12 Trademarks and other intangible assets

Trademarks and other intangible assets consist of the following:

Intangible asset amortisation expenses were € 61 million and € 64 million for the years ending December 31, 2008 and 2007, respectivelysee also Note 25.

At December 31, 2008, trademarks related to the Reebok acquisition as well as the Ashworth acquisition with indefinite useful lives amounted to € 1,359 million (December 31, 2007: € 1,285 million) and € 21 million. They were estimated to be indefinite due to the high degree of brand recognition as well as their long-standing heritage. The trademarks are allocated to the cash-generating units Reebok as well as TaylorMade-adidas Golf.

The Group determines whether trademarks with indefinite useful life are impaired at least on an annual basis. This requires an estimation of the fair value less costs to sell of the trademarks. Estimating the fair value less costs to sell requires the Group to make an estimate of the expected future brand-specific sales and appropriate arm’s length royalty rates from the cash-generating unit and also to choose a suitable discount rate in order to calculate the present value of those cash flows. There was no impairment expense for the years ending December 31, 2008 and 2007.

Future changes in expected cash flows and discount rates may lead to impairments of the accounted trademarks in the future.

For details see Statement of Movements of Tangible and Intangible Assets and Financial Assets.