Notes to the consolidated financial statements

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Goodwill
£m

Patents
£m

Other acquired intangible assets
£m

Total acquired intangibles
£m

Other
intangible assets
£m

Total
£m

Cost

 

 

 

 

 

 

At 1 April 2009

240

33

132

405

34

439

Additions at cost

1

1

6

7

Disposals and write-offs

(7)

(7)

Exchange and other movements

(10)

(6)

(16)

(1)

(17)

At 31 March 2010

230

33

127

390

32

422

Accumulated amortisation and impairments

 

 

 

 

 

 

At 1 April 2009

20

31

51

14

65

Amortisation charge

3

11

14

6

20

Disposals and write-offs

(1)

(1)

Exchange and other movements

(2)

(2)

(2)

At 31 March 2010

23

40

63

19

82

Net book value at 31 March 2010

230

10

87

327

13

340

Cost

 

 

 

 

 

 

At 1 April 2008

202

33

108

343

22

365

Businesses acquired

1

1

1

Additions at cost

7

7

Businesses sold

(1)

(1)

Exchange and other movements

37

24

61

6

67

At 31 March 2009

240

33

132

405

34

439

Accumulated amortisation and impairments

 

 

 

 

 

 

At 1 April 2008

8

16

15

39

6

45

Businesses sold

(1)

(1)

Amortisation charge

4

11

15

5

20

Exchange and other movements

(8)

5

(3)

4

1

At 31 March 2009

20

31

51

14

65

Net book value at 31 March 2009

240

13

101

354

20

374

Goodwill

The carrying amounts of goodwill by reportable segment are as follows:

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31 March

 

2010
£m

2009
£m

Food & Industrial Ingredients, Americas (note a)

74

77

Food & Industrial Ingredients, Europe (note b)

155

161

Sugars

1

2

Total

230

240

Goodwill is tested for impairment annually and whenever there is an indication of impairment. Unless otherwise stated, impairment reviews are carried out in accordance with the methodology set out in Note 2 and Note 3.

  1. (a)Goodwill in the Food & Industrial Ingredients, Americas segment of £74 million includes £60 million (2009 – £63 million) relating to the Staley acquisition, which is treated as one cash generating unit (CGU) for impairment testing purposes as the business is managed as one entity and it is therefore not appropriate to allocate goodwill to individual plants. Cash flows used were based on the latest approved plans for five years discounted using a pre-tax rate of 11% (2009 – 11%).
  2. The remaining goodwill relates to Continental Custom Ingredients, which was acquired in 2006. This business has also been tested for impairment using management projections of cash flows for five years and a pre-tax discount rate of 11% (2009 – 11%).
  3. In both cases zero growth was assumed in perpetuity. Management has concluded that no impairment is required for either business.
  4. (b)Goodwill in the Food & Industrial Ingredients, Europe segment of £155 million includes £89 million (2009 – £91 million) relating to the acquisition in 2000 of the minority of 34% of shares of the former Amylum business. Although cash flows have been identified for certain individual plants for the purposes of assessing the recoverable amounts of property, plant and equipment (as described in Note 16) the business is managed as a network, with a large amount of interdependency between plants and centralised decision-making. Consequently, goodwill is monitored at a divisional level and allocated to a group of plant CGUs for the purposes of impairment testing. The remaining goodwill in the former Amylum business has been tested for impairment using management projections of cash flows for five years and a pre-tax discount rate of 11% (2009 – 11%). Zero growth was assumed in perpetuity. Management has concluded that no impairment is required.
  5. In addition, goodwill includes £41 million (2009 – £42 million) relating to the acquisition of G.C. Hahn & Co. in June 2007. This business has been tested for impairment using management projections of cash flows for five years and a pre-tax discount rate of 11% (2009 – 11%). Zero growth was assumed in perpetuity. Management has concluded that no impairment is required.
  6. The remaining goodwill relates to a number of smaller acquisitions, each of which has been tested for impairment using management projections for five years, pre-tax discount rates of 11% (2009 – 11%), and zero growth assumed in perpetuity. Management has concluded that no impairment is required.