Virgin Media 2009 Annual Report Download - page 114

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 3—Recent Accounting Pronouncements (Continued)
In September 2009, the FASB ratified new accounting guidance for existing multiple-element
revenue arrangements. The revised multiple-element revenue arrangements guidance will be effective
for the first annual reporting period beginning on or after June 15, 2010 and may be applied
retrospectively for all periods presented or prospectively to arrangements entered into or materially
modified after the adoption date. Early adoption is permitted provided that the revised guidance is
retroactively applied to the beginning of the year of adoption. We have not yet adopted the provisions
of this guidance and are evaluating the impact on our consolidated financial statements.
Note 4—Disposals
Disposal of sit-up
On April 1, 2009, we completed the disposal of our sit-up reporting unit, which was formerly
included within our Content segment. sit-up provided a variety of retail consumer products through
three interactive auction-based television channels: price-drop tv, bid tv and speed auction tv.
We determined that the planned sale of the sit-up business met the requirements as of March 31,
2009 for sit-up to be reflected as assets and liabilities held for sale and discontinued operations in both
the current and prior periods and we adjusted the balance sheet as of December 31, 2008 and
statement of operations for the years ended December 31, 2008 and 2007 accordingly. Revenue of the
sit-up business, reported in discontinued operations, for the years ended December 31, 2009, 2008 and
2007 was £38.9 million, £241.8 million and £238.6 million, respectively. sit-up’s pre-tax loss, reported
within discontinued operations, for the years ended December 31, 2009, 2008 and 2007 was
£22.8 million, £66.6 million and £10.7 million, respectively. Revenue related to the carriage of the sit-up
channels recognized in our Consumer segment that had previously been eliminated for consolidation
purposes was £0.6 million, £2.7 million and £3.5 million for the years ended December 31, 2009, 2008
and 2007, respectively.
The assets and liabilities of the sit-up business reported as held for sale as of December 31, 2008
included (in millions):
December 31,
2008
Current assets held for sale
Accounts receivable, net ................................. £ 2.4
Inventory ............................................ 7.2
Prepaid expenses ...................................... 5.4
Other assets .......................................... 41.2
Current assets held for sale ............................. £56.2
Current liabilities held for sale
Accounts payable ...................................... £26.5
Accrued expenses ...................................... 9.6
Deferred revenue and other liabilities ....................... 0.1
Current liabilities held for sale ........................... £36.2
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