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E
Financial
E.4
Consolidated financial statements
Atos
|
Registration Document 2016
177
E
Goodwill
Note
11
(In € million)
December
31,
2015
Disposals
Depreciation
Impact of
business
combination
Exchange
differences and
other
December
31,
2016
Gross value
3,721.3
-
769.1
-58.6
4,431.8
Impairment loss
-603.2
-
-
36.2
-567.0
CARRYING AMOUNT
3,118.1
-
769.1
-22.4
3,864.8
(In € million)
December
31,
2014
Disposals
Depreciation combination
Impact of
business
Exchange
differences and
other
December
31,
2015
Gross value
3,214.3
-
438.2
68.8
3,721.3
Impairment loss
-586.4
-
-
-16.8
-603.2
CARRYING AMOUNT
2,627.9
-
438.2
52.0
3,118.1
Goodwill is allocated to Cash Generating Units (CGUs) that are
then part of one of the operating segments disclosed in Note 2
Segment information as per IFRS 8 requirements. Changes in
internal management reporting are applied retrospectively and
comparative figures are restated.
A summary of the carrying values of goodwill allocated by CGUs
or grouping of CGUs is presented hereafter. Overall, goodwill
increased from € 3,118.1 million to € 3,864.8 million mainly due
to the acquisitions of the year as detailed in Note 1 Changes in
the scope of consolidation.
(In € million)
December
31, 2016
December
31, 2015
United Kingdom and Ireland
502.5
572.5
France
490.2
489.9
Germany
507.3
304.1
North America
550.3
326.4
Benelux & The Nordics
371.0
370.9
Other countries
639.8
637.0
Worldline
803.7
417.4
TOTAL
3,864.8
3,118.1
The recoverable amount of a CGU is determined based on
value-in-use calculations. These calculations use cash flow
projections based on financial business plans approved by
management, covering a three-year period. They are also based
on the following assumptions:
terminal value is calculated after the three-year period, using
•
an estimated perpetuity growth rate of 2.0% (aligned with
2015). Although exceeding the long term average growth rate
for the countries in which the Group operates, this rate reflects
specifics perspectives of the IT sector; and
discount rates are applied by CGU based on the Group’s
•
order to reflect the long-term assumptions factored in the
impairment tests.
weighted average cost of capital and adjusted to take into
account specific tax rates and country risks relating to each
geographical area. The Group considers that the weighted
average cost of capital should be determined based on an
historical equity risk premium of 5.9% (in line with 2015), in
The discount rates used by CGU are presented below:
2016Discount rate
2015 Discount rate
United Kingdom and Ireland
9.0%
9.6%
France
8.9%
9.5%
Germany
8.9%
9.5%
North America
8.9%
9.5%
Benelux & The Nordics
8.9%
9.6%
Other countries
between 8.9% and 11.1%
between 9.5% and 13.1%
Worldline
8.1%
8.5%