Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...

AMADEUS IT HOLDING, S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED ANNUAL ACCOUNTS FOR THE YEARS ENDED
DECEMBER 31, 2011, AND 2010
(EXPRESSED IN THOUSANDS OF EUROS - KEUR)
The retirement in goodwill during the year 2010 is due to the divestiture of 100% of
the equity stake in Hospitality Group as described in note 14.
“Assets classified as held for sale” in the year 2010 presents the transfer of the
goodwill allocated to our cash-generating unit Opodo Group to this line in the
consolidated statement of financial position. Opodo Group has been sold during the
year 2011 as explained in note 14.
Transfers in 2010 relate to the completion of the purchase price allocation exercise
for the business combination with Perez Informatique, S.A. and subsidiaries and
Pixell Online Marketing GmbH.
Goodwill derived from any acquisition is allocated, based on Amadeus’
organizational structure and operations, to the cash-generating unit that is expected
to benefit from the acquisition that originated the goodwill. The cash-generating units
are the lowest level within the Group at which goodwill is monitored for internal
management purposes.
The carrying amount of goodwill per cash-generating unit is as follows:
34
31/12/2011 31/12/2010
Distribution 1,955,813 1,955,826
IT Solutions 114,923 114,923
Carrying amount 2,070,736 2,070,749
The Group tests the carrying amount of goodwill for impairment annually, or more
frequently if there is any indicator that suggests that the carrying amount of the
goodwill might be impaired. The goodwill is tested for impairment together with the
assets that can be reasonably allocated to the cash-generating unit to which the
goodwill has been allocated to. During the period, neither the composition of these
cash-generating units, nor the impairment testing exercise, have been modified.
Those assets include intangible assets with indefinite useful life (such as the
Amadeus brand, see note 8), to the extent that they do not generate cash inflows that
are separate from those of the cash-generating unit to which they have been
allocated. The corporate assets that the Group operates are also taken into
consideration when testing for impairment our cash-generating units.
Whenever the carrying amount of an asset exceeds its recoverable amount, an
impairment loss is recognized. This implies reducing the carrying amount of the asset
to its recoverable amount, with the corresponding charge to the statement of
comprehensive income in the “Depreciation and Amortization” caption.
The goodwill recoverable amounts for the Distribution and IT solutions cashgenerating
units are based on a “value in use” assessment. In order to determine the
“value in use” of each cash-generating unit the following steps are followed: