12 Trademarks and Other Intangible Assets

Trademarks and other intangible assets consist of the following:

Trademarks and Other Intangible Ass ets

€ in millions

	Dec. 31 2007	Dec. 31 2006

Trademarks, gross	1,291	1,454
Less: accumulated amortization	—	—
Trademarks, net	1,291	1,454
Software, patents and concessions, gross	441	447
Less: accumulated amortization	247	224
Other intangible assets, net	194	223
Trademarks and other intangible assets, net	1,485	1,677

Intangible asset amortization expenses were € 64 million and € 69 million for the years ending December 31, 2007 and 2006, respectively. see also Note 24

At December 31, 2007, trademarks related to the Reebok acquisition with indefinite useful lives amounted to € 1.285 billion (December 31, 2006: € 1.436 billion). 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 unit Reebok.

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 cash-generating units to which the trademark is allocated. 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, 2007 and 2006.

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 (Attachment I to these Notes)