FINANCIAL AND ACCOUNTING INFORMATION both historical and expected performance, Rexel’s • Discount rate and perpetual growth rate market share and characteristics of the local The fol lowing after tax discount rates and market and by reference to other cash generating perpetual growth rate were used to estimate the units within the Group with similar profile. value-in-use of the CGUs: 2017 2016 WACC - WACC - DISCOUNT RATE PERPETUAL PERPETUAL DISCOUNT RATE PERPETUAL PERPETUAL (WACC) GROWTH RATE GROWTH RATE (WACC) GROWTH RATE GROWTH RATE France 7.8% 1.8% 6.0% 7.5% 1.8% 5.7% United States 7.8% 1.8% 6.0% 7.8% 1.8% 6.0% Canada 7.8% 1.8% 6.0% 7.3% 1.8% 5.5% Switzerland 7.0% 0.8% 6.2% 6.3% 0.8% 5.5% United Kingdom 7.8% 1.8% 6.0% 7.5% 1.8% 5.7% Sweden 7.8% 1.8% 6.0% 7.3% 1.8% 5.5% Germany 7.3% 1.8% 5.5% 7.0% 1.8% 5.2% Norway 7.8% 1.8% 6.0% 7.8% 1.8% 6.0% Australia 9.8% 2.5% 7.3% 9.5% 2.5% 7.0% Austria 7.3% 1.8% 5.5% 7.3% 1.8% 5.5% Belgium 7.3% 1.8% 5.5% 7.3% 1.8% 5.5% Other 5.8% to 15.5% 1.0% to 5.0% 4.8% to 13.8% 6.0% to 15.8% 1.0% to 5.0% 5.0% to 10.8% Impairment loss In 2016, the Group recognized a goodwill impairment Fol lowing lower than expected 2017 performance expense of €46.8 mil lion, of which €38.3 mil lion in Germany, Finland and New Zealand, the Group attributable to China, €4.7 mil lion attributable to adjusted downwards its prospects, including the Slovenia and €3.8 million to South East Asia. normative EBITA margin factored in the terminal Sensitivity analysis value resulting in a €133.7 mi l l ion impairment charge of which €86.2 million allocated to Germany, The table below summarizes the impact by cash €34.5 mil lion to Finland and €13.0 mil lion to New generating units of a change of 50 bps in EBITA Zealand. As a result, the carrying value of goodwill margin, discount rate and perpetual growth rate on in Germany, Finland and New Zealand was reduced the impairment expense: to respectively €98.2 mi l l ion, €21.3 mi l l ion and €11.2 million as of December 31, 2017. GOODWILL & INTANGIBLE PERPETUAL ASSETS WITH AN INDEFINITE EBITA MARGIN DISCOUNT RATE GROWTH RATE USEFUL LIFE (-50 BPS) (+50 BPS) (-50 BPS) France 1,217.1 – – – United States 1,071.3 (76.9) (54.3) – Canada 519.4 (40.7) (42.2) (25.0) Switzerland 292.2 – – – United Kingdom 252.6 – – – Sweden 207.1 – – – Germany 149.9 (42.0) (22.6) (16.0) Norway 170.6 – – – Australia 144.0 (0.9) – – Austria 101.5 – – – Belgium 76.4 – – – Other 540.2 (39.1) (14.6) (6.5) Total 4,742.3 (199.6) (133.7) (47.5) REXEL 2017 – REGISTRATION DOCUMENT 236