Virgin Media 2010 Annual Report Download - page 225

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 15—Commitments and Contingent Liabilities (continued)
Our banks have provided guarantees in the form of stand by letters of credit on our behalf as part of our
contractual obligations. The amount of commitment expires over the following periods (in millions):
Year ending December 31:
2011 ............................................... £14.9
2012 ............................................... —
2013 ............................................... —
2014 ............................................... —
2015 ............................................... —
Thereafter ........................................... 2.1
£17.0
Note 16—Industry Segments
VMIH and VMIL are not managed separately from Virgin Media and financial information is only prepared
and reviewed by the chief operating decision maker (CODM) of Virgin Media, who is also the CODM of VMIH
and VMIL, at the consolidated Virgin Media level. Virgin Media’s reporting segments are based on its method of
internal reporting along with the criteria used by its chief executive officer, who is its CODM, to evaluate
segment performance, the availability of separate financial information and overall materiality considerations.
Virgin Media’s internal reporting structure and the related financial information used by management and the
CODM reflect changes that were made after the announcement of the sale of Virgin Media TV, which comprised
Virgin Media’s Content segment, to BSkyB in June 2010. Following this announcement Virgin Media has two
reporting segments, Consumer and Business, as described below.
Virgin Media’s Consumer segment, is its primary segment, consisting of the distribution of television
programming, broadband and fixed line telephone services to residential customers on its cable network, the
provision of broadband and fixed line telephone services to residential customers outside of its cable network,
and the provision of mobile telephony and broadband to residential customers.
Virgin Media’s Business segment comprises its operations carried out through Virgin Media Business,
which provides a complete portfolio of voice, data and internet solutions to leading businesses, public sector
organizations and service providers in the U.K.
Segment contribution, which is operating income before network operating costs, corporate costs,
depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges, is
management’s measure of segment profit. Segment contribution excludes the impact of certain costs and
expenses that are not directly attributable to the reporting segments, such as the costs of operating the network,
corporate costs and depreciation and amortization. Restructuring and other charges, and goodwill and intangible
asset impairments are excluded from segment contribution as management believes they are not characteristic of
our underlying business operations. For the reasons stated above, our segment contribution measure is the same
as Virgin Media’s segment contribution measure. Assets are reviewed on a consolidated basis and are not
allocated to segments for management reporting since the primary asset of the business is the cable network
infrastructure, which is shared by Virgin Media’s Consumer and Business segments.
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