Annual report 2004 (English) - PDF 3546K - Imperial Tobacco

In order to adjust the acquisition cost of the
treasury stock as of December 31, 2004, as
described in Note 4-e, the Group has recorded the
related allowance for both the shares of treasury
stock held by the Parent Company and for those
held through the aforementioned subsidiary. This
allowance is recorded as a reduction of the “Parent
Company Shares” caption in the consolidated
balance sheet.
As of December 31, 2004, the balance of the
“Reserves for Treasury Stock” account covered the
full amount of the net balance of this caption in the
consolidated balance sheet.
9. Goodwill and negative
differences in consolidation
a) Goodwill
The variations in 2004 in this caption in the
accompanying consolidated balance sheet were as
follows:
Thousands
of Euros
Balance at December 31, 2003,
net of accumulated amortization 1,999,200
Additions 832,122
Reductions (36,028)
Translation differences arising
in the year (33,761)
Period amortization (156,920)
Balance at December 31, 2004,
net of accumulated amortization 2,604,613
The main additions in 2004 were as follows:
Altadis Group 2004 Financial Information 103
a) RTM €17,026 thousand: the correction of the
goodwill relating to this company arose from the
adjustment of certain provisions that had originally
been calculated on the basis of provisional
information.
b) Balkan Star €155,570 thousand: this relates to
the goodwill that arose on the acquisition of a
99.69% holding in this company.
b) Etinera €628,675 thousand: this balance
includes €530,413 relating to the goodwill that
arose on the acquisition of the company and
€98,262 thousand relating to intangible assets
already recorded by Etinera and included under the
“Consolidation Goodwill” caption in the
consolidated financial statements.
The main reduction relates to the decrease
(€31,377 thousand) of the goodwill of Corporación
Habanos, recorded as a result of an adjustment to
the acquisition price, as agreed on when the
related acquisition was made.
This caption also includes certain rights and
intangible assets arising on the acquisition of
subsidiaries, which are amortized by the
straight-line method over 20 years.
The Parent Company’s directors consider that the
various Group companies will generate sufficient
income to offset the related amortization of
goodwill within the envisaged periods (see Note 4f),
thereby permitting its recovery.
The breakdown, by company, of the balances of the
goodwill, the gross value of which is recorded at
the related historical exchange rates, and of the
related accumulated amortization as of December
31, 2004, is as follows: