2014 Registration Document and Annual Financial Report - page 208

Financial Statemements
Consolidated Financial Statements and Notes
Restructuring costs can be analyzed as follows:
(inmillions of euros)
2013 Adjusted
Movements in restructuring provisions
Restructuring costs
Restructuring costs correspond mainly to the costs linked to the
reorganization of the Group.
In 2013, they resulted for the most part from the various changes
in strategy introduced during the period, the reorganization of the
Executive Committee and the restructuring of the various European
headquarters.These costs of €(69) million were incurred during the
year for voluntary separation plans at the different headquarters
units in Paris (see Note 3.I).
In 2014, voluntary redundancy plans represented an actual expense
of €63 million, which was fully covered by the provisions set aside
in 2013.
Impairment losses recognized in 2013 and 2014 can be analyzed as follows:
(inmillions of euros)
2013 Adjusted
Intangible assets
Property, plant and equipment
Financial assets
Note 14.1 Impairment of goodwill
Goodwill included in the carrying amount of CGUs tested for
impairment at December 31, 2014 and 2013 is presented in Note 19.
HotelInvest: valuation assumptions
and sensitivity analyses
HotelInvest recoverable amounts are first estimated using fair values
calculated based on a standard EBITDA multiple, which represents
the core operational assumption used for the valuation.
The coefficients are presented in Note 2.E.6.
The probability of the EBITDA of all the hotels in a given CGU being
affected to the same extent and at the same time by changing
macro-economic conditions is extremely remote, with the result
that an overall sensitivity analysis would not provide useful insight.
This is because the hotels’ performance depends above all on their
geographic location and specific business environment.However,
if the carrying amount of certain hotels was found to be sensitive
to changes in macro-economic factors, a sensitivity analysis would
be provided for the hotels concerned.
At December 31, 2014, impairment losses were recognized
following a review of the recoverable amounts of hotels in France
for €1 million and in Germany for €2 million. Goodwill allocated to
the hotels concerned has been written down in full.
At December 31, 2013, impairment losses were recognized following
a review of the recoverable amounts of hotels in France for €1 million,
in Germany for €5 million and in the Netherlands for €1 million.
HotelServices: valuation assumptions
and sensitivity analyses
HotelServices recoverable amounts are first estimated using the
value in use determined on the basis of discounted cash flows,
which correspond to the core operating assumption used for
business plan purposes.
The core assumptions used to determine the recoverable amount
of an asset are consistent with those used to prepare the Group’s
business plans and budgets.They reflect past experience and also
take into account information from external sources such as hotel
industry growth forecasts and forecasts concerning geopolitical and
macro-economic developments in the regions concerned.
Registration Document 2014
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