LensCrafters 2010 Annual Report Download - page 152

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ANNUAL REPORT 2010> 150 |
5.0 million in 2009) in advertising expenses and Euro 47.0 million (Euro 45.9 million in 2009) in general and administrative
expenses.
Other equipment includes Euro 91.3 million for assets under construction as of December 31, 2010 (Euro 49.2 million as of
December 31, 2009) mainly relating to the opening and renovation of North America retail stores.
Leasehold improvements totaled Euro 228.4 million and Euro 238.5 million as of December 31, 2010 and December 31,
2009, respectively.
10. GOODWILL AND INTANGIBLE ASSETS – NET
Changes in goodwill and intangible assets as of December 31, 2010 and 2009 were as follows:
(thousands of Euro) Goodwill
Trade names
and
trademarks
Distribution
network
Customer
relations,
contracts and
lists
Franchise
agreements Other Total
As of January 1, 2009
Historical cost 2,728,901 1,318,736 81,087 215,868 20,619 44,976 4,410,187
Accumulated amortization (38,554) (394,612) (15,179) (20,205) (3,870) (15,923) (488,343)
Total 2,690,347 924,124 65,908 195,663 16,749 29,053 3,921,844
Increases – – – – – 441 441
Decreases (7,239) – (300) – – (1,874) (9,413)
Acquisitions 5,077 576 – – – – 5,653
Translation difference and other 651 6,873 (1,793) (4,470) (456) 2,436 3,241
Amortization expense (58,867) (3,539) (15,075) (1,029) (4,541) (83,051)
Balance as of December 31, 2009 2,688,835 872,705 60,276 176,119 15,265 25,515 3,838,715
Historical cost 2,727,445 1,330,308 78,279 210,509 20,025 41,675 4,408,242
Accumulated amortization (38,610) (457,603) (18,003) (34,390) (4,760) (16,160) (569,527)
Total 2,688,835 872,705 60,276 176,119 15,265 25,515 3,838,715
Increases – 308 – – – 957 1,265
Acquisitions 21,465 – 2,494 – – – 23,959
Translation difference and other 200,528 66,064 4,375 12,574 1,117 3,999 288,657
Impairment and amortization expense (20,432) (61,881) (3,854) (15,296) (1,082) (4,646) (107,192)
Balance as of December 31, 2010 2,890,397 877,196 63,290 173,397 15,299 25,824 4,045,404
Historical cost 2,953,383 1,423,092 86,389 225,364 21,479 45,094 4,754,800
Accumulated amortization (62,986) (545,896) (23,098) (51,967) (6,180) (19,270) (709,396)
Total 2,890,397 877,196 63,290 173,397 15,299 25,824 4,045,404
The increase of goodwill is mainly due to the acquisition of OF Pty Ltd group. The acquisition included 47 corporate
stores and 9 franchises. Total consideration paid was approximately Euro 14.6 million. The acquisition was accounted for
according to IFRS 3 Revised. The Group used various method to calculate the fair value of assets acquired and liabilities
assumed. The goodwill recorded in the consolidated financial statements as of December 31, 2010 totals Euro 14.6 million.