Virgin Media 2009 Annual Report Download - page 106
Download and view the complete annual report
Please find page 106 of the 2009 Virgin Media annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
-
183
-
184
-
185
-
186
-
187
-
188
-
189
-
190
-
191
-
192
-
193
-
194
-
195
-
196
-
197
-
198
-
199
-
200
-
201
-
202
-
203
-
204
-
205
-
206
-
207
-
208
-
209
-
210
-
211
-
212
-
213
-
214
-
215
-
216
-
217
-
218
-
219
-
220
-
221
-
222
-
223
-
224
-
225
-
226
-
227
-
228
-
229
-
230
-
231
-
232
 |
 |
VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 2—Significant Accounting Policies (Continued)
recoverability. The movements in our allowance for doubtful accounts for the years ended
December 31, 2009, 2008 and 2007 are as follows (in millions):
Year ended December 31,
2009 2008 2007
Balance, January 1 .............................. £16.5 £ 19.5 £ 51.8
Charged to costs and expenses ................... 25.2 31.7 32.9
Write offs, net of recoveries ..................... (32.1) (34.7) (65.2)
Balance, December 31 ........................... £ 9.6 £16.5 £ 19.5
Inventory
Inventory consists of consumer goods for re-sale and programming inventory. Consumer goods for
re-sale are valued at the lower of cost or market value using the first-in, first-out, or FIFO method.
Cost represents the invoiced purchase cost of inventory. This valuation requires us to make judgments,
based on currently available information, about obsolete, slow-moving or defective inventory. Based
upon these judgments and estimates, which are applied consistently from period to period, we adjust
the carrying amount of our inventory for re-sale to the lower of cost or market value.
Programming inventory represents television programming libraries held by each of our television
channels and is stated at the lower of cost or market value. Programming is recognized as inventory
when a contractual purchase obligation exists, it has been delivered to us and is within its permitted
broadcasting period. Programming inventory is periodically reviewed and a provision made for
impairment or obsolescence.
Reclassification
Certain prior year amounts have been reclassified to conform to the current year presentation. On
our consolidated balance sheet, we have disclosed deferred financing costs separately from other assets.
In our note on income taxes, we have also reclassified certain deferred tax balances from the prior year
to conform with the current year’s classification.
F-10