x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 59-3778247 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
65 Bleecker Street, 6th Floor, New York, NY | 10012 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | |
• | We operate in highly competitive markets which may lead to a decrease in our revenue, increased costs, customer churn or a reduction in the rate of customer acquisition; |
• | The sectors in which we compete are subject to rapid and significant changes in technology, and the effect of technological changes on our businesses cannot be predicted; |
• | Our fixed line telephony revenue is declining and unlikely to improve; |
• | A failure in our network and information systems could significantly disrupt our operations, which could have a material adverse effect on those operations, our business, our results of operations and financial conditions; |
• | Unauthorized access to our network resulting in piracy could result in a loss of revenue |
• | We rely on third-party suppliers and contractors to provide necessary hardware, software or operational support and are sometimes reliant on them in a way which could economically disadvantage us; |
• | The “Virgin” brand is not under our control and the activities of the Virgin Group and other licensees could have a material adverse effect on the goodwill of customers towards us as a licensee; |
• | Our inability to provide popular programming or to obtain it at a reasonable cost could potentially have a material adverse effect of the number of customers or reduce margins; |
• | Adverse economic developments could reduce customer spending for our TV, broadband, and telephony services and could therefore have a material adverse effect on our revenue; |
• | We are subject to currency and interest rate risks; |
• | We are subject to tax in more than one tax jurisdiction and our structure poses various tax risks; |
• | Virgin Mobile relies on Everything Everywhere's network to carry its communications traffic; |
• | We do not insure the underground portion of our cable network and various pavement-based electronics associated with our cable network; |
• | We are subject to significant regulation, and changes in the U.K. and EU laws, regulations or governmental policy affecting the conduct of our business may have a material adverse effect on our ability to set prices, enter new markets or control our costs; |
• | We may experience difficulties in providing our services efficiently to our customers whilst the London 2012 Olympic Games are taking place which may have a material adverse effect on our reputation and ability to retain our customers; |
• | We have substantial indebtedness which may have a material adverse effect on our available cash flow, our ability to obtain additional financing if necessary in the future, our flexibility in reacting to competitive and technological changes and our operations; |
• | We may not be able to fund our debt service obligation in future; and |
• | The covenants under our debt agreements place certain limitations on our ability to finance future operations and how we manage our business |
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | £ | 190.9 | £ | 300.4 | |||
Restricted cash | 1.9 | 1.9 | |||||
Accounts receivable - trade, less allowances for doubtful accounts of £9.5 (2012) and £10.9 (2011) | 447.1 | 435.4 | |||||
Derivative financial instruments | 3.2 | 9.5 | |||||
Prepaid expenses and other current assets | 97.0 | 97.0 | |||||
Total current assets | 740.1 | 844.2 | |||||
Fixed assets, net | 4,584.6 | 4,602.7 | |||||
Goodwill and other indefinite-lived assets | 2,017.5 | 2,017.5 | |||||
Derivative financial instruments | 370.8 | 347.9 | |||||
Deferred financing costs, net of accumulated amortization of £54.7 (2012) and £44.0 (2011) | 68.3 | 75.7 | |||||
Other assets | 54.0 | 50.8 | |||||
Total assets | £ | 7,835.3 | £ | 7,938.8 | |||
Liabilities and shareholders’ equity | |||||||
Current liabilities | |||||||
Accounts payable | £ | 320.8 | £ | 304.4 | |||
Accrued expenses and other current liabilities | 346.1 | 373.1 | |||||
Derivative financial instruments | 11.4 | 16.7 | |||||
VAT and employee taxes payable | 81.1 | 88.4 | |||||
Interest payable | 84.9 | 106.8 | |||||
Deferred revenue | 316.1 | 311.8 | |||||
Current portion of long term debt | 179.9 | 76.6 | |||||
Total current liabilities | 1,340.3 | 1,277.8 | |||||
Long term debt, net of current portion | 5,768.6 | 5,778.5 | |||||
Derivative financial instruments | 64.7 | 53.6 | |||||
Deferred revenue and other long term liabilities | 175.4 | 190.0 | |||||
Total liabilities | 7,349.0 | 7,299.9 | |||||
Commitments and contingent liabilities | |||||||
Shareholders’ equity | |||||||
Common stock - $0.01 par value; authorized 1,000.0 (2012 and 2011) shares; issued and outstanding 273.6 (2012) and 286.7 (2011) shares | 1.5 | 1.6 | |||||
Additional paid-in capital | 3,690.0 | 3,866.6 | |||||
Accumulated other comprehensive income | 31.7 | 30.0 | |||||
Accumulated deficit | (3,236.9 | ) | (3,259.3 | ) | |||
Total shareholders’ equity | 486.3 | 638.9 | |||||
Total liabilities and shareholders’ equity | £ | 7,835.3 | £ | 7,938.8 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | £ | 1,026.9 | £ | 985.8 | £ | 2,033.1 | £ | 1,968.1 | |||||||
Costs and expenses | |||||||||||||||
Operating costs (exclusive of depreciation shown separately below) | 403.2 | 389.9 | 820.1 | 801.0 | |||||||||||
Selling, general and administrative expenses | 211.6 | 203.8 | 424.4 | 398.9 | |||||||||||
Restructuring and other charges | (0.5 | ) | (1.1 | ) | 4.9 | 1.5 | |||||||||
Depreciation | 233.0 | 230.2 | 473.2 | 459.0 | |||||||||||
Amortization | 0.0 | 28.1 | 0.0 | 62.2 | |||||||||||
847.3 | 850.9 | 1,722.6 | 1,722.6 | ||||||||||||
Operating income | 179.6 | 134.9 | 310.5 | 245.5 | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense | (98.6 | ) | (113.1 | ) | (204.2 | ) | (227.7 | ) | |||||||
Loss on extinguishment of debt | 0.0 | (10.8 | ) | (58.6 | ) | (28.9 | ) | ||||||||
Share of income from equity investments | 0.0 | 6.8 | 0.0 | 15.0 | |||||||||||
(Loss) gain on derivative instruments | (20.6 | ) | (9.2 | ) | 23.9 | 18.8 | |||||||||
Foreign currency (losses) gains | (1.4 | ) | 5.9 | (5.8 | ) | 13.8 | |||||||||
Interest income and other, net | 6.0 | 81.6 | 6.3 | 83.3 | |||||||||||
Income from continuing operations before income taxes | 65.0 | 96.1 | 72.1 | 119.8 | |||||||||||
Income tax (expense) benefit | (0.3 | ) | 2.1 | (0.4 | ) | (17.1 | ) | ||||||||
Income from continuing operations | 64.7 | 98.2 | 71.7 | 102.7 | |||||||||||
Loss from discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | (1.2 | ) | ||||||||||
Net income | £ | 64.7 | £ | 98.2 | £ | 71.7 | £ | 101.5 | |||||||
Per share amounts | |||||||||||||||
Income from continuing operations | |||||||||||||||
Basic earnings per share | £ | 0.23 | £ | 0.31 | £ | 0.26 | £ | 0.32 | |||||||
Diluted earnings per share | £ | 0.22 | £ | 0.31 | £ | 0.25 | £ | 0.32 | |||||||
Net income | |||||||||||||||
Basic earnings per share | £ | 0.23 | £ | 0.31 | £ | 0.26 | £ | 0.32 | |||||||
Diluted earnings per share | £ | 0.22 | £ | 0.30 | £ | 0.25 | £ | 0.31 | |||||||
Dividends per share (in U.S. dollars) | $ | 0.04 | $ | 0.04 | $ | 0.08 | $ | 0.08 | |||||||
Total comprehensive income | £ | 61.5 | £ | 92.2 | £ | 73.4 | £ | 77.5 |
Six months ended June 30, | |||||||
2012 | 2011 | ||||||
Operating activities: | |||||||
Net income | £ | 71.7 | £ | 101.5 | |||
Loss from discontinued operations | 0.0 | 1.2 | |||||
Income from continuing operations | 71.7 | 102.7 | |||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||
Depreciation and amortization | 473.2 | 521.2 | |||||
Non-cash interest | (2.4 | ) | (5.6 | ) | |||
Share-based compensation | 13.7 | 14.3 | |||||
Loss on extinguishment of debt, net of prepayment premiums | 10.5 | 28.9 | |||||
Income from equity accounted investments, net of dividends received | 0.0 | (1.5 | ) | ||||
Unrealized gains on derivative instruments | (28.9 | ) | (23.8 | ) | |||
Foreign currency gains | (0.7 | ) | (12.9 | ) | |||
Income taxes | 3.0 | 20.2 | |||||
Other | 0.0 | 3.4 | |||||
Changes in operating assets and liabilities | (97.0 | ) | (89.2 | ) | |||
Net cash provided by operating activities | 443.1 | 557.7 | |||||
Investing activities: | |||||||
Purchase of fixed and intangible assets | (369.7 | ) | (323.6 | ) | |||
Proceeds from sale of fixed assets | 1.7 | 1.2 | |||||
Principal repayments on loans to equity investments | 0.0 | 19.4 | |||||
Acquisitions, net of cash acquired | (0.6 | ) | (14.3 | ) | |||
Disposal of equity investments, net | (2.5 | ) | 0.0 | ||||
Other | 0.0 | 2.5 | |||||
Net cash used in investing activities | (371.1 | ) | (314.8 | ) | |||
Financing activities: | |||||||
New borrowings, net of financing fees | 415.6 | 927.6 | |||||
Repurchase of common stock | (217.6 | ) | (212.8 | ) | |||
Proceeds from employee stock option exercises, net of taxes reimbursed | (2.1 | ) | 5.9 | ||||
Principal payments on long term debt | (314.2 | ) | (925.2 | ) | |||
Principal payments on capital leases | (50.1 | ) | (30.7 | ) | |||
Proceeds from settlement of cross-currency interest rate swaps | 2.3 | 0.0 | |||||
Dividends paid | (14.1 | ) | (15.8 | ) | |||
Net cash used in financing activities | (180.2 | ) | (251.0 | ) | |||
Cash flow from discontinued operations: | |||||||
Net cash used in operating activities | 0.0 | (10.4 | ) | ||||
Net cash used in discontinued operations | 0.0 | (10.4 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (1.3 | ) | (2.8 | ) | |||
Decrease in cash and cash equivalents | (109.5 | ) | (21.3 | ) | |||
Cash and cash equivalents, beginning of period | 300.4 | 479.5 | |||||
Cash and cash equivalents, end of period | £ | 190.9 | £ | 458.2 | |||
Supplemental disclosure of cash flow information | |||||||
Cash paid during the period for interest | £ | 201.1 | £ | 235.6 |
Year ending June 30: | |||
2013 | £ | 100.2 | |
2014 | 0.0 | ||
2015 | 750.0 | ||
2016 | 0.0 | ||
2017 | 1,322.8 | ||
Thereafter | 3,529.9 | ||
Total debt payments | £ | 5,702.9 |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability | |
Level 3 | Unobservable inputs for the asset or liability |
June 30, 2012 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||
Derivative financial instruments, excluding conversion hedges | £ | 0.0 | £ | 202.4 | £ | 0.0 | £ | 202.4 | |||||||
Conversion hedges | 0.0 | 0.0 | 171.6 | 171.6 | |||||||||||
Total | £ | 0.0 | £ | 202.4 | £ | 171.6 | £ | 374.0 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | £ | 0.0 | £ | 76.1 | £ | 0.0 | £ | 76.1 | |||||||
Total | £ | 0.0 | £ | 76.1 | £ | 0.0 | £ | 76.1 |
December 31, 2011 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | |||||||||||||||
Derivative financial instruments, excluding conversion hedges | £ | 0.0 | £ | 219.2 | £ | 0.0 | £ | 219.2 | |||||||
Conversion hedges | 0.0 | 0.0 | 138.2 | 138.2 | |||||||||||
Total | £ | 0.0 | £ | 219.2 | £ | 138.2 | £ | 357.4 | |||||||
Liabilities | |||||||||||||||
Derivative financial instruments | £ | 0.0 | £ | 70.3 | £ | 0.0 | £ | 70.3 | |||||||
Total | £ | 0.0 | £ | 70.3 | £ | 0.0 | £ | 70.3 |
June 30, 2012 | |||
Estimated fair value of conversion hedges as reported | £ | 171.6 | |
Estimated fair value of conversion hedges assuming a 20% increase in our stock price | £ | 224.7 | |
Estimated fair value of conversion hedges assuming a 20% decrease in our stock price | £ | 113.4 |
Balance at December 31, 2011 | £ | 138.2 | |
Unrealized gain included in (loss) / gain on derivative instruments | 45.3 | ||
Unrealized currency translation adjustment included in other comprehensive income | (4.9 | ) | |
Balance at March 31, 2012 | £ | 178.6 | |
Unrealized loss included in (loss) / gain on derivative instruments | (10.6 | ) | |
Unrealized currency translation adjustment included in other comprehensive income | 3.6 | ||
Balance at June 30, 2012 | £ | 171.6 |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
6.50% U.S. dollar convertible senior notes due 2016 | £ | 552.7 | £ | 958.9 | £ | 551.1 | £ | 869.1 | |||||||
9.50% U.S. dollar senior notes due 2016 | 530.1 | 604.8 | 849.2 | 966.4 | |||||||||||
9.50% euro senior notes due 2016 | 140.9 | 165.3 | 145.3 | 170.1 | |||||||||||
8.375% U.S. dollar senior notes due 2019 | 376.8 | 432.0 | 380.6 | 416.9 | |||||||||||
8.875% sterling senior notes due 2019 | 345.4 | 388.0 | 345.2 | 378.9 | |||||||||||
5.25% U.S. dollar senior notes due 2022 | 318.3 | 326.2 | 0.0 | 0.0 | |||||||||||
6.50% U.S. dollar senior secured notes due 2018 | 629.3 | 699.9 | 635.4 | 663.5 | |||||||||||
7.00% sterling senior secured notes due 2018 | 865.2 | 937.4 | 864.5 | 923.1 | |||||||||||
5.25% U.S. dollar senior secured notes due 2021 | 360.5 | 325.4 | 353.1 | 321.8 | |||||||||||
5.50% sterling senior secured notes due 2021 | 737.8 | 685.8 | 722.4 | 640.3 |
June 30, 2012 | December 31, 2011 | ||||||
Included within current assets: | |||||||
Accounting Hedge | |||||||
Foreign currency forward rate contracts | £ | 0.0 | £ | 0.1 | |||
Economic Hedge | |||||||
Foreign currency forward rate contracts | 0.1 | 1.6 | |||||
Interest rate swaps | 0.3 | 0.2 | |||||
Cross-currency interest rate swaps | 2.8 | 7.6 | |||||
£ | 3.2 | £ | 9.5 | ||||
Included within non-current assets: | |||||||
Accounting Hedge | |||||||
Interest rate swaps | £ | 89.9 | £ | 78.0 | |||
Cross-currency interest rate swaps | 79.1 | 94.3 | |||||
Economic Hedge | |||||||
Interest rate swaps | 2.4 | 3.1 | |||||
Cross-currency interest rate swaps | 27.8 | 34.3 | |||||
Conversion hedges | 171.6 | 138.2 | |||||
£ | 370.8 | £ | 347.9 | ||||
Included within current liabilities: | |||||||
Economic Hedge | |||||||
