When the fair value of the assets acquired and the liabilities assumed as of the acquisition date is greater than acquisition cost, increased by the amount of any non-controlling interest, the excess – representing negative goodwill – is immediately recognized in the income statement in the period of acquisition, after reviewing the procedures for the identification and measurement of the different components included in the calculation.
Changes in non-controlling interests, in the absence of either assumption or loss of control, are recognized in shareholders’ equity. In particular, when additional shares in an entity already controlled by the Group are acquired, the difference between the acquisition cost of the shares and the share of net assets acquired is recognized in equity attributable to equity holders of the parent. The consolidated value of the assets and liabilities of the subsidiary (including goodwill) remains unchanged.
Purchase price adjustments and/or earn-outs related to business combinations are recognized at their fair value as of the date of acquisition even if they are considered to be not probable. After the date of acquisition, changes in estimates of the fair value of price adjustments lead to an adjustment to goodwill only if they occur within the time allowed (a maximum of one year as of the date of acquisition) and if they result from facts and circumstances that existed at the acquisition date. In all other cases, the change is recognized in profit or loss except when the consideration transferred consists of an equity instrument.
Changes in goodwill during the fiscal year were as follows:
| (in millions of euro) | AUGUST 31, 2019 | INCREASES DURING THE PERIOD | DECREASES DURING THE PERIOD | IMPAIRMENT | RECLASSIFICATION | CURRENCY TRANSLATION ADJUSTMENT | AUGUST 31, 2020 |
|---|---|---|---|---|---|---|---|
| Corporate Services | Corporate Services AUGUST 31, 2019 1,024 | Corporate Services INCREASES DURING THE PERIOD 4 | Corporate Services DECREASES DURING THE PERIOD - | Corporate Services IMPAIRMENT - | Corporate Services RECLASSIFICATION (35) | Corporate Services CURRENCY TRANSLATION ADJUSTMENT (55) | Corporate Services AUGUST 31, 2020 938 |
| Government & Agencies | Government & Agencies AUGUST 31, 2019 362 | Government & Agencies INCREASES DURING THE PERIOD - | Government & Agencies DECREASES DURING THE PERIOD - | Government & Agencies IMPAIRMENT - | Government & Agencies RECLASSIFICATION (34) | Government & Agencies CURRENCY TRANSLATION ADJUSTMENT (6) | Government & Agencies AUGUST 31, 2020 322 |
| Sports & Leisure | Sports & Leisure AUGUST 31, 2019 439 | Sports & Leisure INCREASES DURING THE PERIOD - | Sports & Leisure DECREASES DURING THE PERIOD - | Sports & Leisure IMPAIRMENT (64) | Sports & Leisure RECLASSIFICATION 18 | Sports & Leisure CURRENCY TRANSLATION ADJUSTMENT (24) | Sports & Leisure AUGUST 31, 2020 369 |
| Energy & Resources | Energy & Resources AUGUST 31, 2019 329 | Energy & Resources INCREASES DURING THE PERIOD - | Energy & Resources DECREASES DURING THE PERIOD - | Energy & Resources IMPAIRMENT - | Energy & Resources RECLASSIFICATION (15) | Energy & Resources CURRENCY TRANSLATION ADJUSTMENT (25) | Energy & Resources AUGUST 31, 2020 289 |
| Other non-segmented activities | Other non-segmented activities AUGUST 31, 2019 438 | Other non-segmented activities INCREASES DURING THE PERIOD 13 | Other non-segmented activities DECREASES DURING THE PERIOD - | Other non-segmented activities IMPAIRMENT - | Other non-segmented activities RECLASSIFICATION 88 | Other non-segmented activities CURRENCY TRANSLATION ADJUSTMENT (15) | Other non-segmented activities AUGUST 31, 2020 523 |
