Virgin Media 2006 Annual Report Download - page 105

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
8. Goodwill and Intangible Assets
Goodwill and intangible assets consist of (in millions):
Estimated December 31,
Useful Life 2006 2005
Goodwill and intangible assets not subject to
amortization:
Goodwill £ 2,351.7 £ —
Reorganization value in excess of amounts
allocable to identifiable assets 148.3 193.0
Trade names 16.5 —
£ 2,516.5 £ 193.0
Intangible assets subject to amortization:
Cost
Contractual relationships 2−3
years 6.0 2.8
Trade names and licenses 1−9
years 50.7 3.2
Customer lists 4−8
years 1,602.1 560.6
Software and other intangible assets 1−5
years 22.1 —
1,680.9 566.6
Accumulated amortization
Contractual relationships 1.1 2.8
Trade names and licenses 10.4 0.8
Customer lists 543.3 313.0
Software and other intangible assets 5.6 —
560.4 316.6
£ 1,120.5 £ 250.0
Estimated aggregate amortization expense for each of the five succeeding fiscal years from December 31, 2006 is as follows:
£308.2 million in 2007, £225.0 million in 2008, £191.7 million in 2009, £148.7 million in 2010 and £80.4 million in 2011.
During the year, reorganization value in excess of amounts allocable to identifiable assets was reduced by £44.7 million due to
the use of deferred tax assets that existed as January 10, 2003 that were previously offset by a valuation allowance.
9. Investments
Virgin Media, through its wholly−owned subsidiary Flextech Broadband Limited, owns a 50% equity investment in the UKTV
joint venture companies. This investment is accounted for under the equity method at December 31, 2006. The UKTV joint venture
companies operate a portfolio of channels under the UKTV brand. This equity investment was acquired as part of the acquisition of
Telewest on March 3, 2006. In accordance with the joint venture agreements between Flextech Broadband Limited and BBC
Worldwide, we recognize 100% of losses for those companies which represent UKTV.
F−25
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007