44
I LISI FINANCIALREPORT2013
CONSOLIDATEDFINANCIALSTATEMENTS
3
In€m
LISI MEDICAL
Netgoodwill
46.5
Intangiblefixedassets
withanundetermineduseful life
None
Trademarks
None
Resultofthe impairmenttest
No impairment
Keyassumptions
Cash flowwithinoneyear
Forecasts
Cash flowwithin fouryears
4-year strategicplan
Discount rateafter tax
7.75%
Growth rateof flows
not coveredby theassumptions
and
2.00%
Inaccordancewith IAS36 "ImpairmentofAssets",goodwillwastestedfor
impairmentonDecember31,2013.
These tests, in accordance withNote 2.2.8.5, were conducted for each
CGU.Thecashgeneratingunits(CGU)aredetermined inaccordancewith
theoperationalreportingandtheirrecoverablevaluesaredeterminedon
thebasis of a calculationof utility value. Eachutility value is calculated
basedon thediscounting, at the ratesmentionedbelow, of the forecast
operating cash flows after taxes. The projections of cash flow are
determined based on budget data and the four-year strategic plans
approvedbytheBoardofDirectors .
Beyond the fifth year, the terminal value is calculatedon thebasis of a
capitalization to infinity of the cash flows. The key assumptions relate
inparticular to the evolutionof sales basedon the order book and the
master contracts signedby theGroup, if applicable, theoperatingprofit
rate, the renewal capex rate, and thedeterminationof factors thatmay
affect theworkingcapital.Theassumptionsare inparticularestablished
on thebasisof observationsmadeduringprevious activity cycles in the
various lines of business, aswell as in externalmarket surveys and the
observationofthesensitivityofthecontractualdatafortheenvironment
of each division. It is specified that these assumptions are the best
estimatepossibleofthemarketsituationatthetimetheywereprepared,
andthattheytake intoconsiderationthedegradationofmarketsfor2014
to2017.
The determination of the growth rate to infinity and the discounting
rates used on the CGUs of the LISI AUTOMOTIVE Divisionwas carried
out by an independent expert. On thebasis of thememorandum from
theexperts, theGroup rationalized the rateson theLISIAEROSPACEand
LISIMEDICALDivisions .Hencea rateof2%wasused for theCGUof the
LISIAEROSPACEDivisionanda rateof 1.9%wasused for theCGUof the
LISIAUTOMOTIVEDivision.
Thediscountingratesaftertaxeswereusedonthebasisofanassessmentofthespecificrisksofthesebusinesses.
December 31, 2013
December 31, 2012
Infinite growth
rate
Discount
rate
Infinite growth
rate
Discount
rate
LISIAEROSPACE
USAunit
2%
7.50%
2.50%
7%
Specialproducts
2%
7.50%
2.50%
7%
Structural components
2%
7.50%
2.50%
7%
LISIAUTOMOTIVE
Threaded fasteners
1.90%
8.75%
2.50%
8.50%
Clipsolutions
1.90%
8.75%
2.50%
8.50%
LISIMEDICAL
LISIMEDICAL
2%
7.75%
2.50%
7.50%
