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Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2020
Text Block [Abstract]  
Summary of Movements in Goodwill and Intangible Assets
 
  
€ million
 
 
€ million
 
 
€ million
 
 
€ million
 
 
€ million
 
 
  
 
 
 
 
 
 
Finite-life intangible
assets
 
 
 
 
Movements during 2020
  
Goodwill
 
 
Indefinite-life

intangible assets
 
 
Software
 
 
Other
 
 
Total
 
Cost
  
   
 
   
 
   
 
   
 
   
1 January 2020
  
 
19,246
 
 
 
12,121
 
 
 
2,991
 
 
 
1,161
 
 
 
35,519
 
Additions through business combinations
(a)
  
 
2,407
 
 
 
4,244
 
 
 
—  
 
 
 
(31
) 
 
 
6,620
 
Disposal of businesses
  
 
(1
) 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(1
) 
Additions
  
 
—  
 
 
 
—  
 
 
 
156
 
 
 
2
 
 
 
158
 
Disposals and other movements
  
 
—  
 
 
 
—  
 
 
 
(144
) 
 
 
—  
 
 
 
(144
) 
Hyperinflationary adjustment
  
 
(38
) 
 
 
(5
) 
 
 
—  
 
 
 
—  
 
 
 
(43
) 
Currency retranslation
  
 
(1,496
) 
 
 
(940
) 
 
 
(184
) 
 
 
(58
) 
 
 
(2,678
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2020
  
 
20,118
 
 
 
15,420
 
 
 
2,819
 
 
 
1,074
 
 
 
39,431
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortisation and impairment
  
   
 
   
 
   
 
   
 
   
1 January 2020
  
 
(1,179
) 
 
 
(212
) 
 
 
(2,292
) 
 
 
(807
) 
 
 
(4,490
) 
Amortisation/impairment for the year
  
 
—  
 
 
 
—  
 
 
 
(279
) 
 
 
(54
) 
 
 
(333
) 
Disposals and other movements
  
 
—  
 
 
 
—  
 
 
 
139
 
 
 
—  
 
 
 
139
 
Currency retranslation
  
 
3
 
 
 
1
 
 
 
150
 
 
 
40
 
 
 
194
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2020
  
 
(1,176
) 
 
 
(211
) 
 
 
(2,282
) 
 
 
(821
) 
 
 
(4,490
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net book value 31 December 2020
(b)
  
 
18,942
 
 
 
15,209
 
 
 
537
 
 
 
253
 
 
 
34,941
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
€ million
 
 
€ million
 
 
€ million
 
 
€ million
 
 
€ million
 
 
  
 
 
 
 
 
 
Finite-life intangible assets
 
 
 
 
Movements during 2019
  
Goodwill
 
 
Indefinite-life

intangible assets
 
 
Software
 
 
Other
 
 
Total
 
Cost
  
   
 
   
 
   
 
   
 
   
1 January 2019
  
 
18,502
 
 
 
11,247
 
 
 
2,689
 
 
 
1,103
 
 
 
33,541
 
Additions through business combinations
  
 
444
 
 
 
726
 
 
 
—  
 
 
 
50
 
 
 
1,220
 
Disposal of businesses
  
 
(2
) 
 
 
(1
) 
 
 
—  
 
 
 
(5
) 
 
 
(8
) 
Reclassification to held for sale
  
 
(2
) 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(2
) 
Additions
  
 
—  
 
 
 
—  
 
 
 
205
 
 
 
3
 
 
 
208
 
Disposals
  
 
—  
 
 
 
—  
 
 
 
(11
) 
 
 
(2
) 
 
 
(13
) 
Currency retranslation
  
 
313
 
 
 
150
 
 
 
108
 
 
 
12
 
 
 
583
 
Hyperinflationary adjustment
  
 
(9
) 
 
 
(1
) 
 
 
—  
 
 
 
—  
 
 
 
(10
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2019
  
 
19,246
 
 
 
12,121
 
 
 
2,991
 
 
 
1,161
 
 
 
35,519
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortisation and impairment
  
   
 
   
 
   
 
   
 
   
1 January 2019
  
 
(1,161
) 
 
 
(212
) 
 
 
(1,927
) 
 
 
(748
) 
 
 
(4,048
) 
Amortisation/impairment for the year
  
 
(18
) 
 
 
—  
 
 
 
(296
) 
 
 
(56
) 
 
 
(370
) 
Disposals of group companies
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
5
 
 
 
5
 
Disposals
  
 
—  
 
 
 
—  
 
 
 
5
 
 
 
1
 
 
 
