Reebok 2015 Annual Report Download - page 213

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4
CONSOLIDATED FINANCIAL STATEMENTS
Notes – Notes to the Consolidated Statement of Financial Position
In total, goodwill impairment losses of € 34 million were recognised in 2015 (2014: € 78 million).
The carrying amounts of acquired goodwill allocated to the respective cash-generating units and the
respective discount rates applied to the cash flow projections are as follows:
ALLOCATION OF GOODWILL
Goodwill
€ in millions
Discount rate
after taxes
Dec. 31, 2015 Jan. 1, 2015 Dec. 31, 2015 Jan. 1, 2015
Western Europe 632 481 7.7% 8.1%
Greater China 226 186 7.4% 7.8%
TaylorMade-adidas Golf 292 290 6.8% 7.3%
Other 240 211 (6.7 – 10.5%) (6.7 – 10.7%)
Total 1,392 1,169
‘Other’ comprises the groups of cash-generating units for which the respective carrying amount of allocated
goodwill is not significant in comparison with the Group’s total carrying amount of goodwill.
A change in the discount rate by up to approximately 3.9 percentage points or a reduction of planned
free cash inflows by up to approximately 50% would not result in any additional impairment requirement.
Future changes in expected cash flows and discount rates may lead to impairments of the reported
goodwill in the future.
For details see Attachment I to the consolidated financial statements SEE STATEMENTOF MOVEMENTS
OF INTANGIBLE ANDTANGIBLE ASSETS, P. 248.
The reconciliation of goodwill is as follows:
RECONCILIATION OF GOODWILL, NET
€ in millions Western
Europe
Greater
China
TaylorMade-
adidas Golf
Other Total
January 1, 2015 481 186 290 211 1,169
Currency translation
differences 35 13 2 14 65
Increase in companies
consolidated 116 28 – 48 192
Impairment losses – – – (34) (34)
December 31, 2015 632 226 292 240 1,392