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FINANCIAL INFORMATION
4.2 Consolidated financial statements
4
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Registration Document 2016 — Capgemini
Cash-generating units and asset impairment tests
Note 15
Cash-generating units
geographic areas.
The cash-generating units identified by the Group represent
impairment tests
indication at the period end that their recoverable amount may
definite useful life are tested for impairment when there is an
Intangible assets and property, plant and equipment with a
year.
indefinite useful life are tested for impairment at least once a
be less than their carrying amount. Goodwill and assets with an
assets or groups of assets (cash-generating units or CGU).
that are separate from the cash flows generated by other
amount of each asset or group of assets generating cash flows
The impairment test consists of assessing the recoverable
use:
less costs to sell of the cash-generating unit and its value in
The recoverable amount is defined as the higher of the fair value
comparable transactions;
binding agreement or the market price in recent and
transaction and is determined with reference to the price in a
fair value is the amount obtainable in an arm’s length
◗
be derived from these cash-generating units.
value in use is based on the discounted future cash flows to
◗
using the discounted future cash flow method, based on the
The value in use of each cash-generating unit is measured
extrapolated over a period of five years, including growth and
various assumptions in the three-year strategic plan
possible and charged under “Other operating income and
impairment loss is deducted from goodwill to the extent
cash-generating unit is less than its carrying amount, the
value the Group. When the recoverable amount of a
projections by financial analysts who use these indicators to
of cases on the average of a representative sample of
rates for the period beyond five years are based in the majority
on the weighted average cost of capital) and long-term growth
expenses”.
profitability rates considered reasonable. Discount rates (based
Goodwill per cash-generating unit
€3,092 million was allocated to the different Group cash-generating units at December 31, 2015 benefitting from this acquisition.
The allocation of goodwill to cash-generating units breaks down as follows, noting that the goodwill arising on the IGATE acquisition of
The changes in groupings performed for segment reporting purposes did not impact the cash-generating units presented by the Group
(see Note 4, Operating segments).
in millions of euros
December 31, 2015
December 31, 2016
Gross value Impairment
amount
Net carrying
Gross value Impairment
amount
Net carrying
North America
2,114
(8)
2,106
2,193
(8)
2,185
France
1,450
(1)
1,449
1,469
(1)
1,468
United Kingdom and Ireland
1,062
-
1,062
1,014
-
1,014
Benelux
992
(12)
980
1,003
(12)
991
Southern Europe
129
-
129
132
-
132
Nordic countries
295
-
295
297
-
297
Germany and Central Europe
407
(32)
375
420
(32)
388
Asia-Pacific
560
-
560
581
-
581
Latin America
139
(40)
99
170
(50)
120
GOODWILL
7,148
(93)
7,055
7,279
(103)
7,176