EasyJet 2013 Annual Report Download - page 112

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 easyJet plc Annual report and accounts 2013
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Notes to the accounts continued
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Other intangible assets
Goodwill
£ million
Landing
rights
£ million
Contractual
rights
£ million
Computer
software
£ million
Total
£ million
&RVW
At 1 October 2011 365 74 4 25 103
Transfer from property, plant and equipment – – – 13 13
Disposals – – (3) (3) (6)
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At 1 October 2011 – – 3 14 17
Charge for the year – – – 8 8
Disposals – – (3) (3) (6)
$W6HSWHPEHU – – – 19 19
1HWERRNYDOXH
$W6HSWHPEHU 365 74 1 16 91
At 1 October 2011 365 74 1 11 86
easyJet has one cash generating unit, being its route network. The recoverable amount of goodwill and other assets
with indefinite expected useful lives has been determined based on value in use calculations of the route network.
Pre-tax cash flow projections have been derived from the strategic plan approved by the Board for the period up
to 2018, using the following key assumptions:
Pre-tax discount rate (derived from weighted average cost of capital) 10.2%-10.5%
Fuel price (US dollars per metric tonne) 1,100
Exchange rates:
US dollar 1.55
euro 1.17
Swiss franc 1.44
Both fuel price and exchange rates are volatile in nature, and the assumptions used represent management’s view
of reasonable average rates. Operating margins are sensitive to significant changes in these rates.
Cash flow projections beyond the forecast period have been extrapolated using growth rate scenarios ranging from zero
up to an estimated average of long-term economic growth rates for the principal countries in which easyJet operates.
No impairment resulted from any of these scenarios.
No reasonably possible combination of changes to the key assumptions above would result in the carrying value of the
cash-generating unit exceeding its recoverable amount.
110 easyJet plc Annual report and accounts 2013