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Notes to the consolidated financial statements
13 Intangible assets - continued
14 Investments in joint ventures
-
Financials
CGUs to which goodwill has been allocated are tested for impairment annually or more frequently if there are indications that a particular
CGU might be impaired. The recoverable amount of each CGU was determined based on fair value calculations. Fair value was
determined using discounted cash flow projections generally covering a maximum period of five years that are based on three-year
financial budgets approved by Company management. Cash flows beyond this three-year period are extrapolated using estimated growth
rates that do not exceed the long-term average growth rate for the retail trade business in which the CGU operates. The rates used to
discount the projected cash flows reflect specific risks relating to relevant CGUs and are 6.8 percent for the United States, 7.5 percent
for the Netherlands, and 10.3 percent for the Czech Republic.
Lease-related intangible assets consist primarily of favorable operating lease contracts acquired in business acquisitions. Customer
relationships consist primarily of pharmacy scripts. Intangible assets under development relates mainly to software development.
"Other" mainly includes intangible assets related to location development rights, deed restrictions and similar assets.
The additions to intangibles under development include capitalized borrowing costs of €3 million (2008: €1 million). The capitalization
rate used was the same as for property, plant and equipment (see Note 11).
Ahold owns 60 percent of the outstanding common shares of ICA, a food retailer operating in Sweden, Norway and the Baltic states.
The 60 percent shareholding does not entitle Ahold to unilateral decision-making authority over ICA due to the shareholders' agreement
with the joint venture partner, which provides that strategic, financial and operational decisions will be made only on the basis of mutual
consent. On the basis of this shareholders' agreement, the Company concluded that it has no control over ICA and, consequently, does
not consolidate ICA's financial statements.
Ahold has a 49 percent stake in JMR. JMR operates food retail stores in Portugal under the brands Pingo Doce (supermarkets) and
Feira Nova (hypermarkets). As of 2009, Ahold's 49 percent stake in JMR was reclassified from assets held for sale to investments in
joint ventures.
For condensed financial information on ICA and JMR, see Note 6.
Ahold is also a partner in various smaller joint ventures. Changes in investments in joint ventures are as follows:
million
2009
20081
Beginning of the year
972
1,040
Share in income of joint ventures
106
124
Dividend
(69)
(83)
Other changes
(8)
Exchange rate differences
65
(109)
End of the year
1,066
972
1 Comparative amounts have been adjusted from amounts previously reported to reflect the effect of the changes in accounting policies and retrospective amendments (see Note 3).
Ahold Annual Report 2009 80
