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FINANCIAL STATEMENTS AND MANAGEMENT. ANNUAL CORPORATE GOVERNANCE REPORT. BALANCE SHEETS 2012
Provisions at the end of 2012 relate to the net carrying amount of rights which, although they expire after December
31, 2012, are not included in the Group’s future broadcasting plans at the date of authorization for issue of these
consolidated financial statements. Should one of the Group’s networks exercise these broadcasting rights, the provision
would be reversed and the right would be amortized for the amount of the reversal.This would not have an impact on
the consolidated separate income statement.
Therefore, the balance of this provision relates basically to the adjustment required to determine the carrying amount
of the library.The provision recognized in the consolidated separate income statement at December 31, 2012 and 2011
amounted to 1,851 thousand euros and 8,341 thousand euros, respectively.
At December 31, 2012, there were firm commitments to acquire audiovisual property rights commencing on or after
January 1, 2013 for a total amount of $83,939 thousand and 186,814 thousand euros. The commitments at year end
2011 amounted to $139,836 thousand and 153,587 thousand euros.
At December 31, 2012, advances of 2,254 thousand euros had been paid in connection with these firm commitments
to purchase audiovisual property rights.The advances paid in 2011 amounted to 4,587 thousand euros.
At the statement of financial position date there were commitments to purchase co-production rights, available from
January 1, 2013, for a total amount of 9,811 thousand euros (2011: 34,347 thousand euros).
At December 31, 2012, advances of 380 thousand euros had been paid in connection with these firm commitments to
purchase co-production rights (2011: 31,532 thousand euros).
The Group had firm commitments to purchase distribution rights commencing on or after January 1, 2013 for a total
amount of 1,303 thousand euros. At December 31, 2011, firm commitments to purchase distribution rights amounted
to 2,800 thousand euros.
Advances of 130 thousand euros had been paid in connection with firm distribution right purchase commitments at
December 31, 2012 (2011: 1,600 thousand euros).
Advances for fiction series are included under Advances.
9. GOODWILL AND BUSINESS COMBINATIONS
Goodwill amounting to 287,357 thousand euros arose from the purchase of the Cuatro Group, which became effective
on December 31, 2010, as well as an asset with an indefinite useful life amounting to 85,000 euros.
Impairment testing of goodwill
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 advertising markets, audiences and costs.
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