Virgin Media 2010 Annual Report Download - page 188

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 1—Organization and Business (continued)
In addition, we provide a complete portfolio of voice, data and internet solutions to leading businesses,
public sector organizations and service providers in the U.K. through Virgin Media Business (formerly
ntl:Telewest Business). We also have an interest in the UKTV television channels through our joint ventures with
BBC Worldwide.
On June 4, 2010, we announced the sale to British Sky Broadcasting Limited, or BSkyB, of our television
channel business known as Virgin Media TV. Virgin Media TV’s operations comprised our former Content
segment and have been treated in the consolidated financial statements as discontinued operations through
July 12, 2010, which is the date the sale was completed following approval from regulators in Ireland. Our
internal reporting structure and the related financial information used by management and the chief operating
decision maker reflect changes we have made after the announcement of the sale of Virgin Media TV. Following
this announcement, we have two reporting segments, Consumer and Business, as described below:
•Consumer: Our Consumer segment includes the distribution of television programming over our cable
network and the provision of broadband and fixed line telephone services to residential consumers,
both on and off our cable network. Our Consumer segment also includes our mobile telephony and
mobile broadband operations, provided through Virgin Mobile.
•Business: Our Business segment includes the voice and data telecommunication and internet solutions
services we provide through Virgin Media Business to businesses, public sector organizations and
service providers.
Whilst VMIH and VMIL have operating segments, consisting of Consumer and Business, which are
consistent with Virgin Media Inc, financial information is only prepared and reviewed by the chief operating
decision maker at the Virgin Media Inc. consolidated level. As such, there are no separable reportable segments
for VMIH or VMIL.
Note 2—Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally
accepted accounting principles, or GAAP.
On April 1, 2009, we sold our sit-up reporting unit, which was formerly included within our Content
segment. These consolidated financial statements reflect sit-up as discontinued operations and we have
retrospectively adjusted the statement of operations, cash flows and shareholders’ equity for the year ended
December 31, 2008.
On June 4, 2010, we announced the sale to BSkyB of our television channel business known as Virgin
Media TV. Virgin Media TV’s operations comprised our former Content segment. We determined that as of
June 30, 2010 the planned sale met the requirements for Virgin Media TV to be reflected as assets and liabilities
held for sale and discontinued operations in both the current and prior periods, and accordingly, we adjusted the
consolidated balance sheet as of December 31, 2009 and consolidated statements of operations, cash flows and
shareholders’ equity for the years ended December 31, 2009 and 2008. Virgin Media TV’s operations have been
included in discontinued operations through July 12, 2010, which is the date the sale was completed following
approval from regulators in Ireland.
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