Ardagh Glass Finance plc - Irish Stock Exchange

Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s
share of the net identifiable assets of the acquired subsidiary at the date of acquisition.
Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to those
cash-generating units that are expected to benefit from the business combination in which the goodwill
arose for the purpose of assessing impairment. Goodwill is tested annually for impairment. In respect
of joint ventures, the carrying amount of goodwill is included in the carrying amount of the investment
in the joint venture.
The excess of the acquirer’s interest in the net fair value of the acquiree’s identifiable assets,
liabilities and contingent liabilities over cost, arising on an acquisition is recognized directly in the
income statement.
Intangible Assets (Other than Goodwill)
An intangible asset is recognized to the extent that it is probable that the expected future
economic benefits attributable to the asset will flow to the Group and that its cost can be measured
reliably. The asset is deemed to be identifiable when it is separable (i.e., capable of being divided from
the entity and sold, transferred, licensed, rented or exchanged, either individually or together with a
related contract, asset or liability) or when it arises from contractual or other legal rights, regardless of
whether those rights are transferable or separable from the Group or from other rights and obligations.
Intangible assets acquired as part of a business combination are capitalized separately from
goodwill if the intangible asset meets the definition of an asset and the fair value can be reliably
measured on initial recognition.
Subsequent to initial recognition, intangible assets are carried at cost less any accumulated
amortization and any accumulated impairment losses. The carrying values of intangible assets with
finite useful lives are reviewed for indicators of impairment at each reporting date and are subject to
impairment testing when events or changes in circumstances indicate that the carrying values may not
be recoverable.
The amortization of intangible assets is calculated to write-off the book value of finite lived
intangible assets over their useful lives on a straight-line basis on the assumption of zero residual value.
In general, finite lived intangible assets are amortized over periods ranging from three to five years,
depending on the nature of the intangible asset as detailed in Note 8 to the consolidated non-statutory
financial statements of Ardagh included elsewhere in this Offering Memorandum.
Results of Operations
Nine-Month Periods Ended September 30, 2009 and 2008
This discussion is based on a comparison of the unaudited consolidated interim financial
information of Ardagh for the nine-month periods ended September 30, 2009 and 2008.
Revenue
Group revenue decreased by A92.8 million, or 9.0%, to A935.2 million in the nine-month period
ended September 30, 2009 from A1,028.0 million in the nine-month period ended September 30, 2008.
Excluding foreign exchange effects, Group revenue decreased by A32.8 million.
Eurozone. Eurozone revenue in the nine-month period ended September 30, 2009 was
A524.4 million compared to A551.9 million for the same period in 2008, a decrease of A27.5 million or
5.0%.
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