Notes to the consolidated annual financial statements

for the year ended 30 September

		2008	2007	2006
		Rm	Rm	Rm
3.	Goodwill
	2008
	Cost
	At 1 October	2 381	3 496	2 899
	Additions	684	41	226
	Subsidiaries disposed	(32)	(479)	(11)
	Unbundling of Cement		(382)
	Unbundling of Coatings	(33)
	Amounts classified as held for sale		(260)
	Translation differences	151	(35)	382
	At 30 September	3 151	2 381	3 496
	Accumulated impairment losses
	At 1 October	335	491	414
	Subsidiaries acquired	9
	Subsidiaries disposed	(8)	(327)
	Impairment	337	169	13
	Translation differences	57	2	64
	At 30 September	730	335	491
	Carrying amount
	At 30 September	2 421	2 046	3 005
	Per business segment:
	Continuing operations
	– Equipment	239	220	232
	– Automotive	1 310	1 186	1 046
	– Handling	187	179	328
	– Logistics	685	127	115
	– Corporate and other			133
	Total continuing operations	2 421	1 712	1 854
	Discontinued operations
	– Car rental – Scandinavia		301	400
	– Cement			382
	– Coatings		33	43
	– Scientific		260	326
	Total discontinued operations		594	1 151
	Total group	2 421	2 306	3 005
	Amounts classified as held for sale		(260)
	Total per balance sheet	2 421	2 046	3 005
	The impairments relate to the following:
	Avis and Budget Scandinavia	333	101
	Truck Center (Freightliner)		60
	Ditch Witch		8
	Finaltair joint venture			13
	Other	4
		337	169	13

	Goodwill is allocated to groups of cash-generating units based on group business segments (refer note 1). The group has not recognised any significant intangible assets with indefinite useful lives.

	During the current year, all significant recoverable amounts were based on value in use (except as noted below for the Car rental Scandinavia business). A discounted cash flow valuation model is applied using three year strategic plans as approved by management. The financial plans are the quantification of strategies derived from the use of a common strategic planning process followed across the group. The process ensures that all significant risks and sensitivities are appropriately considered and factored into strategic plans. Key assumptions are based on industry specific performance levels as well as economic indicators approved by the executive. These assumptions are generally consistent with external sources of information.

	Cash flows for the terminal value beyond the explicit forecast period of three years is estimated by using economic returns (CFROI)® , asset base, growth rate and fade principles. Growth rates are aligned to the long-term sustainable level of growth in the economic region in which cash-generating units operate.

	Discount rates applied to cash flow projections are based on a country or region specific real cost of capital, dependent upon the location of cash-generating segment operations. The after tax, real cost of capital is adjusted for size and leverage and other known risks.

	The after tax, real cost of capital rates applied as at September are as follows:

	2008	2007	2006
Country	%	%	%
United States	6.0	5.8	5.4
Spain	6.4	5.6	5.4
United Kingdom	6.7	6.2	5.8
Norway	6.4	5.6	5.4
Sweden	6.4	5.6	5.4
Denmark	6.4	5.6	5.4
Australia	5.9	5.2	5.3
South Africa	7.4	6.9	6.5

The current year impairment was calculated by comparing the carrying value of the Avis and Budget Scandinavia cash-generating unit to its estimated recoverable amount. The estimated recoverable amount was determined on the fair value less costs to sell of the business based on the expected disposal price. The business has been classified as Held for sale (refer note 12).

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