options, used to maximise operational flexibility in terms of managing the assets used in the Group’s operations. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor. During the current financial year, no significant financial effect was triggered by revision of lease terms (2020: nil). Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes. At 31 December 2021 and 2020 no significant capitalised borrowing costs were accounted for. 22. Intangible Assets 2021 in millions of Swiss francs Goodwill Process-oriented technology and other Client relation - ships Supplier relation - ships Name and product brands Software/ ERP system Tot al Net book value Balance as at 1 January 3,294 303 706 12 56 172 4,543 Additions 3 68 71 Acquisitions 218 48 163 11 440 Disposals Impairment – (1) (1) Amortisation (60) (67) (11) (10) (38) (186) Currency translation effects (16) – 5 (1) (2) – (14) Balance as at 31 December 3,496 294 807 – 55 201 4,853 Cost 3,496 1,175 1,263 44 89 886 6,953 Accumulated amortisation (875) (452) (44) (34) (684) (2,089) Accumulated impairment (6) (4) (1) (11) Balance as at 31 December 3,496 294 807 – 55 201 4,853 2020 in millions of Swiss francs Goodwill Process-oriented technology and other Client relation - ships Supplier relation - ships Name and product brands Software/ ERP system Tot al Net book value Balance as at 1 January 3,146 290 604 25 57 164 4,286 Additions 45 45 Acquisitions 304 86 224 12 – 626 Disposals (2) (7) – (9) Impairment – (4) (4) Amortisation (61) (64) (13) (12) (37) (187) Currency translation effects (156) (10) (47) – (1) – (214) Balance as at 31 December 3,294 303 706 12 56 172 4,543 Cost 3,294 1,129 1,095 44 80 819 6,461 Accumulated amortisation (820) (385) (32) (24) (647) (1,908) Accumulated impairment (6) (4) (10) Balance as at 31 December 3,294 303 706 12 56 172 4,543 Classification of amortisation expenses is as follows: in millions of Swiss francs 2021 2020 Fragrance & Beauty Ta s te & Wellbeing Tot al Fragrance & Beauty Ta s te & Wellbeing Tot al Cost of sales 11 17 28 10 14 24 Selling, marketing and distribution expenses 31 35 66 33 37 70 Research and product development expenses 14 50 64 10 52 62 Administration expenses 3 10 13 3 12 15 Other operating expenses 6 9 15 8 8 16 Total 65 121 186 64 123 187 Governance Report Compensation Report Consolidated Financial Report Statutory Financial Report Appendix 83 Givaudan — 2021 Governance, Compensation and Financial Report Notes to the consolidated financial statements