| Business & Administrations | Business & Administrations AUGUST 31, 2019 2,591 | Business & Administrations INCREASES DURING THE PERIOD 17 | Business & Administrations DECREASES DURING THE PERIOD - | Business & Administrations IMPAIRMENT (64) | Business & Administrations RECLASSIFICATION 23 | Business & Administrations CURRENCY TRANSLATION ADJUSTMENT (125) | Business & Administrations AUGUST 31, 2020 2,441 |
| Healthcare | Healthcare AUGUST 31, 2019 1,040 | Healthcare INCREASES DURING THE PERIOD - | Healthcare DECREASES DURING THE PERIOD - | Healthcare IMPAIRMENT - | Healthcare RECLASSIFICATION (60) | Healthcare CURRENCY TRANSLATION ADJUSTMENT (61) | Healthcare AUGUST 31, 2020 920 |
| Seniors | Seniors AUGUST 31, 2019 554 | Seniors INCREASES DURING THE PERIOD 53 | Seniors DECREASES DURING THE PERIOD - | Seniors IMPAIRMENT - | Seniors RECLASSIFICATION 48 | Seniors CURRENCY TRANSLATION ADJUSTMENT (40) | Seniors AUGUST 31, 2020 616 |
| Healthcare & Seniors | Healthcare & Seniors AUGUST 31, 2019 1,595 | Healthcare & Seniors INCREASES DURING THE PERIOD 53 | Healthcare & Seniors DECREASES DURING THE PERIOD - | Healthcare & Seniors IMPAIRMENT - | Healthcare & Seniors RECLASSIFICATION (11) | Healthcare & Seniors CURRENCY TRANSLATION ADJUSTMENT (101) | Healthcare & Seniors AUGUST 31, 2020 1,536 |
| Schools | Schools AUGUST 31, 2019 441 | Schools INCREASES DURING THE PERIOD 5 | Schools DECREASES DURING THE PERIOD (9) | Schools IMPAIRMENT (4) | Schools RECLASSIFICATION 73 | Schools CURRENCY TRANSLATION ADJUSTMENT (21) | Schools AUGUST 31, 2020 484 |
| Universities | Universities AUGUST 31, 2019 901 | Universities INCREASES DURING THE PERIOD - | Universities DECREASES DURING THE PERIOD - | Universities IMPAIRMENT - | Universities RECLASSIFICATION (85) | Universities CURRENCY TRANSLATION ADJUSTMENT (60) | Universities AUGUST 31, 2020 756 |
| Education | Education AUGUST 31, 2019 1,342 | Education INCREASES DURING THE PERIOD 5 | Education DECREASES DURING THE PERIOD (9) | Education IMPAIRMENT (4) | Education RECLASSIFICATION (12) | Education CURRENCY TRANSLATION ADJUSTMENT (81) | Education AUGUST 31, 2020 1,240 |
| On-site Services | On-site Services AUGUST 31, 2019 5,528 | On-site Services INCREASES DURING THE PERIOD 75 | On-site Services DECREASES DURING THE PERIOD (9) | On-site Services IMPAIRMENT (68) | On-site Services RECLASSIFICATION - | On-site Services CURRENCY TRANSLATION ADJUSTMENT (307) | On-site Services AUGUST 31, 2020 5,217 |
| Benefits & Rewards Services | Benefits & Rewards Services AUGUST 31, 2019 631 | Benefits & Rewards Services INCREASES DURING THE PERIOD 12 | Benefits & Rewards Services DECREASES DURING THE PERIOD - | Benefits & Rewards Services IMPAIRMENT (24) | Benefits & Rewards Services RECLASSIFICATION - | Benefits & Rewards Services CURRENCY TRANSLATION ADJUSTMENT (72) | Benefits & Rewards Services AUGUST 31, 2020 547 |
| TOTAL | TOTAL AUGUST 31, 2019 6,158 | TOTAL INCREASES DURING THE PERIOD 87 | TOTAL DECREASES DURING THE PERIOD (9) | TOTAL IMPAIRMENT (92) | TOTAL RECLASSIFICATION - | TOTAL CURRENCY TRANSLATION ADJUSTMENT (379) | TOTAL AUGUST 31, 2020 5,764 |
The Group recognized an impairment charge of 92 million euro, mainly in the Sports & Leisure segment (see note 6.4 “Impairment of assets”).
Reclassifications during Fiscal 2020 relate to the reallocation of contracts since the beginning of Fiscal 2020, in some European and Asian countries (from Healthcare & Seniors and Education segments to Business & Administrations segment).
