Page 256 - 2012 Annual Report

256 VIVENDI l 2012 l Annual Report
FINANCIAL REPORT – CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE
CONSOLIDATED FINANCIAL STATEMENTS – STATUTORY AUDITORS’ REPORT ON THE FINANCIAL STATEMENTS –
STATUTORY FINANCIAL STATEMENTS 4
4
III - CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2012
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 9 Goodwill
Goodwill impairment test
In 2012, Vivendi tested the value of goodwill allocated to its cash-
generating units (CGUs) or groups of CGU applying valuation methods
consistent with previous years. Vivendi ensured that the recoverable
amount of CGU or groups of CGU exceeded their carrying value (including
goodwill). The recoverable amount is determined as the higher of the
value in use determined by the discounted value of future cash flows
(discounted cash flow method (DCF)) and the fair value (less costs to sell),
determined on the basis of market data (stock market prices, comparable
listed companies, comparison with the value attributed to similar assets or
companies in recent transactions). For a description of the methods used
for the impairment test, please refer to Note 1.3.5.7.
PRESENTATION OF CGU OR GROUP OF CGU TESTED
Operating Segments Cash Generating Units (CGU) CGU or groups of CGU tested
Activision Blizzard Activision Activision
Blizzard Blizzard
Distribution Distribution
Universal Music Group Recorded music Universal Music Group
Artist services and merchandising
Music publishing
EMI Recorded music (a)
SFR Mobile SFR (b)
Broadband Internet and fixed
Maroc Telecom Group Mobile Maroc Telecom
Fixed and Internet
Onatel Onatel
Gabon Telecom Gabon Telecom
Mauritel Mauritel
Sotelma Sotelma
GVT GVT GVT
Canal+ Group Pay-TV in Metropolitan France Canal+ France
Canal+ Overseas
D8/D17 Free-to-air TV D8/D17 Free-to-air TV (a)
StudioCanal StudioCanal
Other entities Other entities (a)
(a) As of December 31, 2012, no goodwill impairment test regarding EMI Recorded Music, D8/D17 and “nc+” was undertaken given that the purchase
price allocation date was close to the closing date, and considering that no triggering event had occurred between those dates.
(b) Due to the increased convergence of SFR’s Mobile, and Broadband Internet and fixed services, Vivendi Management adjusted, in 2011, the level at
which SFR’s return on investments is monitored. Consequently, Vivendi now performs a goodwill impairment test by combining SFR’s Mobile CGU and
Broadband Internet and fixed CGU.
As of June 30, 2012, Vivendi tested the value of goodwill allocated to
GVT, on the basis of an internal valuation of the recoverable amount of
GVT. As a result, Vivendi Management concluded that the recoverable
amount of GVT exceeded its carrying value as of June 30, 2012. As from
June 30, 2012, no triggering event occurred that would require performing
an impairment test regarding GVT as of December 31, 2012.
During the fourth quarter of 2012, Vivendi performed such test on each
cash generating unit (CGU) or groups of CGU, except for GVT, on the basis
of an internal valuation of recoverable amounts, except in the case of
Activision Blizzard, Universal Music Group (UMG), and SFR, for which
Vivendi required the assistance of third-party appraisers. As a result,
Vivendi Management concluded that, except in the case of Canal+ France,
the recoverable amount of each CGU or groups of CGU tested exceeded
their carrying value as of December 31, 2012.
✱ Canal+ France: as of December 31, 2011, Vivendi Management noted
that Canal+ France’s recoverable amount was below its carrying value,
and consequently recorded an impairment loss of €380 million. As of
December 31, 2012, as for the goodwill impairment test performed
as of December 31, 2011, Canal+ France’s recoverable amount was
determined upon the basis of the value in use based on the DCF