Virgin Media 2011 Annual Report Download - page 179

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.
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:
•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 July 12, 2010, we completed the sale of our television channel business known as Virgin Media TV to
BSkyB. Virgin Media TV’s operations comprised our former Content segment. These consolidated financial
statements reflect Virgin Media TV as discontinued operations and we have retrospectively adjusted the
consolidated statements of operations, cash flows and shareholder’s equity for the year ended December 31,
2009.
Principles of Consolidation
The consolidated financial statements include the accounts for us and our wholly owned subsidiaries.
Intercompany accounts and transactions have been eliminated on consolidation. The operating results of acquired
companies are included in our consolidated statements of operations from the date of acquisition.
For investments in which we own 20% to 50% of the voting shares and have significant influence over the
operating and financial policies, the equity method of accounting is used. Accordingly, our share of the earnings
and losses of these companies are included in the share of income (losses) in equity investments in the
accompanying consolidated statements of operations.
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