The main assumptions used in these tests are presented in the table below:
| December 31, 2021 | |||
|---|---|---|---|
| (in millions of euros) | Carrying amount of goodwill | After-tax discount rate |
Terminal growth rate |
| North America | 8,176 | 9% | 2% |
| Europe | 1,627 | 8.8%-11% | 1.6%-2.8% |
| Asia-Pacific | 1,086 | 8.6% | 2.2% |
| Africa & Middle East | 370 | 10.5% | 2.5% |
| Latin America | 159 | 13.5%-14% | 2.5%-3.3% |
| Other goodwill | 342 | 8.5%-11% | 1.5% |
| Total goodwill after impairment loss | 11,760 | ||
At December 31, 2020, goodwill tests had led the Groupe to recognize an impairment loss of euro 15 million, of which euro 4 million in the Latin America region and euro 11 million on other goodwill relating to events activities and in particular the organization of forums. The after-tax discount rates used ranged from 8.5% (10.9% before tax) to 14% (19.2% before tax). The terminal growth rate used in the forecasts ranged from 1.5% to 3.3%.
As part of the program to optimize premises, aiming to consolidate the agencies on one or more sites in the main countries, it was necessary to empty leased space in order to make better use of the existing space at other sites. Consequently, right-of-use assets concerning the empty spaces were subject to total or partial impairment loss, and likewise concerning the fixtures in these spaces.
Euro 122 million in impairment losses were recognized in 2021 (euro 91 million net of tax), including euro 95 million for right-of-use assets and euro 11 million for fixtures. Expenses such as facility management expenses and any taxes on vacant properties in the amount of euro 16 million are included in vacant property provisions; they also include early termination penalties.
Euro 226 million in impairment losses had been recognized in 2020 (euro 170 million net of tax), including euro 126 million for right-of-use assets and euro 41 million for fixtures. Expenses such as facility management expenses and any taxes on vacant properties in the amount of euro 59 million were included in vacant property provisions; they also included early termination penalties.
This covers non-recurring income and expenses. This line item mainly includes gains and losses on the disposal of assets.
| (in millions of euros) | 2021 | 2020 |
|---|---|---|
| Capital gains (losses) on disposal of assets |
Capital gains (losses) on disposal of assets 2021(27) |
Capital gains (losses) on disposal of assets 2020 3 |
| Non-current income and (expenses) |
Non-current income and (expenses) 2021(1) |
Non-current income and (expenses) 2020 2 |
| Total non-current income and (expenses) | Total non-current income and (expenses)2021(28) |
Total non-current income and (expenses) 2020 5 |
In 2021, asset disposals mainly concern the partial disposal of DPZ&T in Brazil resulting in a capital loss of euro 30 million and the disposal of Nexus subsidiary in Spain generating a capital gain of euro 2 million.
In 2020, asset disposals mainly concerned the disposal of Matomy Media Group securities, which had resulted in a capital loss of euro 2 million. In addition, the Groupe’s takeover of Sapient.i7 Limited had resulted in a gain of euro 4 million corresponding to the revaluation at fair value of the securities previously held.
The other non-current income and expenses mainly relate to the extinguishment of a debt from a past acquisition.