Interest rate swaps | £ | 7.8 | £ | 7.5 | |||
Cross-currency interest rate swaps | 3.6 | 9.2 | |||||
£ | 11.4 | £ | 16.7 | ||||
Included within non-current liabilities: | |||||||
Accounting Hedge | |||||||
Cross-currency interest rate swaps | £ | 20.4 | £ | 7.3 | |||
Economic Hedge | |||||||
Interest rate swaps | 38.6 | 38.4 | |||||
Cross-currency interest rate swaps | 5.7 | 7.9 | |||||
£ | 64.7 | £ | 53.6 |
Hedged item/Maturity date | Hedge type | Notional amount due from counterparty | Notional amount due to counterparty | Weighted average interest rate due from counterparty | Weighted average interest rate due to counterparty | ||||||||
(in millions) | (in millions) | ||||||||||||
$850m senior notes due 2016 | |||||||||||||
August 2016 | Accounting | $ | 850.0 | £ | 526.7 | 9.50% | 9.98% | ||||||
$1,000m convertible senior notes due 2016 | |||||||||||||
November 2016 | Economic | 1,000.0 | 516.9 | 6.50% | 6.91% | ||||||||
$600m senior notes due 2019 | |||||||||||||
October 2019 | Accounting | 264.3 | 159.8 | 8.38% | 9.03% | ||||||||
October 2011 to October 2019 | Accounting | 335.7 | 203.0 | 8.38% | 9.00% | ||||||||
$1,000m senior secured notes due 2018 | |||||||||||||
January 2018 | Accounting | 1,000.0 | 615.7 | 6.50% | 7.02% | ||||||||
$500m senior secured notes due 2021 | |||||||||||||
January 2021 | Accounting | 500.0 | 308.9 | 5.25% | 6 month LIBOR + 1.94% | ||||||||
$500m senior notes due 2022 | |||||||||||||
February 2022 | Accounting | 500.0 | 313.6 | 5.25% | 5.80% | ||||||||
$ | 4,450.0 | £ | 2,644.6 | ||||||||||
€180m senior notes due 2016 | |||||||||||||
August 2016 | Accounting | € | 180.0 | £ | 158.6 | 9.50% | 10.18% | ||||||
€ | 180.0 | £ | 158.6 | ||||||||||
Other | |||||||||||||
December 2012 | Economic | € | 56.7 | £ | 40.3 | 3 month EURIBOR + 2.38% | 3 month LIBOR + 2.69% | ||||||
December 2013 | Economic | 43.3 | 30.8 | 3 month EURIBOR + 2.88% | 3 month LIBOR + 3.26% | ||||||||
€ | 100.0 | £ | 71.1 | ||||||||||
December 2012 | Economic | £ | 38.8 | € | 56.7 | 3 month LIBOR + 2.40% | 3 month EURIBOR + 2.38% | ||||||
December 2013 | Economic | 29.7 | 43.3 | 3 month LIBOR + 2.90% | 3 month EURIBOR + 2.88% | ||||||||
£ | 68.5 | € | 100.0 |
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 | £ | 200.0 | 6 month LIBOR | 2.91% | ||||
July 2012 to December 2015 | Economic | 200.0 | 6 month LIBOR | 2.87% | |||||
July 2012 to December 2015 | Economic | 200.0 | 6 month LIBOR | 2.79% | |||||
£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% | ||||
October 2013 | Economic | 300.0 | 1.86% | 3 month LIBOR | |||||
September 2012 | Economic | 600.0 | 3 month LIBOR | 3.09% | |||||
September 2012 | Economic | 600.0 | 1.07% | 3 month LIBOR |
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 | ||||||||||||
July 2012 to December 2012 | Economic | $ | 72.0 | £ | 45.7 | 1.5750 |
Total | Interest rate swaps | Cross- currency interest rate swaps | Forward foreign exchange contracts | Tax Effect | |||||||||||||||
Balance at December 31, 2011 | £ | (32.4 | ) | £ | 3.3 | £ | (25.2 | ) | £ | 0.1 | £ | (10.6 | ) | ||||||
Amounts recognized in other comprehensive income (loss) | (66.4 | ) | 0.0 | (66.4 | ) | 0.0 | 0.0 | ||||||||||||
Amounts reclassified to earnings impacting: | |||||||||||||||||||
Foreign exchange loss | 60.4 | 0.0 | 60.4 | 0.0 | 0.0 | ||||||||||||||
Interest expense | 1.4 | 0.0 | 1.4 | 0.0 | 0.0 | ||||||||||||||
Balance at March 31, 2012 | £ | (37.0 | ) | £ | 3.3 | £ | (29.8 | ) | £ | 0.1 | £ | (10.6 | ) | ||||||
Amounts recognized in other comprehensive income (loss) | 31.5 | 0.0 | 31.4 | 0.0 | 0.1 | ||||||||||||||
Amounts reclassified to earnings impacting: | |||||||||||||||||||
Foreign exchange loss | (31.1 | ) | 0.0 | (31.1 | ) | 0.0 | 0.0 | ||||||||||||
Interest expense | 1.9 | 0.0 | 1.9 | 0.0 | 0.0 | ||||||||||||||
Operating costs | (0.1 | ) | 0.0 | 0.0 | (0.1 | ) | 0.0 | ||||||||||||
Balance at June 30, 2012 | £ | (34.8 | ) | £ | 3.3 | £ | (27.6 | ) | £ | 0.0 | £ | (10.5 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Number of shares outstanding at start of period | 277.6 | 316.8 | 286.4 | 321.3 | |||||||
Issue of common stock (average number outstanding during the period) | 0.2 | 0.6 | 1.0 | 2.1 | |||||||
Purchase of treasury shares (weighted average) | (1.6 | ) | (1.8 | ) | (8.2 | ) | (5.4 | ) | |||
Weighted average number of shares outstanding | 276.2 | 315.6 | 279.2 | 318.0 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Numerator for basic income per common share from continuing operations | £ | 64.7 | £ | 98.2 | £ | 71.7 | £ | 102.7 | |||||||
Interest on senior convertible notes, net of tax | 10.0 | 13.2 | 0.0 | 0.0 | |||||||||||
Numerator for diluted income per common share from continuing operations | £ | 74.7 | £ | 111.4 | £ | 71.7 | £ | 102.7 | |||||||
Weighted average number of shares: | |||||||||||||||
Denominator for basic income per common share | 276.2 | 315.6 | 279.2 | 318.0 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Share based awards to employees | 4.0 | 6.5 | 4.2 | 6.5 | |||||||||||
Shares issuable under senior convertible notes | 52.0 | 52.0 | 0.0 | 0.0 | |||||||||||
Denominator for diluted income per common share | 332.2 | 374.1 | 283.4 | 324.5 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Stock options | 5.2 | 1.2 | 5.1 | 1.3 | |||||||
Sharesave options | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Restricted stock held in escrow | 0.1 | 0.6 | 0.1 | 0.6 | |||||||
Restricted stock units | 3.3 | 3.6 | 3.3 | 3.6 | |||||||
Shares issuable under convertible senior notes | 0.0 | 0.0 | 52.0 | 52.0 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income for period | £ | 64.7 | £ | 98.2 | £ | 71.7 | £ | 101.5 | |||||||
Currency translation adjustment | (6.6 | ) | (0.7 | ) | 2.9 | (0.6 | ) | ||||||||
Net unrealized gains (losses) on derivatives, net of tax | 31.5 | (8.5 | ) | (34.9 | ) | (65.5 | ) | ||||||||
Reclassification of derivative (gains) losses to net income, net of tax | (29.3 | ) | 3.2 | 32.5 | 42.1 | ||||||||||
Pension liability adjustment, net of tax | 1.2 | 0.0 | 1.2 | 0.0 | |||||||||||
£ | 61.5 | £ | 92.2 | £ | 73.4 | £ | 77.5 |
June 30, 2012 | December 31, 2011 | ||||||
Foreign currency translation | £ | 152.8 | £ | 149.9 | |||
Pension liability adjustment | (86.3 | ) | (87.5 | ) | |||
Net unrealized losses on derivatives | (34.8 | ) | (32.4 | ) | |||
£ | 31.7 | £ | 30.0 |
Three months ended June 30, 2012 | Three months ended June 30, 2011 | ||||||||||||||||||||||
Consumer | Business | Total | Consumer | Business | Total | ||||||||||||||||||
Revenue | £ | 860.9 | £ | 166.0 | £ | 1,026.9 | £ | 834.6 | £ | 151.2 | £ | 985.8 | |||||||||||
Segment contribution | £ | 513.7 | £ | 91.7 | £ | 605.4 | £ | 494.5 | £ | 91.8 | £ | 586.3 | |||||||||||
Six months ended June 30, 2012 | Six months ended June 30, 2011 | ||||||||||||||||||||||
Consumer | Business | Total | Consumer | Business | Total | ||||||||||||||||||
Revenue | £ | 1,696.7 | £ | 336.4 | £ | 2,033.1 | £ | 1,657.8 | £ | 310.3 | £ | 1,968.1 | |||||||||||
Segment contribution | £ | 1,000.4 | £ | 182.9 | £ | 1,183.3 | £ | 979.5 | £ | 184.4 | £ | 1,163.9 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Total segment contribution | £ | 605.4 | £ | 586.3 | £ | 1,183.3 | £ | 1,163.9 | |||||||
Other operating and corporate costs | 193.3 | 194.2 | 394.7 | 395.7 | |||||||||||
Restructuring and other charges | (0.5 | ) | (1.1 | ) | 4.9 | 1.5 | |||||||||
Depreciation | 233.0 | 230.2 | 473.2 | 459.0 | |||||||||||
Amortization | 0.0 | 28.1 | 0.0 | 62.2 | |||||||||||
Consolidated operating income | 179.6 | 134.9 | 310.5 | 245.5 | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense | (98.6 | ) | (113.1 | ) | (204.2 | ) | (227.7 | ) | |||||||
Loss on extinguishment of debt | 0.0 | (10.8 | ) | (58.6 | ) | (28.9 | ) | ||||||||
Share of income from equity investments | 0.0 | 6.8 | 0.0 | 15.0 | |||||||||||
(Loss) gain on derivative instruments | (20.6 | ) | (9.2 | ) | 23.9 | 18.8 | |||||||||
Foreign currency (losses) gains | (1.4 | ) | 5.9 | (5.8 | ) | 13.8 | |||||||||
Interest income and other, net | 6.0 | 81.6 | 6.3 | 83.3 | |||||||||||
Income tax (expense) benefit | (0.3 | ) | 2.1 | (0.4 | ) | (17.1 | ) | ||||||||
Income from continuing operations | 64.7 | 98.2 | 71.7 | 102.7 | |||||||||||
Loss from discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | (1.2 | ) | ||||||||||
Net income | £ | 64.7 | £ | 98.2 | £ | 71.7 | £ | 101.5 |
• | $850 million aggregate principal amount of 9.50% senior notes due 2016 |
• | €180 million aggregate principal amount of 9.50% senior notes due 2016 |
• | $600 million aggregate principal amount of 8.375% senior notes due 2019 |
• | £350 million aggregate principal amount of 8.875% senior notes due 2019 |
• | $500 million aggregate principal amount of 5.25% senior notes due 2022 |
June 30, 2012 | |||||||||||||||||||||||||||||||
Balance sheets | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Cash and cash equivalents | £ | 8.9 | £ | 1.0 | £ | 0.4 | £ | 0.0 | £ | 0.0 | £ | 180.6 | £ | 0.0 | £ | 190.9 | |||||||||||||||
Restricted cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.9 | 0.0 | 1.9 | |||||||||||||||||||||||
Other current assets | 0.8 | 0.0 | 0.0 | 11.1 | 0.0 | 535.4 | 0.0 | 547.3 | |||||||||||||||||||||||
Total current assets | 9.7 | 1.0 | 0.4 | 11.1 | 0.0 | 717.9 | 0.0 | 740.1 | |||||||||||||||||||||||
Fixed assets, net | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 4,584.6 | 0.0 | 4,584.6 | |||||||||||||||||||||||
Goodwill and intangible assets, net | 0.0 | 0.0 | (15.0 | ) | 0.0 | 0.0 | 2,032.5 | 0.0 | 2,017.5 | ||||||||||||||||||||||
Investments in, and loans to, parent and subsidiary companies | 877.6 | 399.9 | (759.3 | ) | 1,725.9 | 2,456.9 | (2,596.6 | ) | (2,104.4 | ) | 0.0 | ||||||||||||||||||||
Other assets, net | 178.4 | 21.2 | 1.1 | 199.1 | 0.0 | 93.3 | 0.0 | 493.1 | |||||||||||||||||||||||
Total assets | £ | 1,065.7 | £ | 422.1 | £ | (772.8 | ) | £ | 1,936.1 | £ | 2,456.9 | £ | 4,831.7 | £ | (2,104.4 | ) | £ | 7,835.3 | |||||||||||||
Current liabilities | £ | 26.5 | £ | 45.1 | £ | 5.6 | £ | 186.4 | £ | 0.0 | £ | 1,859.3 | £ | (782.6 | ) | £ | 1,340.3 | ||||||||||||||
Long-term debt, net of current portion | 552.7 | 1,711.6 | 0.0 | 0.0 | 0.0 | 3,504.3 | 0.0 | 5,768.6 | |||||||||||||||||||||||
Other long-term liabilities | 0.2 | 0.0 | 0.1 | 58.9 | 0.0 | 180.9 | 0.0 | 240.1 | |||||||||||||||||||||||
Total liabilities | 579.4 | 1,756.7 | 5.7 | 245.3 | 0.0 | 5,544.5 | (782.6 | ) | 7,349.0 | ||||||||||||||||||||||
Shareholders’ equity (deficit) | 486.3 | (1,334.6 | ) | (778.5 | ) | 1,690.8 | 2,456.9 | (712.8 | ) | (1,321.8 | ) | 486.3 | |||||||||||||||||||
Total liabilities and shareholders’ equity (deficit) | £ | 1,065.7 | £ | 422.1 | £ | (772.8 | ) | £ | 1,936.1 | £ | 2,456.9 | £ | 4,831.7 | £ | (2,104.4 | ) | £ | 7,835.3 |
December 31, 2011 | |||||||||||||||||||||||||||||||
Balance sheets | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Cash and cash equivalents | £ | 16.2 | £ | 1.9 | £ | 0.3 | £ | 0.1 | £ | 0.0 | £ | 281.9 | £ | 0.0 | £ | 300.4 | |||||||||||||||
Restricted cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.9 | 0.0 | 1.9 | |||||||||||||||||||||||
Other current assets | 0.3 | 0.0 | 1.0 | 16.3 | 0.0 | 524.3 | 0.0 | 541.9 | |||||||||||||||||||||||
Total current assets | 16.5 | 1.9 | 1.3 | 16.4 | 0.0 | 808.1 | 0.0 | 844.2 | |||||||||||||||||||||||
Fixed assets, net | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 4,602.7 | 0.0 | 4,602.7 | |||||||||||||||||||||||
Goodwill and intangible assets, net | 0.0 | 0.0 | (15.0 | ) | 0.0 | 0.0 | 2,032.5 | 0.0 | 2,017.5 | ||||||||||||||||||||||
Investments in, and loans to, parent and subsidiary companies | 1,042.2 | 330.2 | (841.2 | ) | 1,474.5 | 2,217.5 | (2,902.6 | ) | (1,320.6 | ) | 0.0 | ||||||||||||||||||||
Other assets, net | 146.1 | 23.5 | 0.0 | 208.4 | 0.0 | 96.4 | 0.0 | 474.4 | |||||||||||||||||||||||
Total assets | £ | 1,204.8 | £ | 355.6 | £ | (854.9 | ) | £ | 1,699.3 | £ | 2,217.5 | £ | 4,637.1 | £ | (1,320.6 | ) | £ | 7,938.8 | |||||||||||||
Current liabilities | £ | 14.6 | £ | 52.2 | £ | 13.6 | £ | 101.2 | £ | 0.0 | £ | 1,897.8 | £ | (801.6 | ) | £ | 1,277.8 | ||||||||||||||
Long-term debt, net of current portion | 551.1 | 1,720.3 | 0.0 | 0.0 | 0.0 | 3,507.1 | 0.0 | 5,778.5 | |||||||||||||||||||||||
Other long-term liabilities | 0.2 | 0.0 | 0.0 | 45.8 | 0.0 | 197.6 | 0.0 | 243.6 | |||||||||||||||||||||||
Total liabilities | 565.9 | 1,772.5 | 13.6 | 147.0 | 0.0 | 5,602.5 | (801.6 | ) | 7,299.9 | ||||||||||||||||||||||
Shareholders’ equity (deficit) | 638.9 | (1,416.9 | ) | (868.5 | ) | 1,552.3 | 2,217.5 | (965.4 | ) | (519.0 | ) | 638.9 | |||||||||||||||||||
Total liabilities and shareholders’ equity (deficit) | £ | 1,204.8 | £ | 355.6 | £ | (854.9 | ) | £ | 1,699.3 | £ | 2,217.5 | £ | 4,637.1 | £ | (1,320.6 | ) | £ | 7,938.8 |
Three months ended June 30, 2012 | |||||||||||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 1,026.9 | £ | 0.0 | £ | 1,026.9 | |||||||||||||||
Operating costs | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (403.2 | ) | 0.0 | (403.2 | ) | |||||||||||||||||||||
Selling, general and administrative expenses | (3.7 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (207.9 | ) | 0.0 | (211.6 | ) | ||||||||||||||||||||
Restructuring and other charges | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.5 | 0.0 | 0.5 | |||||||||||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (233.0 | ) | 0.0 | (233.0 | ) | |||||||||||||||||||||
Operating income (loss) | (3.7 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 183.3 | 0.0 | 179.6 | ||||||||||||||||||||||
Interest expense | (27.0 | ) | (39.2 | ) | (2.7 | ) | (82.9 | ) | 0.0 | (229.9 | ) | 283.1 | (98.6 | ) | |||||||||||||||||
