LensCrafters 2012 Annual Report Download - page 227

| 141 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
Changes in goodwill and intangible assets as of December 31, 2011 and 2012 were as
follows:
(thousands of Euro) Goodwill
Trade
names and
trademarks
Distribution
network
Customer
relations,
contracts
and lists
Franchise
agreements Other Total
Historical cost 2,890,397 1,423,092 86,389 225,364 21,479 321.627 5.031.334
Accumulated amortization - (545,896) (23,098) (51,967) (6,180) (162.877) (853.004)
Total as of January 1, 2011 2,890,397 877,196 63,290 173,397 15,299 158,750 4,178,330
Increases - - - - - 107,646 107,646
Decreases - - - - - (710) (710)
Business combinations 128,808 26,014 - - - 9,451 164,273
Translation difference and other 71,358 86,506 (63,232) 1,903 422 22.927 119,885
Amortization expense and impairments - (74,666) (41) (14,093) (1,031) (38,108) (127,939)
Balance as of December 31, 2011 3,090,563 915,050 17 161,208 14,690 259,956 4,441,484
Historical cost 3,090,563 1,576,008 287 229,733 22,181 464,712 5,383,484
Accumulated amortization - (660,958) (270) (68,526) (7,491) (204,756) (942,001)
Total as of December 31, 2011 3,090,563 915,050 17 161,208 14,690 259,956 4,441,484
Increases - 187 - - - 116,819 117,005
Decreases - - - - - (3,751) (3,751)
Acquisitions 107,123 12,057 - 21,806 - 11,146 152,132
Translation difference and other (48,916) (6,572) 1 (3,370) (255) (8,004) (67,117)
Amortization expense and impairments - (70,882) (18) (15,468) (1,117) (57,813) (145,298)
Balance as of December 31, 2012 3,148,770 849,839 - 164,177 13,319 318,352 4,494,457
Historical cost 3,148,770 1,563,447 288 247,730 21,752 546,966 5,528,953
Accumulated amortization - (713,608) (288) (83,553) (8,433) (228,614) (1,034,496)
Total as of December 31, 2012 3,148,770 849,839 - 164,177 13,319 318,352 4,494,457
The 2012 increase in goodwill and intangible assets due to business combinations is
mainly due to the acquisition of Tecnol (Euro127.1 million) and Sun Planet (Euro21.9
million). The increase in goodwill and intangible assets due to business combinations is
mainly due to the acquisition of MOI. Please refer to note 4 “Business Combinations”
for further details.
Of the total amortization expense of Euro 145.3 million (Euro 127.9 million in 2011),
Euro132.8 million (Euro 124.7 million in 2011) is included in general and administrative
expenses and Euro6.2 million (Euro3.2 million in 2011) is included in cost of sales.
11. GOODWILL AND
INTANGIBLE ASSETS