Virgin Media 2006 Annual Report Download - page 148

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Organization and Business (Continued)
• Mobile: our mobile segment includes the provision of mobile telephone services under the name Virgin Mobile to consumers
over cellular networks owned by T−Mobile; and
• Content: our content segment includes the operations of our U.K. television channels, such as LivingTV and Bravo, and
sit−up’s portfolio of retail television channels. Although not included in our content segment revenue, our content team also
oversees our interest in the UKTV television channels, through our joint ventures with BBC Worldwide.
2. Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with U.S. Generally Accepted
Accounting Principles.
On March 3, 2006, NTL Holdings Inc. (formerly known as NTL Incorporated and now known as Virgin Media Holdings Inc, or
Virgin Media Holdings), merged with a subsidiary of NTL Incorporated (formerly known as Telewest Global, Inc., or Telewest, and
now known as Virgin Media Inc., or Virgin Media).
We have accounted for the acquisition of Telewest UK Limited and its subsidiaries by applying the principles of APB 16 in
respect to transactions between entities under common control. As a result, the assets acquired and liabilities assumed have been
recognized at their historical cost and the results of operations and cashflows for Telewest UK Limited are included in the
consolidated financial statements from June 19, 2006, the date the restructuring was completed.
Use of Estimates
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management
to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such
estimates and assumptions impact, among others, the following: the amount of uncollectible accounts and notes receivable, the amount
to be paid to terminate certain agreements included in restructuring costs, amounts accrued for vacated properties, the amount to be
paid for other liabilities, including contingent liabilities, our pension expense and pension funding requirements, amounts to be paid
under our employee incentive plans, costs for interconnection, the amount of costs to be capitalized in connection with the
construction and installation of our network and facilities, long−lived assets, certain other intangible assets and the computation of our
income tax expense and liability. Actual results could differ from those estimates.
Fair Values
We have determined the estimated fair value amounts presented in these consolidated financial statements using available market
information and appropriate methodologies. However, considerable judgment is required in interpreting market data to develop the
estimates of fair value. The estimates presented in these consolidated financial statements are not necessarily indicative of the amounts
that we could realize in a current market exchange. The use of different market assumptions and/or estimation
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007