Virgin Media 2009 Annual Report Download - page 188

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 8—Long Term Debt (Continued)
On a pro forma basis taking into account the issuance of the senior secured notes on January 19,
2010 and the related repayment of our senior credit facility as if these transactions had occurred on
December 31, 2009, the long term debt repayments, excluding capital leases, as of December 31, 2009,
are due as follows (in millions):
Year ending December 31:
2010 ................................................... £ 0.4
2011 ................................................... 0.4
2012 ................................................... 1,389.5
2013 ................................................... 300.1
2014 ................................................... 176.0
Thereafter ............................................... 4,619.1
Total debt payments ........................................ £6,485.5
Note 9—Fair Value Measurements
U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date (exit
price). The inputs used to measure fair value are classified into the following hierarchy:
Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not
active, or
Inputs other than quoted prices that are observable for the asset or liability
Level 3 Unobservable inputs for the asset or liability
We endeavor to utilize the best available information in measuring fair value. Financial assets and
liabilities are classified in their entirety based on the lowest level of input that is significant to the fair
value measurement. We have determined that all of our financial assets and liabilities that are stated at
fair value fall in levels 1 and 2 in the fair value hierarchy described above.
In estimating the fair value of our other financial instruments, we used the following methods and
assumptions:
Cash and cash equivalents, and restricted cash: The carrying amounts reported in the consolidated
balance sheets approximate fair value due to the short maturity and nature of these financial
instruments.
Derivative financial instruments: As a result of our financing activities, we are exposed to market
risks from changes in interest and foreign currency exchange rates, which may adversely affect our
operating results and financial position. When deemed appropriate, we minimize our risks from interest
and foreign currency exchange rate fluctuations through the use of derivative financial instruments. The
foreign currency forward rate contracts, interest rate swaps and cross-currency interest rate swaps are
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