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The 1996 additions (excluding goodwill and<br />
financial assets) are allocable to the divisions<br />
as follows:<br />
In DM million<br />
Metro Wholesale 133.993<br />
Department Stores 290.461<br />
Hypermarkets 197.530<br />
Food Stores & Discounters 120.353<br />
Consumer Electronics Centers 111.953<br />
Home Improvements Centers 86.360<br />
Furniture Centers 31.488<br />
Computer Centers 53.389<br />
Fashion Centers 27.805<br />
Footwear Centers 10.138<br />
Mail Order 5.214<br />
Restaurant & Catering 17.566<br />
Real Estate 424.565<br />
Others 128.442<br />
(7) Intangible assets<br />
1,639.257<br />
Breakdown as of December 31, 1996, of the<br />
total goodwill of DM 2,451.772 million:<br />
DM 2,203.220 million net equity under cost<br />
from capital consolidation<br />
DM 122.270 million difference from inclusion<br />
at equity,<br />
DM 126.282 million goodwill carried over<br />
from individual financial statements.<br />
The additions to goodwill mainly result from<br />
the acquisition of Praktiker Dritte Baumärkte<br />
GmbH & Co KG (formerly Spar Bau- und Heimwerkermärkte<br />
GmbH), as well as from that of<br />
further Vobis Microcomputer <strong>AG</strong> stock.<br />
Besides goodwill, intangible assets basically<br />
include purchased software.<br />
Goodwill is amortized over the anticipated<br />
period of benefit, as a rule 15 years.<br />
78<br />
(8) Tangible assets<br />
When initially consolidating the shares in Kaufhof<br />
Holding <strong>AG</strong> and Asko Deutsche Kaufhaus<br />
<strong>AG</strong>, conservatively valued reserves hidden in<br />
land and buildings were disclosed.<br />
Depreciation of tangible assets includes writedown<br />
at DM 25.223 million and ACR charges of<br />
DM 2.009 million under the terms of Art. 4 German<br />
Economic Area Promotion Act (“FördG”).<br />
(9) Financial assets<br />
The additions to investments chiefly refer to<br />
capital spent on foreign companies which hold<br />
real property for expansion outside of Germany.<br />
The book value at December 31, 1996, largely<br />
reflects that of real-estate enterprises.<br />
The additions to investments in associated<br />
affiliates include DM 20.420 million of prorated<br />
net incomes. Disposals reflect profits distributed<br />
at DM 1.770 million and prorated net losses<br />
of DM 7.849 million. A major item included in<br />
the book value as of December 31, 1996, is the<br />
investment in Roller GmbH & Co KG.<br />
(10) Inventories<br />
In DM million 12-31-1996 1-1-1996<br />
Raw materials and supplies 145.005 153.727<br />
Work in process<br />
Finished products,<br />
12.526 43.081<br />
merchandise 6,338.461 6,383.387<br />
Prepayments made 48.723 53.126<br />
6,544.715 6,633.321
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