Virgin Media 2012 Annual Report Download - page 141

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F-70
VIRGIN MEDIA INC.
NOTES TO FINANCIAL INFORMATION OF REGISTRANT
Note 1—Basis of Presentation
In our financial statements, our investment in subsidiaries is stated at cost plus equity in the undistributed earnings of
the subsidiaries. Our share of net income (loss) of our subsidiaries is included in net income (loss) using the equity
method of accounting. The financial statements should be read in conjunction with our consolidated financial
statements.
On February 5, 2013, we entered in to a Merger Agreement with Liberty Global, Inc., or Liberty Global, and certain of
its direct or indirect wholly owned subsidiaries, or the Merger Subsidiaries, pursuant to which we agreed, through a
series of intermediate steps and transactions, to be acquired by Liberty Global and merge into one of the Merger
Subsidiaries. If consummated, the merger will result in both Liberty Global and Virgin Media becoming directly owned
by a new U.K. public limited company, or the Ultimate Parent, listed on NASDAQ, the common stock of which will in
turn be held by Liberty Global and Virgin Media Shareholders. We will continue to operate under the Virgin Media
brand in the U.K..
Note 2—Other
No cash dividend was paid to the registrant by subsidiaries for the years ended December 31, 2012, December 31,
2011 and December 31, 2010.
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