Loss on extinguishment of debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||
Share of income from equity investments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||
Loss on disposal of equity investments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||||||||
Loss on derivative instruments | (10.7 | ) | 0.0 | 0.0 | (9.9 | ) | 0.0 | 0.0 | 0.0 | (20.6 | ) | ||||||||||||||||||||
Foreign currency (losses) gains | (0.1 | ) | 1.4 | (4.2 | ) | 11.2 | 0.0 | 3.5 | (13.2 | ) | (1.4 | ) | |||||||||||||||||||
Interest income and other, net | 0.0 | 39.1 | 3.8 | 46.6 | 0.0 | 199.6 | (283.1 | ) | 6.0 | ||||||||||||||||||||||
Income tax expense | 0.0 | 0.0 | 0.0 | (0.2 | ) | 0.0 | (0.1 | ) | 0.0 | (0.3 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | (41.5 | ) | 1.3 | (3.1 | ) | (35.2 | ) | 0.0 | 156.4 | (13.2 | ) | 64.7 | |||||||||||||||||||
Equity in net income (loss) of subsidiaries | 106.2 | 102.1 | 109.2 | 150.6 | 149.9 | 0.0 | (618.0 | ) | 0.0 | ||||||||||||||||||||||
Net income (loss) | £ | 64.7 | £ | 103.4 | £ | 106.1 | £ | 115.4 | £ | 149.9 | £ | 156.4 | £ | (631.2 | ) | £ | 64.7 | ||||||||||||||
Total comprehensive income (loss) | £ | 45.8 | £ | 103.4 | £ | 105.1 | £ | 117.4 | £ | 149.9 | £ | 157.8 | £ | (617.9 | ) | £ | 61.5 |
Three months ended June 30, 2011 | |||||||||||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 985.8 | £ | 0.0 | £ | 985.8 | |||||||||||||||
Operating costs | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (389.9 | ) | 0.0 | (389.9 | ) | |||||||||||||||||||||
Selling, general and administrative expenses | (4.4 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (199.4 | ) | 0.0 | (203.8 | ) | ||||||||||||||||||||
Restructuring and other charges | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.1 | 0.0 | 1.1 | |||||||||||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (258.3 | ) | 0.0 | (258.3 | ) | |||||||||||||||||||||
Operating income (loss) | (4.4 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 139.3 | 0.0 | 134.9 | ||||||||||||||||||||||
Interest expense | (14.6 | ) | (48.5 | ) | (9.0 | ) | (97.7 | ) | 0.0 | (265.7 | ) | 322.4 | (113.1 | ) | |||||||||||||||||
Loss on extinguishment of debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (10.8 | ) | 0.0 | (10.8 | ) | |||||||||||||||||||||
Share of income from equity investments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 6.8 | 0.0 | 6.8 | |||||||||||||||||||||||
(Loss) gain on derivative instruments | 4.5 | 0.0 | 0.0 | (13.8 | ) | 0.0 | 0.1 | 0.0 | (9.2 | ) | |||||||||||||||||||||
Foreign currency gains (losses) | (0.5 | ) | (1.9 | ) | 5.5 | (10.5 | ) | 0.0 | 13.3 | 0.0 | 5.9 | ||||||||||||||||||||
Interest income and other, net | 0.6 | 48.5 | 10.0 | 43.4 | 0.0 | 301.5 | (322.4 | ) | 81.6 | ||||||||||||||||||||||
Income tax benefit | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 2.1 | 0.0 | 2.1 | |||||||||||||||||||||||
Income (loss) from continuing operations | (14.4 | ) | (1.9 | ) | 6.5 | (78.6 | ) | 0.0 | 186.6 | 0.0 | 98.2 | ||||||||||||||||||||
Equity in net income (loss) of subsidiaries | 112.6 | 100.9 | 106.1 | 179.4 | 164.0 | 0.0 | (663.0 | ) | 0.0 | ||||||||||||||||||||||
Net income (loss) | £ | 98.2 | £ | 99.0 | £ | 112.6 | £ | 100.8 | £ | 164.0 | £ | 186.6 | £ | (663.0 | ) | £ | 98.2 | ||||||||||||||
Total comprehensive income (loss) | £ | 98.3 | £ | 99.0 | £ | 112.5 | £ | 95.5 | £ | 164.0 | £ | 186.6 | £ | (663.7 | ) | £ | 92.2 |
Six months ended June 30, 2012 | |||||||||||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 2,033.1 | £ | 0.0 | £ | 2,033.1 | |||||||||||||||
Operating costs | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (820.1 | ) | 0.0 | (820.1 | ) | |||||||||||||||||||||
Selling, general and administrative expenses | (7.5 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (416.9 | ) | 0.0 | (424.4 | ) | ||||||||||||||||||||
Restructuring and other charges | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (4.9 | ) | 0.0 | (4.9 | ) | |||||||||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (473.2 | ) | 0.0 | (473.2 | ) | |||||||||||||||||||||
Operating income (loss) | (7.5 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 318.0 | 0.0 | 310.5 | ||||||||||||||||||||||
Interest expense | (52.5 | ) | (82.9 | ) | (5.4 | ) | (174.5 | ) | 0.0 | (479.8 | ) | 590.9 | (204.2 | ) | |||||||||||||||||
Loss on extinguishment of debt | 0.0 | (58.6 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (58.6 | ) | |||||||||||||||||||||
Gain (loss) on derivative instruments | 39.9 | 0.0 | 0.0 | (16.0 | ) | 0.0 | 0.0 | 0.0 | 23.9 | ||||||||||||||||||||||
Foreign currency (losses) gains | (0.4 | ) | (5.9 | ) | (4.3 | ) | (8.2 | ) | 0.0 | 7.9 | 5.1 | (5.8 | ) | ||||||||||||||||||
Interest income and other, net | 0.0 | 86.3 | 7.7 | 96.7 | 0.0 | 406.5 | (590.9 | ) | 6.3 | ||||||||||||||||||||||
Income tax expense | 0.0 | 0.0 | 0.0 | (0.2 | ) | 0.0 | (0.2 | ) | 0.0 | (0.4 | ) | ||||||||||||||||||||
Income (loss) from continuing operations | (20.5 | ) | (61.1 | ) | (2.0 | ) | (102.2 | ) | 0.0 | 252.4 | 5.1 | 71.7 | |||||||||||||||||||
Equity in net income (loss) of subsidiaries | 92.2 | 144.6 | 94.1 | 241.7 | 240.5 | 0.0 | (813.1 | ) | 0.0 | ||||||||||||||||||||||
Net income (loss) | £ | 71.7 | £ | 83.5 | £ | 92.1 | £ | 139.5 | £ | 240.5 | £ | 252.4 | £ | (808.0 | ) | £ | 71.7 | ||||||||||||||
Total comprehensive income (loss) | £ | 79.1 | £ | 83.5 | £ | 92.6 | £ | 136.9 | £ | 240.5 | £ | 253.8 | £ | (813.0 | ) | £ | 73.4 |
Six months ended June 30, 2011 | |||||||||||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 0.0 | £ | 1,968.1 | £ | 0.0 | £ | 1,968.1 | |||||||||||||||
Operating costs | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (801.0 | ) | 0.0 | (801.0 | ) | |||||||||||||||||||||
Selling, general and administrative expenses | (8.2 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (390.7 | ) | 0.0 | (398.9 | ) | ||||||||||||||||||||
Restructuring and other charges | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (1.5 | ) | 0.0 | (1.5 | ) | |||||||||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (521.2 | ) | 0.0 | (521.2 | ) | |||||||||||||||||||||
Operating income (loss) | (8.2 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 253.7 | 0.0 | 245.5 | ||||||||||||||||||||||
Interest expense | (29.3 | ) | (97.0 | ) | (21.5 | ) | (197.6 | ) | 0.0 | (521.7 | ) | 639.4 | (227.7 | ) | |||||||||||||||||
Loss on extinguishment of debt | 0.0 | 0.0 | 0.0 | (18.1 | ) | 0.0 | (10.8 | ) | 0.0 | (28.9 | ) | ||||||||||||||||||||
Share of income from equity investments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 15.0 | 0.0 | 15.0 | |||||||||||||||||||||||
Gain on derivative instruments | 14.8 | 0.0 | 0.0 | 3.9 | 0.0 | 0.1 | 0.0 | 18.8 | |||||||||||||||||||||||
Foreign currency gains (losses) | (0.3 | ) | (1.9 | ) | 6.3 | (9.2 | ) | 0.0 | 18.9 | 0.0 | 13.8 | ||||||||||||||||||||
Interest income and other, net | 3.4 | 97.6 | 23.6 | 84.5 | 0.0 | 513.6 | (639.4 | ) | 83.3 | ||||||||||||||||||||||
Income tax (expense) benefit | 0.0 | 0.0 | 0.0 | (23.3 | ) | 0.0 | 6.2 | 0.0 | (17.1 | ) | |||||||||||||||||||||
Income (loss) from continuing operations | (19.6 | ) | (1.3 | ) | 8.4 | (159.8 | ) | 0.0 | 275.0 | 0.0 | 102.7 | ||||||||||||||||||||
Loss on discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (1.2 | ) | 0.0 | (1.2 | ) | |||||||||||||||||||||
Equity in net income (loss) of subsidiaries | 121.1 | 100.4 | 112.7 | 260.1 | 273.8 | 0.0 | (868.1 | ) | 0.0 | ||||||||||||||||||||||
Net income (loss) | £ | 101.5 | £ | 99.1 | £ | 121.1 | £ | 100.3 | £ | 273.8 | £ | 273.8 | £ | (868.1 | ) | £ | 101.5 | ||||||||||||||
Total comprehensive income (loss) | £ | 102.4 | £ | 99.1 | £ | 122.2 | £ | 53.6 | £ | 273.8 | £ | 297.1 | £ | (870.7 | ) | £ | 77.5 |
Six months ended June 30, 2012 | |||||||||||||||||||||||||||||||
Statements of cash flows | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | £ | (33.7 | ) | £ | (46.9 | ) | £ | (4.3 | ) | £ | (103.0 | ) | £ | 0.0 | £ | 631.0 | £ | 0.0 | £ | 443.1 | |||||||||||
Investing activities: | |||||||||||||||||||||||||||||||
Purchase of fixed and intangible assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (369.7 | ) | 0.0 | (369.7 | ) | |||||||||||||||||||||
Proceeds from sale of fixed assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.7 | 0.0 | 1.7 | |||||||||||||||||||||||
Principal drawdowns (repayments) on loans to group companies | 261.5 | 44.3 | 4.4 | 0.6 | 0.0 | (310.8 | ) | 0.0 | 0.0 | ||||||||||||||||||||||
Acquisitions, net of cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (0.6 | ) | 0.0 | (0.6 | ) | |||||||||||||||||||||
Disposal of equity investments, net | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (2.5 | ) | 0.0 | (2.5 | ) | |||||||||||||||||||||
Net cash (used in) provided by investing activities | 261.5 | 44.3 | 4.4 | 0.6 | 0.0 | (681.9 | ) | 0.0 | (371.1 | ) | |||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||||||||
New borrowings, net of financing fees | 0.0 | 315.7 | 0.0 | 100.0 | 0.0 | (0.1 | ) | 0.0 | 415.6 | ||||||||||||||||||||||
Repurchase of common stock | (217.6 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (217.6 | ) | |||||||||||||||||||||
Proceeds from employee stock option exercises, net of taxes reimbursed | (2.1 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (2.1 | ) | |||||||||||||||||||||
Principal payments on long term debt and capital leases | 0.0 | (314.0 | ) | 0.0 | 0.0 | 0.0 | (50.3 | ) | 0.0 | (364.3 | ) | ||||||||||||||||||||
Proceeds from settlement of cross-currency swaps | 0.0 | 0.0 | 0.0 | 2.3 | 0.0 | 0.0 | 0.0 | 2.3 | |||||||||||||||||||||||
Dividends paid | (14.1 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (14.1 | ) | |||||||||||||||||||||
Net cash (used in) provided by financing activities | (233.8 | ) | 1.7 | 0.0 | 102.3 | 0.0 | (50.4 | ) | 0.0 | (180.2 | ) | ||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (1.3 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (1.3 | ) | |||||||||||||||||||||
(Decrease) increase in cash and cash equivalents | (7.3 | ) | (0.9 | ) | 0.1 | (0.1 | ) | 0.0 | (101.3 | ) | 0.0 | (109.5 | ) | ||||||||||||||||||
Cash and cash equivalents at beginning of period | 16.2 | 1.9 | 0.3 | 0.1 | 0.0 | 281.9 | 0.0 | 300.4 | |||||||||||||||||||||||
Cash and cash equivalents at end of period | £ | 8.9 | £ | 1.0 | £ | 0.4 | £ | 0.0 | £ | 0.0 | £ | 180.6 | £ | 0.0 | £ | 190.9 |
Six months ended June 30, 2011 | |||||||||||||||||||||||||||||||
Statements of cash flows | Company | Virgin Media Finance | Other guarantors | VMIH | VMIL | All other subsidiaries | Adjustments | Total | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||||
Net cash provided by (used in) operating activities | £ | (20.2 | ) | £ | (6.6 | ) | £ | 4.5 | £ | (152.0 | ) | £ | 0.0 | £ | 732.0 | £ | 0.0 | £ | 557.7 | ||||||||||||
Investing activities: | |||||||||||||||||||||||||||||||
Purchase of fixed and intangible assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (323.6 | ) | 0.0 | (323.6 | ) | |||||||||||||||||||||
Proceeds from sale of fixed assets | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 1.2 | 0.0 | 1.2 | |||||||||||||||||||||||
Principal repayments on loans to equity investments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 19.4 | 0.0 | 19.4 | |||||||||||||||||||||||
Principal drawdowns (repayments) on loans to group companies | 185.6 | 6.7 | (4.3 | ) | 171.2 | 0.0 | (359.2 | ) | 0.0 | 0.0 | |||||||||||||||||||||
Acquisitions, net of cash | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (14.3 | ) | 0.0 | (14.3 | ) | |||||||||||||||||||||
Other | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 2.5 | 0.0 | 2.5 | |||||||||||||||||||||||
Net cash (used in) provided by investing activities | 185.6 | 6.7 | (4.3 | ) | 171.2 | 0.0 | (674.0 | ) | 0.0 | (314.8 | ) | ||||||||||||||||||||
Financing activities: | |||||||||||||||||||||||||||||||
New borrowings, net of financing fees | 0.0 | 0.0 | 0.0 | (10.3 | ) | 0.0 | 937.9 | 0.0 | 927.6 | ||||||||||||||||||||||
Repurchase of common stock | (212.8 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (212.8 | ) | |||||||||||||||||||||
Proceeds from employee stock option exercises, net of taxes reimbursed | 5.9 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 5.9 | |||||||||||||||||||||||
Principal payments on long term debt and capital leases | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (955.9 | ) | 0.0 | (955.9 | ) | |||||||||||||||||||||
Dividends paid | (15.8 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (15.8 | ) | |||||||||||||||||||||
Net cash used in financing activities | (222.7 | ) | 0.0 | 0.0 | (10.3 | ) | 0.0 | (18.0 | ) | 0.0 | (251.0 | ) | |||||||||||||||||||
Cash flow from discontinued operations: | |||||||||||||||||||||||||||||||
Net cash used in operating activities | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (10.4 | ) | 0.0 | (10.4 | ) | |||||||||||||||||||||
Net cash used in discontinued operations | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (10.4 | ) | 0.0 | (10.4 | ) | |||||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (2.8 | ) | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | (2.8 | ) | |||||||||||||||||||||
(Decrease) increase in cash and cash equivalents | (60.1 | ) | 0.1 | 0.2 | 8.9 | 0.0 | 29.6 | 0.0 | (21.3 | ) | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | 101.3 | 1.8 | 0.4 | 4.5 | 0.0 | 371.5 | 0.0 | 479.5 | |||||||||||||||||||||||
Cash and cash equivalent sat end of period | £ | 41.2 | £ | 1.9 | £ | 0.6 | £ | 13.4 | £ | 0.0 | £ | 401.1 | £ | 0.0 | £ | 458.2 |
• | £875 million aggregate principal amount of 7.00% senior notes due 2018 |
