Virgin Media 2011 Annual Report Download - page 189

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 3—Disposals (continued)
Disposal of sit-up
On April 1, 2009, we completed the disposal of our sit-up reporting unit, which was previously included
within our former Content segment. Revenue of the sit-up business, reported in discontinued operations, for the
year ended December 31, 2009 was £38.9 million. sit-up’s pre-tax loss, reported within discontinued operations,
for the year ended December 31, 2009 was £22.8 million. During the year ended December 31, 2009, in
accordance with the provisions of the Property, Plant, and Equipment Topic of the FASB ASC, we wrote down
the assets held for sale to fair value based upon the agreed purchase consideration. This resulted in a
£19.0 million impairment charge, which was recognized in the loss from discontinued operations for the year
ended December 31, 2009.
Note 4—Fixed Assets (Including Leases)
Fixed assets consist of (in millions):
December 31,
2011 2010
Useful Life Total
Under Capital
Leases Total
Under Capital
Leases
Operating equipment
Cable distribution plant ............. 5-30 years £ 6,565.8 £ 28.8 £ 6,418.4 £ 28.8
Switches and headends ............. 3-10 years 892.8 19.8 822.0 36.7
Customer premises equipment ....... 5-10 years 1,190.9 254.4 1,134.4 170.1
Other operating equipment .......... 4-20 years 7.3 0.0 20.1 0.0
Total operating equipment .......... 8,656.8 303.0 8,394.9 235.6
Other equipment
Land ........................... — 8.5 0.0 8.5 0.0
Buildings ........................ 20-50 years 96.1 35.8 95.2 35.6
Leasehold improvements ........... 7years or, if
less, the
lease term 111.7 0.0 113.9 0.0
Computer infrastructure ............ 3-5years 241.3 30.1 241.6 44.5
Other equipment .................. 5-10 years 249.7 22.2 240.1 27.9
Total other equipment .............. 707.3 88.1 699.3 108.0
9,364.1 391.1 9,094.2 343.6
Accumulated depreciation ............... (4,984.6) (151.2) (4,558.9) (121.2)
4,379.5 239.9 4,535.3 222.4
Construction in progress ................ 122.1 0.0 115.7 0.0
£ 4,501.6 £ 239.9 £ 4,651.0 £ 222.4
During the years ended December 31, 2011, 2010 and 2009, the assets acquired under capital leases totaled
£91.2 million, £132.2 million and £34.4 million, respectively. Amortization expense on capital leases is included
as a component of depreciation expense.
F-100