Virgin Media 2006 Annual Report Download - page 59

The following table summarizes our historical restructuring provisions (in millions):
Historical Restructuring Provisions
Involuntary
Employee
Termination
and Related
Costs
Lease
Exit
Costs Total
Balance, January 1, 2006 £ — £ 45.3 £ 45.3
Charged to expense — 4.0 4.0
Utilized — (5.9) (5.9)
Balance, December 31, 2006 £ — £ 43.4 £ 43.4
The following table summarizes our restructuring provisions resulting primarily from the reverse acquisition of Telewest (in
millions):
Acquisition Restructuring Provisions
Involuntary
Employee
Termination
and Related
Costs
Lease
Exit
Costs Total
Balance, January 1, 2006 £ — £ — £ —
Provisions resulting from business acquisition recognized under
EITF 95−3 43.2 45.9 89.1
Charged to expense 40.3 22.7 63.0
Utilized (64.8) (3.9) (68.7)
Balance, December 31, 2006 £ 18.7 £ 64.7 £ 83.4
Depreciation expense
For the year ended December 31, 2006, depreciation expense increased to £799.1 million from £541.7 million for the same
period in 2005. This increase is primarily attributable to the reverse acquisition of Telewest and related fair value adjustment to the
property and equipment acquired, and to the acquisition of Virgin Mobile. Excluding the impact of the reverse acquisition of Telewest
and of the acquisition of Virgin Mobile, depreciation expense has decreased due to the absence of depreciation on some assets that
became fully depreciated in 2005.
Amortization expense
For the year ended December 31, 2006, amortization expense increased to £246.6 million from £109.5 million for the same
period in 2005. The increase in amortization expense relates to additional intangible assets arising from the reverse acquisition of
Telewest and from the acquisition of Virgin Mobile.
Interest income and other
For the year ended December 31, 2006, interest income and other increased to £34.7 million from £29.4 million for the year
ended December 31, 2005, primarily as a result of increased interest rates and additional cash balances throughout the year.
Interest expense
For the year ended December 31, 2006, interest expense increased to £457.4 million from £235.8 million for the same period in
2005, primarily as a result of the additional borrowing as a result of the reverse acquisition of Telewest and the acquisition of Virgin
Mobile.
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Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007