Virgin Media 2008 Annual Report Download - page 183

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 6—Goodwill and Intangible Assets
Goodwill and intangible assets consist of (in millions):
December 31,
Estimated
Useful Life 2008 2007
Goodwill and intangible assets not subject to amortization:
Goodwill ........................................... £1,922.2 £2,325.6
Reorganization value in excess of amounts allocable to identifiable
assets ............................................ 153.2 153.2
Tradenames ......................................... 16.0 16.5
£2,091.4 £2,495.3
Intangible assets subject to amortization:
Cost
Customer lists ....................................... 3–6 years £1,052.9 £1,555.4
Software and other intangible assets ....................... 1–3 years 32.8 27.9
Tradenames and licenses ................................ 1–9 years — 49.5
Contractual relationships ................................ 2–3 years — 6.0
1,085.7 1,638.8
Accumulated amortization
Customer lists ....................................... 549.9 783.3
Software and other intangible assets ....................... 25.5 15.6
Tradenames and licenses ................................ — 22.3
Contractual relationships ................................ — 3.3
575.4 824.5
£ 510.3 £ 814.3
During the year ended December 31, 2008, we impaired tradenames and licences previously
recognized within the sit-up reporting unit totaling £14.9 million as part of our goodwill impairment
review discussed further below.
In accordance with our policy, we review the estimated useful lives of our intangible assets on an
ongoing basis. As a result of our review, effective January 1, 2008, we reduced our estimates of the
remaining useful lives of certain intangible customer lists to better reflect the estimated periods over
which these assets will provide benefit. The effect of this change in estimate increased the amortization
expense of these assets in 2008 by £57.5 million compared to 2007.
Estimated aggregate amortization expense for each of the five succeeding fiscal years from
December 31, 2008 is as follows: £243.3 million in 2009, £148.3 million in 2010, £118.7 million in 2011
and nil thereafter.
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