Virgin Media 2006 Annual Report Download - page 117

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. Employee Benefit Plans (Continued)
None of these amounts are expected to be recognized in the net periodic benefit cost in 2007.
The following table presents information for pension plans with an accumulated benefit obligation in excess of plan assets
(in millions):
December 31,
2006 2005
Accumulated benefit obligation £ 330.3 £ 324.7
Fair value of plan assets 298.1 286.5
The following table presents information for pension plans with a projected benefit obligation in excess of plan assets
(in millions):
December 31,
2006 2005
Projected benefit obligation £ 339.8 £ 334.0
Fair value of plan assets 298.1 286.5
The components of net periodic benefit costs were as follows (in millions):
Year ended December 31,
2006 2005 2004
Service cost £ 2.5 £ 2.7 £ 6.2
Interest cost 15.8 14.5 13.8
Expected return on plan assets (16.6) (15.1) (13.7)
Recognized actuarial loss 1.1 — (0.1)
Plan settlements 1.0 0.6 1.3
Total net periodic benefit cost £ 3.8 £ 2.7 £ 7.5
As a result of the sale of our Broadcast operations on December 1, 2004, we have retained the earned pension and other
post−retirement benefits liabilities related to certain employees of the Broadcast operations. Accordingly, the information disclosed in
the tables above includes amounts relating to liabilities of these employees.
Assumptions
The weighted−average assumptions used to determine benefit obligations were as follows:
December 31,
2006 2005
Discount rate 5.00% 4.75%
Rate of compensation increase 3.25% 3.25%
F−37
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007