Other operating costs include all external expenses other than production and media buying when the Groupe acts as an agent, this includes:
It also includes taxes other than income taxes, duties and other payments and increases and reversals of provisions.
| (in millions of euros) | 2021 | 2020 |
|---|---|---|
| Amortization of other intangible assets (excluding intangibles arising from acquisitions) | Amortization of other intangible assets (excluding intangibles arising from acquisitions) 2021(89) |
Amortization of other intangible assets (excluding intangibles arising from acquisitions) 2020 (55) |
| Depreciation of property, plant and equipment | Depreciation of property, plant and equipment 2021(136) |
Depreciation of property, plant and equipment 2020 (150) |
| Depreciation of right-of-use assets | Depreciation of right-of-use assets 2021(252) |
Depreciation of right-of-use assets 2020 (395) |
| Depreciation and amortization expense (excluding acquired intangibles) | Depreciation and amortization expense (excluding acquired intangibles) 2021(477) |
Depreciation and amortization expense (excluding acquired intangibles) 2020 (600) |
| Amortization of intangibles from acquisitions | Amortization of intangibles from acquisitions 2021(256) |
Amortization of intangibles from acquisitions 2020 (339) |
| Impairment losses of goodwill | Impairment losses of goodwill 2021- |
Impairment losses of goodwill 2020 (15) |
| Impairment of right-of-use assets | Impairment of right-of-use assets 2021(122) |
Impairment of right-of-use assets 2020 (226) |
| Impairment losses | Impairment losses 2021(122) |
Impairment losses 2020 (241) |
| Total depreciation, amortization and impairment losses | Total depreciation, amortization and impairment losses2021(855) | Total depreciation, amortization and impairment losses 2020 (1 180) |
When indications of impairment were identified on intangible assets related to acquisitions, impairment tests were conducted. All valuations required for these tests were conducted by an independent expert. The after-tax discount rates used and the long-term growth rates were determined taking into account the specific characteristics of these assets. These tests did not lead to the recognition of impairment in 2021. In 2020, these tests did not lead the Groupe to recognize any impairment loss.
Impairment tests were carried out on the cash-generating units, which are the 10 key markets in which the Groupe operates: United States, Canada, United Kingdom, France, DACH (Germany, Austria and Switzerland), Asia-Pacific, Africa-Middle East, Central and Eastern Europe, Western Europe, Latin America (excluding Brazil) and Brazil, as well as on other goodwill.
The valuations required for the impairment tests on the most significant goodwill were conducted by an independent expert. Goodwill impairment tests were performed either:
The compound annual growth rates applied over the business plan period were corroborated with industry market studies on advertising spend by country or geographic region.
The method used in the calculation of discount rates and terminal growth rates is unchanged. The after-tax discount rates used range between 8.5% (11% before tax) and 14% (19% before tax). The terminal growth rate used in the forecasts ranged from 1.5% to 3.3%.
The impairment tests did not lead the Groupe to recognize any impairment loss in 2021. The sensitivity tests carried out show that there is no additional impairment charge to be recognized in the Groupe’s cash-generating units.