• | $1,000 million aggregate principal amount of 6.50% senior notes due 2018 |
• | £650 million aggregate principal amount of 5.50% senior notes due 2021 |
• | $500 million aggregate principal amount of 5.25% senior notes due 2021 |
June 30, 2012 | |||||||||||||||||||||||
Balance sheets | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Cash and cash equivalents | £ | 8.9 | £ | 0.0 | £ | 178.9 | £ | 3.1 | £ | 0.0 | £ | 190.9 | |||||||||||
Restricted cash | 0.0 | 0.0 | 1.0 | 0.9 | 0.0 | 1.9 | |||||||||||||||||
Other current assets | 0.8 | 0.0 | 546.5 | 0.0 | 0.0 | 547.3 | |||||||||||||||||
Total current assets | 9.7 | 0.0 | 726.4 | 4.0 | 0.0 | 740.1 | |||||||||||||||||
Fixed assets, net | 0.0 | 0.0 | 3,977.6 | 607.0 | 0.0 | 4,584.6 | |||||||||||||||||
Goodwill and intangible assets, net | 0.0 | 0.0 | 1,869.2 | 148.3 | 0.0 | 2,017.5 | |||||||||||||||||
Investments in, and loans to, parent and subsidiary companies | 877.6 | 2,598.3 | (1,231.4 | ) | 1,396.7 | (3,641.2 | ) | 0.0 | |||||||||||||||
Other assets, net | 178.4 | 26.8 | 286.8 | 1.1 | 0.0 | 493.1 | |||||||||||||||||
Total assets | £ | 1,065.7 | £ | 2,625.1 | £ | 5,628.6 | £ | 2,157.1 | £ | (3,641.2 | ) | £ | 7,835.3 | ||||||||||
Current liabilities | £ | 26.5 | £ | 28.9 | £ | 1,525.5 | £ | 542.0 | £ | (782.6 | ) | £ | 1,340.3 | ||||||||||
Long term debt, net of current portion | 552.7 | 2,592.7 | 2,623.2 | 0.0 | 0.0 | 5,768.6 | |||||||||||||||||
Other long term liabilities | 0.2 | 0.0 | 222.9 | 17.0 | 0.0 | 240.1 | |||||||||||||||||
Total liabilities | 579.4 | 2,621.6 | 4,371.6 | 559.0 | (782.6 | ) | 7,349.0 | ||||||||||||||||
Shareholders’ equity (deficit) | 486.3 | 3.5 | 1,257.0 | 1,598.1 | (2,858.6 | ) | 486.3 | ||||||||||||||||
Total liabilities and shareholders’ equity | £ | 1,065.7 | £ | 2,625.1 | £ | 5,628.6 | £ | 2,157.1 | £ | (3,641.2 | ) | £ | 7,835.3 |
December 31, 2011 | |||||||||||||||||||||||
Balance sheets | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Cash and cash equivalents | £ | 16.2 | £ | 0.0 | £ | 263.8 | £ | 20.4 | £ | 0.0 | £ | 300.4 | |||||||||||
Restricted cash | 0.0 | 0.0 | 1.0 | 0.9 | 0.0 | 1.9 | |||||||||||||||||
Other current assets | 0.3 | 0.0 | 521.4 | 20.2 | 0.0 | 541.9 | |||||||||||||||||
Total current assets | 16.5 | 0.0 | 786.2 | 41.5 | 0.0 | 844.2 | |||||||||||||||||
Fixed assets, net | 0.0 | 0.0 | 3,986.8 | 615.9 | 0.0 | 4,602.7 | |||||||||||||||||
Goodwill and intangible assets, net | 0.0 | 0.0 | 1,869.2 | 148.3 | 0.0 | 2,017.5 | |||||||||||||||||
Investments in, and loans to, parent and subsidiary companies | 1,042.2 | 2,578.1 | (1,521.3 | ) | 1,389.7 | (3,488.7 | ) | 0.0 | |||||||||||||||
Other assets, net | 146.1 | 28.8 | 298.9 | 0.6 | 0.0 | 474.4 | |||||||||||||||||
Total assets | £ | 1,204.8 | £ | 2,606.9 | £ | 5,419.8 | £ | 2,196.0 | £ | (3,488.7 | ) | £ | 7,938.8 | ||||||||||
Current liabilities | £ | 14.6 | £ | 28.9 | £ | 1,386.9 | £ | 649.0 | £ | (801.6 | ) | £ | 1,277.8 | ||||||||||
Long term debt, net of current portion | 551.1 | 2,575.4 | 2,652.0 | 0.0 | 0.0 | 5,778.5 | |||||||||||||||||
Other long term liabilities | 0.2 | 0.0 | 211.2 | 32.2 | 0.0 | 243.6 | |||||||||||||||||
Total liabilities | 565.9 | 2,604.3 | 4,250.1 | 681.2 | (801.6 | ) | 7,299.9 | ||||||||||||||||
Shareholders’ equity (deficit) | 638.9 | 2.6 | 1,169.7 | 1,514.8 | (2,687.1 | ) | 638.9 | ||||||||||||||||
Total liabilities and shareholders’ equity | £ | 1,204.8 | £ | 2,606.9 | £ | 5,419.8 | £ | 2,196.0 | £ | (3,488.7 | ) | £ | 7,938.8 |
Three months ended June 30, 2012 | |||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 966.1 | £ | 60.8 | £ | 0.0 | £ | 1,026.9 | |||||||||||
Operating costs | 0.0 | 0.0 | (384.8 | ) | (18.4 | ) | 0.0 | (403.2 | ) | ||||||||||||||
Selling, general and administrative expenses | (3.7 | ) | 0.0 | (194.8 | ) | (13.1 | ) | 0.0 | (211.6 | ) | |||||||||||||
Restructuring and other charges | 0.0 | 0.0 | 0.4 | 0.1 | 0.0 | 0.5 | |||||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | (211.6 | ) | (21.4 | ) | 0.0 | (233.0 | ) | ||||||||||||||
Operating income (loss) | (3.7 | ) | 0.0 | 175.3 | 8.0 | 0.0 | 179.6 | ||||||||||||||||
Interest expense | (27.0 | ) | (40.3 | ) | (228.3 | ) | (93.6 | ) | 290.6 | (98.6 | ) | ||||||||||||
Loss on extinguishment of debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||
Share of income from equity investments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||
Loss on disposal of equity investments | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |||||||||||||||||
Loss on derivative instruments | (10.7 | ) | 0.0 | (9.9 | ) | 0.0 | 0.0 | (20.6 | ) | ||||||||||||||
Foreign currency (losses) gains | (0.1 | ) | 0.0 | 30.3 | (18.4 | ) | (13.2 | ) | (1.4 | ) | |||||||||||||
Interest and other income, net | 0.0 | 40.9 | 150.7 | 105.0 | (290.6 | ) | 6.0 | ||||||||||||||||
Income tax expense | 0.0 | 0.0 | (0.3 | ) | 0.0 | 0.0 | (0.3 | ) | |||||||||||||||
Income (loss) from continuing operations | (41.5 | ) | 0.6 | 117.8 | 1.0 | (13.2 | ) | 64.7 | |||||||||||||||
Equity in net income (loss) of subsidiaries | 106.2 | 0.0 | 7.8 | 105.2 | (219.2 | ) | 0.0 | ||||||||||||||||
Net income (loss) | £ | 64.7 | £ | 0.6 | £ | 125.6 | £ | 106.2 | £ | (232.4 | ) | £ | 64.7 | ||||||||||
Total comprehensive income (loss) | £ | 45.8 | £ | 0.6 | £ | 125.6 | £ | 108.7 | £ | (219.2 | ) | £ | 61.5 |
Three months ended June 30, 2011 | |||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 869.3 | £ | 116.5 | £ | 0.0 | £ | 985.8 | |||||||||||
Operating costs | 0.0 | 0.0 | (324.2 | ) | (65.7 | ) | 0.0 | (389.9 | ) | ||||||||||||||
Selling, general and administrative expenses | (4.4 | ) | 0.0 | (175.5 | ) | (23.9 | ) | 0.0 | (203.8 | ) | |||||||||||||
Restructuring and other charges | 0.0 | 0.0 | 1.0 | 0.1 | 0.0 | 1.1 | |||||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | (256.2 | ) | (2.1 | ) | 0.0 | (258.3 | ) | ||||||||||||||
Operating income (loss) | (4.4 | ) | 0.0 | 114.4 | 24.9 | 0.0 | 134.9 | ||||||||||||||||
Interest expense | (14.6 | ) | (40.2 | ) | (271.0 | ) | (109.7 | ) | 322.4 | (113.1 | ) | ||||||||||||
Loss on extinguishment of debt | 0.0 | 0.0 | (10.8 | ) | 0.0 | 0.0 | (10.8 | ) | |||||||||||||||
Share of income from equity investments | 0.0 | 0.0 | 0.0 | 6.8 | 0.0 | 6.8 | |||||||||||||||||
(Loss) gain on derivative instruments | 4.5 | 0.0 | (13.7 | ) | 0.0 | 0.0 | (9.2 | ) | |||||||||||||||
Foreign currency gains (losses) | (0.5 | ) | 0.0 | (5.0 | ) | 11.4 | 0.0 | 5.9 | |||||||||||||||
Interest and other income, net | 0.6 | 39.4 | 254.8 | 109.2 | (322.4 | ) | 81.6 | ||||||||||||||||
Income tax benefit (expense) | 0.0 | 0.0 | (0.8 | ) | 2.9 | 0.0 | 2.1 | ||||||||||||||||
Income (loss) from continuing operations | (14.4 | ) | (0.8 | ) | 67.9 | 45.5 | 0.0 | 98.2 | |||||||||||||||
Equity in net income (loss) of subsidiaries | 112.6 | 0.0 | 52.4 | 67.1 | (232.1 | ) | 0.0 | ||||||||||||||||
Net income (loss) | £ | 98.2 | £ | (0.8 | ) | £ | 120.3 | £ | 112.6 | £ | (232.1 | ) | £ | 98.2 | |||||||||
Total comprehensive income (loss) | £ | 98.3 | £ | (0.8 | ) | £ | 120.3 | £ | 106.5 | £ | (232.1 | ) | £ | 92.2 |
Six months ended June 30, 2012 | |||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 1,913.3 | £ | 119.8 | £ | 0.0 | £ | 2,033.1 | |||||||||||
Operating costs | 0.0 | 0.0 | (783.4 | ) | (36.7 | ) | 0.0 | (820.1 | ) | ||||||||||||||
Selling, general and administrative expenses | (7.5 | ) | 0.0 | (390.6 | ) | (26.3 | ) | 0.0 | (424.4 | ) | |||||||||||||
Restructuring and other charges | 0.0 | 0.0 | (2.6 | ) | (2.3 | ) | 0.0 | (4.9 | ) | ||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | (430.4 | ) | (42.8 | ) | 0.0 | (473.2 | ) | ||||||||||||||
Operating income (loss) | (7.5 | ) | 0.0 | 306.3 | 11.7 | 0.0 | 310.5 | ||||||||||||||||
Interest expense | (52.5 | ) | (81.1 | ) | (482.4 | ) | (194.2 | ) | 606.0 | (204.2 | ) | ||||||||||||
Loss on extinguishment of debt | 0.0 | 0.0 | (58.6 | ) | 0.0 | 0.0 | (58.6 | ) | |||||||||||||||
Gain (loss) on derivative instruments | 39.9 | 0.0 | (16.0 | ) | 0.0 | 0.0 | 23.9 | ||||||||||||||||
Foreign currency (losses) gains | (0.4 | ) | 0.0 | (2.7 | ) | (7.8 | ) | 5.1 | (5.8 | ) | |||||||||||||
Interest and other income, net | 0.0 | 82.0 | 317.4 | 212.9 | (606.0 | ) | 6.3 | ||||||||||||||||
Income tax expense | 0.0 | 0.0 | (0.4 | ) | 0.0 | 0.0 | (0.4 | ) | |||||||||||||||
Income (loss) from continuing operations | (20.5 | ) | 0.9 | 63.6 | 22.6 | 5.1 | 71.7 | ||||||||||||||||
Equity in net income (loss) of subsidiaries | 92.2 | 0.0 | 24.8 | 69.6 | (186.6 | ) | 0.0 | ||||||||||||||||
Net income (loss) | £ | 71.7 | £ | 0.9 | £ | 88.4 | £ | 92.2 | £ | (181.5 | ) | £ | 71.7 | ||||||||||
Total comprehensive income (loss) | £ | 79.1 | £ | 0.9 | £ | 88.4 | £ | 91.6 | £ | (186.6 | ) | £ | 73.4 |
Six months ended June 30, 2011 | |||||||||||||||||||||||
Statements of comprehensive income | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Revenue | £ | 0.0 | £ | 0.0 | £ | 1,737.9 | £ | 230.2 | £ | 0.0 | £ | 1,968.1 | |||||||||||
Operating costs | 0.0 | 0.0 | (668.0 | ) | (133.0 | ) | 0.0 | (801.0 | ) | ||||||||||||||
Selling, general and administrative expenses | (8.2 | ) | 0.0 | (340.7 | ) | (50.0 | ) | 0.0 | (398.9 | ) | |||||||||||||
Restructuring and other charges | 0.0 | 0.0 | (1.4 | ) | (0.1 | ) | 0.0 | (1.5 | ) | ||||||||||||||
Depreciation and amortization | 0.0 | 0.0 | (488.3 | ) | (32.9 | ) | 0.0 | (521.2 | ) | ||||||||||||||
Operating income (loss) | (8.2 | ) | 0.0 | 239.5 | 14.2 | 0.0 | 245.5 | ||||||||||||||||
Interest expense | (29.3 | ) | (74.2 | ) | (534.8 | ) | (228.8 | ) | 639.4 | (227.7 | ) | ||||||||||||
Loss on extinguishment of debt | 0.0 | 0.0 | (28.9 | ) | 0.0 | 0.0 | (28.9 | ) | |||||||||||||||
Share of income from equity investments | 0.0 | 0.0 | 0.0 | 15.0 | 0.0 | 15.0 | |||||||||||||||||
Gain on derivative instruments | 14.8 | 0.0 | 4.0 | 0.0 | 0.0 | 18.8 | |||||||||||||||||
Foreign currency gains (losses) | (0.3 | ) | 0.0 | (18.4 | ) | 32.5 | 0.0 | 13.8 | |||||||||||||||
Interest and other income, net | 3.4 | 70.0 | 428.4 | 220.9 | (639.4 | ) | 83.3 | ||||||||||||||||
Income tax (expense) benefit | 0.0 | 0.0 | (19.9 | ) | 2.8 | 0.0 | (17.1 | ) | |||||||||||||||
Income (loss) from continuing operations | (19.6 | ) | (4.2 | ) | 69.9 | 56.6 | 0.0 | 102.7 | |||||||||||||||
Loss on discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | (1.2 | ) | 0.0 | (1.2 | ) | |||||||||||||||
Equity in net income (loss) of subsidiaries | 121.1 | 0.0 | 68.8 | 65.7 | (255.6 | ) | 0.0 | ||||||||||||||||
Net income (loss) | £ | 101.5 | £ | (4.2 | ) | £ | 138.7 | £ | 121.1 | £ | (255.6 | ) | £ | 101.5 | |||||||||
Total comprehensive income (loss) | £ | 102.4 | £ | (4.2 | ) | £ | 138.7 | £ | 96.2 | £ | (255.6 | ) | £ | 77.5 |
Six months ended June 30, 2012 | |||||||||||||||||||||||
Statements of cash flows | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | £ | (33.7 | ) | £ | 0.9 | £ | 471.8 | £ | 4.1 | £ | 0.0 | £ | 443.1 | ||||||||||
Investing activities: | |||||||||||||||||||||||
Purchase of fixed and intangible assets | 0.0 | 0.0 | (317.5 | ) | (52.2 | ) | 0.0 | (369.7 | ) | ||||||||||||||
Proceeds from sale of fixed assets | 0.0 | 0.0 | 1.7 | 0.0 | 0.0 | 1.7 | |||||||||||||||||
Principal drawdowns (repayments) on loans to group companies | 261.5 | (0.7 | ) | (294.8 | ) | 34.0 | 0.0 | 0.0 | |||||||||||||||
Acquisitions, net of cash | 0.0 | 0.0 | 0.0 | (0.6 | ) | 0.0 | (0.6 | ) | |||||||||||||||
Disposal of equity investments, net | 0.0 | 0.0 | 0.0 | (2.5 | ) | 0.0 | (2.5 | ) | |||||||||||||||
Net cash (used in) provided by investing activities | 261.5 | (0.7 | ) | (610.6 | ) | (21.3 | ) | 0.0 | (371.1 | ) | |||||||||||||
Financing activities: | |||||||||||||||||||||||
New borrowings, net of financing fees | 0.0 | (0.2 | ) | 415.9 | (0.1 | ) | 0.0 | 415.6 | |||||||||||||||
Repurchase of common stock | (217.6 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (217.6 | ) | |||||||||||||||
Proceeds from employee stock option exercises, net of taxes reimbursed | (2.1 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (2.1 | ) | |||||||||||||||
Principal payments on long term debt and capital leases | 0.0 | 0.0 | (364.3 | ) | 0.0 | 0.0 | (364.3 | ) | |||||||||||||||
Proceeds from settlement of cross-currency swaps | 0.0 | 0.0 | 2.3 | 0.0 | 0.0 | 2.3 | |||||||||||||||||
Dividends paid | (14.1 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (14.1 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (233.8 | ) | (0.2 | ) | 53.9 | (0.1 | ) | 0.0 | (180.2 | ) | |||||||||||||
Effect of exchange rates on cash and cash equivalents | (1.3 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (1.3 | ) | |||||||||||||||
Decrease in cash and cash equivalents | (7.3 | ) | 0.0 | (84.9 | ) | (17.3 | ) | 0.0 | (109.5 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 16.2 | 0.0 | 263.8 | 20.4 | 0.0 | 300.4 | |||||||||||||||||
Cash and cash equivalents at end of period | £ | 8.9 | £ | 0.0 | £ | 178.9 | £ | 3.1 | £ | 0.0 | £ | 190.9 |
Six months ended June 30, 2011 | |||||||||||||||||||||||
Statements of cash flows | Company | Virgin Media Secured Finance | Guarantors | Non- Guarantors | Adjustments | Total | |||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net cash provided by (used in) operating activities | £ | (20.2 | ) | £ | (0.4 | ) | £ | 453.3 | £ | 125.0 | £ | 0.0 | £ | 557.7 | |||||||||
Investing activities: | |||||||||||||||||||||||
Purchase of fixed and intangible assets | 0.0 | 0.0 | (309.1 | ) | (14.5 | ) | 0.0 | (323.6 | ) | ||||||||||||||
Proceeds from sale of fixed assets | 0.0 | 0.0 | 1.2 | 0.0 | 0.0 | 1.2 | |||||||||||||||||
Principal repayments on loans to equity investments | 0.0 | 0.0 | 0.0 | 19.4 | 0.0 | 19.4 | |||||||||||||||||
