Virgin Media 2008 Annual Report Download - page 140

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 14—Income Taxes
The expense/(benefit) for income taxes consists of the following (in millions):
Year ended December 31,
2008 2007 2006
Current:
Federal ...................................... £0.2 £0.4 £ (0.5)
State and local ................................ — (0.6) —
Foreign ...................................... (4.7) (4.9) (2.7)
Total current .................................... (4.5) (5.1) (3.2)
Deferred:
Federal ...................................... 1.1 7.6 (8.6)
Foreign ...................................... (3.4) — —
Total deferred ................................... (2.3) 7.6 (8.6)
£(6.8) £ 2.5 £(11.8)
There are significant current year losses in the U.K. The foreign current tax benefit relates to
amounts receivable in respect of the sale of U.K. tax losses to an equity method investee. The 2008
federal deferred tax expense relates to a tax provision which does not result in cash taxes due to the
availability of pre bankruptcy net operating losses, offset by a deferred tax benefit attributable to
holding an equity method investment. The foreign deferred tax benefit relates to the decrease in our
deferred tax asset valuation allowance resulting from the recording of certain deferred tax liabilities
related to amounts recognized in the statement of other comprehensive income during the year that are
expected to reverse in future periods and will allow us to offset such amounts against certain deferred
tax assets.
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