Virgin Media 2009 Annual Report Download - page 118

VIRGIN MEDIA INC. 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 2009 2008
Goodwill and intangible assets not subject to amortization:
Goodwill ........................................... £1,916.5 £1,922.2
Reorganization value in excess of amounts allocable to identifiable
assets ............................................ 144.1 144.1
Trademarks .......................................... 11.3 16.0
£2,071.9 £2,082.3
Intangible assets subject to amortization:
Cost
Customer lists ........................................ 3-6 years £ 754.6 £1,052.9
Software and other intangible assets ........................ 1-3 years 5.5 32.8
760.1 1,085.7
Accumulated amortization
Customer lists ........................................ 489.5 549.9
Software and other intangible assets ........................ 4.7 25.5
494.2 575.4
£ 265.9 £ 510.3
Estimated aggregate amortization expense for each of the five succeeding fiscal years after
December 31, 2009 is as follows: £147.4 million in 2010, £118.5 million in 2011 and nil thereafter.
During the years ended December 31, 2009 and 2008, assets not subject to amortization were
adjusted for the following (in millions):
Reorganization
Trademarks Value Goodwill
Balance, December 31, 2007 ............................ £16.5 £146.1 £2,285.7
Deferred tax balances ............................... — (2.0) (1.3)
Goodwill and intangible asset impairments ................ (0.5) — (362.2)
Balance, December 31, 2008 ............................ £16.0 £144.1 £1,922.2
Goodwill and intangible asset impairments ................ (4.7) — —
Amendment to business acquisition goodwill .............. — — (5.7)
Balance, December 31, 2009 ............................ £11.3 £144.1 £1,916.5
As at December 31, 2009, goodwill and intangible assets not subject to amortization totaling
£1,812.0 million, £205.9 million and £54.0 million are allocated to our Consumer, Business and Content
reporting units, respectively.
We performed our annual impairment review of our Content reporting unit as at June 30, 2009. As
a result of this review we concluded that no impairment charge was required as at June 30, 2009.
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