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VIRGIN MEDIA INC.
(See note 1)
Notes to Condensed Consolidated Financial Statements — (Continued)
June 30, 2014
(unaudited)
26
(9) Related-party Transactions
Our related-party transactions during the Successor periods consist of the following:
Three-month period Six-month period
Three
months
ended
June 30,
2014
Period
from
June 8 to
June 30,
2013
Six months
ended
June 30,
2014
Period
from
June 8 to
June 30,
2013
in millions
Interest income .................................................................................................. £ 56.7 £ 10.7 £ 108.8 £ 10.7
Allocated share-based compensation expense................................................... (6.0) — (15.7) —
Realized loss on derivative instrument.............................................................. — — (2.8) —
Interest expense ................................................................................................. —(3.6) — (3.6)
Included in net earnings (loss) ........................................................................ £ 50.7 £ 7.1 £ 90.3 £ 7.1
Interest income. Amounts represent interest income on related-party notes, as further described below.
Allocated share-based compensation expense. As further described in note 8, Liberty Global allocates share-based
compensation expense to our company.
Realized loss on derivative instrument. As further described in note 3, this amount relates to a related-party derivative
instrument with Liberty Global Europe Financing BV.
Interest expense. Amounts represent interest expense on a related-party note with LGI that we entered into in connection with
the LG/VM Transaction. During the period from June 8 to June 30, 2013, repayments were made on the note aggregating £467.5
million, and the outstanding balance of the loan was repaid in full during July 2013. This loan bore interest at a rate of 7.5%.
The following table provides details of our related-party balances:
Successor
June 30,
2014 December 31,
2013
in millions
Receivables (a) .............................................................................................................................. £ 114.1 £ 88.1
Long-term notes receivable (b) ..................................................................................................... 2,840.5 2,373.5
Total.......................................................................................................................................... £ 2,954.6 £ 2,461.6
Other payables (c) (d).................................................................................................................... £ 98.3 £ 87.6
______________
(a) Amounts represent (i) accrued interest on notes receivable from Lynx Europe 2 Limited (Lynx Europe 2), our immediate
parent, including £40.7 million (equivalent) and £40.1 million (equivalent), respectively, owed to our subsidiary, Virgin
Media Finco Limited, and £9.4 million (equivalent) and £0.1 million (equivalent), respectively, owed to Virgin Media, (ii)
employee withholding taxes collected by Liberty Global on our behalf since the date of the LG/VM Transaction of £58.1
million (equivalent) and £43.3 million (equivalent), respectively, and (iii) certain receivables from other Liberty Global
subsidiaries arising in the normal course of business. The accrued interest is payable semi-annually on April 15 and October
15 and may be cash settled or, if mutually agreed, loan settled. The withholding taxes and other receivables are settled
periodically.