Virgin Media 2011 Annual Report Download - page 202

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 8—Derivative Financial Instruments and Hedging Activities (continued)
The following table presents the effective amount of gain or (loss) recognized in other comprehensive
income and amounts reclassified to earnings during the years ended December 31, 2011, 2010 and 2009 (in
millions):
Total
Interest rate
swaps
Cross-currency
interest rate
swaps
Forward foreign
exchange
contracts Tax Effect
Balance at December 31, 2008 ............ £ 40.1 £ (7.9) £ 64.0 £ 0.0 £(16.0)
Amounts recognized in other comprehensive
income (loss) ........................ (216.6) (50.6) (165.8) (0.2) 0.0
Amounts reclassified as a result of cash flow
hedge discontinuance .................. 6.5 2.0 4.5 0.0 0.0
Amounts reclassified to earnings impacting:
Foreign exchange loss ............... 90.6 0.0 90.6 0.0 0.0
Interest expense .................... 23.9 24.1 (0.2) 0.0 0.0
Operating costs .................... 0.2 0.0 0.0 0.2 0.0
Balance at December 31, 2009 ............ £ (55.3) £(32.4) £ (6.9) £ 0.0 £(16.0)
Amounts recognized in other comprehensive
income (loss) ........................ 104.3 8.0 95.8 0.5 0.0
Amounts reclassified as a result of cash flow
hedge discontinuance .................. 32.4 32.4 0.0 0.0 0.0
Amounts reclassified to earnings impacting:
Foreign exchange loss ............... (67.7) 0.0 (67.7) 0.0 0.0
Interest expense .................... (4.6) 0.0 (4.6) 0.0 0.0
Operating costs .................... (0.4) 0.0 0.0 (0.4) 0.0
Tax effect recognized .................... (17.9) 0.0 0.0 0.0 (17.9)
Balance at December 31, 2010 ............ £ (9.2) £ 8.0 £ 16.6 £ 0.1 £(33.9)
Amounts recognized in other comprehensive
income (loss) ........................ (24.2) 2.9 (27.1) 0.0 0.0
Amounts reclassified as a result of cash flow
hedge discontinuance .................. (31.1) (7.6) (23.5) 0.0 0.0
Amounts reclassified to earnings impacting:
Foreign exchange loss ............... 6.3 0.0 6.3 0.0 0.0
Interest expense .................... 2.5 0.0 2.5 0.0 0.0
Tax effect recognized .................... 23.3 0.0 0.0 0.0 23.3
Balance at December 31, 2011 ............ £ (32.4) £ 3.3 £ (25.2) £ 0.1 £(10.6)
We reclassified gains of £31.1 million accumulated in other comprehensive income to gain (loss) on
derivatives in the consolidated statement of operations for the year ended December 31, 2011 because we
discontinued hedge accounting for the cross-currency interest rate swaps associated with the $550 million
9.125% senior notes due 2016 and two of the interest rate swaps associated with the senior credit facility. As a
result of the recognition of these gains in the consolidated statement of operations, we reclassified tax expense of
£23.3 million from other comprehensive income to income from continuing operations in the year ended
December 31, 2011.
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