15. Other Intangible Assets

in thousands of EUR

Notes

Franchise contracts

Software

Trademarks

Key money

Other

Total

At 1 January 2013

Cost

35,913

98,703

249,427

215,166

11,638

610,847

Accumulated amortization and impairment

- 26,782

- 74,687

- 93,272

- 5,769

- 5,061

- 205,571

Carrying amount

9,131

24,016

156,155

209,397

6,577

405,276

Movements in 2013

Acquisitions

408

-

1,611

-

4,359

6,378

Additions

336

13,534

122

2,706

28

16,726

Disposals

-

- 118

- 24

- 1,237

- 9

- 1,388

Amortization charge

7

- 2,128

- 10,835

- 14,411

-

- 781

- 28,155

Impairment

7

-

-

-

- 1,349

-

- 1,349

Reclassification

-

6,514

- 21

5,910

- 5,023

7,380

Exchange differences

- 213

- 572

- 5,227

- 1,909

73

- 7,848

Carrying amount

7,534

32,539

138,205

213,518

5,224

397,020

At 31 December 2013

Cost

34,231

118,848

243,280

218,959

9,641

624,959

Accumulated amortization and impairment

- 26,697

- 86,309

- 105,075

- 5,441

- 4,417

- 227,939

Carrying amount

7,534

32,539

138,205

213,518

5,224

397,020

Movements in 2014

Acquisitions

5

807

625

31,518

2,000

32,203

67,153

Additions

195

21,990

3

3,732

522

26,442

Disposals

-

- 280

-

- 948

- 10

- 1,238

Amortization charge

7

- 1,927

- 11,575

- 14,455

-

- 3,475

- 31,432

Impairment

7

-

-

- 1,284

- 3,999

-

- 5,283

Reclassification

-

162

6

- 4,550

366

- 4,016

Exchange differences

287

- 288

- 1,033

- 41

669

- 406

Carrying amount

6,896

43,173

152,960

209,712

35,499

448,240

At 31 December 2014

Cost

35,200

144,253

274,436

218,775

43,202

715,866

Accumulated amortization and impairment

- 28,304

- 101,080

- 121,476

- 9,063

- 7,703

- 267,626

Carrying amount

6,896

43,173

152,960

209,712

35,499

448,240

The difference between the acquisition amount of €67,153 and the amount specified in note 5 on acquisitions of subsidiaries of €66,448 is caused by the intangible assets obtained from the acquisitions in Turkey and China, which is accounted for based on predecessor accounting.

The other intangible assets acquired in 2014 mainly comprise customer databases (€29,617).

Key money

Key money as part of intangible assets has an indefinite useful life, relating to stores in France and Brazil. In France and Brazil, these assets are not amortized but are subject to an annual impairment test using cash flow projections covering a five-year period and the market value is used based on external valuations. Details as to the cost per square meter and latest key money transactions for the main shopping malls publicly available.

If the calculated value in use is less than the carrying value of the assets, external valuations are performed to arrive at a fair value less cost to sell.

During 2014 the impairment test on key money resulted in an impairment in France and Brazil of €3,999 (2013: €1,349 in France) as a result of decrease of value in use and external valuations performed for each store individually.

In 2014 an amount of €4,266 was reclassed from key money to goodwill.

The carrying amount of the key money with an indefinite useful life is tested on a store-by-store basis and per country amounts to:

in thousands of EUR

31 December 2014

31 December 2013

France

200,517

203,887

Brazil

9,195

9,631

209,712

213,518

Key assumptions used to determine the recoverable amount:

2014

2013

Revenue growth rate

1.5% - 12%

2% - 10%

Discount rate (pre tax)

9.91% - 18.31%

10.26% - 18.31%

Internal development

In 2013, the business project iSynergy was initiated to implement global ERP system in all countries.

Development costs of these systems are recognized as intangible assets. Research expenditure is expensed as incurred and amounts to €619 (2013: €133). In 2014, the Group capitalized €8,685 (2013: €4,305) worth of licenses and expenses for the global ERP project that are not yet being used.