Note 14: Intangible Assets (including goodwill)
Goodwill and intangible assets as at 30 June 2006 total $630 million ($737 million as at 30 June 2005). Intangible assets (including goodwill) comprise:
| 30 June 2006 $m | 30 June 2005 $m | |
|---|---|---|
| Intangible assets | 228 | 279 |
| Goodwill | 402 | 458 |
| Total Intangible Assets | 630 | 737 |
Goodwill is primarily made up of:
- remaining goodwill on acquisition of Air New Zealand of $258 million ($305 million as at 30 June 2005). It is amortised over a 10-year period. This results in an expense of $47 million per year.
- goodwill on acquisitions by SOEs.
The following table reconciles the movement in goodwill during the year.
| Description ($million) | 30 June 2006 | 30 June 2005 |
|---|---|---|
| Opening balance | ||
| Gross goodwill | 717 | 709 |
| Accumulated amortisation | (259) | (162) |
| Net opening balance | 458 | 547 |
| Goodwill acquired during the period | 19 | 8 |
| Goodwill amortised during the period | (75) | (97) |
| Closing balance | ||
| Gross goodwill | 748 | 717 |
| Accumulated amortisation | (346) | (259) |
| Net closing balance | 402 | 458 |
