Annual Report 2009/10 Excellence in Retailing - Douglas Holding

144 Financial statements
Facts & figures
Consolidated income statement
Consolidated balance sheet
Statement of changes in Group equity
Segment reporting
Consolidated Cash Flow statement
Notes
Notes to the income statement
Notes to the balance sheet
Auditor’s report
A) Intangible assets and property, plant and equipment
The capital expenditure of the 2009/10 fiscal year is broken down by divisions as follows:
Capital expenditure
2009/10
(in EUR m)
2008/09
(in EUR m)
Perfumeries 56.3 61.1
Books 30.3 24.2
Jewelry 14.4 8.0
Fashion 1.8 5.0
Confectionery 3.4 3.8
DOUGLAS HOLDING AG, Services 11.3 10.2
Total 117.5 112.3
Of this total, 38.7 million EUR is attributable to foreign subsidiaries (fiscal year 2008/09:
46.2 million EUR).
The additions to intangible assets mostly relate to acquired Internet domains in connection
with the business acquisition of buch.de internetstores AG.
Capital expenditure in property, plant and equipment primarily relates to the opening
and acquisition of 30 stores in Germany and 42 stores abroad. In addition, continual
investments were made in designing and re-designing existing stores.
Scheduled amortization/depreciation for the fiscal year totaled 116.3 million EUR (previous
year: 116.2 million EUR).
Impairment tests for property, plant and equipment and intangible assets at store level,
as cash-generating units, led to write-downs totaling 12.4 million EUR in the fiscal year
under review (previous year: 16.7 million EUR). Ongoing negative contributions towards
profits and the intended closure of stores triggered the performance of impairment tests
on the cash-generating units.
In addition, write-ups amounted to 3.4 million EUR in fiscal year 2009/10 (previous
year: 2.5 million EUR) and are shown under other operating income. In general, single
cash-generating units are written-up due to increases in income following a previous
write-down.
As part of impairment testing, the carrying amount of the cash-generating unit is compared
to its recoverable amount. The recoverable amount is calculated as being the value
in use of the future Cash Flows based on internal forecasts. Sensitivity planning assumptions
include sales growth, gross profit forecasts, estimates of replacement investments
in the store network and the ratio of personnel expenses to sales on the basis individual
stores. The forecasts are based on the fixed term of the respective lease agreements. The
forecast term is between one and ten years. Calculations are based on an interest rate of
10.75 percent before taxes.