Goodwill is allocated to cash generating units (CGUs) following consistent allocation as in the year-end 2010 allocation. Within TomTom we have identified four CGUs being Consumer, Automotive, Licensing and Business Solutions. The recoverable amount of a CGU is based on the higher of “value in use” or “fair value less cost to sell” calculations. The “fair value less cost to sell” resulted in a higher recoverable amount.

Our trigger-based impairment testing showed that the recoverable amount of our Consumer CGU is lower than its carrying value.

The impairment is mainly the consequence of a weaker than expected market outlook for the PND market which negatively impacts the expectations for our Consumer business unit.

The calculation method for the impairment test is consistent with the method used at year end. For a detailed explanation of the calculation method, reference is made to the 2010 Annual Report.

Management’s expectations and other inputs to the model reflect current economic and market developments and insofar as possible have been cross checked with external information.

Based on the impairment test management concluded that an impairment charge of €473 million (2010: nil) should be recorded in the first half year of 2011.

The following table sets out the key assumptions used in the trigger-based impairment testing;

7. Other intangible assets

Our trigger-based impairment testing on intangible assets other than goodwill resulted in an impairment charge of €39 million. The impairment charge recorded on our intangibles is mainly related to certain customer relationships which ended and other assets for which management has changed its intended use.

8. Shareholders’ equity