LensCrafters 2015 Annual Report Download - page 128

Notes to the consolidated financial statement as of December 31, 2015 Page 34 di 68
respectively.
11. GOODWILL AND INTANGIBLE ASSETS
Changes in goodwill and intangible assets for the years ended December 31, 2014 and 2015, were as follows:
(in thousands of Euro)
Goodwill
Trade names
and
trademarks
Customer
relations,
contracts
and lists
Franchise
agreements
Other Total
As of January 1, 2014
Historical cost 3,045,216
1,490,809 231,621 20,811 624,468 5,412,925
Accumulated amortization — (729,915) (93,148) (9,109) (274,400) (1,106,572)
Total 3,045,216
760,894 138,473 11,702 350,068 4,306,353
Increases
—
215
—
—
138,332
138,547
Decreases —
— — — (862) (862)
Business combinations
22,482
5,222
—
—
7,910
35,614
Translation difference and other 283,565
72,315 15,102 1,489 43,090 415,560
amortization expense — (64,957) (13,938) (1,080) (79,474) (159,449)
Balance as of December 31, 2014 3,351,263
773,688 139,638 12,110 459,064 4,735,764
Of which
Historical cost 3,351,263
1,628,250 258,145 23,639 829,944 6,091,241
Accumulated amortization — (854,562) (118,507) (11,529) (370,880) (1,355,477)
Total as of December 31, 2014 3,351,263
773,688 139,638 12,110 459,064 4,735,764
Increases
—
402
—
—
151,187
151,590
Decreases —
— — — (3,157) (3,157)
Business combinations/disposals
1
8
,
341
—
—
—
1,509
19,
851
Translation difference and other 227,378
62,644 9,064 1,370 38,026 338,482
Amortization expense — (72,868) (15,638) (1,293) (113,590) (203,389)
Balance as of December 31, 2015 3,596,983
763,866 133,064 12,187 533,031 5,039,130
Of which
Historical cost
3,
596,983
1,745,004
277,266
26,362
1,020,028
6,665,643
Accumulated amortization — (981,138) (144,202) (14,175) (486,997) (1,626,512)
Balance as of December 31, 2015 3,596,983
763,866 133,064 12,187 533,031 5,039,130
The 2015 and 2014 increases in goodwill and intangible assets due to business combinations were mainly due to the acquisition
of SGW (Euro 18.3 million) in 2015 and glasses.com (Euro 22.6 million) in 2014. Please refer to Note 4 “Business
Combinations” for further details.
Of the total amortization expense of intangible assets of Euro 203.4 million (Euro 159.4 million in 2014), Euro 178.1 million
(Euro 141.7 million 2014) is included in general and administrative expenses, Euro 19.0 million (Euro 13.0 million in 2014) is
included in selling expenses and Euro 6.3 million (Euro 4.7 million in 2014) is included in cost of sales.
Other intangible assets includes internally generated assets of Euro 86.7 million (Euro 69.3 million as of December 31, 2014).
The increase in other intangible assets is mostly due to the continued implementation of the IT infrastructure of the Group
which accounts for Euro 146.2 million of the total 2015.