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119BT GROUP PLC ANNUAL REPORT & FORM 20-F 2011
FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
13. Intangible assets
Brands,
customer Telecommunication Internally
relationships licences and developed Computer
Goodwill and technology other software software Total
£m £m £m £m £m £m
Cost
At 1 April 2009 1,489 376 307 2,348 1,204 5,724
Additions – – – 585 44 629
Acquisitions through business combinations 1 – – – – 1
Interest on qualifying assetsa–––2–2
Disposals and adjustments (2) (3) (6) (362) 9 (364)
Exchange differences (56) (16) (11) (5) (16) (104)
At 1 April 2010 1,432 357 290 2,568 1,241 5,888
Additions – – – 435 65 500
Acquisitions through business combinations 6 – – – – 6
Interest on qualifying assetsa–––4–4
Disposals and adjustments – – – (92) (5) (97)
Impairment chargesb(39) (10) – – – (49)
Exchange differences (42) (9) (2) (2) (3) (58)
At 31 March 2011 1,357 338 288 2,913 1,298 6,194
Amortisation
At 1 April 2009 153 156 739 888 1,936
Charge for the year 54 15 559 107 735
Disposals and adjustments (1) (4) (366) (53) (424)
Exchange differences (9) (5) (5) (12) (31)
At 1 April 2010 197 162 927 930 2,216
Charge for the year 47 14 544 86 691
Disposals and adjustments – – (91) (4) (95)
Exchange differences (2) (1) (1) (3) (7)
At 31 March 2011 242 175 1,379 1,009 2,805
Carrying amount
At 31 March 2011 1,357 96 113 1,534 289 3,389
At 31 March 2010 1,432 160 128 1,641 311 3,672
aAdditions to internally generated software in 2011 includes interest capitalised at a weighted average borrowing rate of 7.8% (2010: 7.9%).
bSee note 8 for details.
Goodwill impairment review
The group performs an annual goodwill impairment review, based on its cash generating units (CGUs). The CGUs that have associated
goodwill are BT Global Services and BT Retail’s business units: BT Consumer, BT Business, BT Ireland and BT Enterprises. These are the
smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other groups of assets,
and to which goodwill is allocated. Goodwill is allocated to the group’s CGUs as follows:
BT Retail
BT Global
Services BT Consumer BT Business BT Ireland BT Enterprises Total
£m £m £m £m £m £m
At 1 April 2009 1,226 57 44 16 146 1,489
Acquisitions through business combinations 1 ––––1
Disposals, adjustments and reclassifications (3) 8 17 5 (29) (2)
Exchange differences (52) – – – (4) (56)
At 1 April 2010 1,172 65 61 21 113 1,432
Acquisitions through business combinations 6 ––––6
Reclassifications – – (15) – 15 –
Impairment chargesa(39) ––––(39)
Exchange differences (37) – – – (5) (42)
At 31 March 2011 1,102 65 46 21 123 1,357
aThe goodwill impairment charges recognised in 2011 mainly relate to an operational restructuring of a business acquired several years ago.
FINANCIAL STATEMENTS OVERVIEWBUSINESS REVIEWFINANCIAL REVIEWREPORT OF THE DIRECTORSFINANCIAL STATEMENTSADDITIONAL INFORMATION