Virgin Media 2012 Annual Report Download - page 173
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F-102
The following table presents the amounts recognized in accumulated other comprehensive income as of December 31,
2012 and 2011 that have not yet been recognized as components of net periodic benefit cost (in millions):
Year ended December 31,
2012 2011
Net actuarial loss £ 108.5 £ 94.1
Net prior year service credit (0.1) (0.1)
Amount included in accumulated other comprehensive income £ 108.4 £ 94.0
Net Periodic Benefit Costs
The components of net periodic benefit costs were as follows (in millions):
Year ended December 31,
2012 2011 2010
Service cost £ 1.8 £ 1.7 £ 1.6
Interest cost 20.1 21.1 21.4
Expected return on plan assets (18.3) (21.9) (20.8)
Plan amendment — (2.8) —
Recognised actuarial loss 2.6 3.4 3.6
Total net periodic benefit cost £ 6.2 £ 1.5 £ 5.8
The expected return on plan assets for the year ended December 31, 2013 is £21.7 million. We expect to recognize
£2.0 million of actuarial losses in the net periodic benefit cost for the year ended December 31, 2013.
As a result of the sale of various business operations in prior periods, we have retained the earned pension and other
post-retirement benefits liabilities related to certain employees of those operations. Accordingly, the information
disclosed in the tables above includes amounts relating to liabilities of these employees.
Assumptions
The weighted-average assumptions used to determine benefit obligations were as follows:
December 31,
2012 2011
Discount rate 4.40% 4.80%
Rate of compensation increase 3.30% 3.50%
The weighted-average assumptions used to determine net periodic benefit costs were as follows:
December 31,
2012 2011 2010
Discount rate 4.80% 5.50% 5.75%
Expected long term rate of return on plan assets 5.41% 6.31% 6.50%
Rate of compensation increase 3.50% 4.00% 4.00%
The expected rate of return on plan assets is the expected future long term rate of earnings on plan assets and is
based on expected returns on specific asset classes. These estimates are based on a combination of factors including
current market rates, valuation levels, historical returns and premia for certain asset classes to determine the aggregate
Table of Contents
VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 8—Employee Benefit Plans (continued)