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Intangible assets (Tables)
 12 Months Ended
Dec. 31, 2019
Text block [abstract]  
Movements of Goodwill
Goodwill
 
The movements in 2019 and 2018 were as follows:
 
 
  
£m
 
Cost
  
 
 
 
1 January 2018
  
 
13,675.3
 
Additions
1
  
 
154.4
 
Revision of earnout estimates
  
 
(68.3
) 
Exchange adjustments
  
 
368.1
 
31 December 2018
  
 
14,129.5
 
Additions
1
  
 
8.5
 
Revision of earnout estimates
  
 
(14.3
) 
Disposals
  
 
(18.6
)  
Transfer to disposal group classified as held for sale
  
 
(2,729.1
) 
Exchange adjustments
  
 
(419.9
) 
31 December 2019
  
 
10,956.1
 
Accumulated impairment losses and write-downs
  
 
 
 
1 January 2018
  
 
722.4
 
Impairment losses for the year
  
 
183.9
 
Exchange adjustments
  
 
20.4
 
31 December 2018
  
 
926.7
 
Impairment on classification as held for sale
2
  
 
70.9
 
Impairment losses for the year
  
 
47.7
 
Transfer to disposal group classified as held for sale
  
 
(230.6
) 
Exchange adjustments
  
 
(29.3
) 
31 December 2019
  
 
785.4
 
Net book value
  
 
 
 
31 December 2019
  
 
10,170.7
 
31 December 2018
  
 
13,202.8
 
1 January 2017
  
 
12,952.9
 
 
Notes
1
 
 
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.
2
 
Goodwill impairment of £70.9 million arose from the assessment of fair value less costs to sell of the Kantar
g
roup on classification as held
 
for
 
sale under IFRS 5.
Cash-generating Units with Significant Goodwill
Cash-generating units with significant goodwill and brands with an indefinite useful life as at 31 December are:
 
 
  
Goodwill
 
  
Brands with an
indefinite useful
life
 
 
  
2019
£m
 
  
2018
£m
 
  
2019
£m
 
  
2018
£m
 
GroupM
  
 
2,936.0
 
  
 
2,942.9
 
  
 
–
 
  
 
–
 
Kantar
  
 
–
 
  
 
2,522.9
 
  
 
–
 
  
 
–
 
Wunderman Thompson
  
 
2,138.9
 
  
 
2,118.8
 
  
 
409.7
 
  
 
424.8
 
VMLY&R
  
 
901.0
 
  
 
930.4
 
  
 
199.1
 
  
 
206.6
 
Ogilvy
  
 
762.9
 
  
 
618.7
 
  
 
211.1
 
  
 
219.1
 
Burson Cohn & Wolfe
  
 
741.4
 
  
 
714.0
 
  
 
130.2
 
  
 
135.4
 
Other
  
 
2,690.5
 
  
 
3,355.1
 
  
 
128.1
 
  
 
146.9
 
Total goodwill
  
 
10,170.7
 
  
 
13,202.8
 
  
 
1,078.2
 
  
 
1,132.8
 
Movements of Other Intangible Assets
Other intangible assets
 
The movements in 2019 and 2018 were as follows:
 
 
  
 



 
Brands
with an
indefinite
useful life
£m




 
 
 

 
Acquired
intangibles
£m
 
 
 
 
 
Other
£m
 
 
 
 
Total
£m
 
 
Cost
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 January 2018
  
 
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 movements
1
  
 
–
 
 
 
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
 
Additions
  
 
–
 
 
 
–
 
 
 
43.2
 
 
 
43.2
 
Disposals
  
 
–
 
 
 
(3.4
) 
 
 
(41.0
) 
 
 
(44.4
) 
New acquisitions
  
 
–
 
 
 
3.5
 
 
 
–
 
 
 
3.5
 
Other movements
  
 
 
 
 
 
–
 
 
 
(1.4
) 
 
 
(1.4
) 
Exchange adjustments
  
 
(41.4
) 
 
 
(28.2
) 
 
 
(9.9
) 
 
 
(79.5
) 
Transfer to disposal group classified as held for sale
  
 
–
 
 
 
(979.0
) 
 
 
(115.9
) 
 
 
(1,094.9
) 
31 December 2019
  
 
1,091.4
 
 
 
1,602.9
 
 
 
312.3
 
 
 
3,006.6
 
Amortisation and impairment
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 January 2018
  
 
–
 
 
 
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
 
Charge for the year
  
 
13.2
 
 
 
116.8
 
 
 
29.6
 
 
 
159.6
 
Disposals
  
 
–
 
 
 
(1.6
) 
 
 
(37.7
) 
 
 
(39.3
) 
Other movements
  
 
–
 
 
 
–
 
 
 
2.6
 
 
 
2.6
 
Exchange adjustments
  
 
–
 
 
 
(15.2
) 
 
 
(9.1
) 
 
 
(24.3
) 
Transfer to disposal group classified as held for sale
  
 
–
 
 
 
(835.9
) 
 
 
(63.0
) 
 
 
(898.9
) 
31 December 2019
  
 
13.2
 
 
 
1,279.3
 
 
 
245.3
 
 
 
1,537.8
 
Net book value
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
31 December 2019
  
 
1,078.2
 
 
 
323.6
 
 
 
67.0
 
 
 
1,468.8
 
31 December 2018
  
 
1,132.8
 
 
 
594.8
 
 
 
114.4
 
 
 
1,842.0
 
1 January 2018
  
 
1,081.3
 
 
 
829.1
 
 
 
108.0
 
 
 
2,018.4
 
 
Note
1
 
 
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.