Annual report and financial statement 2009 - United Utilities

FINANCIAL STATEMENTSNotes to the financial statementscontinued12 GOODWILLGroup £mCostAt 1 April 2007 5.0Disposals (see note 8) (2.9)Currency translation differences 0.2At 31 March 2008 2.3Currency translation differences 0.3At 31 March 2009 2.6Goodwill is subject to impairment testing annually, or more frequently if there are indications of impairment. The recoverable amountsof cash generating units (CGUs) are determined from value-in-use calculations that use amounts from approved budgets and plans forthe next seven years and extrapolate cashflows for a further eight years based upon an estimated growth rate. The discount rate appliedto the cashflow projections was 9.9 per cent (2008: 13.6 to 15.0 per cent). The growth rate used of nil per cent (2008: 2.4 per cent) wasbased upon industry growth rates, which do not exceed the long-term average growth rate.Goodwill is allocated to the appropriate CGU according to the business segment. Goodwill was held entirely within the non-regulatedactivities business segment at both 31 March 2009 and 31 March 2008.13 OTHER INTANGIBLE ASSETSComputersoftware Other TotalGroup £m £m £mCostAt 1 April 2007 228.9 18.6 247.5Additions – internally generated 2.7 – 2.7Additions – purchased 24.6 0.7 25.3Disposals (59.5) (0.2) (59.7)Currency translation differences – 2.5 2.5At 31 March 2008 196.7 21.6 218.3Additions – purchased 38.7 0.2 38.9Disposals (53.5) (0.3) (53.8)Currency translation differences – 2.8 2.8At 31 March 2009 181.9 24.3 206.2AmortisationAt 1 April 2007 124.9 7.1 132.0Charge for the year 21.6 1.2 22.8Disposals (22.7) (0.2) (22.9)Currency translation differences – 1.1 1.1At 31 March 2008 123.8 9.2 133.0Charge for the year 18.0 1.2 19.2Disposals (53.3) – (53.3)Currency translation differences – 1.2 1.2At 31 March 2009 88.5 11.6 100.1Net book value at 31 March 2009 93.4 12.7 106.1Net book value at 31 March 2008 72.9 12.4 85.3The other intangible assets category relates mainly to customer related intangibles such as customer contracts and customer lists.At 31 March 2009, the group had entered into contractual commitments for the acquisition of other intangible assets amounting to£19.5 million (2008: £16.9 million).The company has no other intangible assets. The company had no contractual commitments for the acquisition of other intangible assetsat 31 March 2009.64 unitedutilities.com