|
| |||||
|
in €m |
Goodwill from consolidation |
Intangible assets with indefinite useful life |
Total | ||
| |||||
|
Cost as of 1.1.2007 |
889 |
– |
889 | ||
|
Accumulated amortisation |
–300 |
– |
–300 | ||
|
Carrying amount 1.1.2007 |
589 |
– |
589 | ||
|
Currency translation difference |
–7 |
– |
–7 | ||
|
Additions due to changes in consolidation |
– |
203 |
203 | ||
|
Additions |
12 |
– |
12 | ||
|
Reclassifications |
– |
– |
– | ||
|
Disposals due to changes in consolidation |
– |
– |
– | ||
|
Disposals |
– |
– |
– | ||
|
Reclassifications to assets held for sale |
– |
– |
– | ||
|
Amortisation |
– |
– |
– | ||
|
Reversal of impairment losses |
– |
– |
– | ||
|
Carrying amount 31.12.2007 |
594 |
203 |
797 | ||
|
Cost as of 1.1.2008 |
882 |
203 |
1,085 | ||
|
Accumulated amortisation |
–288 |
– |
–288 | ||
|
Carrying amount 1.1.2008 |
594 |
203 |
797 | ||
|
Currency translation difference |
–12 |
23 |
11 | ||
|
Additions due to changes in consolidation |
– |
– |
– | ||
|
Additions |
13 |
0* |
13 | ||
|
Reclassifications |
0* |
0* |
0* | ||
|
Disposals due to changes in consolidation |
– |
– |
– | ||
|
Disposals |
– |
– |
– | ||
|
Reclassifications to assets held for sale |
– |
– |
– | ||
|
Amortisation |
– |
– |
– | ||
|
Reversal of impairment losses |
– |
– |
– | ||
|
Carrying amount 31.12.2008 |
595 |
226 |
821 | ||
|
Cost as of 31.12.2008 |
895 |
226 |
1,121 | ||
|
Accumulated amortisation |
–300 |
– |
–300 | ||
In 2008 as in the previous year, all goodwill, as well as the brand, were subjected to a regular impairment test in line with IAS 36. The tests were performed at the level of the smallest cash generating unit (CGU) on the basis of value in use. Goodwill originating from the acquisition of Air Dolomiti S.A. and the Eurowings group was tested at the level of Deutsche Lufthansa AG and its regional partners as the smallest independent cash generating unit.
The following table provides an overview of the goodwill tested and the assumptions made in the respective impairment tests.
|
Name of the CGU | |||||||||
|
|
Lufthansa AG and regional partners (Segment: Passenger Transportation) |
SWISS Aviation Training Ltd. (Segment: Passenger Transportation) |
LSG Sky Chefs USA Group (Segment: Catering) |
LSG Sky Chefs Korea (Segment: Catering) |
LSG Sky Chefs Havacilik Hizmetleri A.S. (Segment: Catering) |
LSG Sky Chefs Birmingham Ltd. (Segment: Catering) |
CLS Catering Services Ltd. (Segment: Catering) |
AVIAPIT-SOCHI (Segment: Catering) |
ZAO AeroMEAL (Segment: Catering) |
|
Carrying amount of goodwill |
EUR 249m |
EUR 2m |
EUR 277m |
EUR 44m |
EUR 8m |
EUR 2m |
EUR 3m |
EUR 3m |
EUR 7m |
|
Impairment losses |
– |
– |
– |
– |
– |
– |
– |
– |
– |
|
Revenue growth p.a over planning period |
3.2% to 6.7% |
0% to 1.9% |
1.3% to 4.7% |
1.7% to 3.9% |
0% to 5.8% |
0% to 3.4% |
3.0% |
5.0% to 10.1% |
5.0% to 6.6% |
|
EBITDA margin over planning period |
8.7% to 11.3% |
22.6% to 24.1% |
4.6% to 9.0% |
28.4% to 29.4% |
20.3% to 22.0% |
4.6% to 7.0% |
9.0% to 10.7% |
35.0% to 38.1% |
31.0% to 32.0% |
|
Investment ratio over planning period |
10.6% to 12.4% |
7.0% to 8.1% |
1.5% to 2.8% |
1.0% |
1.4% to 1.5% |
0% to 1.0% |
1.5% to 2.5% |
1.0% to 2.2% |
0.8% to 1.0% |
|
Length of planning period |
3 years |
3 years |
5 years |
5 years |
5 years |
5 years |
5 years |
5 years |
5 years |
|
Revenue growth p.a. after the end of the planning period |
4.0% |
1.0% |
2.0% |
3.9% |
3.0% |
3.0% |
3.0% |
5.0% |
5.0% |
|
EBITDA margin after end of planning period |
11.3% |
24.0% |
9.0% |
29.4% |
22.0% |
7.0% |
10.7% |
35.0% |
31.0% |
|
Investment ratio after end of planning period |
8.6% |
8.0% |
1.5% |
1.0% |
1.5% |
1.0% |
1.5% |
1.0% |
1.0% |
|
Discount rate |
9.1% |
9.1% |
9.1% |
9.1% |
9.1% |
9.1% |
9.1% |
9.1% |
9.1% |
The assumptions on revenue growth for the planning period used for the impairment tests are based on external sources. In some cases reductions were made for risk to allow for special regional features and market share trends specific to the respective companies. Assuming sustained revenue growth of 2 per cent at the end of the planning period by the LSG Sky Chefs USA group as described, the recoverable amount would exceed the carrying amount by EUR 255m. Assuming a 3.6 per cent decline in revenue per annum, the recoverable amount would be equal to the carrying amount for the asset.
The EBITDA margins used are based on past experience or were developed on the basis of cost-cutting measures initiated. The investment rates are based on past experience and take account of the replacement of any means of production envisaged during the planning period.
The intangible assets with indefinite useful life consist of slots purchased as part of a company acquisition and an acquired brand name.
The regular impairment test for the brand was carried out at the level of the smallest cash generating unit (CGU) on the basis of value in use. The revenue generated with the acquired brand in the Passenger Transportation segment was defined as the CGU.
The following assumptions were used in the impairment test for the brand:
|
| |
|
Carrying amount for brand |
EUR 170m |
|
Impairment losses |
– |
|
Revenue growth for brand p.a. over planning period |
3.8% to 6.9% |
|
Length of planning period |
3 years |
|
Revenue growth for brand p.a. after end of the planning period |
2.0% |
|
Savings in hypothetical leasing payments before taxes (royalty rate) |
0.4% |
|
Discount rate |
9.1% |
Assuming sustained brand-related revenue growth after the end of the planning period of 2.0 per cent, the recoverable amount exceeds the carrying amount by EUR 10m. Assuming sustained revenue growth of 1.5 per cent, the recoverable amount would be equal to the carrying amount.
The carrying amount for the purchased slots of EUR 56m was tested on the basis of current published transaction prices for sales/purchases of slots between market participants. There were no impairment charges to be made in the Passenger Transportation segment.
