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The carrying amounts of the assets held under finance leases included in “Property, plant and equipment” are as follows: 

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## 16. gooDwill 

The movement of cost and accumulated impairment losses for goodwill is as follows: 

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Goodwill recognised in the consolidated statements of financial position mainly resulted from an acquisition of OSI Pharmaceu- ticals, Inc. in 2010. 

The Group, in principle, regards the geographical business units, which are managed for internal reporting purposes, as cash-generating units. 

For the years ended 31 March 2013 and 2014, the majority of goodwill is allocated to the Americas cash-generating unit, and the carrying amount of goodwill was ¥107,648 million and ¥116,766 million, respectively. For the impairment test, the value in use, which is calculated based on the five-year busi- ness plan approved at the board of directors meeting, is used as the recoverable amount. 

The Group uses a weighted average cost of capital (WACC) determined for each geographical area as a discount rate. The 

after-tax WACC used for the impairment test is 8.0% and the pre-tax WACC 13.2% for the year ended 31 March 2014. 

Also, a growth rate of 2.0% is reflected in calculating the terminal value after the five-year business plan. 

The value in use sufficiently exceeds the carrying amount of the cash-generating unit. Therefore, even if the key assump- tions used in the calculation of the value in use fluctuate within a reasonable range, the Group assumes that the possibility that the value in use will be lower than the carrying amount is remote. 

Also, the Group recognised impairment losses of ¥945 million for the year ended 31 March 2014 resulting from deci- sions to close the Perseid Therapeutics LLC (United States). 

The impairment losses for goodwill are included in “Other expense” in the consolidated statements of income. 

