The method used in the calculation of discount rates and terminal growth rates is unchanged. The sensitivity tests performed show that there is no impact on the impairment charge of the Group’s cash-generating units (CGUs). At December 31, 2018, the after-tax discount rates used ranged from 9% (11.6% before tax) to 14.5% (18.8% before tax). The terminal growth rate used in the forecasts ranges from 1% to 4%. The Group did not recognize any impairment losses in 2018 as a result of these tests.
This covers non-recurring income and expenses. This line item mainly includes gains and losses on the disposal of assets.
| (in millions of euros) | 2019 | 2018 |
|---|---|---|
(in millions of euros) Capital gains (losses) on disposal of assets | 2019 20 | 2018 (20) |
(in millions of euros) Non-current income and (expenses) | 2019 1 | 2018 - |
(in millions of euros) Total non-current income and (expenses) | 2019 21 | 2018 (20) |
At December 31, 2019, capital gains and losses on disposals of assets were related to price adjustments on the sale of Genedigi and the gains and losses on the sales of Publicis Health Solutions and Proximedia. The sale of Proximedia resulted in a capital loss of euro 9 million in 2019 (see Note 31). In 2018, the disposal of Genedigi in China accounted for most of the losses.
Net financial income (expense) excluding revaluation of earn-out payments
| (in millions of euros) | 2019 | 2018 |
|---|---|---|
(in millions of euros) Interest expenses on loans and bank overdrafts(1) | 2019 (137) | 2018 (81) |
(in millions of euros) Interest expenses on finance leases | 2019 - | 2018 - |
(in millions of euros) Financial expense | 2019 (137) | 2018 (81) |
(in millions of euros) Financial income | 2019 112 | 2018 70 |
(in millions of euros) The Cost of net financial debt(2) | 2019 (25) | 2018 (11) |
(in millions of euros) Foreign exchange gains (losses) and change in the fair value of currency derivatives | 2019 (2) | 2018 (4) |
(in millions of euros) Net financial expense related to the discounting of pension provisions | 2019 (8) | 2018 (7) |
(in millions of euros) Interest expense on lease liabilities | 2019 (70) | 2018 (58) |
(in millions of euros) Change in fair value of financial assets | 2019 14 | 2018 9 |
(in millions of euros) Others | 2019 - | 2018 - |
(in millions of euros) Net financial income (expense) excluding revaluation of earn-out payments(2) | 2019 (91) | 2018 (71) |
(1) Including the revaluation of interest rate swaps and bonds in respect of fair value hedges.
(2) The cost of net financial debt includes financial expenses related to the financing of Epsilon for a total of euro 58 million.
/ Revaluation of earn-out payments
| (in millions of euros) | 2019 | 2018 |
|---|---|---|
(in millions of euros) Revaluation of earn-out payments on acquisitions | 2019 (22) | 2018 (13) |