Principal draw downs (repayments) on loans to group companies | 185.6 | (941.1 | ) | 862.5 | (107.0 | ) | 0.0 | 0.0 | |||||||||||||||
Acquisitions, net of cash | 0.0 | 0.0 | 0.0 | (14.3 | ) | 0.0 | (14.3 | ) | |||||||||||||||
Other | 0.0 | 0.0 | 0.0 | 2.5 | 0.0 | 2.5 | |||||||||||||||||
Net cash (used in) provided by investing activities | 185.6 | (941.1 | ) | 554.6 | (113.9 | ) | 0.0 | (314.8 | ) | ||||||||||||||
Financing activities: | |||||||||||||||||||||||
New borrowings, net of financing fees | 0.0 | 941.5 | (13.9 | ) | 0.0 | 0.0 | 927.6 | ||||||||||||||||
Repurchase of common stock | (212.8 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (212.8 | ) | |||||||||||||||
Proceeds from employee stock option exercises, net of taxes reimbursed | 5.9 | 0.0 | 0.0 | 0.0 | 0.0 | 5.9 | |||||||||||||||||
Principal payments on long term debt and capital leases | 0.0 | 0.0 | (955.9 | ) | 0.0 | 0.0 | (955.9 | ) | |||||||||||||||
Dividends paid | (15.8 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (15.8 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (222.7 | ) | 941.5 | (969.8 | ) | 0.0 | 0.0 | (251.0 | ) | ||||||||||||||
Cash flow from discontinued operations: | |||||||||||||||||||||||
Net cash used in operating activities | 0.0 | 0.0 | 0.0 | (10.4 | ) | 0.0 | (10.4 | ) | |||||||||||||||
Net cash used in discontinued operations | 0.0 | 0.0 | 0.0 | (10.4 | ) | 0.0 | (10.4 | ) | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | (2.8 | ) | 0.0 | 0.0 | 0.0 | 0.0 | (2.8 | ) | |||||||||||||||
(Decrease) increase in cash and cash equivalents | (60.1 | ) | 0.0 | 38.1 | 0.7 | 0.0 | (21.3 | ) | |||||||||||||||
Cash and cash equivalents at beginning of period | 101.3 | 0.0 | 356.9 | 21.3 | 0.0 | 479.5 | |||||||||||||||||
Cash and cash equivalents at end of period | £ | 41.2 | £ | 0.0 | £ | 395.0 | £ | 22.0 | £ | 0.0 | £ | 458.2 |
June 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | £ | 180.6 | £ | 282.0 | |||
Restricted cash | 1.9 | 1.9 | |||||
Accounts receivable - trade, less allowances for doubtful accounts of £9.5 (2012) and £10.9 (2011) | 447.1 | 435.4 | |||||
Derivative financial instruments | 3.2 | 9.5 | |||||
Prepaid expenses and other current assets | 96.2 | 95.6 | |||||
Total current assets | 729.0 | 824.4 | |||||
Fixed assets, net | 4,488.2 | 4,501.6 | |||||
Goodwill and other indefinite-lived assets | 2,026.6 | 2,026.6 | |||||
Derivative financial instruments | 199.2 | 209.6 | |||||
Deferred financing costs, net of accumulated amortization of £32.4 (2012) and £28.0 (2011) | 40.3 | 44.5 | |||||
Other assets | 52.9 | 50.8 | |||||
Due from group companies | 1,528.8 | 1,223.2 | |||||
Total assets | £ | 9,065.0 | £ | 8,880.7 | |||
Liabilities and shareholder’s equity | |||||||
Current liabilities | |||||||
Accounts payable | £ | 320.7 | £ | 304.3 | |||
Accrued expenses and other current liabilities | 345.5 | 372.0 | |||||
Derivative financial instruments | 11.4 | 16.7 | |||||
VAT and employee taxes payable | 81.1 | 88.4 | |||||
Interest payable | 36.7 | 51.5 | |||||
Interest payable to group companies | 131.9 | 137.0 | |||||
Deferred revenue | 316.1 | 311.8 | |||||
Current portion of long term debt | 243.6 | 140.9 | |||||
Total current liabilities | 1,487.0 | 1,422.6 | |||||
Long term debt, net of current portion | 3,504.3 | 3,507.1 | |||||
Long term debt due to group companies, net of current portion | 2,143.3 | 2,155.3 | |||||
Derivative financial instruments | 64.7 | 53.4 | |||||
Deferred revenue and other long term liabilities | 175.1 | 190.0 | |||||
Total liabilities | 7,374.4 | 7,328.4 | |||||
Commitments and contingent liabilities | |||||||
Shareholder’s equity | |||||||
Common stock - £0.001 par value; authorized 1,000,000 ordinary shares (2012 and 2011); issued and outstanding 224,552 ordinary shares (2012 and 2011) | 0.0 | 0.0 | |||||
Additional paid-in capital | 4,371.3 | 4,371.3 | |||||
Accumulated other comprehensive loss | (121.1 | ) | (119.9 | ) | |||
Accumulated deficit | (2,559.6 | ) | (2,699.1 | ) | |||
Total shareholder’s equity | 1,690.6 | 1,552.3 | |||||
Total liabilities and shareholder’s equity | £ | 9,065.0 | £ | 8,880.7 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | £ | 997.5 | £ | 960.1 | £ | 1,975.3 | £ | 1,917.4 | |||||||
Costs and expenses | |||||||||||||||
Operating costs (exclusive of depreciation shown separately below) | 392.8 | 380.7 | 798.9 | 782.3 | |||||||||||
Selling, general and administrative expenses | 198.1 | 192.8 | 397.4 | 377.7 | |||||||||||
Restructuring and other charges | (0.5 | ) | (1.1 | ) | 4.7 | 1.4 | |||||||||
Depreciation | 227.3 | 224.7 | 462.0 | 448.0 | |||||||||||
Amortization | 0.0 | 28.1 | 0.0 | 62.2 | |||||||||||
Total costs and expenses | 817.7 | 825.2 | 1,663.0 | 1,671.6 | |||||||||||
Operating income | 179.8 | 134.9 | 312.3 | 245.8 | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense | (46.1 | ) | (51.9 | ) | (94.7 | ) | (105.4 | ) | |||||||
Interest expense to group companies | (42.9 | ) | (53.4 | ) | (94.1 | ) | (109.1 | ) | |||||||
Loss on extinguishment of debt | 0.0 | (10.8 | ) | 0.0 | (28.9 | ) | |||||||||
Share of income from equity investments | 0.0 | 6.8 | 0.0 | 15.0 | |||||||||||
(Loss) gain on derivative instruments | (9.9 | ) | (13.7 | ) | (16.0 | ) | 4.0 | ||||||||
Foreign currency gains (losses) | 14.6 | 3.0 | (0.3 | ) | 9.6 | ||||||||||
Interest income and other, net | 6.0 | 81.7 | 6.3 | 83.3 | |||||||||||
Interest income from group companies | 14.1 | 2.2 | 26.4 | 4.4 | |||||||||||
Income from continuing operations before income taxes | 115.6 | 98.8 | 139.9 | 118.7 | |||||||||||
Income tax (expense) benefit | (0.3 | ) | 2.1 | (0.4 | ) | (17.1 | ) | ||||||||
Income from continuing operations | 115.3 | 100.9 | 139.5 | 101.6 | |||||||||||
Loss from discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | (1.2 | ) | ||||||||||
Net income | £ | 115.3 | £ | 100.9 | £ | 139.5 | £ | 100.4 | |||||||
Total comprehensive income | £ | 118.7 | £ | 95.6 | £ | 138.3 | £ | 77.0 |
Six months ended June 30, | |||||||
2012 | 2011 | ||||||
Operating activities: | |||||||
Net income | £ | 139.5 | £ | 100.4 | |||
Loss from discontinued operations | 0.0 | 1.2 | |||||
Income from continuing operations | 139.5 | 101.6 | |||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||
Depreciation and amortization | 462.0 | 510.2 | |||||
Non-cash interest | (15.5 | ) | 0.9 | ||||
Share-based compensation | 11.8 | 13.0 | |||||
Loss on extinguishment of debt, net of cash prepayment premiums | 0.0 | 28.9 | |||||
Income from equity accounted investments, net of dividends received | 0.0 | (1.5 | ) | ||||
Unrealized losses (gains) on derivative instruments, net of cash settlements | 5.9 | (9.0 | ) | ||||
Foreign currency gains | 0.0 | (11.7 | ) | ||||
Income taxes | 2.3 | 20.1 | |||||
Other | 0.0 | 3.4 | |||||
Changes in operating assets and liabilities | (96.6 | ) | (73.0 | ) | |||
Net cash provided by operating activities | 509.4 | 582.9 | |||||
Investing activities: | |||||||
Purchase of fixed and intangible assets | (362.5 | ) | (318.8 | ) | |||
Proceeds from sale of fixed assets | 1.7 | 1.2 | |||||
Principal repayments on loans to equity investments | 0.0 | 19.4 | |||||
Investments from and loans to parent and subsidiary companies | (299.0 | ) | (195.7 | ) | |||
Acquisitions, net of cash acquired | (0.6 | ) | (14.3 | ) | |||
Disposal of equity investments, net | (2.5 | ) | 0.0 | ||||
Other | 0.0 | 2.5 | |||||
Net cash used in investing activities | (662.9 | ) | (505.7 | ) | |||
Financing activities: | |||||||
New borrowings, net of financing fees | 99.9 | 1,677.6 | |||||
Principal payments on long term debt | 0.0 | (1,675.2 | ) | ||||
Principal payments on capital leases | (50.1 | ) | (30.7 | ) | |||
Proceeds from settlement of cross-currency interest rate swaps | 2.3 | 0.0 | |||||
Net cash provided by (used in) financing activities | 52.1 | (28.3 | ) | ||||
Cash flow from discontinued operations: | |||||||
Net cash used in operating activities | 0.0 | (10.4 | ) | ||||
Net cash used in discontinued operations | 0.0 | (10.4 | ) | ||||
(Decrease) increase in cash and cash equivalents | (101.4 | ) | 38.5 | ||||
Cash and cash equivalents, beginning of period | 282.0 | 376.0 | |||||
Cash and cash equivalents, end of period | £ | 180.6 | £ | 414.5 |
June 30, 2012 | December 31, 2011 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents | £ | 180.6 | £ | 282.0 | |||
Restricted cash | 1.9 | 1.9 | |||||
Accounts receivable - trade, less allowances for doubtful accounts of £9.5 (2012) and £10.9 (2011) | 447.1 | 435.4 | |||||
Derivative financial instruments | 3.2 | 9.5 | |||||
Prepaid expenses and other current assets | 96.2 | 95.6 | |||||
Total current assets | 729.0 | 824.4 | |||||
Fixed assets, net | 4,488.2 | 4,501.6 | |||||
Goodwill and other indefinite-lived assets | 2,026.6 | 2,026.6 | |||||
Derivative financial instruments | 199.2 | 209.6 | |||||
Deferred financing costs, net of accumulated amortization of £32.4 (2012) and £28.0 (2011) | 40.3 | 44.5 | |||||
Other assets | 52.9 | 50.8 | |||||
Due from group companies | 1,528.8 | 1,223.2 | |||||
Total assets | £ | 9,065.0 | £ | 8,880.7 | |||
Liabilities and shareholder’s equity | |||||||
Current liabilities | |||||||
Accounts payable | £ | 320.7 | £ | 304.3 | |||
Accrued expenses and other current liabilities | 345.5 | 372.0 | |||||
Derivative financial instruments | 11.4 | 16.7 | |||||
VAT and employee taxes payable | 81.1 | 88.4 | |||||
Interest payable | 2.7 | 9.9 | |||||
Interest payable to group companies | 165.9 | 178.6 | |||||
Deferred revenue | 316.1 | 311.8 | |||||
Current portion of long term debt | 243.6 | 140.9 | |||||
Total current liabilities | 1,487.0 | 1,422.6 | |||||
Long term debt, net of current portion | 243.2 | 263.3 | |||||
Long term debt due to group companies, net of current portion | 5,404.4 | 5,399.1 | |||||
Derivative financial instruments | 64.7 | 53.4 | |||||
Deferred revenue and other long term liabilities | 175.1 | 190.0 | |||||
Total liabilities | 7,374.4 | 7,328.4 | |||||
Commitments and contingent liabilities | |||||||
Shareholder’s equity | |||||||
Common stock - £1.0 par value; issued and outstanding 2.5 (2012 and 2011) ordinary shares | 2.5 | 2.5 | |||||
Additional paid-in capital | 4,368.8 | 4,368.8 | |||||
Accumulated other comprehensive loss | (121.1 | ) | (119.9 | ) | |||
Accumulated deficit | (2,559.6 | ) | (2,699.1 | ) | |||
Total shareholder’s equity | 1,690.6 | 1,552.3 | |||||
Total liabilities and shareholder’s equity | £ | 9,065.0 | £ | 8,880.7 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Revenue | £ | 997.5 | £ | 960.1 | £ | 1,975.3 | £ | 1,917.4 | |||||||
Costs and expenses | |||||||||||||||
Operating costs (exclusive of depreciation shown separately below) | 392.8 | 380.7 | 798.9 | 782.3 | |||||||||||
Selling, general and administrative expenses | 198.1 | 192.8 | 397.4 | 377.7 | |||||||||||
Restructuring and other charges | (0.5 | ) | (1.1 | ) | 4.7 | 1.4 | |||||||||
Depreciation | 227.3 | 224.7 | 462.0 | 448.0 | |||||||||||
Amortization | 0.0 | 28.1 | 0.0 | 62.2 | |||||||||||
Total costs and expenses | 817.7 | 825.2 | 1,663.0 | 1,671.6 | |||||||||||
Operating income | 179.8 | 134.9 | 312.3 | 245.8 | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense | (3.5 | ) | (5.6 | ) | (8.9 | ) | (9.5 | ) | |||||||
Interest expense to group companies | (85.5 | ) | (99.7 | ) | (179.9 | ) | (205.0 | ) | |||||||
Loss on extinguishment of debt | 0.0 | (10.8 | ) | 0.0 | (28.9 | ) | |||||||||
Share of income from equity investments | 0.0 | 6.8 | 0.0 | 15.0 | |||||||||||
(Loss) gain on derivative instruments | (9.9 | ) | (13.7 | ) | (16.0 | ) | 4.0 | ||||||||
Foreign currency gains (losses) | 14.6 | 3.0 | (0.3 | ) | 9.6 | ||||||||||
Interest income and other, net | 6.0 | 81.7 | 6.3 | 83.3 | |||||||||||
Interest income from group companies | 14.1 | 2.2 | 26.4 | 4.4 | |||||||||||
Income from continuing operations before income taxes | 115.6 | 98.8 | 139.9 | 118.7 | |||||||||||
Income tax (expense) benefit | (0.3 | ) | 2.1 | (0.4 | ) | (17.1 | ) | ||||||||
Income from continuing operations | 115.3 | 100.9 | 139.5 | 101.6 | |||||||||||
Loss from discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | (1.2 | ) | ||||||||||
Net income | £ | 115.3 | £ | 100.9 | £ | 139.5 | £ | 100.4 | |||||||
Total comprehensive income | £ | 118.7 | £ | 95.6 | £ | 138.3 | £ | 77.0 |
Six months ended June 30, | |||||||
2012 | 2011 | ||||||
Operating activities: | |||||||
Net income | £ | 139.5 | £ | 100.4 | |||
Loss from discontinued operations | 0.0 | 1.2 | |||||
Income from continuing operations | 139.5 | 101.6 | |||||
Adjustments to reconcile income from continuing operations to net cash provided by operating activities: | |||||||
Depreciation and amortization | 462.0 | 510.2 | |||||
Non-cash interest | (15.5 | ) | 0.9 | ||||
Share-based compensation | 11.8 | 13.0 | |||||
Loss on extinguishment of debt, net of cash prepayment premiums | 0.0 | 28.9 | |||||
Income from equity accounted investments, net of dividends received | 0.0 | (1.5 | ) | ||||
Unrealized losses (gains) on derivative instruments, net of cash settlements | 5.9 | (9.0 | ) | ||||
Foreign currency gains | 0.0 | (11.7 | ) | ||||
Income taxes | 2.3 | 20.1 | |||||
Other | 0.0 | 3.4 | |||||
Changes in operating assets and liabilities | (96.6 | ) | (73.0 | ) | |||
Net cash provided by operating activities | 509.4 | 582.9 | |||||
Investing activities: | |||||||
Purchase of fixed and intangible assets | (362.5 | ) | (318.8 | ) | |||
Proceeds from sale of fixed assets | 1.7 | 1.2 | |||||
Principal repayments on loans to equity investments | 0.0 | 19.4 | |||||
