Vesuvius plc Prospectus

(b) Other intangible assets
Intangible assets other than goodwill are recognised on business combinations if they are
separable, or if they arise from contractual or other legal rights, and their value is material
and can be measured reliably. They are initially measured at cost, which is equal to the
acquisition date fair value, and subsequently measured at cost less accumulated amortisation
charges and accumulated impairment losses. Other intangible assets are subject to
impairment testing when there is an indication that an impairment loss may have been
incurred and are amortised over their estimated useful lives.
17.2 Movement in net book value
Goodwill
Other
intangible
assets
(£m)
Total
Cost
As at 1 January 2009 ....................................... 653.5 278.0 931.5
Exchange adjustments ....................................... (30.7) (5.5) (36.2)
Business combinations (note 30) ............................... 0.1 — 0.1
Business disposals .......................................... (2.1) — (2.1)
As at 31 December 2009 ..................................... 620.8 272.5 893.3
Exchange adjustments ....................................... 23.3 4.9 28.2
As at 31 December 2010 ..................................... 644.1 277.4 921.5
Exchange adjustments ....................................... (15.7) (4.3) (20.0)
Business combinations (note 30) ............................... 8.3 — 8.3
Transferred to assets classified as held for sale (note 22) ............ (31.5) — (31.5)
As at 31 December 2011 ..................................... 605.2 273.1 878.3
Accumulated depreciation and impairment losses
As at 1 January 2009 ....................................... 39.6 13.6 53.2
Exchange adjustments ....................................... (3.6) (0.3) (3.9)
Amortisation charge ......................................... — 17.6 17.6
Disposals ................................................. (0.7) — (0.7)
As at 31 December 2009 ..................................... 35.3 30.9 66.2
Exchange adjustments ....................................... 0.9 0.6 1.5
Amortisation charge ......................................... — 17.7 17.7
As at 31 December 2010 ..................................... 36.2 49.2 85.4
Exchange adjustments ....................................... — (0.7) (0.7)
Amortisation charge ......................................... — 17.8 17.8
Transferred to assets classified as held for sale (note 22) ............ (30.1) — (30.1)
As at 31 December 2011 ..................................... 6.1 66.3 72.4
Net book value
As at 1 January 2009 ....................................... 613.9 264.4 878.3
As at 31 December 2009 ..................................... 585.5 241.6 827.1
As at 31 December 2010 ..................................... 607.9 228.2 836.1
As at 31 December 2011 ..................................... 599.1 206.8 805.9
17.3 Analysis of goodwill by Cash-Generating Unit (“CGU”)
Goodwill acquired in a business combination is allocated to each of Vesuvius’ CGUs expected to
benefit from the synergies of the combination. For the purposes of impairment testing, the Directors
consider that Vesuvius has three CGUs: the Steel business, the Foundry business and the Precious
Metals Processing business. These CGUs represent the lowest level within Vesuvius at which
goodwill is monitored. The goodwill attributable to the Precious Metals Processing business CGU
has been fully impaired and consequently the amount recognised in the balance sheet is £nil (FY
2010: £nil; FY 2009: £nil).
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