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METRO GROUP : ANNUAL REPORT 2010 : BUSINESS
→ NOTES : NOTES TO ThE BAl ANCE ShEET
The current financial year includes disposals of real estate
assets in the amount of €197 million (previous year: €235
million).
Non-scheduled write-downs mainly concern business and
office equipment related to the disposal of the french consumer
electronics stores and non-scheduled write-downs
of real estate properties.
18. Goodwill
In the financial year 2010, goodwill amounted to €4,064 million
(previous year: €3,992 million).
In 2010, the recognition of shareholder interests with stock
tender rights raised goodwill of Media Markt and Saturn by
€26 million (previous year: reduction by €14 million).
In 2009, the non-controlling shareholders of Metro
Cash & Carry Romania were granted stock tender rights
by METRO GROuP. The subsequent measurement of
these stock tender rights resulted in €47 million (previous
year: €27 million) higher goodwill.
With the divestment of Metro Cash & Carry Morocco, goodwill
of €10 million has been disposed of.
At the closing date, the breakdown of goodwill among the
major cash-generating units was as shown below:
€ million 31/12/2010 31/12/2009
Real Germany 1,083 1,083
Metro Cash & Carry france 398 398
Metro Cash & Carry Netherlands 352 352
Metro Cash & Carry Poland 260 258
Media Markt and Saturn Germany 245 232
Metro Cash & Carry hungary 239 239
Metro Cash & Carry Germany 223 223
Metro Cash & Carry Italy 171 171
Real Poland 151 144
Metro Cash & Carry Belgium 145 145
Metro Cash & Carry Portugal 91 91
Metro Cash & Carry Romania 84 37
Media Markt and Saturn Italy 79 76
Kaufhof department stores Belgium 57 57
Media Markt and Saturn Spain 54 51
Metro Cash & Carry Spain 51 51
Metro Cash & Carry Greece 45 45
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Metro Cash & Carry united Kingdom 37 37
Metro Cash & Carry Austria 27 27
Media Markt and Saturn Netherlands 24 22
Media Markt and Saturn Austria 19 17
Media Markt and Saturn Poland 19 17
Media Markt and Saturn Switzerland 18 17
Metro Cash & Carry China 17 17
Real Russia 17 16
Metro Cash & Carry denmark 16 16
Kaufhof department stores Germany 14 14
Metro Cash & Carry Morocco 0 10
Other companies 128 129
4,064 3,992
In accordance with IfRS 3 in conjunction with IAS 36, goodwill
is tested for impairment once a year. This is carried out
at the level of a group of so-called cash-generating units. In
the case of goodwill, this group is the organisational unit
sales division per country. In the impairment test, the book
value of the cash-generating unit is compared with the
recoverable amount. The recoverable amount is defined as
the fair value less selling expenses, which is calculated
from discounted future cash flows. Expected future cash
flows are based on a qualified planning process under
consideration of the intra-Group experience as well as
macroeconomic data collected by third-party sources. As a
rule, the detailed planning period comprises three years. As
in the previous year, the growth rates considered at the end
of the detailed planning period are generally 1.0 percent.
The capitalisation rate as the weighted average cost of capital
(WACC) was determined using the capital asset pricing
model. The capitalisation rates determined for the individual
cash-generating units amount to between 5.8 and
8.3 percent (previous year: 6.7 to 11.7 percent).
As of 31 december 2010, the prescribed annual impairment
test confirmed the recoverability of all capitalised goodwill.
Non-scheduled write-downs were therefore not required.