These plans have been drawn up for each operating segment resulting from the Group’s organizational structure as described in note 4.1.
Management both at Group and subsidiary levels prepares underlying profit forecasts on the basis of past performance and expected market trends.
The growth rate used beyond the initial period of the business plans reflects the growth rate of the operating segment concerned, taking into account the geographic regions in which the operating segment conducts business.
Expected future cash flows are discounted at the weighted average cost of capital calculated for the Group. For certain CGUs or groups of CGUs a premium is added to the weighted average cost of capital in order to reflect the greater risk factors affecting certain countries in which the operating segment concerned conducts business.
An impairment charge recognized with respect to a CGU or group of CGUs is allocated initially to reducing the carrying amount of any goodwill allocated to that CGU, and then to reducing the carrying amount of the other assets of the CGU or group of CGUs in proportion to the carrying amount of each asset.
Impairment charges recognized with respect to goodwill cannot be reversed.
Impairment charges recognized with respect to any other asset may only be reversed if there is an indication that the impairment charge is lower or no longer exists. The amount reversed is based on the new estimates of the recoverable amount.
The increased carrying amount of an asset resulting from the reversal of an impairment charge cannot exceed the carrying amount that would have been determined for that asset had no impairment charge been recognized.
Accumulated impairment charges against property, plant and equipment and intangible assets (including goodwill) amounted to 222 million euro as of August 31, 2020 (58 million euro as of August 31, 2019), and include a net loss of 188 million euro recognized in other operating expenses in Fiscal 2020 (24 million euro in Fiscal 2019).
The main assumptions used were as follows:
| FISCAL 2020 | FISCAL 2019 | |||
|---|---|---|---|---|
| DISCOUNT RATE | LONG-TERM GROWTH RATE | DISCOUNT RATE | LONG-TERM GROWTH RATE | |
| Corporate Services | Corporate Services FISCAL 20208,0 % | Corporate Services FISCAL 20192,1 % | 6,8 % | 2,4 % |
| Energy & Resources | Energy & Resources FISCAL 20208,6 % | Energy & Resources FISCAL 20192,4 % | 7,2 % | 3,0 % |
| Government & Agencies | Government & Agencies FISCAL 20207,4 % | Government & Agencies FISCAL 20191,9 % | 6,4 % | 2,2 % |
| Sports & Leisure | Sports & Leisure FISCAL 20207,3 % | Sports & Leisure FISCAL 20191,9 % | 6,3 % | 2,3 % |
| Healthcare | Healthcare FISCAL 20207,4 % | Healthcare FISCAL 20192,0 % | 6,4 % | 2,4 % |
| Seniors | Seniors FISCAL 20207,5 % | Seniors FISCAL 20191,9 % | 6,6 % | 2,2 % |
| Schools | Schools FISCAL 20207,4 % | Schools FISCAL 20191,9 % | 6,3 % | 2,2 % |
| Universities | Universities FISCAL 20207,2 % | Universities FISCAL 20192,0 % | 6,2 % | 2,5 % |
| Other non-segmented activities | Other non-segmented activities FISCAL 20207,8 % | Other non-segmented activities FISCAL 20191,9 % | 6,4 % | 2,0 % |
| Benefits & Rewards Services | Benefits & Rewards Services FISCAL 20209,5 % | Benefits & Rewards Services FISCAL 20192,3 % | 8,0 % | 3,2 % |
