13 Intangible assets continued
million
-
-
14 Investments in joint ventures
Ahold
Annual Report 2010
Group at a glance
Performance
Governance
Financials
Notes to the consolidated financial statements continued
The carrying amounts of goodwill allocated to CGUs within Ahold's reportable segments are as follows:
January 2,
2011
January 3,
2010
Reportable segment
Cash Generating Unit
Ahold USA
Stop Shop New England
7
Stop Shop New York Metro
5
Giant Carlisle
158
56
Peapod
19
18
The Netherlands
Albert Heijn
151
150
Etos
6
4
Gall Gall
1
1
Other Europe
Czech Republic
26
25
Ahold Group
373
254
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 value-in-use calculations. Value-in-use was
determined using discounted cash flow projections generally covering a maximum period of five years that are based on five-year financial
plans approved by the Company's management. The post-tax rates used to discount the projected cash flows reflect specific risks relating
to relevant CGUs and are 5.9 percent for Ahold USA, 6.1 percent for the Netherlands, and 7.9 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 (2009: €3 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 AB (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 - Gestao de Empresas de Retalho, SGPS. S.A. (JMR). JMR operates food retail stores in Portugal
under the brand name Pingo Doce.
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 2010 2009
Beginning of the year
1,066
972
Share in income of joint ventures
57
106
Dividend
(111)
(69)
Other changes
(2)
(8)
Exchange rate differences
62
65
End of the year
1,072
1,066
