was estimated based on the cash flows of the four-year plan approved by management and on a terminal value calculated as perpetuity of the last year of the plan by assuming a nominal long-term growth rate equal to zero, unchanged. These cash flows were discounted by using the post-tax WACC of the retail business adjusted considering the specific country risk for Italy of 4.3%. There are no reasonable assumptions of changes in the discount rate, growth rate, profitability or volumes that would lead to zeroing the headroom amounting to €2,856 million of the value in use of the CGU Domestic market with respect to its book value, including the allocated goodwill. Goodwill allocated to the CGU Foreign market related for €95 million to Eni Gas & Power France SA (former Altergaz SA) operating in France and for €45 million to the acquisition in 2018 of the residual 51% interest in Gas Supply Company Thessaloniki-Thessalia SA operating in Greece, previously participated with a 49% of the share capital. The impairment review performed at the balance sheet date by using a method similar to the CGU Domestic market confirmed the recoverability of the carrying amount of these market CGUs, including the goodwill, by using a post-tax WACC adjusted considering a post-tax country risk for France of 4.6% and 4.8% for Greece. Post-tax cash flows and discount rates resulted in an assessment that substantially approximated a pre-tax assessment.

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