Intangible assets (Tables)

12 Months Ended

Dec. 31, 2018

Goodwill

The movements in 2018 and 2017 were as follows:


	£m
Cost:
1 January 2017		13,939.4
Additions¹		301.0
Revision of earnout estimates		(60.7	)
Exchange adjustments		(504.4	)
31 December 2017		13,675.3
Additions¹		154.4
Revision of earnout estimates		(68.3	)
Exchange adjustments		368.1
31 December 2018		14,129.5

Accumulated impairment losses and write-downs:
1 January 2017		725.1
Impairment losses for the year		27.1
Exchange adjustments		(29.8	)
31 December 2017		722.4
Impairment losses for the year		183.9
Exchange adjustments		20.4
31 December 2018		926.7

Net book value:
31 December 2018		13,202.8
31 December 2017		12,952.9
1 January 2017		13,214.3

Note

Additions represent goodwill arising on the acquisition of subsidiary undertakings including the effect of any revisions to fair value adjustments that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations. The effect of such revisions was not material in either year presented. Goodwill arising on the acquisition of associate undertakings is shown within interests in associates and joint ventures in note 14.

Cash-generating Units with Significant Goodwill

Cash-generating units with significant goodwill as at 31 December are:


	2018 £m		2017 £m
GroupM		2,942.9		2,906.7
Kantar		2,522.9		2,518.2
Wunderman		1,581.2		1,514.5
VMLY&R		930.4		1,091.8
Other		5,225.4		4,921.7
Total goodwill		13,202.8		12,952.9

Movements of Other Intangible Assets

Other intangible assets

The movements in 2018 and 2017 were as follows:


	Brands with an indefinite useful life £m			Acquired intangibles £m			Other £m			Total £m
Cost:
1 January 2017		1,141.3			2,535.5			404.1			4,080.9
Additions		–			–			37.3			37.3
Disposals		–			–			(15.8	)		(15.8	)
New acquisitions		–			79.0			0.8			79.8
Other movements¹		–			6.4			7.2			13.6
Exchange adjustments		(60.0	)		(73.1	)		(22.1	)		(155.2	)
31 December 2017		1,081.3			2,547.8			411.5			4,040.6
Additions		–			–			60.4			60.4
Disposals		–			(0.9	)		(37.3	)		(38.2	)
New acquisitions		–			40.3			–			40.3
Other movements¹		–			2.9			(7.4	)		(4.5	)
Exchange adjustments		51.5			19.9			10.1			81.5
31 December 2018		1,132.8			2,610.0			437.3			4,180.1

Amortisation and impairment:
1 January 2017		–			1,563.0			300.6			1,863.6
Charge for the year		–			189.4			36.3			225.7
Disposals		–			–			(14.9	)		(14.9	)
Other movements		–			–			2.5			2.5
Exchange adjustments		–			(33.7	)		(21.0	)		(54.7	)
31 December 2017		–			1,718.7			303.5			2,022.2
Charge for the year		–			275.8			38.7			314.5
Disposals		–			(0.7	)		(27.3	)		(28.0	)
Other movements		–			–			(1.9	)		(1.9	)
Exchange adjustments		–			21.4			9.9			31.3
31 December 2018		–			2,015.2			322.9			2,338.1

Net book value:
31 December 2018		1,132.8			594.8			114.4			1,842.0
31 December 2017		1,081.3			829.1			108.0			2,018.4
1 January 2017		1,141.3			972.5			103.5			2,217.3

Note

Other movements in acquired intangibles include revisions to fair value adjustments arising on the acquisition of subsidiary undertakings that had been determined provisionally at the immediately preceding balance sheet date, as permitted by IFRS 3 Business Combinations.