The main assumptions used in these impairment tests on goodwill are presented in the table below:
| December 31, 2023 | |||
|---|---|---|---|
| (in millions of euros) | Carrying amount of goodwill | After-tax discount rate | Terminal growth rate |
| North America(1) | 10,136 | 10.2% | 2% |
| Europe | 1,908 | 10.1%-12.4% | 1.7%-2.7% |
| Asia-Pacific | 1,167 | 10.1% | 2.3% |
| Middle East & Africa | 383 | 12.5% | 2.1% |
| Latin America | 132 | 15.3% | 2.8% |
| Other goodwill | 117 | 9.9%-10.8% | 1.7%-2.0% |
| Total goodwill after impairment loss | 13,843 | ||
The impairment tests on goodwill led the Groupe to recognize, in 2023, an impairment loss of euro 6 million concerning the goodwill on the Latin America zone.
The main assumptions used for the 2023 impairment tests were as follows:
| December 31, 2023 | |||
|---|---|---|---|
| (in millions of euros) | Carrying amount of goodwill | After-tax discount rate | Terminal growth rate |
| Nord America(1) | 8,828 | 10.5 % | 2.0 % |
| Europe | 1,834 | 10.5%-13% | 1.5%-2.5% |
| Asia-Pacific | 1,134 | 10.0 % | 2.3 % |
| Middle East & Africa | 362 | 12.0 % | 2.3 % |
| Latin America | 146 | 19.0 % | 2.8 % |
| Other goodwill | 118 | 9.9%-10.8% | 1.6%-2% |
| Total goodwill after impairment loss | 12,422 | ||
Sensitivity tests
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.
These changes, considered individually, did not reveal a recoverable amount lower than the net carrying amount.
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.
Impairment losses of euro 71 million were recognized in 2024 (euro 54 million net of tax), including euro 42 million for right-of-use assets and euro 10 million for fixtures. Accrued expenses such as facility management expenses and any taxes on vacant properties in the amount of euro 19 million are included in provisions for vacant property.
Impairment losses in 2023 of euro 147 million had been recognized (euro 110 million net of tax), including euro 47 million for right-of-use assets, euro 39 million for sub-leasing receivables and euro 9 million for fixtures. Accrued expenses such as facility management expenses and any taxes on vacant properties in the amount of euro 52 million were included in provisions for vacant property.
