NOTES
Consolidated financial statements •79
SECTION 3: INVESTED CAPITAL ANDWORKING CAPITAL ITEMS, CONTINUED
3.1 INTANGIBLEASSETS, CONTINUED
Discount rates and growth rates in terminal period
CentralWestern
Distributors &
Americas
UK
Europe
Australia
travel retail
Group
2014
Discount rate before tax
12.2%
10.8%
14.9%
14.1%
11.8%
12.1%
Growth rate in the terminal period
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
2013
Discount rate before tax
11.9%
10.9%
12.6%
13.4%
12.7%
12.5%
Growth rate in the terminal period
2.0%
2.0%
2.0%
2.0%
2.0%
2.0%
capital for the industry.The rates have further been adjusted
to reflect themarket assessment of any risk specific to
theCGU.
The EBIT figures used in the impairment test are based
on the budget for next year, prepared and approvedby
Management, and the expectations for the two subsequent
years.The EBITmargin in the budget of the individual CGU
is basedonhistorical experience and expectations to:
• revenue growth considering development in network
(store openings, retail/wholesale share), product mix
andmarket share
• cost of sales based onmetal consumption and average
laggedhedge commodity prices at the time the budget
is prepared
• OPEX development
• currency rates are based on actual rates at the time the
budget is prepared.
The net working capital in the budget for next year,
relative to the revenue of the individual CGUs, is based on
historical experience and ismaintained for the remainder of
the expected lives.Theworking capital is thus increased on
a linear basis as the level of activity increases.
The impairment tests did not show any need for
impairment losses tobe recognised. InManagement’s
opinion, noprobable change in any of the key assumptions
mentioned abovewould cause the carrying amount of the
Groupor CGUs to exceed its recoverable amount.
