Note 37
No differences in impairment were recognized for the Company's intangible assets in 2005 and 2004. The Company
recognized additional amortization of customer relationships under US GAAP of EUR 18 and EUR 26 in 2005 and 2004,
respectively due to differences in the underlying carrying amount of these assets. Under US GAAP the carrying amount of
brand names held and used was EUR 491 and EUR 429 as of January 1, 2006 and January 2, 2005, respectively. Under
US GAAP the carrying amount of customer relationships was EUR 144 and EUR 171 as of January 1, 2006 and January 2,
2005, respectively.
3 Impairment of non-current assets
Under IFRS, when determining whether impairment exists, the carrying amount of an asset is compared to the recoverable
amount which is measured using the higher of the fair value less costs to sell or the value in use of non-current assets.
The excess of the carrying amount over the recoverable amount is recorded as impairment. Under US GAAP, the impairment
test for non-current assets subject to depreciation is conducted in two steps. The first step is to compare the carrying amount
to undiscounted future cash flows expected from the use and eventual disposition of the asset. If the carrying amount is higher
than the sum of the undiscounted cash flows, the second step is to calculate the impairment based on discounted cash flows.
In addition, under IFRS previously recorded impairment losses are reversed if a change in the estimate of the asset's
recoverable amount indicates that the impairment no longer exists. Under US GAAP, such reversals on assets held for use are
prohibited. Differences arise due to the difference in methodologies of IFRS and US GAAP, as explained above, as well as a
difference in the underlying carrying amounts.
Impairment losses of other non-current assets were EUR 2 higher and EUR 35 lower under US GAAP than under IFRS for
2005 and 2004, respectively.
The following table summarizes the impact of net impairment differences recognized under US GAAP on the reconciliation
of the consolidated net income (loss) and consolidated shareholders' equity by Arena:
Consolidated
net income (loss)
Consolidated
shareholders' equity
2005 1 2004
January 1, 1 January 2,
2006 1 2005
Stop Shop Giant-Landover Arena
Giant Carlisle Tops Arena
Central Europe Arena
Schuitema
U.S. Foodservice
(7) 13
1 16
- 5
- 1
4 -
7 13
30 27
5 4
11
4-
1 Total
(2) 35
47 45
4 Provisions
RECONCILIATION OF NET INCOME (LOSS)
2005 I 2004
Provisions
Restructuring provisions and contingent liabilities
Discounting of provisions
2 (2)
11 2
(9) (4)
January 1, 1
January 2,
RECONCILIATION OF SHAREHOLDERS' EQUITY
2006
2005
Provisions
4
2
Restructuring provisions and contingent liabilities
26
14
Discounting of provisions
(22)
(12)
AHOLD ANNUAL REPORT 2005 191
