Virgin Media 2013 Annual Report Download - page 53

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VIRGIN MEDIA INC.
(See note 1)
Notes to Consolidated Financial Statements — (Continued)
December 31, 2013, 2012 and 2011
II - 28
A reconciliation of the beginning and ending balances of Virgin Media Capped Calls, which are measured at fair value on a
recurring basis using significant unobservable, or Level 3, inputs is as follows (in millions):
Predecessor:
Balance of net asset at January 1, 2013 ................................................................................................................ £ 302.4
Gains included in net earnings:
Unrealized gains on derivative instruments, net............................................................................................ 50.0
Foreign currency translation adjustments.......................................................................................................... 12.5
Balance of net asset at June 7, 2013..................................................................................................................... £ 364.9
Successor:
Balance of net asset at June 7, 2013..................................................................................................................... £ 364.9
Gains included in net loss:
Unrealized gains on derivative instruments, net............................................................................................ 0.8
Foreign currency translation adjustments.......................................................................................................... 7.8
Cash settlements................................................................................................................................................. (353.4)
Balance of net asset at December 31, 2013.......................................................................................................... £ 20.1
A reconciliation of the beginning and ending balances of the derivative embedded in the VM Convertible Notes, which is
measured at fair value on a recurring basis using significant unobservable, or Level 3, inputs is as follows (in millions):
Successor:
Balance of net liability at June 7, 2013................................................................................................................ £ 1,068.5
Gains included in net loss:
Unrealized gains on derivative instruments, net............................................................................................ (30.3)
Foreign currency translation adjustments.......................................................................................................... 20.8
Settlements......................................................................................................................................................... (991.7)
Balance of net liability at December 31, 2013..................................................................................................... £ 67.3
(6) Long-lived Assets
Property and Equipment, Net
The details of our property and equipment and the related accumulated depreciation are set forth below (in millions):
Estimated useful
life at
December 31, 2013
Successor Predecessor
December 31,
2013 December 31,
2012
Distribution systems.................................................................................... 4 to 30 years £ 5,158.2 £ 7,947.4
Customer premises equipment .................................................................... 3 to 5 years 915.8 1,355.1
Support equipment, buildings and land....................................................... 3 to 40 years 716.5 690.7
6,790.5 9,993.2
Accumulated depreciation........................................................................................................... (677.9)(5,481.0)
Total property and equipment, net............................................................................................ £ 6,112.6 £ 4,512.2
During the period from June 8 to December 31, 2013, the period from January 1 to June 7, 2013 and the years ended
December 31, 2012 and December 31, 2011, depreciation expense related to our property and equipment was £704.7 million,
£432.8 million, £966.4 million and £928.0 million, respectively.