Virgin Media 2006 Annual Report Download - page 174

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. Other Charges Including Restructuring Charges (Continued)
Acquisition Restructuring Provisions
Involuntary
Employee
Termination
and Related
Costs
Lease
Exit
Costs Agreement Modifications Other Total
Balance, December 31, 2005 £ — £ — £ — £ — £ —
Provisions resulting from business acquisition
recognized under EITF 95−3 43.2 45.9 — — 89.1
Charged to expense 37.4 21.2 — — 58.6
Utilized (60.2) (3.7) — — (63.9)
Balance, December 31, 2006 £ 20.4 £ 63.4 £ — £ — £ 83.8
15. Income Taxes
The benefit for income taxes consists of the following (in millions):
Year ended December 31,
2006 2005 2004
Current:
U.K. taxes £ 1.8 £ — £ —
Total £ 1.8 £ — £ —
The tax benefit related to amounts receivable in respect of the surrender to equity investments of U.K. tax losses arising in the
current period.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax liabilities and
assets are as follows (in millions):
December 31,
2006 2005
Deferred tax liabilities:
Intangibles £ 259.1 £ 64.7
Equity investments 77.0 —
Total deferred tax liabilities 336.1 64.7
Deferred tax assets:
Net operating losses 1,044.9 822.7
Capital losses 3,654.0 3,654.9
Depreciation and amortization 1,967.7 1,253.9
Accrued expenses 16.3 5.9
Other 119.9 44.9
Total deferred tax assets 6,802.8 5,782.3
Valuation allowance for deferred tax assets (6,543.7) (5,717.6)
Net deferred tax assets 259.1 64.7
Net deferred tax liabilities £ 77.0 £ —
F−95
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007