Company
Goodwill 31.12.12
Currency
Translation
difference
Impairment
Goodwill 31.12.13
NHHoteles Deustchland, GmbH and NHHoteles Austria, GmbH
97,467
-
(2,757)
94,710
Others
4,347
(1,836)
-
2,511
Total
101,814
(1,836)
(2,757)
97,221
Any recoverable goodwill values have been allocated to each cash-generating unit, mainly rental agreements, by using five-year projections on the results, investments
and working capital.
A breakdown of the cash generating units to which goodwill on consolidation have been allocated is shown below.
Thousands of Euros
CGU 6
17,478
CGU 21
11,319
CGU 22
8,508
CGU 12
8,116
CGU 13
6,500
CGU 2
5,774
CGU 9
4,121
CGUs with individually allocated goodwill < €4M
35,405
97,221
The basic hypotheses used to estimate these generating unit’s future cash flows are detailed below:
•
Discount rate: 7.03% and 7.41%, since these are CGUs subject to the same risk (German and Austrian market).
•
Terminal value growth rate (g): 2%
As a result of the impairment analysis performed by theGroup at the end of 2013, an impairment of €2.757million has been recorded primarily inCashGeneratingUnits
with separately associated goodwill of less than €4 million.
A sensitivity analysis of the goodwill’s loss of value with respect of changes in key financial hypotheses is shown below:
Rate value Terminal value growth rate
Thousand euros
Discount rate
-100
pb
No change
100
pb
0%
(2,251)
(2,341)
(3,527)
1%
90
(2,341)
(2,634)
2%
90
-
(2,427)
We will soon publish a sensitivity analysis regarding the loss in value of goodwill with respect to changes to the most important operating hypotheses, average price
(
ADR) and occupancy rate:
Change in average rate (ADR)
Thousand euros
Change in occupancy levels
-1%
No change
1%
-1%
(869)
(110)
161
No change
(760)
-
273
1%
(651)
111
385
REPORT ONTHE CONSOLIDATED FINANCIAL STATEMENTS
74
