31
Ahold Annual Report 2003
Financial Statements
173
2. Recognition and amortization of other intangible assets
Under Dutch GAAP, intangible assets are amortized over a period not exceeding 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 2003, 2002 and 2001, the Company recognized additional other intangible asset amortization under
US GAAP of EUR 18, EUR 25 and EUR 50, respectively, primarily related to intangible assets acquired as part of
business combinations before January 1, 2001. In 2003 and 2002, the impact of this was 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 28, 2003
As of December 29, 2002
Gross carrying
amount
Accumulated
amortization
Net carrying
amount
Gross carrying
amount
Accumulated
amortization
Net carrying
amount
Amortized other intangible assets
Customer relationships
400
164
236
473
115
358
Trade name licenses
27
26
1
68
15
53
Favorable lease contracts
272
57
215
268
78
190
Other
103
53
50
84
34
50
Total - amortized other intangible assets
802
300
502
893
242
651
Unamortized other intangible assets
Intangible pension asset
20
17
Brand names
540
639
Total - unamortized other intangible assets
560
656
Total amortization expense for other intangible assets recognized under US GAAP was EUR 97, EUR 111 and EUR
89 for the years ended December 28, 2003, December 29, 2002 and December 28, 2001, respectively. Estimated
amortization expense for the next five years for the other intangible assets is as follows:
Estimated amortization expense
