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10. Intangible assets
Our statement of nancial position contains signicant intangible assets, mainly in relation to goodwill. Goodwill
arises when we acquire a business and pay a higher amount than the fair value of the net assets of that business
primarily due to the synergies we expect to gain from the acquisition. Goodwill is not amortised but is subject
to annual impairment reviews. We also spend a signicant amount on licences and spectrum which is usually
amortised over the life of the licence. Refer to “Critical accounting estimates” on pages 86 and 87 for further
information on how we calculate the carrying value of our goodwill and intangible assets and our processes for
impairment testing.
Licences and Computer
Goodwill spectrum software Other Total
£m £m £m £m £m
Cost:
1 April 2011 103,90030,1599,9493,269147,277
Exchange movements (6,398) (1,804) (539) (306) (9,047)
Arising on acquisition 87– 1933139
Additions – 1,263 1,653 102,926
Disposals – – (653) (18) (671)
Disposals of subsidiaries and joint ventures (358) (139) (52) (24) (573)
Other – – 81 32113
31 March 2012 97,23129,47910,458 2,996 140,164
Exchange movements 712 (15) 100 (207) 590
Arising on acquisition 59 28 63 335 485
Additions – 2,440 1,578 – 4,018
Disposals – (9) (603) – (612)
Disposals of subsidiaries and joint ventures – – (4) – (4)
Other (25) (5) – (11) (41)
31 March 2013 97,977 31,918 11,592 3,113 144,600
Accumulated impairment losses and amortisation:
1 April 2011 58,664 10,6237,1352,29778,719
Exchange movements (3,601) (645) (371) (220) (4,837)
Amortisation charge for the year – 1,891 1,298 3073,496
Impairment losses 3,818121– – 3,939
Disposals – – (634) (16) (650)
Disposals of subsidiaries and joint ventures – (34) (23) (20) (77)
Other – – 55 5 60
31 March 2012 58,88111,9567,4602,35380,650
Exchange movements 1,024 53 81 (145) 1,013
Amortisation charge for the year – 1,782 1,399 266 3,447
Impairment losses 7,700 – – – 7,700
Disposals – (5) (589) – (594)
Disposals of subsidiaries and joint ventures – – (3) – (3)
Other – – – (10) (10)
31 March 2013 67,605 13,786 8,348 2,464 92,203
Net book value:
31 March 2012 38,350 17,5232,998 64359,514
31 March 2013 30,372 18,132 3,244 649 52,397
For licences and spectrum and other intangible assets, amortisation is included within the cost of sales line within the consolidated income
statement. Licences and spectrum with a net book value of £2,702 million (2012: £2,991 million) have been pledged as security against borrowings.
The net book value and expiry dates of the most signicant licences are as follows:
2013 2012
Expiry date £m £m
Germany December 2020/2025 4,329 4,778
UK December 2021/March 2033 3,782 3,250
India December 2026/September 2030 1,493 1,455
Qatar June 2028 1,111 1,125
Italy December 2021/2029 1,717 1,771
Netherlands December 2016/February 2030/May 2030 1,329 234
The remaining amortisation period for each of the licences in the table above corresponds to the expiry date of the respective licence. A summary
of the Group’s most signicant mobile licences can be found on page 178.
Notes to the consolidated nancial statements (continued)
108 Vodafone Group Plc
Annual Report 2013