Virgin Media 2007 Annual Report Download - page 112

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
7. Goodwill and Intangible Assets (Continued)
During the year ended December 31, 2007, assets not subject to amortization were adjusted for the
following (in millions):
Reorganization
Trade Names Value Goodwill
Balance, December 31, 2006 ........................... £16.5 £ 148.3 £ 2,351.7
Deferred tax balances .............................. — (2.2) (8.2)
Corporation tax balances ........................... — — (6.7)
Disposal of business units ........................... — — (1.5)
Finalization of purchase accounting fair values ............ — — (9.7)
Balance, December 31, 2007 ........................... £16.5 £ 146.1 £ 2,325.6
During the year ended December 31, 2006, reorganization value in excess of amounts allocable to
identifiable assets was reduced by £44.7 million due to the use of deferred tax assets that existed as at
January 10, 2003 that were previously offset by a valuation allowance.
As at June 30, 2007, we performed our annual impairment review of the goodwill recognized in
the Virgin Media TV and sit-up reporting units included in our Content segment and the Virgin
Mobile reporting unit and concluded that no impairment charges were necessary. As at December 31,
2007, we performed our annual impairment review of the goodwill recognized in our Cable segment
and concluded that no impairment charges were necessary.
8. Investments
Through our wholly-owned subsidiary Flextech Broadband Limited, we own a 50% equity
investment in the UKTV joint venture companies and a 49.9% equity investment in the Setanta Sports
News channel. These investments are accounted for under the equity method at December 31, 2007.
The UKTV joint venture companies operate a portfolio of channels under the UKTV brand. This
equity investment was acquired as part of the acquisition of Telewest on March 3, 2006. In accordance
with the joint venture agreements between Flextech Broadband Limited and BBC Worldwide, we are
required to recognize 100% of any losses for those companies which represent UKTV. The Setanta
Sports News channel was incorporated on November 29, 2007 and we have recognized our proportion
of the losses from that date.
Investments consist of (in millions):
December 31,
2007 2006
Loans and redeemable preference shares ................................ £145.6 £ 159.3
Share of net assets ................................................ 223.1 212.2
£368.7 £371.5
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