Page 40 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
The additions relate to the acquisition of audiovisual rights for future broadcasts. The retirements mainly relate to
transmission rights which have expired and which have been fully amortized; hence the Company derecognizes these
from its balance sheet.
Outstanding provisions at year end 2012 and 2011 correspond to the net carrying amount of rights which, while
expiring later than December 31, 2012 and 2011, did not feature in the channel’s future broadcasting plans at the time
of these financial statements were prepared. Should one of the Company’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 income statement.
Of the total amount recognized under “Non-current assets - Audiovisual rights” in the balance sheet at December
31, 2012, the Company estimates an 80% percentage consumption for the 12 months subsequent to year end. This
estimate was based on the best information available at that date using the programming budget for the next year and
comparable to 2011 for the next 12 months.
At year end 2012, there were firm commitments to acquire audiovisual property rights available starting January 1, 2013
for a total amount of $83,939 thousand and 189,333 thousand euros. At December 31, 2012, prepayments of 2,549
thousand euros had been made in connection with said firm commitments to acquire audiovisual property rights.
At year end 2011, there were firm commitments to acquire audiovisual property rights available starting January 1, 2012
for a total amount of $139,836 thousand and 155,284 thousand euros. At December 31, 2011, prepayments of 4,758
thousand euros and $262 thousand had been made in connection with said firm commitments to acquire audiovisual
property rights.
At December 31, 2012, advances paid for fiction series totaled 190 thousand euros. At December 31, 2011, these
advances totaled 230 thousand euros.
At December 31, 2012 and 2011, the amounts of fully depreciated assets still in use are as follows:
2012 2011
Trademarks 39 -
Software 13,506 13,150
Co-production rights 6,712 6,712
Distribution rights 10,397 10,397
Other auxiliary services 539 539
31,193 30,798
Impairment testing of goodwill
In accordance with accounting standards, at December 31, 2012, the Company 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 advertising markets, audiences and costs.