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2009/10 Annual Report Lenovo Group Limited
114
NOTES TO THE FINANCIAL STATEMENTS (continued)
114
17 Intangible assets (continued)
Impairment tests for goodwill and intangible assets with indefinite useful lives
As explained in Note 5, the Group underwent an organizational structure change under which these intangible assets
have been allocated to the Group’s cash-generating units (“CGU”) affected using a relative value approach in accordance
with HKAS 36, “Impairment of Assets”. The carrying amounts of goodwill and trademarks and trade names with indefinite
useful lives are presented below:
At March 31, 2010
Japan,
Australia, Amounts
Latin North West New pending
China HARIE * America America Europe Zealand allocation Total
US$ million US$ million US$ million US$ million US$ million US$ million US$ million US$ million
Goodwill 850 143 24 151 92 37 177 1,474
Trademarks and trade names 209 55 9 58 35 14 – 380
* Includes Africa, Asia Pacific, Central/Eastern Europe, Hong Kong, India, Korea, Middle East, Pakistan, Russia, Taiwan and Turkey
At March 31, 2009
Asia Pacific
Europe, (excluding
Middle East Greater Greater
Americas and Africa China) China Total
US$ million US$ million US$ million US$ million US$ million
Goodwill 364 102 152 679 1,297
Trademarks and trade names 107 30 45 198 380
The reallocation of goodwill and trademarks and trade names with indefinite useful lives does not have any impact on or
change in the basis of assessment of their recoverable amounts.
Goodwill pending allocation represents the amount attributable to the acquisition of Lenovo Mobile Communication
Technology Ltd, details of which are set out in Note 37. The goodwill is primarily attributable to the significant synergies
expected to arise in connection with the development of the mobile of the internet device business of the Group.
Management is in the process of determining the allocation of goodwill to the appropriate CGU of the Group.
The Group completed its annual impairment test for goodwill allocated to the Group’s various CGU by comparing their
recoverable amounts to their carrying amounts as at the reporting date. The recoverable amount of a CGU is determined
based on value in use. These assessments use pre-tax cash flow projections based on financial budgets approved by
management covering a 5-year period with a terminal value related to the future cash flows of the CGU beyond the five-
year period are extrapolated using the estimated growth rates stated below. The estimated growth rates adopted do not
exceed the long-term average growth rates for the businesses in which the CGU operates.