Virgin Media 2013 Annual Report Download - page 80

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VIRGIN MEDIA INC.
(See note 1)
Notes to Consolidated Financial Statements — (Continued)
December 31, 2013, 2012 and 2011
II - 55
• Ensure that funds are available to pay benefits as they become due;
• Maximize the total returns on plan assets subject to prudent risk taking; and
• Preserve or improve the funded status of the trusts over time.
We review the asset allocation within their respective portfolios on a regular basis. Generally, the portfolios will be rebalanced
to a target allocation when an individual asset class approaches its minimum or maximum targeted level.
The following is a summary of the funded status of our defined benefit plans (in millions):
Successor Predecessor
Period from
June 8 to
December 31,
2013
Period from
January 1 to
June 7, 2013
Year ended
December 31,
2012
Projected benefit obligation at beginning of period (a).................................. £ 442.0 £ 431.1 £ 424.6
Service cost................................................................................................ 1.0 0.7 1.8
Interest cost................................................................................................ 11.1 7.8 20.1
Actuarial loss (gain) .................................................................................. 1.8 (0.8)(0.6)
Participants’ contributions......................................................................... 0.2 0.1 0.3
Benefits paid.............................................................................................. (9.1)(5.2)(15.1)
Projected benefit obligation at end of period ................................................. £ 447.0 £ 433.7 £ 431.1
Accumulated benefit obligation at end of period........................................... £ 443.6 £ 342.7
Fair value of plan assets at beginning of period (a) ....................................... £ 403.0 £ 384.6 £ 381.0
Actual earnings of plan assets ................................................................... 12.3 8.6 0.7
Group contributions................................................................................... 13.7 9.3 17.7
Participants’ contributions......................................................................... 0.2 0.1 0.3
Benefits paid.............................................................................................. (9.1)(5.2)(15.1)
Fair value of plan assets at end of period....................................................... £ 420.1 £ 397.4 £ 384.6
Net liability (b)............................................................................................... £ 26.9 £ 36.3 £ 46.5
_______________
(a) The opening projected benefit obligation and the opening fair value of plan assets for the Successor period includes purchase
accounting adjustments made in connection with the LG/VM Transaction of £8.3 million and £5.6 million, respectively.
For more information regarding the LG/VM Transaction, see note 3.
(b) The net liability related to our defined benefit plans is included in other long-term liabilities in our consolidated balance
sheets.