Virgin Media 2007 Annual Report Download - page 157

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. Organization and Business (Continued)
ventures with BBC Worldwide; and through the portfolio of retail television channels operated by sit-up
tv.
We presently manage our business through three reportable segments:
•Cable: our cable segment includes the distribution of television programming over our cable
network and the provision of broadband and fixed line telephone services to consumers,
businesses and public sector organizations, both on our cable network and, to a lesser extent, off
our network;
•Mobile: our mobile segment includes the provision of mobile telephone services under the brand
name Virgin Mobile to consumers over cellular networks owned by third parties; and
•Content: our content segment includes the operations of our U.K. television channels, such as
Virgin 1, which was launched on October 1, 2007, as well as Living, Bravo, and sit-up’s portfolio
of retail television channels. Although not included in our content segment revenue, our content
management team also oversees our interest in the UKTV television channels through our joint
ventures with BBC Worldwide.
2. Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with U.S.
Generally Accepted Accounting Principles, or GAAP.
On March 3, 2006, NTL Holdings Inc. (formerly known as NTL Incorporated and now known as
Virgin Media Holdings), merged with a subsidiary of NTL Incorporated (formerly known as Telewest
and now known as Virgin Media).
On June 19, 2006, in connection with the integration of Virgin Media and Telewest, we engaged in
a post acquisition restructuring of Telewest UK Limited and its subsidiaries in order to integrate their
operations with Virgin Media’s existing U.K. operations and to implement permanent financing. This
restructuring involved a series of steps that included internal contributions, distributions, mergers and
acquisitions as well as borrowings from external sources and contributions of the proceeds of the same
to us, to effect our acquisition of the shares of Telewest UK Limited and its subsidiaries. The
completion of this restructuring resulted in Telewest UK Limited and its subsidiaries becoming our
wholly-owned subsidiary.
We have accounted for the acquisition of Telewest UK Limited and its subsidiaries by applying the
principles of FAS 141, Business Combinations, in respect to transactions between entities under common
control. As a result, the assets acquired and liabilities assumed have been recognized at their historical
cost and the results of operations and cashflows for Telewest UK Limited are included in the
consolidated financial statements from June 19, 2006, the date the restructuring was completed.
The results of operations and cashflows for Virgin Mobile are included in the consolidated
financial statements from July 4, 2006, the date of its acquisition.
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