Virgin Media 2011 Annual Report Download - page 145

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 16—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:
2012 ................................................ £5.0
2013 ................................................ 0.0
2014 ................................................ 0.0
2015 ................................................ 0.9
2016 ................................................ 0.0
Thereafter ........................................... 0.5
£ 6.4
Note 17—Industry Segments
Our reporting segments are based on our method of internal reporting along with the criteria used by our
chief executive officer, who is our chief operating decision maker (CODM), to evaluate segment performance,
the availability of separate financial information and overall materiality considerations. We have two reporting
segments, Consumer and Business, as described below.
Our Consumer segment is our primary segment, consisting of the distribution of television programming,
broadband and fixed line telephone services to residential customers on our cable network, the provision of
broadband and fixed line telephone services to residential customers outside of our cable network, and the
provision of mobile telephony and mobile broadband to residential customers.
Our Business segment comprises our operations carried out through Virgin Media Business which provides
voice, data and internet solutions to 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. 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 our Consumer and Business segments.
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