The main assumptions used in these impairment tests on goodwill are presented in the table below:
| December 31, 2025 | |||
|---|---|---|---|
| (in millions of euros) | Carrying amount of goodwill | After-tax discount rate | Terminal growth rate |
| North America (1) | 9,435 | 9.8% | 2%-2.2% |
| Europe | 1,900 | 9.2%-12.6% | 1.7%-2.6% |
| Asia-Pacific | 1,234 | 10.1% | 2.2% |
| Middle East & Africa | 370 | 12.2% | 2.1% |
| Latin America | 242 | 15.2% | 2.8% |
| Other goodwill | 112 | 10.3% - 10.6% | 1.0% - 2.1% |
| Total goodwill after impairment loss | 13,293 | ||
The impairment tests on goodwill led the Groupe to recognize, in 2024, an impairment loss of euro 4 million related to event management activities.
The main assumptions used for the 2024 impairment tests were as follows:
| December 31, 2024 | |||
|---|---|---|---|
| (in millions of euros) | Carrying amount of goodwill | After-tax discount rate | Terminal growth rate |
| North America (1) | 10,136 | 10.2% | 2.0% |
| 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 | ||
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.
Similarly, with respect to the United States cash-generating unit which recoverable value is determined using the market multiples approach, a reasonable variation in the multiple used would not lead to a recoverable value lower than the net book value.
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 37 million were recognized in 2025 (euro 28 million net of tax), including euro 24 million for right-of-use assets and euro 5 million for fixtures. Accrued expenses such as facility management expenses and any taxes on vacant properties in the amount of euro 8 million are included in provisions for vacant property.
Impairment losses in 2024 of euro 71 million were recognized (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 were included in provisions for vacant property.