6
 
Currency retranslation
  
 
—  
 
 
 
—  
 
 
 
(74
) 
 
 
(9
) 
 
 
(83
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2019
  
 
(1,179
) 
 
 
(212
) 
 
 
(2,292
) 
 
 
(807
) 
 
 
(4,490
) 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net book value 31 December 2019
(b)
  
 
18,067
 
 
 
11,909
 
 
 
699
 
 
 
354
 
 
 
31,029
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a)
Includes the provisional fair value of goodwill and intangibles for acquisitions made in 2020 as well as subsequent changes to the fair value of goodwill and intangibles for acquisitions made in 2019 where the initial acquisition accounting was provisional at the end of 2019. See note 21 for further details.
(b)
Within indefinite-life intangible assets there are four existing brands that have a significant carrying value: Horlicks €2,718 million (2019: €nil), Knorr €1,744 million (2019: €1,816 million), Carver Korea €1,468 million (2019: €1,509 million) and Hellmann’s €1,112 million (2019: €1,220 million). The Horlicks brand was acquired in 2020 and the valuation is provisional.
Summary of Goodwill and Indefinite-life Intangible Assets Held in Significant CGUs
 
  
2020 CGUs
 
  
2019 CGUs
 
 
  
€ billion
 
  
€ billion
 
  
€ billion
 
  
€ billion
 
 
  
 
 
  
Indefinite-life
 
  
 
 
  
Indefinite-life
 
 
  
Goodwill
 
  
intangible assets
 
  
Goodwill
 
  
intangible assets
 
Foods & Refreshment Europe
  
 
4.0
 
  
 
1.7
 
  
 
4.1
 
  
 
1.7
 
Foods & Refreshment The Americas
  
 
3.4
 
  
 
1.9
 
  
 
4.0
 
  
 
2.1
 
Foods & Refreshment Asia/AMET/RUB
(a)
  
 
3.7
 
  
 
3.7
 
  
 
1.9
 
  
 
0.5
 
Beauty & Personal Care The Americas
  
 
3.8
 
  
 
3.1
 
  
 
4.3
 
  
 
3.1
 
Beauty & Personal Care Asia/AMET/RUB
  
 
1.6
 
  
 
1.9
 
  
 
1.7
 
  
 
2.0
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total significant CGUs
  
 
16.5
 
  
 
12.3
 
  
 
16.0
 
  
 
9.4
 
Others
(b)
  
 
2.4
 
  
 
2.9
 
  
 
2.1
 
  
 
2.5
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Total CGUs
  
 
18.9
 
  
 
15.2
 
  
 
18.1
 
  
 
11.9
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
 
(a)
The Main Horlicks Acquisition increased goodwill by €2.0 billion and indefinite-life intangible assets by €3.3 billion in 2020. These values are provisional.
(b)
Included within Others are individually insignificant amounts of goodwill and intangible assets that have been allocated between multiple cash generating units.
Summary of Key Assumptions Used in Discounted Cash Flow Projections
For the year 2020
  
Foods &
Refreshment
Europe
 
 
Foods &
Refreshment
The Americas
 
 
Foods &
Refreshment
Asia/AMET/RUB
 
 
Beauty &
Personal Care
The Americas
 
 
Beauty &
Personal Care
Asia/AMET/RUB
 
Longer-term sustainable growth rates
  
 
1.1
% 
 
 
1.7
% 
 
 
3.9
% 
 
 
1.7
% 
 
 
3.9
% 
Average near-term nominal growth rates
  
 
(1.0
)% 
 
 
0.1
% 
 
 
4.9
% 
 
 
2.5
% 
 
 
3.4
% 
Average operating margins
  
 
13
% 
 
 
15
% 
 
 
16
% 
 
 
22
% 
 
 
22
% 
      
For the year 2019
  
Foods &
Refreshment
Europe
 
 
Foods &
Refreshment
The Americas
 
 
Foods &
Refreshment
Asia/AMET/RUB
 
 
Beauty &
Personal Care
The Americas
 
 
Beauty &
Personal Care
Asia/AMET/RUB
 
Longer-term sustainable growth rates
  
 
1.1
% 
 
 
1.7
% 
 
 
3.9
% 
 
 
1.7
% 
 
 
3.9
% 
Average near-term nominal growth rates
  
 
1.2
% 
 
 
(1.2
)% 
 
 
6.5
% 
 
 
1.6
% 
 
 
5.3
% 
Average operating margins
  
 
16
% 
 
 
15
% 
 
 
18
% 
 
 
21
% 
 
 
22
%