210 / 386
20.2 Notes to the consolidated financial statements for the year ended December 31, 2016
FINANCIAL INFORMATION CONCERNING ASSETS,
FINANCIAL POSITION AND FINANCIAL PERFORMANCE
20
NOTE 10.
GOODWILL
Continuing operations
(in millions of euros)
December 31,
2015 Increase Disposals Impairment
Currency translation
adjustments and
other
Operations held
for sale
December 31,
2016
Mining
883
30
(913)
Front End (Chemistry, Enrichment)
161
(161)
Back End
228
(228)
TOTAL
1,272
30
(1,303)
Operations held for sale
(in millions of euros)
December 31, 2016
December 31, 2015
Operations held for sale in 2015
New NP
2,337
2,337
AREVA TA
29
31
Nuclear Measurements
-
100
Sub-total
2,366
2,468
Operations held for sale in 2016
NewCo
1,303
TOTAL (*)
3,669
2,468
* see note 3.
GOODWILL IMPAIRMENT TESTS
As indicated in notes 1.2.
Estimates and judgments
and 1.3.9.
Impairment of
property, plant and equipment, intangible assets and goodwill
, the group performs
asset impairment tests based on its best estimate of their recoverable value, which
corresponds to the higher of their net realizable value or their estimated value in
use, based on projected cash flows resulting from the budget, mining plans and
the assumptions they contain.
These tests consist of comparing the net carrying amount of the assets of cash
generating units (after inclusion of write-downs of property, plant and equipment
and intangible assets listed in notes 11 and 12) to their recoverable amount.
The discount rates used for these tests are based on the calculation of the average
cost of capital for each operating segment. They are calculated using observed
market data and evaluations prepared by specialized firms (10-year risk-free rates,
risk premiums on equity markets, volatility indices, credit spreads and debt ratios
of comparable businesses in each segment).
The following assumptions were used to determine the net present value of the cash flows to be generated by the CGUs:
December 31, 2016
After tax discount rate
Growth rate
of pro forma year
Final year
Mining
7.50%-12.00%
n/a
2070
Front End (Chemistry, Enrichment)
6.70%
n/a
2070
Back End
6.40%-6.70%
1.75%
2026
December 31, 2015
After tax discount rate
Growth rate
of pro forma year
Final year
Mining
9.50%
Na
2070
Front End (Chemistry, Enrichment)
6.50%
1.75%
2025
Back End
4.50%
1.75%
2025
These impairment tests were calculated using exchange rates in effect on the balance sheet date.
210
2016 AREVA
REFERENCE DOCUMENT