76
2014
2013
NH Hoteles Deutschland GmbH and NH Hoteles Austria GmbH
89,945
94,710
Others
3,978
2,511
Total
93,923
97,221
The movements in this heading of the consolidated balance sheet in 2014 and 2013 were as follows (€Thousand):
Company
Goodwill
31.12.12
Currency
translation
Impairment
Goodwill
31.12.13
NH Hoteles Deutschland GmbH and NH Hoteles Austria GmbH
97,467
-
(2,757)
94,710
Others
4,347
(1,836)
-
2,511
Total
101,814
(1,836)
(2,757)
97,221
Company
Goodwill
31.12.13
Currency
translation
Impairment
Goodwill
31.12.14
NH Hoteles Deutschland GmbH and NH Hoteles Austria GmbH
94,710
-
(4,765)
89,945
Others
2,511
1,467
-
3,978
Total
97,221
1,467
(4,765)
93,923
Recoverable goodwill values have been allocated to each cash-generating unit, mainly rental agreements, by using five-year projections on results,
investments and working capital.
A breakdown of the cash generating units to which goodwill on consolidation has been allocated is shown below:
€Thousand
CGU 6
16,754
CGU 21
10,856
CGU 22
8,243
CGU 12
7,758
CGU 13
6,208
CGU 2
5,525
CGUs with individually allocated goodwill < €4 million
38,579
93,923
The basic assumptions used to estimate future cash flows of these CGUs are detailed below:
• Discount rate: 6.52% and 6.85%, 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 carried out by the Group at the end of 2014, an impairment of €4,765 thousand was recognised.
The Group has also run a sensitivity analysis on the result of the impairment test, with variations on the following assumptions:
Scenario 1:
- An increase of 100 basis points in the discount rate.
- Use of a perpetuity growth rate of 0%.
Scenario 2:
- A 1% reduction in the occupancy level.
- A 1% reduction in the average daily rate (ADR).
These sensitivity analyses do not reveal the existence of any impairment in either scenario.
The impairment provision for the year was produced as a consequence of not considering perpetuities in the case of cash-generating units where
there is no guarantee of renewal of rental contracts. Thus the projections are for the term of these contracts.
REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
