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68 The Carphone Warehouse Group PLC Annual Report 2009
Notes to the Financial Statements – continued
13 Goodwill and other intangible assets – continued
Acquisition intangibles are analysed as follows:
2009 2008
Customer Customer
revenue revenue
Customer share Customer share
bases agreements Other Total bases agreements Other Total
£m £m £m £m £m £m £m £m
Opening balance 218 21 6 245 274 32 12 318
Acquisition of subsidiaries 3 – – 3 2 – – 2
Disposal of subsidiaries (1) – – (1) – – – –
Amortisation (56) (12) (3) (71) (58) (11) (6) (75)
Closing balance 164 9 3 176 218 21 6 245
Cost (gross carrying amount) 283 35 7 325 315 35 14 364
Accumulated amortisation (119) (26) (4) (149) (97) (14) (8) (119)
Closing balance 164 9 3 176 218 21 6 245
Customer bases relate primarily to AOL’s UK internet access business which was acquired in December 2006. The valuation of
customer bases is derived from the discounted future cash ows expected from them, after a deduction for contributory assets.
Customer revenue share agreements again arose on the acquisition of AOL’s UK internet access business, and represent rights,
subject to performance criteria, to a share of transactional revenues generated by AOL access customers and TalkTalk
customers on AOL sites. The valuation of these rights was again derived from the discounted future cash ows expected from
the agreement, after a deduction for contributory assets.
Other acquisition intangibles primarily represent a licence to continue to use the AOL brand for a limited time period, valued
using the relief from royalty method.
14 Property, plant and equipment
2009
Network equipment
Freehold land Short and computer Fixtures Motor
and buildings leasehold costs hardware and fittings vehicles Total
£m £m £m £m £m £m
Opening balance 66 68 235 78 1 448
Disposal of subsidiaries – (64) (39) (78) (1) (182)
Additions 1 2 64 8 – 75
Disposals (1) – (1) – – (2)
Depreciation (1) (3) (43) (7) – (54)
Closing balance 65 3 216 1 – 285
At 31 March 2009
Cost (gross carrying amount) 68 3 311 1 – 383
Accumulated depreciation (3) – (95) – – (98)
Net carrying amount 65 3 216 1 – 285