Investments from and loans to parent and subsidiary companies | (199.0 | ) | (71.7 | ) | |||
Acquisitions, net of cash acquired | (0.6 | ) | (14.3 | ) | |||
Disposal of equity investments, net | (2.5 | ) | 0.0 | ||||
Other | 0.0 | 2.5 | |||||
Net cash used in investing activities | (562.9 | ) | (381.7 | ) | |||
Financing activities: | |||||||
New borrowings, net of financing fees | (0.1 | ) | (23.9 | ) | |||
Principal payments on long term debt | 0.0 | (97.7 | ) | ||||
Principal payments on capital leases | (50.1 | ) | (30.7 | ) | |||
Proceeds from settlement of cross-currency interest rate swaps | 2.3 | 0.0 | |||||
Net cash used in financing activities | (47.9 | ) | (152.3 | ) | |||
Cash flow from discontinued operations: | |||||||
Net cash used in operating activities | 0.0 | (10.4 | ) | ||||
Net cash used in discontinued operations | 0.0 | (10.4 | ) | ||||
(Decrease) increase in cash and cash equivalents | (101.4 | ) | 38.5 | ||||
Cash and cash equivalents, beginning of period | 282.0 | 376.0 | |||||
Cash and cash equivalents, end of period | £ | 180.6 | £ | 414.5 |
Year ending June 30: | |||
2013 | £ | 163.8 | |
2014 | 0.0 | ||
2015 | 750.0 | ||
2016 | 0.0 | ||
2017 | 686.2 | ||
Thereafter | 3,961.9 | ||
Total debt payments | £ | 5,561.9 |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities | |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or | |
unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or | ||
inputs other than quoted prices that are observable for the asset or liability | ||
Level 3 | Unobservable inputs for the asset or liability |
June 30, 2012 | December 31, 2011 | ||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||
9.50% U.S. dollar senior notes due 2016 | 530.1 | £ | 604.8 | 849.2 | £ | 966.4 | |||||||
9.50% euro senior notes due 2016 | 140.9 | 165.3 | 145.3 | 170.1 | |||||||||
8.375% U.S. dollar senior notes due 2019 | 376.8 | 432.0 | 380.6 | 416.9 | |||||||||
8.875% sterling senior notes due 2019 | 345.4 | 388.0 | 345.2 | 378.9 | |||||||||
5.25% U.S. dollar senior notes due 2022 | 318.3 | 326.2 | 0.0 | 0.0 | |||||||||
6.50% U.S. dollar senior secured notes due 2018 | 629.3 | 699.9 | 635.4 | 663.5 | |||||||||
7.00% sterling senior secured notes due 2018 | 865.2 | 937.4 | 864.5 | 923.1 | |||||||||
5.25% U.S. dollar senior secured notes due 2021 | 360.5 | 325.4 | 353.1 | 321.8 | |||||||||
5.50% sterling senior secured notes due 2021 | 737.8 | 685.8 | 722.4 | 640.3 | |||||||||
Floating rate senior loan note due 2012 | 63.7 | 63.7 | 64.3 | 64.3 | |||||||||
Other notes due to affiliates | 431.8 | 431.8 | 435.0 | 435.0 |
June 30, 2012 | December 31, 2011 | ||||||
Included within current assets: | |||||||
Accounting Hedges | |||||||
Foreign currency forward rate contracts | £ | 0.0 | £ | 0.1 | |||
Economic Hedges | |||||||
Foreign currency forward rate contracts | 0.1 | 1.6 | |||||
Interest rate swaps | 0.3 | 0.2 | |||||
Cross-currency interest rate swaps | 2.8 | 7.6 | |||||
£ | 3.2 | £ | 9.5 | ||||
Included within non-current assets: | |||||||
Accounting Hedges | |||||||
Interest rate swaps | £ | 89.9 | £ | 78.0 | |||
Cross-currency interest rate swaps | 79.1 | 94.2 | |||||
Economic Hedges | |||||||
Interest rate swaps | 2.4 | 3.1 | |||||
Cross-currency interest rate swaps | 27.8 | 34.3 | |||||
£ | 199.2 | £ | 209.6 | ||||
Included within current liabilities: | |||||||
Economic Hedges | |||||||
Interest rate swaps | £ | 7.8 | £ | 7.5 | |||
Cross-currency interest rate swaps | 3.6 | 9.2 | |||||
£ | 11.4 | £ | 16.7 | ||||
Included within non-current liabilities: | |||||||
Accounting Hedges | |||||||
Cross-currency interest rate swaps | £ | 20.4 | £ | 7.3 | |||
Economic Hedges | |||||||
Interest rate swaps | 38.6 | 38.4 | |||||
Cross-currency interest rate swaps | 5.7 | 7.7 | |||||
£ | 64.7 | £ | 53.4 |
Hedged item/Maturity date | Hedge type | Notional amount due from counterparty | Notional amount due to counterparty | Weighted average interest rate due from counterparty | Weighted average interest rate due to counterparty | ||||||||
(in millions) | (in millions) | ||||||||||||
$850m senior notes due 2016 | |||||||||||||
August 2016 | Accounting | $ | 850.0 | £ | 526.7 | 9.50% | 9.98% | ||||||
$1,000m senior notes due 2016 | |||||||||||||
November 2016 | Economic | 1,000.0 | 516.9 | 6.50% | 6.91% | ||||||||
$600m senior notes due 2019 | |||||||||||||
October 2019 | Accounting | 264.3 | 159.8 | 8.38% | 9.03% | ||||||||
October 2011 to October 2019 | Accounting | 335.7 | 203.0 | 8.38% | 9.00% | ||||||||
$1,000m senior secured notes due 2018 | |||||||||||||
January 2018 | Accounting | 1,000.0 | 615.7 | 6.50% | 7.02% | ||||||||
$500m senior secured notes due 2021 | |||||||||||||
January 2021 | Accounting | 500.0 | 308.9 | 5.25% | 6 month LIBOR + 1.94% | ||||||||
$500m senior notes due 2022 | |||||||||||||
February 2022 | Accounting | 500.0 | 313.6 | 5.25% | 5.8% | ||||||||
$ | 4,450.0 | £ | 2,644.6 | ||||||||||
€180m senior notes due 2016 | |||||||||||||
August 2016 | Accounting | € | 180.0 | £ | 158.6 | 9.50% | 10.18% | ||||||
€ | 180.0 | £ | 158.6 | ||||||||||
Other | |||||||||||||
December 2012 | Economic | € | 56.7 | £ | 40.3 | 3 month EURIBOR + 2.38% | 3 month LIBOR + 2.69% | ||||||
December 2013 | Economic | 43.3 | 30.8 | 3 month EURIBOR + 2.88% | 3 month LIBOR + 3.26% | ||||||||
€ | 100.0 | £ | 71.1 | ||||||||||
December 2012 | Economic | £ | 38.8 | € | 56.7 | 3 month LIBOR + 2.40% | 3 month EURIBOR + 2.38% | ||||||
December 2013 | Economic | 29.7 | 43.3 | 3 month LIBOR + 2.90% | 3 month EURIBOR + 2.88% | ||||||||
£ | 68.5 | € | 100.0 |
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 | £ | 200.0 | 6 month LIBOR | 2.91% | ||||
July 2012 to December 2015 | Economic | 200.0 | 6 month LIBOR | 2.87% | |||||
July 2012 to December 2015 | Economic | 200.0 | 6 month LIBOR | 2.79% | |||||
£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% | ||||
October 2013 | Economic | 300.0 | 1.86% | 3 month LIBOR | |||||
September 2012 | Economic | 600.0 | 3 month LIBOR | 3.09% | |||||
September 2012 | Economic | 600.0 | 1.07% | 3 month LIBOR |
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 | ||||||||||||
April 2012 to December 2012 | Economic | $ | 72.0 | £ | 45.7 | 1.5750 |
Total | Interest rate swaps | Cross- currency interest rate swaps | Forward foreign exchange contracts | Tax Effect | |||||||||||||||
Balance at December 31, 2011 | £ | (32.4 | ) | £ | 3.3 | £ | (25.2 | ) | £ | 0.1 | £ | (10.6 | ) | ||||||
Amounts recognized in other comprehensive income (loss) | (66.4 | ) | 0.0 | (66.4 | ) | 0.0 | 0.0 | ||||||||||||
Amounts reclassified to earnings impacting: | |||||||||||||||||||
Foreign exchange loss | 60.4 | 0.0 | 60.4 | 0.0 | 0.0 | ||||||||||||||
Interest expense | 1.4 | 0.0 | 1.4 | 0.0 | 0.0 | ||||||||||||||
Balance at March 31, 2012 | £ | (37.0 | ) | £ | 3.3 | £ | (29.8 | ) | £ | 0.1 | £ | (10.6 | ) | ||||||
Amounts recognized in other comprehensive income (loss) | 31.5 | 0.0 | 31.4 | 0.0 | 0.1 | ||||||||||||||
Amounts reclassified to earnings impacting: | |||||||||||||||||||
Foreign exchange loss | (31.1 | ) | 0.0 | (31.1 | ) | 0.0 | 0.0 | ||||||||||||
Interest expense | 1.9 | 0.0 | 1.9 | 0.0 | 0.0 | ||||||||||||||
Operating costs | (0.1 | ) | 0.0 | 0.0 | (0.1 | ) | 0.0 | ||||||||||||
Balance at June 30, 2012 | £ | (34.8 | ) | £ | 3.3 | £ | (27.6 | ) | £ | 0.0 | £ | (10.5 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Net income for period | £ | 115.3 | £ | 100.9 | £ | 139.5 | £ | 100.4 | |||||||
Net unrealized losses on derivatives, net of tax | 31.5 | (8.5 | ) | (34.9 | ) | (65.5 | ) | ||||||||
Reclassification of derivative losses to net income, net of tax | (29.3 | ) | 3.2 | 32.5 | 42.1 | ||||||||||
Pension liability adjustment, net of tax | 1.2 | 0.0 | 1.2 | 0.0 | |||||||||||
£ | 118.7 | £ | 95.6 | £ | 138.3 | £ | 77.0 |
June 30, 2012 | December 31, 2011 | ||||||
Pension liability adjustment | £ | (86.3 | ) | £ | (87.5 | ) | |
Net unrealized losses on derivatives | (34.8 | ) | (32.4 | ) | |||
£ | (121.1 | ) | £ | (119.9 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Operating costs | £ | 10.4 | £ | 9.2 | £ | 21.2 | £ | 18.7 | |||||||
Selling, general and administrative expenses | 13.5 | 11.0 | 27.0 | 21.2 | |||||||||||
£ | 23.9 | £ | 20.2 | £ | 48.2 | £ | 39.9 |
Three months ended June 30, 2012 | Three months ended June 30, 2011 | ||||||||||||||
Revenue | Segment Contribution | Revenue | Segment Contribution | ||||||||||||
Consumer | £ | 860.9 | £ | 513.7 | £ | 834.6 | £ | 494.5 | |||||||
Business | 166.0 | 91.7 | 151.2 | 91.8 | |||||||||||
Subtotal | 1,026.9 | 605.4 | 985.8 | 586.3 | |||||||||||
Companies not consolidated in VMIH and VMIL | (29.4 | ) | (25.7 | ) | |||||||||||
Total | £ | 997.5 | £ | 960.1 | |||||||||||
Six months ended June 30, 2012 | Six months ended June 30, 2011 | ||||||||||||||
Revenue | Segment Contribution | Revenue | Segment Contribution | ||||||||||||
Consumer | £ | 1,696.7 | £ | 1,000.4 | £ | 1,657.8 | £ | 979.5 | |||||||
Business | 336.4 | 182.9 | 310.3 | 184.4 | |||||||||||
Subtotal | 2,033.1 | 1,183.3 | 1,968.1 | 1,163.9 | |||||||||||
Companies not consolidated in VMIH and VMIL | (57.8 | ) | (50.7 | ) | |||||||||||
Total | £ | 1,975.3 | £ | 1,917.4 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||
Total segment contribution | 605.4 | 586.3 | 1,183.3 | 1,163.9 | |||||||
Other operating and corporate costs | 193.3 | 194.2 | 394.7 | 395.7 | |||||||
Restructuring and other charges | (0.5 | ) | (1.1 | ) | 4.9 | 1.5 | |||||
Depreciation | 233.0 | 230.2 | 473.2 | 459.0 | |||||||
Amortization | 0.0 | 28.1 | 0.0 | 62.2 | |||||||
Operating loss of subsidiaries not consolidated in either of the companies | (0.2 | ) | 0.0 | (1.8 | ) | (0.3 | ) | ||||
Consolidated operating income | 179.8 | 134.9 | 312.3 | 245.8 | |||||||
Other income (expense) | |||||||||||
Interest expense (1) | (89.0 | ) | (105.3 | ) | (188.8 | ) | (214.5 | ) | |||
Loss on extinguishment of debt | 0.0 | (10.8 | ) | 0.0 | (28.9 | ) | |||||
Share of income from equity investments | 0.0 | 6.8 | 0.0 | 15.0 | |||||||
(Loss) gain on derivative instruments | (9.9 | ) | (13.7 | ) | (16.0 | ) | 4.0 | ||||
Foreign currency gains (losses) | 14.6 | 3.0 | (0.3 | ) | 9.6 | ||||||
Interest income and other, net (2) | 20.1 | 83.9 | 32.7 | 87.7 | |||||||
Income tax (expense) benefit | (0.3 | ) | 2.1 | (0.4 | ) | (17.1 | ) | ||||
Income from continuing operations | 115.3 | 100.9 | 139.5 | 101.6 | |||||||
Loss from discontinued operations, net of tax | 0.0 | 0.0 | 0.0 | (1.2 | ) | ||||||
Net income | 115.3 | 100.9 | 139.5 | 100.4 |
(1) | Interest expense represents the total of interest expense and interest expense to group companies. |
(2) | Interest income and other, net represents the total of interest income and other, net and interest income from group companies. |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | Overview: This section provides a general description of our business, as well as recent developments we believe are important in understanding the results of operations and financial condition or in understanding anticipated future trends. |
• | Critical accounting policies: This section provides any updates on our critical accounting policies for the three and six months ended June 30, 2012. |
• | Consolidated results of operations: This section provides an analysis of our results of operations for the three and six months ended June 30, 2012. |
• | Liquidity and capital resources: This section provides an analysis of our financial condition as of June 30, 2012 and cash flows for the six months ended June 30, 2012. |
• | Consumer: Our Consumer segment includes the distribution of television programming over our cable network and the provision of broadband and fixed line telephone services to residential consumers, both on and off our cable network. Our Consumer segment also includes our mobile telephony and mobile broadband operations, provided over third party mobile networks. |
• | Business: Our Business segment includes the voice and data telecommunication and internet solutions services we provide through our cable network and third party networks to businesses, public sector organizations and service providers. |
Three months ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||||
Consumer segment | £ | 860.9 | 83.8 | % | £ | 834.6 | 84.7 | % | £ | 1,696.7 | 83.5 | % | £ | 1,657.8 | 84.2 | % | |||||||
Business segment | 166.0 | 16.2 | % | 151.2 | 15.3 | % | 336.4 | 16.5 | % | 310.3 | 15.8 | % | |||||||||||
£ | 1,026.9 | 100.0 | % | £ | 985.8 | 100.0 | % | £ | 2,033.1 | 100.0 | % | £ | 1,968.1 | 100.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2012 | 2011 | Increase/ (Decrease) | 2012 | 2011 | Increase/ (Decrease) | ||||||||||||||||
Operating costs: | |||||||||||||||||||||
Consumer cost of sales | £ | 251.4 | £ | 254.7 | (1.3 | )% | £ | 506.9 | £ | 517.7 | (2.1 | )% | |||||||||
Business cost of sales | 56.7 | 42.2 | 34.4 | 118.3 | 93.5 | 26.5 | |||||||||||||||
Network and other operating costs | 95.1 | 93.0 | 2.3 | 194.9 | 189.8 | 2.7 | |||||||||||||||
Total operating costs | £ | 403.2 | £ | 389.9 | 3.4 | % | £ | 820.1 | £ | 801.0 | 2.4 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2012 | 2011 | Increase/ (Decrease) | 2012 | 2011 | Increase/ (Decrease) | ||||||||||||||||
Selling, general and administrative expenses: | |||||||||||||||||||||
Employee and outsourcing costs | £ | 109.7 | £ | 116.3 | (5.7 | )% | £ | 225.7 | £ | 233.9 | (3.5 | )% | |||||||||
Marketing costs | 54.1 | 42.2 | 28.2 | 106.7 | 77.4 | 37.9 | |||||||||||||||
Facilities | 15.8 | 13.3 | 18.8 | 30.2 | 27.8 | 8.6 | |||||||||||||||
Other | 32.0 | 32.0 | 0.0 | 61.8 | 59.8 | 3.3 | |||||||||||||||
