Virgin Media 2010 Annual Report Download - page 202

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 6—Goodwill and Intangible Assets
Goodwill and intangible assets consist of (in millions):
Estimate
Useful
Life
December 31,
2010 2009
Goodwill and intangible assets not subject to amortization:
Goodwill .................................................... £1,873.4 £1,873.8
Reorganization value in excess of amounts allocable to identifiable
assets ..................................................... 153.2 153.2
£2,026.6 £2,027.0
Intangible assets subject to amortization:
Cost
Customer lists ................................................ 3-6years £ 754.6 £ 754.6
Software and intangible assets ................................... 1-3years — 5.5
754.6 760.1
Accumulated amortization
Customer lists ................................................ 636.2 489.5
Software and intangible assets ................................... — 4.7
636.2 494.2
£ 118.4 £ 265.9
Estimated aggregate amortization expense for each of the five succeeding fiscal years after December 31,
2010 is as follows: £118.4 million in 2011, and nil thereafter.
During the years ended December 31, 2010 and 2009, assets not subject to amortization were adjusted for
the following (in millions):
Trademarks Reorganization Goodwill
Balance, December 31, 2008 .................................... £4.7 £153.2 £1,879.5
Goodwill and intangible asset impairments .................... (4.7) — —
Amendment to business acquisition goodwill ................... — — (5.7)
Balance, December 31, 2009 .................................... £— £153.2 £1,873.8
Amendment to business acquisition goodwill ................... — — (0.4)
Balance, December 31, 2010 .................................... £— £153.2 £1,873.4
As at December 31, 2008, the gross carrying amount of goodwill was £2,241.7 million and accumulated
impairment charges were £362.2 million.
As at December 31, 2010, goodwill and intangible assets not subject to amortization totaling
£1,819.8 million and £206.8 million are allocated to our Consumer and Business reporting units, respectively.
We performed our annual impairment reviews of our Consumer and Business reporting units as at October 1,
2010 and 2009. As a result of this review we concluded that no impairment charge was required at either date.
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