The main assumptions used in these impairment tests on goodwill are presented in the table below:
| not-included | December 31, 2023 | ||
|---|---|---|---|
| (in millions of euros) | Carrying amount of goodwill | After‑tax discount rate | Terminal growth rate |
| North America (1) | 8,828 | 10.5% | 2% |
| Europe | 1,834 | 10.5% - 13% | 1.5% - 2,5% |
| Asia‑Pacific | 1,134 | 10% | 2.3% |
| Middle East & Africa | 362 | 12% | 2.3% |
| Latin America | 146 | 19% | 2.8% |
| Other goodwill | 118 | 9.9% - 10% | 1.6% - 2% |
| Total goodwill after impairment loss | 12,422 | not-included | not-included |
In 2022, impairment tests led the Group to recognize an impairment loss of euro 28 million for Brazil goodwill due to a decrease in revenue related to the loss of a significant client in that country.
The after‑tax discount rates used ranged from 9% (11% before tax) to 19.5% (26% before tax). The terminal growth rate used in the forecasts ranged from 1.5% to 3%.
The main assumptions used for the 2022 impairment tests were as follows:
| not-included | December 31, 2022 | ||
|---|---|---|---|
| (in millions of euros) | Carrying amount of goodwill | After‑tax discount rate | Terminal growth rate |
| North America (1) | 8,912 | 11% | 2% |
| Europe | 1,810 | 10.5% - 12.5% | 1.6% - 2.5% |
| Asia‑Pacific | 1,177 | 10.5;% | 2.2% |
| Middle East & Africa | 387 | 12.5% | 2.3% |
| Latin America | 141 | 16.5% - 19.5% | 2.5% - 3% |
| Other goodwill | 119 | 9% - 11% | 1.5% - 1.6% |
| Total goodwill after impairment loss | 12,546 | not-included | not-included |
Sensitivity tests have been performed on all cash‑generating units by increasing or decreasing by 100 basis points the discount rate, by 50 basis points the long‑term growth rate or the operating margin in the terminal year.
Those variations, considered individually, did not reveal a recoverable amount less than the net carrying amount, except for the Latin America cash‑generating unit.