Total selling, general and administrative expenses | £ | 211.6 | £ | 203.8 | 3.8 | % | £ | 424.4 | £ | 398.9 | 6.4 | % |
Three months ended June 30, | Six months ended June 30. | ||||||||||||||||||
2012 | 2011 | Increase/ (Decrease) | 2012 | 2011 | Increase/ (Decrease) | ||||||||||||||
Revenue | £ | 860.9 | 834.6 | 3.2 | % | £ | 1,696.7 | 1,657.8 | 2.3 | % | |||||||||
Segment contribution | 513.7 | 494.5 | 3.9 | 1,000.4 | 979.5 | 2.1 |
Three months ended June 30, | Six months ended June 30. | ||||||||||||||||||||
2012 | 2011 | Increase/ (Decrease) | 2012 | 2011 | Increase/ (Decrease) | ||||||||||||||||
Revenue: | |||||||||||||||||||||
Cable | £ | 706.1 | £ | 682.3 | 3.5 | % | £ | 1,384.4 | £ | 1,348.3 | 2.7 | % | |||||||||
Mobile(1) | 136.4 | 132.6 | 2.9 | 274.9 | 269.5 | 2.0 | |||||||||||||||
Non-cable | 18.4 | 19.7 | (6.6 | ) | 37.4 | 40.0 | (6.5 | ) | |||||||||||||
Total revenue | £ | 860.9 | £ | 834.6 | 3.2 | % | £ | 1,696.7 | £ | 1,657.8 | 2.3 | % |
(1) | Includes equipment revenue stated net of discounts earned through service usage. |
Three months ended | |||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | |||||||||||||||
Opening customers | 4,826,800 | 4,805,600 | 4,790,600 | 4,784,300 | 4,820,300 | ||||||||||||||
Customer additions | 181,700 | 189,300 | 203,100 | 243,700 | 169,800 | ||||||||||||||
Customer disconnections | (196,400 | ) | (168,100 | ) | (188,100 | ) | (237,400 | ) | (205,800 | ) | |||||||||
Net customer additions (disconnections) | (14,700 | ) | 21,200 | 15,000 | 6,300 | (36,000 | ) | ||||||||||||
Closing customers | 4,812,100 | 4,826,800 | 4,805,600 | 4,790,600 | 4,784,300 | ||||||||||||||
Cable churn (1) | 1.4 | % | 1.2 | % | 1.3 | % | 1.7 | % | 1.4 | % | |||||||||
Cable products: | |||||||||||||||||||
Television | 3,767,700 | 3,775,300 | 3,763,100 | 3,762,000 | 3,767,700 | ||||||||||||||
Telephone | 4,148,300 | 4,147,600 | 4,132,700 | 4,141,000 | 4,155,000 | ||||||||||||||
Broadband | 4,152,600 | 4,148,600 | 4,102,900 | 4,072,900 | 4,048,600 | ||||||||||||||
Total cable products | 12,068,600 | 12,071,500 | 11,998,700 | 11,975,900 | 11,971,300 | ||||||||||||||
Cable products/Customer | 2.51 | 2.50 | 2.50 | 2.50 | 2.50 | ||||||||||||||
Triple-play penetration | 64.6 | % | 64.0 | % | 63.7 | % | 63.8 | % | 63.8 | % | |||||||||
Cable Average Revenue Per User (2) | £ | 48.82 | £ | 46.95 | £ | 47.85 | £ | 47.86 | £ | 47.35 | |||||||||
Cable ARPU calculation: | |||||||||||||||||||
Cable revenue (millions) | £ | 706.1 | £ | 678.3 | £ | 688.5 | £ | 685.0 | £ | 682.3 | |||||||||
Average customers | 4,821,100 | 4,816,600 | 4,796,900 | 4,771,500 | 4,802,600 |
(1) | Cable churn is calculated by taking the total cable customer disconnects during the month (excluding any data cleanse activity) and dividing them by the average number of cable customers during the month. Average monthly churn during a quarter is the average of the three monthly churn calculations within the quarter. The average number of cable customers during the month is calculated by adding the number of customers at the start of the month and at the end of the month and dividing by two. |
(2) | The monthly cable average revenue per user, or cable ARPU, is calculated on a quarterly basis by dividing total revenue generated from the provision of telephone, television and internet services to customers who are directly connected to our network in that period together with revenue generated from customers using our virginmedia.com website, by the average number of customers directly connected to our network in that period divided by three. The average number of customers is calculated by adding the number of customers at the start of the quarter and at the end of each month of the quarter and dividing by four. |
Three months ended | |||||||||||||||||||
June 30, 2012 | March 31, 2012 | December 31, 2011 | September 30, 2011 | June 30, 2011 | |||||||||||||||
Contract mobile customers (1): | |||||||||||||||||||
Opening contract mobile customers | 1,588,000 | 1,523,900 | 1,421,400 | 1,346,600 | 1,263,400 | ||||||||||||||
Net contract mobile customer additions | 53,900 | 64,100 | 102,500 | 74,800 | 83,200 | ||||||||||||||
Closing contract mobile customers | 1,641,900 | 1,588,000 | 1,523,900 | 1,421,400 | 1,346,600 | ||||||||||||||
Prepay mobile customers (1): | |||||||||||||||||||
Opening prepay mobile customers | 1,420,000 | 1,513,400 | 1,566,900 | 1,705,200 | 1,737,800 | ||||||||||||||
Net prepay mobile customer disconnections | (35,200 | ) | (93,400 | ) | (53,500 | ) | (138,300 | ) | (32,600 | ) | |||||||||
Closing prepay mobile customers | 1,384,800 | 1,420,000 | 1,513,400 | 1,566,900 | 1,705,200 | ||||||||||||||
Total closing mobile customers: (1) | 3,026,700 | 3,008,000 | 3,037,300 | 2,988,300 | 3,051,800 | ||||||||||||||
Mobile average revenue per user (2) | £ | 14.86 | £ | 14.96 | £ | 15.46 | £ | 15.22 | £ | 14.27 | |||||||||
Mobile ARPU calculation: | |||||||||||||||||||
Mobile service revenue (millions) | £ | 134.5 | £ | 135.1 | £ | 138.9 | £ | 138.1 | £ | 129.3 | |||||||||
Average mobile customers | 3,017,100 | 3,009,700 | 2,995,500 | 3,022,900 | 3,022,500 |
(1) | Mobile customer information is for active customers. Prepay customers are defined as active customers if they have made an outbound call or text in the preceding 30 days. Contract customers are defined as active customers if they have entered into a contract for a minimum 30-day period and have not been disconnected. Contract mobile customers represent the number of contracts relating to either a mobile service or a mobile broadband service. |
(2) | Mobile monthly average revenue per user, or Mobile ARPU, is calculated on a quarterly basis by dividing mobile service revenue (contract and prepay) for the period by the average number of active customers (contract and prepay) for the period, divided by three. The average number of customers is calculated by adding the number of customers at the start of the quarter and at the end of each month of the quarter and dividing by four. |
Three months ended | ||||||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||
2012 | 2012 | 2011 | 2011 | 2011 | ||||||||||
Opening Customers | 233,000 | 248,200 | 261,300 | 266,400 | 272,700 | |||||||||
Net customer disconnects | (14,400 | ) | (15,200 | ) | (13,100 | ) | (5,100 | ) | (6,300 | ) | ||||
218,600 | 233,000 | 248,200 | 261,300 | 266,400 | ||||||||||
Opening Non-cable products: | ||||||||||||||
Telephone | 155,300 | 163,300 | 169,700 | 169,000 | 170,700 | |||||||||
Broadband | 233,000 | 248,200 | 260,700 | 265,900 | 271,400 | |||||||||
388,300 | 411,500 | 430,400 | 434,900 | 442,100 | ||||||||||
Net Non-cable product (disconnects) additions: | ||||||||||||||
Telephone | (8,600 | ) | (8,000 | ) | (6,400 | ) | 700 | (1,700 | ) | |||||
Broadband | (14,400 | ) | (15,200 | ) | (12,500 | ) | (5,200 | ) | (5,500 | ) | ||||
(23,000 | ) | (23,200 | ) | (18,900 | ) | (4,500 | ) | (7,200 | ) | |||||
Closing Non-cable products: | ||||||||||||||
Telephone | 146,700 | 155,300 | 163,300 | 169,700 | 169,000 | |||||||||
Broadband | 218,600 | 233,000 | 248,200 | 260,700 | 265,900 | |||||||||
365,300 | 388,300 | 411,500 | 430,400 | 434,900 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2012 | 2011 | Increase/ (Decrease) | 2012 | 2011 | Increase/ (Decrease) | ||||||||||||||||
Revenue | £ | 166.0 | £ | 151.2 | 9.8 | % | £ | 336.4 | £ | 310.3 | 8.4 | % | |||||||||
Segment contribution | 91.7 | 91.8 | (0.1 | ) | 182.9 | 184.4 | (0.8 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
2012 | 2011 | Increase/ (Decrease) | 2012 | 2011 | Increase/ (Decrease) | ||||||||||||||||
Revenue: | |||||||||||||||||||||
Retail: | |||||||||||||||||||||
Data | £ | 74.4 | £ | 68.7 | 8.3 | % | £ | 154.2 | £ | 134.1 | 15.0 | % | |||||||||
Voice | 35.3 | 37.8 | (6.6 | ) | 72.6 | 76.7 | (5.3 | ) | |||||||||||||
LAN Solutions and other | 8.5 | 9.1 | (6.6 | ) | 18.1 | 18.3 | (1.1 | ) | |||||||||||||
118.2 | 115.6 | 2.2 | 244.9 | 229.1 | 6.9 | ||||||||||||||||
Wholesale: | |||||||||||||||||||||
Data | 42.6 | 32.2 | 32.3 | 79.0 | 74.2 | 6.5 | |||||||||||||||
Voice | 5.2 | 3.4 | 52.9 | 12.5 | 7.0 | 78.6 | |||||||||||||||
47.8 | 35.6 | 34.3 | 91.5 | 81.2 | 12.7 | ||||||||||||||||
Total revenue | £ | 166.0 | £ | 151.2 | 9.8 | % | £ | 336.4 | £ | 310.3 | 8.4 | % |
Board Declaration Date | Per Share | Record Date | Payment Date | Total Amount | |||||||
(in millions) | |||||||||||
Year ended December 31, 2011: | |||||||||||
March 4, 2011 | $ | 0.04 | March 14, 2011 | March 24, 2011 | £ | 8.0 | |||||
May 16, 2011 | 0.04 | June 13, 2011 | June 23, 2011 | 7.8 | |||||||
August 31, 2011 | 0.04 | September 12, 2011 | September 22, 2011 | 7.9 | |||||||
November 15, 2011 | 0.04 | December 12, 2011 | December 22, 2011 | 7.4 | |||||||
Six months ended June 30, 2012: | |||||||||||
February 17, 2012 | $ | 0.04 | March 12, 2012 | March 22, 2012 | £ | 7.0 | |||||
May 23, 2012 | 0.04 | June 12, 2012 | June 22, 2012 | 7.1 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Year ended December 31, | Fair Value June 30, 2012 | |||||||||||||||||||||||||||
2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total | ||||||||||||||||||||||
Long term debt (including current portion) | ||||||||||||||||||||||||||||
U.S. Dollars | ||||||||||||||||||||||||||||
Fixed rate | — | — | — | — | $ | 1,850.0 | $ | 2,600.0 | $ | 4,450.0 | $ | 5,222.9 | ||||||||||||||||
Average interest rate | 7.878 | % | 6.452 | % | ||||||||||||||||||||||||
Average forward exchange rate | 0.64 | 0.64 | ||||||||||||||||||||||||||
Euros | ||||||||||||||||||||||||||||
Fixed rate | — | — | — | — | € | 180.0 | € | — | € | 180.0 | € | 201.2 | ||||||||||||||||
Average interest rate | 9.500 | % | ||||||||||||||||||||||||||
Average forward exchange rate | 0.82 | |||||||||||||||||||||||||||
Pounds Sterling | ||||||||||||||||||||||||||||
Fixed rate | — | — | — | — | — | £ | 1,875.0 | £ | 1,875.0 | £ | 2,011.2 | |||||||||||||||||
Average interest rate | 6.830 | % | ||||||||||||||||||||||||||
Variable rate | £100.0 | — | — | £750.0 | — | — | £ | 850.0 | £ | 850.0 | ||||||||||||||||||
Average interest rate | LIBOR | LIBOR | ||||||||||||||||||||||||||
+ | + | |||||||||||||||||||||||||||
1.325%-1.825% | 1.625%-2.125% | |||||||||||||||||||||||||||
Currency swap agreements related to long term debt | ||||||||||||||||||||||||||||
Receipt of U.S.Dollars (interest and principal) | ||||||||||||||||||||||||||||
Notional amount | — | — | — | — | $ | 850.0 | $ | 2,100.0 | $ | 2,950.0 | £ | 29.5 | ||||||||||||||||
Average forward exchange rate | 0.62 | 0.62 | ||||||||||||||||||||||||||
Average sterling interest rate paid | 9.99 | % | 7.28 | % | ||||||||||||||||||||||||
Receipt of U.S.Dollars (interest and principal) | ||||||||||||||||||||||||||||
Notional amount | — | — | — | — | $ | 500.0 | $ | 500.0 | £ | 46.1 | ||||||||||||||||||
Average contract exchange rate | 0.62 | |||||||||||||||||||||||||||
Average sterling interest rate paid | LIBOR+1.94% | |||||||||||||||||||||||||||
Receipt of U.S.Dollars (interest only) | ||||||||||||||||||||||||||||
Notional amount | — | — | — | $ | 1,000.0 | $ | 1,000.0 | £ | 23.4 | |||||||||||||||||||
Average contract exchange rate | 0.52 | |||||||||||||||||||||||||||
Average sterling interest rate paid | 6.91 | % | ||||||||||||||||||||||||||
Receipt of Euros (interest and principal) | ||||||||||||||||||||||||||||
Notional amount | — | — | — | € | 180.0 | € | 180.0 | £ | (16.8 | ) | ||||||||||||||||||
Average contract exchange rate | 0.88 | |||||||||||||||||||||||||||
Average sterling interest rate paid | 10.18 | % | ||||||||||||||||||||||||||
Interest rate derivative financial instruments related to long term debt | ||||||||||||||||||||||||||||
Sterling Interest Rate Swaps | ||||||||||||||||||||||||||||
Notional amount | — | — | — | £ | 600.0 | £ | 650.0 | £ | 1,250.0 | 51.2 | ||||||||||||||||||
Average sterling interest rate paid | 2.86 | % | LIBOR+1.84% | |||||||||||||||||||||||||
Sterling interest rate received | LIBOR | 5.50 | % |
ITEM 4. | CONTROLS AND PROCEDURES |
(a) | Disclosure Controls and Procedures |
(b) | Changes in Internal Control Over Financial Reporting |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
(a) | Not applicable. |
(b) | Not applicable. |
(c) | Share Repurchases |
Period | (a)Total Number of Shares Purchased | (b)Average Price Paid Per Share (in U.S. dollars) | (c) Total Number of Share Purchases as Part of Publicly Announced Plans or Programs | (d) Approximate Value of Shares that May Yet be Purchased under the Plans or Programs (in Pounds Sterling millions)(1) | |||||||||
January 1-31, 2012 | — | $ | — | — | £ | 452.7 | |||||||
February 1-29, 2012 (2) | 10,171,090 | 24.58 | 10,171,090 | 295.5 | |||||||||
March 1-31, 2012 | — | — | — | 295.5 | |||||||||
April 1-30, 2012 | — | — | — | 295.5 | |||||||||
May 1-31, 2012 | 1,961,450 | 22.34 | 1,961,450 | 267.9 | |||||||||
June 1-30, 2012 | 2,251,250 | 22.71 | 2,251,250 | 235.2 | |||||||||
Total | 14,383,790 | $ | 23.98 | 14,383,790 | £ | 235.2 |
(1) | On July 27, 2011, we announced a second phase capital structure optimization program expected to include the application of, in aggregate, up to £850 million, in part towards repurchases of up to £625 million of our common stock until December 31, 2012 and in part towards transactions relating to our debt, including related derivative transactions. In addition, on October 27, 2011, we announced our intention to expend up to a further £250 million on share repurchases from the proceeds from the sale of our UKTV joint venture companies. |
