Investor Presentaiton
9.- INTANGIBLE ASSETS:
An analysis of intangible assets at December 31, 2013 and 2012, is as follows:
Goodwill
December 31,
2013
Ps.
24,745,086 Ps.
Trademarks
620,167
Licenses and software
445,893
102,484
43,556
25,957,186 Ps.
Trade receivables
Patents
Ps.
December 31,
2012
24,745,086
609,428
415,740
115,441
42,345
25,928,040
For the years ended December 31, 2013 and 2012, the Company acquired software in the
amount of Ps. 288,454 and Ps. 201,783, respectively.
Amortization expense for the years ended December 31, 2013 and 2012, was Ps. 193,274
and Ps. 221,358, respectively.
Goodwill represents the excess of the purchase price over the fair value of the net assets of
Walmart Central America at the acquisition date, plus the fair value of the non-controlling
interests, computed in conformity with the guidelines in IFRS 3, Business Combinations.
Goodwill was computed in conformity with IAS 38, Intangible Assets, applying the
perpetuity value technique to determine the goodwill's value in use, considering each
Central American country (Costa Rica, Guatemala, Honduras, Nicaragua and El Salvador) as
a minimum cash generating unit.
The Company engaged the services of an independent expert to test its goodwill for
impairment. This evaluation was performed in conformity with IAS 36, Impairment of
Assets, using the discounted cash flow technique (expected present value) to estimate the
value in use of each cash generating unit based on the estimated revenues, costs, expenses,
working capital requirements and fixed asset investments of each unit. This technique
includes projection assumptions and value estimates and is consistent with the technique
used to determine the purchase price of Walmart Central America at the time of the
acquisition, which was the basis for estimating the goodwill to be allocated to each country.
Recoverable goodwill was computed based on value in use, which was calculated using
cash flow projections considering the five-year business plan that underlies the decision
making of the Company's senior management, except for El Salvador and Nicaragua, where
the business plan covers ten years.
As a result of this study, at December 31, 2013, there were no indicators of impairment in
the value of the Company's goodwill. At December 31, 2012, the Company recognized an
impairment loss of Ps. 5,023,011 in the other income (expenses), net line.
As a result of the above, the Company reassessed the contingent liability recognized
in February 2010 as part of the acquisition of Walmart Central America. As a result of
this analysis, no adjustment was made to the contingent liability at December 31, 2013.
Conversely, at December 31, 2012, the Company cancelled Ps. 4,901,100 of the contingent
liability, recognizing income of Ps. 4,649,277 in the other income (expense), net line, and
a cancellation of interest in the amount of Ps. 251,823 that is presented in the financial
(expense) income, net line.
10.- RELATED PARTIES:
a) Related party balances
At December 31, 2013 and 2012, the consolidated statement of financial position
includes the following balances with related parties:
Accounts payable
to suppliers:
C.M.A. U.S.A., L.L.C.
(affiliate)
Global George, LTD. (affiliate)
December 31,
2013
December 31,
2012
Ps.
343,919 Ps.
34,451
615,185
17,109
Ps.
378,370 Ps.
632,294
Other accounts payable:
Wal-Mart Stores, Inc.
(holding company)
Ps.
413,092 Ps.
377,254
At December 31, 2013 and 2012, balances receivable due from and payable due to
related parties consist of current accounts that bear no interest, payable in cash and
without guarantees.
b) Related party transactions
WALMEX has entered into the following open-ended agreements with related parties:
- Agreement for imports of merchandise for sale, interest-free and payable monthly.
Agreement for purchase commissions with Global George that are payable on a
recurring basis.
Agreement for technical assistance and services with Walmart Stores that are
payable monthly.
Agreement for royalties for trademark use with Walmart Stores, payable quarterly
based on a percentage of sales of the retail businesses.
2013 Financial and
Social Responsibility Report
77View entire presentation