Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017


			Other intangible assets
	Goodwill €m		Marketing- related €m		Customer- related (i) €m		Contract- based €m		Total €m
At 31 December 2017
Cost/deemed cost		7,198		129		535		80		7,942
Accumulated amortisation (and impairment charges)		(293)		(54)		(331)		(50)		(728)
Net carrying amount		6,905		75		204		30		7,214

At 1 January 2017, net carrying amount		7,396		89		229		47		7,761
Translation Adjustment		(593)		(10)		(22)		(4)		(629)
Arising on acquisition (note 31)		487		4		51		1		543
Reclassified as held for sale		(363)		-		(8)		(1)		(372)
Disposals		(22)		-		(1)		-		(23)
Amortisation charge for year (ii)		-		(8)		(45)		(13)		(66)
At 31 December 2017, net carrying amount		6,905		75		204		30		7,214

The equivalent disclosure for the prior year is as follows:

At 31 December 2016
Cost/deemed cost		7,701		142		659		87		8,589
Accumulated amortisation (and impairment charges)		(305)		(53)		(430)		(40)		(828)
Net carrying amount		7,396		89		229		47		7,761

At 1 January 2016, net carrying amount		7,406		91		264		59		7,820
Translation adjustment		(2)		2		6		1		7
Arising on acquisition (note 31)		71		3		11		-		85
Disposals		(56)		-		(1)		-		(57)
Amortisation charge for year (ii)		-		(7)		(51)		(13)		(71)
Impairment charge for year		(23)		-		-		-		(23)
At 31 December 2016, net carrying amount		7,396		89		229		47		7,761

At 1 January 2016
Cost/deemed cost		7,699		137		639		85		8,560
Accumulated amortisation (and impairment charges)		(293)		(46)		(375)		(26)		(740)
Net carrying amount		7,406		91		264		59		7,820

(i)	The customer-related intangible assets relate predominantly to non-contractual customer relationships.

(ii)	The amortisation charge for the year includes €5 million (2016: €9 million; 2015: €11 million) relating to discontinued operations, which primarily relates to customer-related intangible assets.

Summary of Goodwill by Cash Generating Units

All businesses within the various CGUs exhibit similar and/or consistent profit margin and asset intensity characteristics. Assets, liabilities, deferred tax and goodwill have been assigned to the CGUs on a reasonable and consistent basis.


	Cash-generating units				Goodwill (€m)
	2017		2016		2017		2016
Europe Heavyside*		14		14		1,770		1,679
Europe Lightside		1		1		365		365
Europe Distribution		1		1		671		665
Europe		16		16		2,806		2,709

Americas Materials*		6		6		2,082		2,077
Americas Products		1		1		1,555		1,671
Americas Distribution		1		1		-		411
Americas		8		8		3,637		4,159

Asia		1		1		462		528

Total Group		25		25		6,905		7,396

* Within the goodwill figures included above for the Europe Heavyside and Americas Materials segments is €339 million of goodwill unallocated to a CGU due to the completion of two acquisitions in quarter four 2017.

Summary of Significant Goodwill Amounts

The additional disclosures required for the two CGUs with significant goodwill are as follows:

United Kingdom

Oldcastle
Building Products

2017

2016

2017

2016

Goodwill allocated to the cash-generating unit at balance sheet date

€725m

€748m

€1,555m

€1,670m

Discount rate applied to the cash flow projections (real pre-tax)

7.6%

7.8%

10.3%

11.7%

Average EBITDA (as defined)* margin over the initial 5-year period

13.9%

13.7%

15.1%

14.4%

Value-in-use (present value of future cash flows)

€3,221m

€3,549m

€5,628m

€4,695m

Excess of value-in-use over carrying amount

€1,334m

€1,338m

€2,152m

€1,388m

Summary of Key Assumptions and Sensitivity Analysis Relating to Cash Generating Units Explanatory

The table below identifies the amounts by which each of the following assumptions may either decline or increase to arrive at a zero excess of the present value of future cash flows over the book value of net assets in the CGU selected for sensitivity analysis disclosures:


	One cash-generating unit
Reduction in EBITDA (as defined)* margin		2.9 percentage points
Reduction in profit before tax		22.2%
Reduction in net cash flow		18.2%
Increase in pre-tax discount rate		1.7 percentage points