Virgin Media 2014 Annual Report Download - page 14

Download and view the complete annual report

Please find page 14 of the 2014 Virgin Media annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 75

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75

VIRGIN MEDIA INC.
(See note 1)
Notes to Condensed Consolidated Financial Statements — (Continued)
June 30, 2014
(unaudited)
12
Counterparty Credit Risk
We are exposed to the risk that the counterparties to our derivative instruments will default on their obligations to us. We
manage these credit risks through the evaluation and monitoring of the creditworthiness of, and concentration of risk with, the
respective counterparties. In this regard, credit risk associated with our derivative instruments is spread across a relatively broad
counterparty base of banks and financial institutions. We and our counterparties do not post collateral or other security, nor have
we entered into master netting arrangements with any of our counterparties. At June 30, 2014, our exposure to counterparty credit
risk included derivative assets with an aggregate fair value of £137.3 million.
Details of our Derivative Instruments
In the following tables, we present the details of the various categories of our subsidiaries’ derivative instruments. The notional
amount of multiple derivative instruments that mature within the same calendar month are shown in the aggregate and interest
rates are presented on a weighted average basis. In addition, for derivative instruments that were in effect as of June 30, 2014, we
present a single date that represents the applicable final maturity date.
Cross-currency and Interest Rate Derivative Contracts
Cross-currency Swaps:
The terms of our outstanding cross-currency swap contracts at June 30, 2014, which are held by our subsidiary, Virgin Media
Investment Holdings Limited (VMIH), are as follows:
Final maturity date
Notional
amount
due from
counterparty
Notional
amount
due to
counterparty Interest rate due from
counterparty Interest rate due to
counterparty
in millions
February 2022...................... $ 1,400.0 £ 873.6 5.01% 5.49%
June 2020 ............................. $ 1,384.6 £ 901.4 6 mo. U.S. LIBOR + 2.75% 6 mo. LIBOR + 3.18%
October 2020........................ $ 1,370.4 £ 881.6 6 mo. U.S. LIBOR + 2.75% 6 mo. LIBOR + 3.10%
January 2021........................ $ 500.0 £ 308.9 5.25% 6 mo. LIBOR + 2.06%
October 2019........................ $ 500.0 £ 302.3 8.38% 9.07%
January 2022........................ $ 425.0 £ 255.8 5.50% 5.82%
April 2019............................ $ 291.5 £ 186.2 5.38% 5.49%
November 2016 (a) .............. $ 55.0 £ 27.7 6.50% 7.03%
______________
(a) Unlike the other cross-currency swaps presented in this table, the identified cross-currency swap does not involve the
exchange of notional amounts at the inception and maturity of the instrument. Accordingly, the only cash flows associated
with this instrument are interest payments and receipts.