The way ahead? - Vodafone

Overview
Poland – Polkomtel S.A.
On 9 November 2011 the Group sold its entire 24.4% interest in Polkomtel S.A. to Spartan Capital Holdings SP. z o.o for a cash consideration
of €918 million (£784 million) before tax and transaction costs. The Group recognised a net gain on disposal of £296 million, reported in other
income and expense.
Polkomtel
£m
Net assets disposed (579)
Total cash consideration 784
Other effects 1 91
Net gain on disposal 2 296
Notes:
1 Other effects include foreign exchange gains and losses transferred to the income statement and professional fees related to the disposal.
2 Reported in other income and expense in the consolidated income statement.
China – China Mobile Limited
In the year ended 31 March 2011 the Group sold its 3.2% interest in China Mobile for £4,264 million generating a £3,019 million income statement
gain, including income statement recognition of foreign exchange rate gains previously recognised in equity.
12. Impairment review
Business
review Performance Governance Financials
Impairment occurs when the carrying value of an asset or group of assets is greater than the present value
of the cash they are expected to generate. We review the carrying value of the assets in each country in which
we operate at least annually. For further details on our impairment review process see “Critical accounting
estimates” on page 87 and “Impairment of assets” under our significant accounting policies on page 131.
Impairment losses
Following our annual impairment review, the net impairment losses recognised in the consolidated income statement, as a separate line item within
operating profit, in respect of goodwill, licences and spectrum fees, and property, plant and equipment are as below. The impairment losses were
based on value in use calculations.
2013 2012 2011 1
Cash generating unit Reportable segment £m £m £m
Italy Italy 4,500 2,450 1,050
Spain Spain 3,200 900 2,950
Greece Other Southern Europe 1 – 450 800
Portugal Other Southern Europe 1 – 250 350
Ireland Other Northern and Central Europe 1 – – 1,000
7,700 4,050 6,150
Note:
1 Total impairment losses in the Other Southern Europe segment were £nil in the year ended 31 March 2013 (2012: £700 million; 2011: £1,150 million).
Goodwill
The remaining carrying value of goodwill at 31 March was as follows:
Additional
information
2013 2012
£m £m
Germany 11,703 11,566
Italy 5,867 10,400
Spain 2,515 5,833
20,085 27,799
Other 10,287 10,551
30,372 38,350
111
Vodafone Group Plc
Annual Report 2013