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Intangible assets (Tables)

12 Months Ended

Dec. 31, 2022

Intangible assets

Summary of breakdown of intangible assets


				Customer		Indefinite-lived		Other		Product		Computer
		Goodwill		lists		brands		intangibles		development		software		Total
		£m		£m		£m		£m		£m		£m		£m
Cost
At 1 January 2021		1,653		824		—		66		40		145		2,728
Exchange differences		4		(13)		—		—		—		(2)		(11)
Additions		—		—		—		4		6		21		31
Disposals/retirements		—		(4)		—		(3)		—		(1)		(8)
Acquisition of companies and businesses¹		228		69		—		—		—		—		297
Hyperinflationary adjustment		3		—		—		—		—		—		3
At 31 December 2021		1,888		876		—		67		46		163		3,040
At 1 January 2022		1,888		876		—		67		46		163		3,040
Exchange differences		(72)		(5)		(107)		2		(1)		6		(177)
Additions		—		—		—		—		10		27		37
Disposals/retirements		—		(180)		—		(12)		—		(1)		(193)
Acquisition of companies and businesses¹		3,352		779		1,292		23		—		11		5,457
Hyperinflationary adjustment		14		3		—		1		—		—		18
Disposal of companies and businesses		(1)		—		—		—		—		—		(1)
At 31 December 2022		5,181		1,473		1,185		81		55		206		8,181
Accumulated amortisation and impairment
At 1 January 2021		(45)		(585)		—		(47)		(27)		(102)		(806)
Exchange differences		1		10		—		—		—		1		12
Disposals/retirements		—		4		—		4		—		1		9
Impairment charge		—		—		—		—		—		(2)		(2)
Amortisation charge		—		(64)		—		(5)		(5)		(15)		(89)
At 31 December 2021		(44)		(635)		—		(48)		(32)		(117)		(876)
At 1 January 2022		(44)		(635)		—		(48)		(32)		(117)		(876)
Exchange differences		1		(31)		—		(2)		—		(5)		(37)
Disposals/retirements		—		179		—		12		—		1		192
Hyperinflationary adjustment		—		(1)		—		—		—		—		(1)
Impairment charge		(22)		—		—		—		—		—		(22)
Amortisation charge		—		(85)		—		(6)		(5)		(22)		(118)
At 31 December 2022		(65)		(573)		—		(44)		(37)		(143)		(862)
Net book value
At 1 January 2021		1,608		239		—		19		13		43		1,922
At 31 December 2021		1,844		241		—		19		14		46		2,164
At 31 December 2022		5,116		900		1,185		37		18		63		7,319

1.	Includes current-year acquisitions of £5,449m (2021: £301m) as well as adjustments to prior-year acquisitions within the measurement period.

Summary of estimated useful economic lives of intangible assets


Customer lists:		3 to 15 years
Other intangibles:		2 to 15 years
Product development:		2 to 5 years
Computer software:		3 to 5 years

Summary of breakdown of goodwill by region


		2022		2021
		£m		£m
North America¹		4,527		1,414
Europe (incl. LATAM)		241		109
UK & Sub-Saharan Africa		66		66
Asia & MENAT		196		178
Pacific		86		77
Total		5,116		1,844

1.	Includes £2,878m (2021: £nil) relating to the US Terminix CGU and £1,555m (2021: £1,100m) relating to the US Pest Control CGU.

Summary of key assumptions used by individual CGUs for value-in-use calculation


		2022 long-term		2022 pre-tax		2021 long-term		2021 pre-tax
		growth rate¹		discount rate		growth rate¹		discount rate
North America²		2.0	%	8.4 – 10.3	%	2.0 – 2.2	%	6.6 – 8.7	%
Europe (incl. LATAM)		1.3 – 3.0	%	6.7 – 15.4	%	1.3 – 3.3	%	7.1 – 15.4	%
UK & Sub-Saharan Africa		2.0 – 4.5	%	8.0 – 12.3	%	2.0 – 4.5	%	6.5 – 11.6	%
Asia & MENAT		1.5 – 4.0	%	9.7 – 13.9	%	1.5 – 4.0	%	8.2 – 12.6	%
Pacific		2.0 – 2.5	%	10.2 – 11.0	%	2.2 – 2.4	%	9.3 – 10.7	%

1.	Source: imf.org.

2.	Key assumptions used by the US Pest Control CGU were a long-term growth rate of 2.0% (2021: 2.2%) and a pre-tax discount rate of 10.3% (2021: 7.7%). For US Pest Control CGU the recoverable amount exceeds the carrying amount by £1,692m (2021: £2,121m).