Virgin Media 2006 Annual Report Download - page 178

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
17. Commitments and Contingent Liabilities (Continued)
We are involved in certain disputes and litigation arising in the ordinary course of our business. None of these matters are
expected to have a material adverse effect on our financial position, results of operations or cash flows.
Our banks have provided guarantees in the form of performance bonds on our behalf as part of our contractual obligations. The
fair value of the guarantees has been calculated by reference to the monetary value for each performance bond. The amount of
commitment expires over the following periods (in millions):
Year ended December 31:
2007 £ 4.9
2008 2.2
2009 9.8
2010 —
2011 —
Thereafter 8.6
£ 25.5
18. Industry Segments
Our reportable segments Cable, Content and Mobile are based on our method of internal reporting. Our primary business segment is our Cable segment,
which consists of our television, broadband and fixed line telephone business. We operate a Content segment through our wholly−owned subsidiaries Virgin
Media Television Limited (“Virgin Media TV’’) and sit−up Limited (“sit−up”), which supply television programming to the U.K. pay−television broadcasting
market including our televised shopping unit sit−up tv, which markets and retails a wide variety of consumer products using an auction−based format. We
operate a Mobile segment through our wholly−owned subsidiary Virgin Mobile Limited, which consists of our mobile telephony business. Our segments operate
entirely in the U.K. and no one customer represents more than 5% of our overall revenue.
Segment operating income before depreciation, amortization and other charges, which we refer to as Segment OCF, is
management’s measure of segment profit as permitted under SFAS 131, “Disclosures about Segments of an Enterprise and Related
Information”. Our management, including our chief executive officer who is our chief operating decision maker, considers Segment
OCF as an important indicator of the operational strength and performance of our segments. Segment OCF excludes the impact of
costs and expenses that do not directly affect our cash flows. Other charges, including restructuring charges, are also excluded from
Segment OCF as management believes they are not characteristic of our underlying business operations. The business segments
disclosed in the consolidated financial statements are based on this organizational structure and information reviewed by our
management to evaluate the business segment results.
F−99
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007