Virgin Media 2006 Annual Report Download - page 169

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
13. Employee Benefit Plans (Continued)
as prescribed by the laws and regulations in the United Kingdom. Our defined benefit pension plans use a measurement date of
December 31.
We have adopted the provisions of Statement of Financial Accounting Standards No. 158, “Employers’ Accounting for Defined
Benefit Pension and Other Postretirement Plans, an amendment of FASB Statements No. 87, 88, 106, and 132(R)” ( “SFAS No. 158”
), as of December 31, 2006. In accordance with SFAS 158, our 2005 accounting and related disclosures were not affected by the
adoption of the new standard. The table below summarizes the incremental effects of SFAS No. 158 adoption on the individual line
items in our balance sheet at December 31, 2006 (in millions):
Pre SFAS No. 158
Adoption SFAS No. 158 Adjustment Post SFAS No. 158 Adoption
Deferred revenue and other long term
liabilities £ 32.3 £9.4 £ 41.7
Accumulated other comprehensive income 10.6 9.4 20.0
Obligations and Funded Status
The change in projected benefit obligation was as follows (in millions):
Year ended
December 31,
2006 2005
Benefit obligation at beginning of year £ 331.0 £ 280.3
Service cost 2.5 2.6
Interest cost 15.7 14.4
Members contributions 0.6 0.7
Actuarial (gains) losses (5.4) 44.0
Benefits paid (8.5) (7.7)
Plan settlements 1.0 (3.3)
Benefit obligation at end of year £ 336.9 £ 331.0
The change in plan assets was as follows (in millions):
Year ended
December 31,
2006 2005
Fair value of plan assets at beginning of year £ 284.5 £ 191.8
Actual return on plan assets 17.5 40.0
Employer contributions 1.9 59.7
Employee contributions 0.6 0.7
Benefits paid (8.5) (7.7)
Fair value of plan assets at end of year £ 296.0 £ 284.5
F−90
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007