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## Notes to consolidated financial statements 

## September 27, 2014 and September 28, 2013 

(Millions of dollars, unless otherwise indicated) 

Intangible assets with indefinite useful lives were as follows: 

<img src='content_image/280774.jpg'>

Net additions of intangible assets excluded from the consolidated statement of cash flows amounted to $ 3.6  in 2014 ($ 7.5 in 2013 ). 

Impairment testing of loyalty programs and certain private labels was conducted at the level of the asset itself. The recoverable amount was determined based on its fair value less costs of disposal, which was calculated using the capitalized excess EBIT method. The estimated EBIT directly allocated to the programs and private labels, after deduction of the return on contributory assets, was based on historical data reflecting past experience. For loyalty programs, the earnings multiple used was 6.7considering a growth rate of 2.0% corresponding to the consumer price index. For these private labels, the earnings multiple used was 7.3 considering a growth rate of 2.0 % corresponding to the consumer price index. The Corporation categorized the fair value measurement in Level 3, as it is derived from unobservable market inputs. 

Impairment testing of banners and certain private labels were conducted at the level of the asset itself. The recoverable amount was determined based on its fair value less costs of disposal, which was calculated using the royalty-free licence method. The estimated royalty rate was based on information from external sources and historical data reflecting past experience. For the banners, the earnings multiples used were 7.3 and 1 1.8 considering growth rate of 2.0 % corresponding to the consumer price index. For these private labels, the earnings multiple used was 12.5 considering a growth rate of 2.0% corresponding to the consumer price index. The Corporation categorized the fair value measurement in Level 3, as it is derived from unobservable market inputs. 

Key assumptions for fiscal 2014 and 2013 are similar . No reasonably possible change of any of these assumptions would result in a carrying amount higher than the recoverable amount. 

