Virgin Media 2006 Annual Report Download - page 159

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. Acquisitions (Continued)
relate primarily to underlying customer relationships pertaining to the services provided by Virgin Mobile. The fair value of these
assets was determined utilizing the income approach. We expect to amortize the fair value of these assets on a straight−line basis over
weighted average estimated useful lives of four years.
Contractual relationships represent the fair value of certain contracts with distributors of our products and services. The fair value
of these contracts was determined utilizing the income approach. We expect to amortize the fair value of these assets on a straight−line
basis over the remaining life of the contracts of three years.
Reverse Acquisition of Telewest
On March 3, 2006, Virgin Media Holdings merged with a subsidiary of NTL Incorporated (formerly known as Telewest
Global, Inc.) which we refer to as Virgin Media and the merger has been accounted for as a reverse acquisition of Telewest
Global, Inc. or Telewest using the purchase method. This merger created the U.K.’s largest provider of residential broadband and the
U.K.’s leading provider of “triple−play” services. In connection with this transaction, Telewest changed its name to NTL
Incorporated, and has since changed its name to Virgin Media Inc.
On June 19, 2006, in connection with the integration of Virgin Media and Telewest, we engaged in a post acquisition
restructuring of Telewest UK Limited and its subsidiaries in order to integrate their operations with Virgin Media’s existing U.K.
operations and to implement permanent financing. This restructuring involved a series of steps that included internal contributions,
distributions, mergers and acquisitions as well as borrowings from external sources and contributions of the proceeds of the same to
us, to effect our acquisition of the shares of Telewest UK Limited and its subsidiaries. The completion of this restructuring resulted in
Telewest UK Limited and its subsidiaries becoming our wholly−owned subsidiary. 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 our consolidated financial statements from June 19, 2006, the date
the restructuring was completed.
F−80
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007