Virgin Media 2010 Annual Report Download - page 127

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 10—Derivative Financial Instruments and Hedging Activities (continued)
The fair values of our derivative instruments recorded on our consolidated balance sheet were as follows (in
millions):
December 31,
2010
December 31,
2009
Included within current assets:
Accounting Hedge
Foreign currency forward rate contracts ............................ £ — £ 0.3
Economic Hedge
Foreign currency forward rate contracts ............................ 0.8 1.9
£ 0.8 £ 2.2
Included within non-current assets:
Accounting Hedge
Interest rate swaps ............................................. £ 8.0 £ —
Cross-currency interest rate swaps ................................ 137.9 63.7
Economic Hedge
Interest rate swaps ............................................. 3.9 —
Cross-currency interest rate swaps ................................ 52.9 169.5
Conversion hedges ............................................. 191.9 —
Other ....................................................... — 1.9
£394.6 £235.1
Included within current liabilities:
Accounting Hedge
Foreign currency forward rate contracts ............................ £ — £ 0.3
Interest rate swaps ............................................. — 12.0
Economic Hedge
Foreign currency forward rate contracts ............................ — 2.4
Interest rate swaps ............................................. — 3.1
Cross currency interest rate swaps ................................. 13.3 —
£ 13.3 £ 17.8
Included within non-current liabilities:
Accounting Hedge
Interest rate swaps ............................................. £ — £ 21.0
Cross-currency interest rate swaps ................................ 10.3 27.6
Economic Hedge
Interest rate swaps ............................................. 32.2 —
Cross-currency interest rate swaps ................................ 19.5 58.2
£ 62.0 £106.8
Cross-Currency Interest Rate Swaps—Hedging the Interest Payments of Senior Notes and Senior Credit Facility
As of December 31, 2010, we had outstanding cross-currency interest rate swaps to mitigate the interest and
foreign exchange rate risks relating to the pound sterling value of interest payments on the U.S. dollar and euro
denominated senior notes and senior secured notes.
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