Virgin Media 2009 Annual Report Download - page 92

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Our consolidated financial statements, the notes thereto and the report of the independent
registered public accounting firm begin on page F-1 of this document and are incorporated in this
document by reference.
On April 1, 2009, we sold our sit-up reporting unit, which was formerly included within our
Content segment. In accordance with the provisions of the Property, Plant and Equipment Topic of the
FASB ASC, we determined that, as of March 31, 2009, the planned sale of the sit-up business met the
requirements for sit-up to be reflected as assets and liabilities held for sale and discontinued operations
in both the current and prior periods. These consolidated financial statements reflect sit-up, as assets
and liabilities held for sale and discontinued operations, and we have retrospectively adjusted the
balance sheet as of December 31, 2008 and statements of operations, cash flows and shareholders’
equity for the years ended December 31, 2008 and 2007.
In May 2008, the FASB issued new guidance which requires that the liability and equity
components of convertible debt instruments that may be settled in cash upon conversion (including
partial cash settlement) be separately accounted for in a manner that reflects an issuer’s nonconvertible
debt borrowing rate. As a result, the liability component is recorded at a discount reflecting its below
market coupon interest rate, and is subsequently accreted to its par value over its expected life, with
the rate of interest that reflects the market rate at issuance being reflected in the results of operations.
We adopted the guidance on January 1, 2009 as our convertible senior notes are within the scope of
the guidance and we have applied it on a retrospective basis, whereby our prior period financial
statements have been adjusted.
As reported in the Form 10-Q for the three months ended March 31, 2009, we realigned our
internal reporting structure and the related financial information used by our chief operating decision
maker to assess the performance of our business. Our former operating segments were Cable, Mobile
and Content, and the new operating segments are Consumer, Business and Content.
The following is a summary of the unaudited selected quarterly results of operations for the years
ended December 31, 2009 and 2008 (in millions, except per share data):
2009
Three months ended
March 31, June 30, September 30, December 31,
(unaudited)
Statement of Operations Data:
Revenue ................................... £ 935.7 £935.8 £953.4 £979.5
Operating income ............................ 13.0 15.2 50.2 63.6
Net loss ................................... (154.0) (49.3) (60.1) (94.4)
Basic and diluted loss per share .................. £ (0.47) £ (0.15) £ (0.18) £(0.29)
2008
Three months ended
March 31, June 30, September 30, December 31,
(unaudited)
Statement of Operations Data:
Revenue .................................. £947.3 £ 940.1 £ 940.9 £ 948.5
Operating (loss) income ....................... (1.9) (328.3) 53.3 5.1
Net loss ................................... (104.4) (448.9) (122.7) (244.0)
Basic and diluted loss per share ................. £(0.32) £ (1.37) £ (0.37) £ (0.74)
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