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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
THOUSANDS OF
EUROS(*)
DIFFERENCE
THOUSANDS OF
EUROS (**)
LIABILITIES
Payable to related parties
25,762
-
25,762
Bank borrowings
89
-
89
Trade payables
120,267
-
120,267
Other liabilities
21,713
-
21,713
Provisions for sales rebates (Note 18)
18,508
-
18,508
Provisions for risks and responsibilities
(Note 16)
14,183
-
14,183
TOTAL LIABILITIES
200,522
-
200,522
TOTAL EQUITY
303,374
-
53,650
ACQUISITION COST
287,356
249,724
537,080
GOODWILL
590,730
-
590,730
(*) Final allocation
(**) Provisional allocation
The Cuatro Group did not contribute to the Group’s revenues in 2010 since the acquisition date, but contributed a net
loss of EUR 6,185 thousand. Had the business combination occurred at the beginning of the repor ting period, revenue
would have increased by EUR 1,170,767 thousand and profit before tax by EUR 16,432 thousand.
Impairment testing of goodwill
In accordance with accounting standards, at 31 December 2011, the Group tested its goodwill and intangibles with
indefinite lives for impairment.
The impairment test was carried out by comparing the recoverable value of the cash-generating unit to which the
goodwill and intangibles with indefinite lives are assigned with the carrying value of the cash-generating unit.
The cash-generating unit is the free-to-air TV business.
To test its goodwill for impairment, the Company took the free-to-air TV business’ strategic plan and discounted the
estimated future cash flows.The assumptions used in the cash flow estimates include the best estimate of future trends
of adver tising markets, audiences and costs.These estimates are based on past experience and estimates considered to
be reasonable based on the sources of the company’s external and internal information.
The estimates cover a period of six years and for cash flows not considered, income to perpetuity is estimated using a
growth rate of around 2%. Estimated cash flows are discounted at a rate that represents the current market assessment
of the risk-free rate and the specific situation of the industry.The discount rate used is around 9.3%.
Based on the assumptions used and the estimated cash flows calculated, no impairment was identified for either goodwill
or intangibles with indefinite lives.
(Continued)