Goodwill and intangible assets with an indefinite useful life
| in CHF 000 | 2021 | 2020 | ||
|---|---|---|---|---|
| Goodwill per business division | ||||
| TX Markets | 290 994 | 499 140 | ||
| Goldbach | 112 957 1 | 120 103 | ||
| 20 Minuten | 147 182 1 | 146 193 | ||
| Tamedia | 91 248 1 | 85 367 | ||
| Group & Ventures | 22 856 | 21 190 | ||
| Total | 665 237 | 871 993 | ||
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1 In the new corporate structure, the Goldbach subsidiaries 20 Minuten Advertising and Goldbach Publishing market all the titles of 20 Minuten and Tamedia. In this context, goodwill from 20 Minuten and Tamedia amounting to CHF 4.0 million was reallocated to Goldbach.
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In addition to goodwill, intangible assets (trademarks/domains) with indefinite useful lives are found in the following business divisions:
| in CHF 000 | 2021 | 2020 | ||
|---|---|---|---|---|
| Intangible assets with indefinite useful lives per business segment | ||||
| TX Markets | 83 550 | 170 709 | ||
| Goldbach | 39 168 | 39 281 | ||
| 20 Minuten | 22 293 | 22 318 | ||
| Group & Ventures | 7 867 | 7 867 | ||
| Total | 152 877 | 240 176 | ||
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Goodwill of CHF 290.1 million and intangible assets with indefinite useful lives of CHF 91.0 million apply to the largest cash-generating unit JobCloud. These were tested for impairment on the basis of the value in use, growth rate calculation, discount rate and other assumptions in the TX Markets segment.
The goodwill and intangible assets with indefinite useful lives were tested for impairment for each cash-generating unit on 31 December 2021. The cash-generating units are determined at a level below the segments, provided they are largely independent of other assets. Their values in use were calculated using the discounted cash flow method.
The calculations on which the business plans are based refer to the values generated in the current year, the budget figures for 2022 and the medium-term expectations for each of the business divisions. The budget figures include the latest estimates relating to changes in revenues and costs. The estimates relating to the changes in revenues take into account external market data (WEMF, Media Focus, NET-Metrix) and are based on the current reader or user figures. Future changes in these numbers are forecast individually. The business plans take account of business risks with differing assessments. The business plans cover a period of four years. For the following years, the growth rate was set at -4.8 per cent for Tamedia, 0.0 per cent for 20 Minuten, 0.6 per cent for Goldbach and 1.0 per cent for TX Markets and Group & Ventures (previous year: -5.2 per cent for Tamedia, 0.0 per cent for 20 Minuten, 0.6 per cent for Goldbach and 1.0 per cent for TX Markets and Group & Ventures).
The discount rates applied (WACC) are shown in the following table.
| 2021 | 2020 | |||
|---|---|---|---|---|
| WACC before tax | ||||
| TX Markets | 8.9% | 9.4–12.3% | ||
| Goldbach | 8.3–9.9% | 9.2–11.9% | ||
| 20 Minuten | 7.9–10.6% | 7.9–8% | ||
| Tamedia | 9.2% | 8.8% | ||
| Group & Ventures | 11.5–11.6% | 12.3–12.5% | ||
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The discount rates before tax applied to the significant cash-generating units amounted to 9.2 per cent (previous year: 8.8 per cent) for Tamedia, 7.9 per cent (previous year: 7.9 per cent) for 20 Minuten, 8.3 per cent (previous year: 9.2 per cent) for Goldbach, 8.9 per cent (previous year: 10.2 per cent) for TX Markets and 11.6 per cent (previous year: 12.3 per cent) for Group & Ventures. The impairment testing at the end of 2021 did not show any impairment was needed for any cash-generating units. The test is performed once a year in each case and in the event of any signs of potential impairment. Additional impairment of goodwill and intangible assets with an indefinite useful life could result in future from changes in the fundamental data used for impairment testing.
In the previous year, an impairment of CHF 85.0 million was recorded on goodwill for the cash-generating unit Tamedia.
Impairment of goodwill and intangible assets with an indefinite useful life could result from changes in the fundamental data used for impairment testing, such as an ongoing deterioration in the gross margin or a change in cost structure.
The possible effects as at 31 December are presented on the basis of an assumed reduction in free cash flow and an increase in WACC.
| in CHF 000 | 2021 | 2020 | ||
|---|---|---|---|---|
| Effects on goodwill and intangible assets with unlimited use of a reduction in cash flow by | ||||
| 10% | ||||
| TX Markets | – | – | ||
| Goldbach | (2 490) | (22 438) | ||
| 20 Minuten | – | (979) | ||
| Tamedia | – | (6 537) | ||
| Group & Ventures | – | – | ||
| 20% | ||||
| TX Markets | – | – | ||
| Goldbach | (29 085) | (62 568) | ||
| 20 Minuten | – | (2 389) | ||
| Tamedia | – | (22 998) | ||
| Group & Ventures | – | – | ||
| WACC increased by 2% | ||||
| TX Markets | – | (2 599) | ||
| Goldbach | (41 315) | (69 535) | ||
| 20 Minuten | – | (2 699) | ||
| Tamedia | – | (15 689) | ||
| Group & Ventures | – | – | ||
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A 20 per cent decline in free cash flow for the cash-generating unit Goldbach would give an achievable value of CHF 29.1 million below the carrying amount. A 2 per cent increase in WACC would give an achievable value of CHF 41.3 million below the carrying amount. There is no impact for the other units.