ÏÏ2
(2) Recognition and amortization of other intangible assets
Under Dutch GAAP, intangible assets are amortized over a period no longer than 20 years. Through December 2000, brand
names and other intangible assets acquired as part of a business combination were recognized as an integral part of
goodwill upon acquisition. Effective January 1, 2001, the Company changed its accounting policy to capitalize and
amortize brand names and other intangible assets, on a straight-line basis over a period not exceeding 20 years. This
change in accounting policy was applied for all business combinations completed after January 1, 2001.
Under US GAAP, through December 30, 2001, intangible assets were amortized over a period not exceeding 40 years.
Upon adoption of SFAS No. 142 on December 31, 2001, the Company re-assessed the useful lives of its other intangible
assets and deemed its brand names to have an indefinite useful life as defined under SFAS No. 142. Accordingly, they are
no longer amortized under US GAAP after December 31, 2001.
During fiscal 2002, 2001 and 2000, the Company recognized additional other intangible assets amortization under US
GAAP of EUR 25, EUR 50 and EUR 37, respectively, primarily related to intangible assets acquired as part of business
combinations before January 1, 2001. In fiscal 2002, this effect is partially offset since the Company ceased to amortize
brand names under US GAAP.
The Company's other intangible assets as determined in accordance with US GAAP consist of:
As of December 29, 2002
As of December 30, 2001
Gross
Net
Gross
Net
carrying
Accumulated
carrying
carrying
Accumulated
carrying
amount
amortization
amount
amount
amortization
cmount
Amortized intangible assets:
Customer relationships
473
115
358
538
56
482
Trade name licenses
68
15
53
72
12
60
Favorable lease contracts
268
78
190
292
56
236
Other
84
34
50
68
25
43
Total - amortized other intangible assets
893
242
651
970
149
821
Unamortized other intangible assets:
Intangible pension asset
N.A.
N.A.
17
1
1
Brand names (1)
N.A.
N.A.
639
850
79
771
Total - unamortized other intangible assets
N.A.
N.A.
656
851
79
772
(1) Brand names are no longer amortized after the implementation of SFAS No. 142, effective December 31, 2001.
Total amortization expense for other intangible assets recognized under US GAAP was EUR 111 for the year ended
December 29, 2002. Estimated amortization expense for the next five years for the other intangible assets is as follows:
Estimated
amortization expense
112
112
100
97
2003
2004
2005
2006
2007
172
