| (in millions of euros) | 2022 | 2021 |
|---|---|---|
| Amortization of other intangible assets (excluding intangibles arising from acquisitions) | Amortization of other intangible assets (excluding intangibles arising from acquisitions) 2022(68) |
Amortization of other intangible assets (excluding intangibles arising from acquisitions) 2021(89) |
| Depreciation of property, plant and equipment | Depreciation of property, plant and equipment 2022(141) |
Depreciation of property, plant and equipment 2021(136) |
| Depreciation of right-of-use assets | Depreciation of right-of-use assets 2022(326) |
Depreciation of right-of-use assets 2021(252) |
| Depreciation and amortization expense (excluding acquired intangibles) | Depreciation and amortization expense (excluding acquired intangibles)2022(535) | Depreciation and amortization expense (excluding acquired intangibles)2021(477) |
| Amortization of intangibles from acquisitions | Amortization of intangibles from acquisitions2022(287) | Amortization of intangibles from acquisitions2021(256) |
| Impairment losses of goodwill | Impairment losses of goodwill 2022(28) |
Impairment losses of goodwill 2021- |
| Impairment of right-of-use assets | Impairment of right-of-use assets 2022(81) |
Impairment of right-of-use assets 2021(122) |
| Impairment losses | Impairment losses2022(109) | Impairment losses2021(122) |
| Total depreciation, amortization and impairment losses | Total depreciation, amortization and impairment losses2022 (931) |
Total depreciation, amortization and impairment losses2021 (855) |
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 2022 and 2021.
As part of the strengthening of its teams worldwide, the Groupe has appointed a joint management team for the Groupe’s activities in Latin America and Brazil. As a result, goodwill for these two areas has been combined. Prior to the combination, impairment tests were performed on the two CGUs separately.
Impairment tests were carried out on the following cash-generating units: 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 9% (11% before tax) and 19.5% (26% before tax). The terminal growth rate used in the forecasts ranged from 1.5% to 3%.
Impairment tests lead the Groupe to recognize an impairment loss of euro 28 million in 2022 for Brazil goodwill due to a decrease in revenue related to the loss of a significant client in that country.
