Virgin Media 2007 Annual Report Download - page 180

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
12. Employee Benefit Plans (Continued)
We adopted the provisions of Statement of Financial Accounting Standards No. 158, Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of FASB
Statements No. 87, 88, 106, and 132(R), or FAS 158, as of December 31, 2006. The table below
summarizes the incremental effects of the FAS 158 adoption on the individual line items in our balance
sheet at December 31, 2006 (in millions):
Pre Post
FAS 158 FAS 158 FAS 158
Adoption Adjustment Adoption
Deferred revenue and other long term liabilities ................. £32.3 £9.4 £41.7
Accumulated other comprehensive income ...................... 10.6 9.4 20.0
Obligations and Funded Status
In June 2007, Virgin Media effected a merger of two of our defined benefit plans with a smaller
plan in respect of NTL Glasgow, a wholly owned subsidiary of Virgin Media but not a subsidiary of
ours (the merged plan). The merger of these plans was subject to the approval of the trustees and, as a
condition of trustee approval, Virgin Media agreed to make a specific one-time contribution of
£4.5 million. Following the merger, we have two defined benefit plans, the merged plan and the main
plan, and the information set out in the following tables and disclosure includes amounts in respect of
these two plans in total since substantially all of the plan assets and obligations relate to our current
and former employees.
The change in projected benefit obligation was as follows (in millions):
Year ended
December 31,
2007 2006
Benefit obligation at beginning of year .................................. £336.9 £331.0
Service cost ...................................................... 2.4 2.5
Interest cost ...................................................... 16.7 15.7
Members’ contributions ............................................. 0.4 0.6
Transfer of liability ................................................. 2.9 —
Actuarial (gains) losses .............................................. (24.5) (5.4)
Benefits paid ..................................................... (11.1) (8.5)
Plan settlements ................................................... 0.2 1.0
Benefit obligation at end of year ....................................... £323.9 £336.9
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