ntangible A ssets
Intangible assets consist primarily of trade names, customer relationships, purchased and developed s oftw are, favorable lease
rights, prescription files and other licenses.
Delhaize Group has determined that its trade names have an indefinite useful life and are not amortized, but are tested annually
for impairment and whenever events or circumstances indicate that impairment may have occurred. Trade names are tested for
impairment by comparing their recoverable amount, being their value in use, with their carrying amount. The recoverable amount
is estimated using revenue projections of each operating entity (see Note 6) and applying an estimated royalty rate of 0.45% and
0.70% for F ood Lion and Hannaford, respectively.
During 201 2, the G roup fully impaired the Albania n trade name (€3 million), reflecting the measurement of the disposal group in
accordance with IFRS 5, and included this impairment in Result from discontinued operations (net of tax)" (Note 5.3) Further,
the G roup recognized impairment charges in connection w ith the Piccadilly brands in Bulgaria (part of the "Southeastern Europe
Asia" segment) for €15 million, reflecting the Group's revised expectations on market conditions. The recoverable amount has
been estimated using the royalty-relief-method and royalty rates for the various Maxi brands range from 0.68% (Piccadilly) to
1.34% (M axi), depending on the individual local strengths of the different brands. No impairment loss of trade names was
recorded or reversed in 2011 or 2010.
See N ote 8 for a description of the impairment test for assets with finite lives
(in
ns of
Cost at January 1, 2012
Ad ditions
Sales and disposals
Transfers (to) from other accounts
Classified as held for sale
Currency translation effect
Cost at December 31, 2012
Ac cumulated amortization at Janu
Ac cumulated impairment at Janus
Amortization expense
y1,2012
1, 2012
Sales and disposals
Transfers to (from) other accounts
Currency translation effect
Ac cumulated amortization at December 31, 2012
Ac cumulated impairment at December 31, 2012
Net carrying amount at December 31, 2012
Cost at January 1, 2011
Ad ditions
Sales and disposals
Acquisitions through business com binations
Transfers (to) from other accounts
Currency translation effect
Cost at December 31, 2011 (1)
Ac cumulated amortization at Janu
Ac cumulated impairment at Janus
Amortization expense
Sales and disposals
Transfers to (fr om) other accounts
Currency translation effect
Ac cumulated amortization at Dece
Ac cumulated imp
y 1, 2011
1, 2011
ent at D
mber31, 2011
i ber 31, 2011
Trade Developed Purchased
Names Softw are Softw are
599
(3)
(21)
575
(36)
(15)
(51)
524
390
200
9
599
(35)
(1)
(36)
222
71
(20)
(2)
271
(116)
(27)
1
(142)
129
192
58
(12)
(19)
3
222
(94)
(2)
(23)
(1)
12
(5)
(3)
(116)
281
17
(2)
30
(5)
321
(171)
(36)
1
(8)
3
(211)
110
230
27
(6)
1
21
8
281
(138)
(3)
(32)
(1)
5
3
(5)
(171)
N
et carrying
De
i ber 31, 2011
(1)
563
106
110
Rights
170
(12)
(4)
154
(105)
(11)
12
2
(102)
52
195
(36)
8
3
170
(129)
(11)
37
(2)
(105)
65
Othe
65
4
(4)
(2)
63
(30)
(1)
(3)
(2)
4
(28)
(2)
33
56
9
(3)
1
65
(28)
(4)
(1)
3
(1)
(30)
(1)
1 337
92
(18)
10
(3)
(34)
1 384
(422)
(37)
(77)
(17)
17
(8)
8
(483)
(53)
1 063
87
(54)
218
(1)
24
1 337
(389)
(40)
(70)
(3)
54
1
(12)
(422)
(37)
34
DELHAIZE GROUP FINANCIAL STATEMENTS '12 99
