Virgin Media 2012 Annual Report Download - page 99

F-28
The terms of our outstanding interest rate swap contracts at December 31, 2012 were as follows:
Hedged item/Maturity date Hedge type Notional amount
Weighted average
interest rate due from
counterparty
Weighted average
interest rate due to
counterparty
(in millions)
Senior credit facility
July 2012 to December 2015 Economic £ 600.0 6 month LIBOR 2.86%
£650m senior secured notes due 2021
January 2021 Accounting £ 650.0 5.50% 6 month LIBOR +
1.84%
Other
March 2013 Economic £ 300.0 3 month LIBOR 3.28%
March 2013 Economic £ 300.0 1.86% 3 month LIBOR
Foreign Currency Forward Rate Contracts—Hedging Committed and Forecasted Transactions
As of December 31, 2012, we had outstanding foreign currency forward rate contracts to purchase U.S. dollars to
hedge committed and forecasted purchases. The terms of our outstanding foreign currency forward rate contracts at
December 31, 2012 were as follows:
Hedged item/Maturity date Hedge type
Notional
amount due
from
counterparty
Notional
amount due to
counterparty
Weighted
average
exchange rate
(in millions) (in millions)
Committed and forecasted purchases
January 2013 to June 2013 Economic $ 72.0 £44.5 1.6177
Cash Flow Hedging
For derivative instruments that are designated and qualify as cash flow Accounting Hedges, the effective portion of
the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into net
income in the statement of comprehensive income in the same period or periods during which the hedged transactions
affect earnings. In our consolidated statement of cash flows, we recognize the cash flows resulting from derivative
contracts that are treated as Accounting Hedges in the same line item that the cash flows from the underlying exposure
are recognized. Cash flows from derivative contracts that are not designated as Accounting Hedges are recognized
as cash flows from operating activities in the consolidated statements of cash flows. If we discontinue hedge accounting
for an instrument, subsequent cash flows are classified based on the nature of the instrument.
Gains or losses representing either hedge ineffectiveness or hedge components excluded from the assessment of
effectiveness are recognized as gains or losses on derivative instruments in net income in the consolidated statements
of comprehensive income in the period in which they occur. During the years ended December 31, 2012 and 2011 we
recognized no gain or loss relating to ineffectiveness on our cash flow hedges and £0.5 million in the year ended
December 31, 2010.
Table of Contents
VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 8—Derivative Financial Instruments and Hedging Activities (continued)