Notes to the consolidated financial statements
10. Intangible assets
| Goodwill £m |
Other £m |
Total £m |
|
| Cost: At 1 April 2007, 1 April 2008 and 31 March 2009 |
3.8 | 64.2 | 68.0 |
| Impairment: At 1 April 2007, 1 April 2008 and 31 March 2009 |
(0.2) | – | (0.2) |
| Net book value at 31 March 2009 | 3.6 | 64.2 | 67.8 |
| Net book value at 1 April 2007 and 31 March 2008 | 3.6 | 64.2 | 67.8 |
As from 1 April 2004, the date of transition to IFRS, goodwill is no longer amortised but is now subject to an annual impairment review.
Goodwill has been allocated to the water and waste water cash-generating unit and the other intangible asset has been allocated to the Northumbrian Water Limited cash-generating unit, which are also the reportable segments.
The other intangible asset represents the right in perpetuity to receive income under the operating agreement with the Environment Agency in respect of the Kielder Water transfer scheme and, therefore, the directors consider the asset has an indefinite life. Accordingly, future cash flows, which increase in line with inflation, have been discounted at a rate of 6.83% in perpetuity. This represents a long term nominal gilt yield and an assumed credit spread. This calculation satisfied the Group that the carrying value at 31 March 2009 had not been impaired. Furthermore, it is improbable that the discount rate would increase to such a level that the carrying value would be impaired.
11. Property, plant and equipment
| Freehold land and buildings £m |
Infrastructure assets £m |
Operational structures, plant and machinery £m |
Fixtures, fittings, tools and equipment £m |
Assets in the course of construction £m |
Total £m |
|
| Cost: At 1 April 2007 Additions Schemes commissioned Reclassifications Disposals |
92.4 – 0.4 0.9 (0.4) |
1,534.5 0.1 82.2 (0.1) (7.5) |
1,942.0 1.4 96.8 (0.8) (2.5) |
167.3 – 7.9 – – |
100.0 233.8 (187.3) – – |
3,836.2 235.3 – – (10.4) |
| At 1 April 2008 Additions Schemes commissioned Disposals |
93.3 – 2.0 – |
1,609.2 0.1 101.5 (7.9) |
2,036.9 2.7 96.6 (11.2) |
175.2 0.2 5.5 – |
146.5 229.6 (205.6) – |
4,061.1 232.6 – (19.1) |
| At 31 March 2009 | 95.3 | 1,702.9 | 2,125.0 | 180.9 | 170.5 | 4,274.6 |
| Depreciation: | ||||||
| At 1 April 2007 Charge for the year Disposals |
30.1 2.0 – |
56.3 21.2 (7.5) |
521.1 65.3 (2.3) |
108.8 9.8 – |
– – – |
716.3 98.3 (9.8) |
| At 1 April 2008 Charge for the year Disposals |
32.1 1.9 – |
70.0 21.6 (7.9) |
584.1 67.8 (11.2) |
118.6 9.4 – |
– – – |
804.8 100.7 (19.1) |
| At 31 March 2009 | 34.0 | 83.7 | 640.7 | 128.0 | – | 886.4 |
| Net book value at 31 March 2009 | 61.3 | 1,619.2 | 1,484.3 | 52.9 | 170.5 | 3,388.2 |
| Net book value at 31 March 2008 | 61.2 | 1,539.2 | 1,452.8 | 56.6 | 146.5 | 3,256.3 |
| Net book value at 1 April 2007 | 62.3 | 1,478.2 | 1,420.9 | 58.5 | 100.0 | 3,119.9 |