2010 REGISTRATION DOCUMENT (3.4 Mo) - Groupe Casino

PARENT COMPANY FINANCIAL STATEMENTSNotes to the income statement and balance sheet4Movements during the period€ millions CostAmortisation,depreciation andimpairmentAt 1 January 2009 29.9 (3.3) 26.6Increases 0.6 (1.4) (0.9)Decreases (0.1) - (0.1)At 31 December 2009 30.4 (4.8) 25.6Increases 5.4 (3.9) 1.5Decreases - - -AT 31 DECEMBER 2010 35.8 (8.7) 27.1NetNOTE 6. LONG-TERM INVESTMENTSBreakdown€ millions 2010 2009Investments in subsidiaries and associates 9,367.1 9,360.9Impairment (1) (17.5) (18.0)9,349.6 9,342.9Loans 31.5 28.9Impairment - -31.5 28.9Other 0.6 0.8Impairment - -0.6 0.8LONG-TERM INVESTMENTS 9,381.7 9,372.6(1) In accordance with the accounting policies described in the section on Signifi cant Accounting Policies, at 31 December 2010 the Company measured the fair value of its investmentsin subsidiaries based either on market value, as assessed by an independent valuer where appropriate, or on value in use determined by the discounted cash fl ows method. Value inuse determined by the discounted cash fl ows method is based on after-tax cash fl ows using the following rates.Parameters used for internal calculations of 2010 values in useRegion Growth rate (1) (x EBITDA)Terminal valueAfter-taxdiscount rate (2)France (retailing) 1.1% to 1.6% 9.0 6.0 to 9.0%France (other) 1.1% to 1.6% 7.0 to 8.0 6.0 to 8.2%Argentina 15.5% 9.5 20.9%Colombia 5.8% 9.5 9.8%Uruguay 5.5% 9.5 12.2%Thailand 2.0% 9.0 6.6%Vietnam 9.0% 9.5 14.8%Indian Ocean 1.6% 9.0 6.0 to 12.0%(1) The growth rate for the cash fl ow projection period includes the expected increase in the consumer price index, which is very high in some countries.(2) The discount rate used is the weighted average capital cost (WACC) for each country. WACC is calculated by taking account of the sector’s indebted beta, the historical observed marketrisk premium and the Group’s cost of debt.Based on the 2010 goodwill impairment test, which was completedin December, no impairment losses were recognised at 31 December2010.In view of the positive difference between value in use and carryingamount, the Group believes that on the basis of reasonably foreseeableevents, any changes in the key assumptions set out above would notlead to the recognition of an impairment loss. For example, a 100-basispoint increase in the discount rate or a 0.5-point decrease in theEBITDA multiple used to calculate terminal value or a 50-basis pointdecrease in the EBITDA margin in the final year of the projections usedto calculate the terminal value would not have led to the recognitionof an impairment loss.A list of the Company’s subsidiaries and associates is provided atthe end of this document.Registration Document 2010 | Casino Group137