(2) | In February 2012, we entered into an ASR program in the amount of $250 million as a part of our second phase capital structure optimization program. We received 7,488,393 shares on February 13, 2012, 1,441,313 shares on February 24, 2012, and 1,241,384 on March 26, 2012, totaling 10,171,090 shares, under this ASR. This ASR terminated on March 26, 2012. The average price paid per share under this ASR was $24.58. |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
Exhibit No. | ||
3.1 | Second Restated Articles of Incorporation of Virgin Media Inc. (Incorporated by reference to Exhibit 3.1 to the Annual Report on Form 10-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on March 1, 2007). | |
3.2 | Restated by-laws of Virgin Media Inc. (Incorporated by reference to Exhibit 3.2 to the Annual Report on Form 10-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on March 1, 2007). | |
3.3 | Memorandum and Articles of Association of Virgin Media Investment Holdings Limited (Incorporated by reference to Exhibit 3.3 to the Annual Report on Form 10-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on February 26, 2010). | |
3.4 | Memorandum and Articles of Association of Virgin Media Investments Limited (Incorporated by reference to Exhibit 3.4 to the Annual Report on Form 10-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on February 22, 2011). | |
31.1* | Certification of Chief Executive Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | |
31.2* | Certification of Chief Financial Officer, pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended. | |
32.1* | Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
†101.INS | XBRL Instance Document | |
†101.SCH | XBRL Taxonomy Extension Schema Document | |
†101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
†101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
†101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
†101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
* | Filed herewith. | |
† | Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections. |
VIRGIN MEDIA INC. | |||
Date: July 30, 2012 | By: | /s/ Neil A. Berkett Neil A. Berkett Chief Executive Officer | |
Date: July 30, 2012 | By: | /s/ Eamonn O’Hare Eamonn O’Hare Chief Financial Officer | |
VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED | |||
Date: July 30, 2012 | By: | /s/ Neil A. Berkett Neil A. Berkett Chief Executive Officer | |
Date: July 30, 2012 | By: | /s/ Eamonn O’Hare Eamonn O’Hare Chief Financial Officer | |
VIRGIN MEDIA INVESTMENTS LIMITED | |||
Date: July 30, 2012 | By: | /s/ Neil A. Berkett Neil A. Berkett Chief Executive Officer | |
Date: July 30, 2012 | By: | /s/ Eamonn O’Hare Eamonn O’Hare Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Virgin Media Inc. (“Virgin Media”), Virgin Media Investment Holdings Limited and Virgin Media Investments Limited; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report; |
4. | The registrants’ other certifying officer and I are responsible for establishing and maintaining the registrants’ disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and Virgin Media’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed Virgin Media’s internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and |
5. | The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting. |
Date: | July 30, 2012 | /s/ Neil A. Berkett | ||
Name: | Neil A. Berkett | |||
Title: | Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Virgin Media Inc. (“Virgin Media”), Virgin Media Investment Holdings Limited and Virgin Media Investments Limited; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report; |
4. | The registrants’ other certifying officer and I are responsible for establishing and maintaining the registrants’ disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and Virgin Media’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed Virgin Media’s internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and |
5. | The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting. |
Date: | July 30, 2012 | /s/ Eamonn O'Hare | ||
Name: | Eamonn O'Hare | |||
Title: | Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrants. |
Date: | July 30, 2012 | By: | /s/ Neil A. Berkett | |
Name: | Neil A. Berkett | |||
Title: | Chief Executive Officer |
Date: | July 30, 2012 | By: | /s/ Eamonn O'Hare | |
Name: | Eamonn O'Hare | |||
Title: | Chief Financial Officer |
Derivative Financial Instruments And Hedging Activities (Schedule Of Terms Of Outstanding Cross-Currency Swap Contracts) (Details) (Cross Currency Interest Rate Swaps)
In Millions, unless otherwise specified |
6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
USD ($)
|
Jun. 30, 2012
GBP (£)
|
Jun. 30, 2012
850 Million U.S. Dollar Senior Notes Due 2016
Maturity Date, August 2016
USD ($)
|
Jun. 30, 2012
850 Million U.S. Dollar Senior Notes Due 2016
Maturity Date, August 2016
GBP (£)
|
Jun. 30, 2012
1,000 Million U.S. Dollar Convertible Senior Notes Due 2016
Maturity Date, November 2016
USD ($)
|
Jun. 30, 2012
1,000 Million U.S. Dollar Convertible Senior Notes Due 2016
Maturity Date, November 2016
GBP (£)
|
Jun. 30, 2012
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2019
USD ($)
|
Jun. 30, 2012
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2019
GBP (£)
|
Jun. 30, 2012
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2011 To October 2019
USD ($)
|
Jun. 30, 2012
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2011 To October 2019
GBP (£)
|
Jun. 30, 2012
1,000 Million U.S. Dollar Senior Secured Notes Due 2018
Maturity Date, January 2018
USD ($)
|
Jun. 30, 2012
1,000 Million U.S. Dollar Senior Secured Notes Due 2018
Maturity Date, January 2018
GBP (£)
|
Jun. 30, 2012
500 Million U.S. Dollar Senior Secured Notes Due 2021
Maturity Date, January 2021
USD ($)
|
Jun. 30, 2012
500 Million U.S. Dollar Senior Secured Notes Due 2021
Maturity Date, January 2021
GBP (£)
|
Dec. 31, 2011
500 Million U.S. Dollar Senior Secured Notes Due 2021
Maturity Date, January 2021
|
Jun. 30, 2012
500 Million U.S. Dollar Senior Notes Due 2022
Maturity Date February 2022
USD ($)
|
Jun. 30, 2012
500 Million U.S. Dollar Senior Notes Due 2022
Maturity Date February 2022
GBP (£)
|
Jun. 30, 2012
180 Million Euro Senior Notes Due 2016
EUR (€)
|
Jun. 30, 2012
180 Million Euro Senior Notes Due 2016
GBP (£)
|
Jun. 30, 2012
180 Million Euro Senior Notes Due 2016
Maturity Date, August 2016
EUR (€)
|
Jun. 30, 2012
180 Million Euro Senior Notes Due 2016
Maturity Date, August 2016
GBP (£)
|
Jun. 30, 2012
Other
EUR (€)
|
Jun. 30, 2012
Other
GBP (£)
|
Jun. 30, 2012
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.38%
EUR (€)
|
Jun. 30, 2012
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.38%
GBP (£)
|
Dec. 31, 2011
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.38%
|
Jun. 30, 2012
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due To Counterparty, 3 Mo. LIBOR Plus 2.69%
|
Jun. 30, 2012
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.40%
EUR (€)
|
Jun. 30, 2012
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.40%
GBP (£)
|
Dec. 31, 2011
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.40%
|
Jun. 30, 2012
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due To Counterparty, 3 Mo. EURIBOR Plus 2.38%
|
Jun. 30, 2012
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.88%
EUR (€)
|
Jun. 30, 2012
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.88%
GBP (£)
|
Dec. 31, 2011
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.88%
|
Jun. 30, 2012
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due To Counterparty, 3 Mo. LIBOR Plus 3.26%
|
Jun. 30, 2012
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.90%
EUR (€)
|
Jun. 30, 2012
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.90%
GBP (£)
|
Dec. 31, 2011
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.90%
|
Dec. 31, 2011
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due To Counterparty, 3 Mo. EURIBOR Plus 2.88%
|
Jun. 30, 2012
VMIH and VMIL
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
850 Million U.S. Dollar Senior Notes Due 2016
Maturity Date, August 2016
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
850 Million U.S. Dollar Senior Notes Due 2016
Maturity Date, August 2016
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
1,000 Million U.S. Dollar Convertible Senior Notes Due 2016
Maturity Date, November 2016
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
1,000 Million U.S. Dollar Convertible Senior Notes Due 2016
Maturity Date, November 2016
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2019
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2019
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2011 To October 2019
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
600 Million U.S. Dollar Senior Notes Due 2019
Maturity Date, October 2011 To October 2019
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
1,000 Million U.S. Dollar Senior Secured Notes Due 2018
Maturity Date, January 2018
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
1,000 Million U.S. Dollar Senior Secured Notes Due 2018
Maturity Date, January 2018
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
500 Million U.S. Dollar Senior Secured Notes Due 2021
Maturity Date, January 2021
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
500 Million U.S. Dollar Senior Secured Notes Due 2021
Maturity Date, January 2021
GBP (£)
|
Dec. 31, 2011
VMIH and VMIL
500 Million U.S. Dollar Senior Secured Notes Due 2021
Maturity Date, January 2021
|
Jun. 30, 2012
VMIH and VMIL
500 Million U.S. Dollar Senior Notes Due 2022
Maturity Date February 2022
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
500 Million U.S. Dollar Senior Notes Due 2022
Maturity Date February 2022
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
180 Million Euro Senior Notes Due 2016
EUR (€)
|
Jun. 30, 2012
VMIH and VMIL
180 Million Euro Senior Notes Due 2016
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
180 Million Euro Senior Notes Due 2016
Maturity Date, August 2016
EUR (€)
|
Jun. 30, 2012
VMIH and VMIL
180 Million Euro Senior Notes Due 2016
Maturity Date, August 2016
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
Other
EUR (€)
|
Jun. 30, 2012
VMIH and VMIL
Other
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.38%
EUR (€)
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.38%
GBP (£)
|
Dec. 31, 2011
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.38%
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due To Counterparty, 3 Mo. LIBOR Plus 2.69%
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.40%
EUR (€)
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.40%
GBP (£)
|
Dec. 31, 2011
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.40%
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2012
Weighted Average Interest Rate Due To Counterparty, 3 Mo. EURIBOR Plus 2.38%
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.88%
EUR (€)
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.88%
GBP (£)
|
Dec. 31, 2011
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. EURIBOR Plus 2.88%
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due To Counterparty, 3 Mo. LIBOR Plus 3.26%
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.90%
EUR (€)
|
Jun. 30, 2012
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.90%
GBP (£)
|
Dec. 31, 2011
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due From Counterparty, 3 Mo. LIBOR Plus 2.90%
|
Dec. 31, 2011
VMIH and VMIL
Other
Maturity Date, December 2013
Weighted Average Interest Rate Due To Counterparty, 3 Mo. EURIBOR Plus 2.88%
|
|
Maturity date | August 2016 | August 2016 | November 2016 | November 2016 | October 2019 | October 2019 | January 2018 | January 2018 | January 2021 | January 2021 | February 2022 | February 2022 | August 2016 | August 2016 | December 2012 | December 2012 | December 2012 | December 2012 | December 2013 | December 2013 | December 2013 | December 2013 | August 2016 | August 2016 | November 2016 | November 2016 | October 2019 | October 2019 | January 2018 | January 2018 | January 2021 | January 2021 | February 2022 | February 2022 | August 2016 | August 2016 | December 2012 | December 2012 | December 2012 | December 2012 | December 2013 | December 2013 | December 2013 | December 2013 | ||||||||||||||||||||||||||||||||||
Maturity date range | October 2011 to October 2019 | October 2011 to October 2019 | October 2011 to October 2019 | October 2011 to October 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedge type | Accounting | Accounting | Economic | Economic | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Economic | Economic | Economic | Economic | Economic | Economic | Economic | Economic | Accounting | Accounting | Economic | Economic | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Accounting | Economic | Economic | Economic | Economic | Economic | Economic | Economic | Economic | ||||||||||||||||||||||||||||||
Notional amount due from counterparty | $ 4,450.0 | $ 850.0 | $ 1,000.0 | $ 264.3 | $ 335.7 | $ 1,000.0 | $ 500.0 | $ 500.0 | € 180.0 | € 180.0 | € 100.0 | £ 68.5 | € 56.7 | £ 38.8 | € 43.3 | £ 29.7 | $ 4,450.0 | $ 850.0 | $ 1,000.0 | $ 264.3 | $ 335.7 | $ 1,000.0 | $ 500.0 | $ 500.0 | € 180.0 | € 180.0 | € 100.0 | £ 68.5 | € 56.7 | £ 38.8 | € 43.3 | £ 29.7 | ||||||||||||||||||||||||||||||||||||||||||||||
Notional amount due to counterparty | £ 2,644.6 | £ 526.7 | £ 516.9 | £ 159.8 | £ 203.0 | £ 615.7 | £ 308.9 | £ 313.6 | £ 158.6 | £ 158.6 | € 100.0 | £ 71.1 | £ 40.3 | € 56.7 | £ 30.8 | € 43.3 | £ 2,644.6 | £ 526.7 | £ 516.9 | £ 159.8 | £ 203.0 | £ 615.7 | £ 308.9 | £ 313.6 | £ 158.6 | £ 158.6 | € 100.0 | £ 71.1 | £ 40.3 | € 56.7 | £ 30.8 | € 43.3 | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate due from counterparty (composite) | 3 month EURIBOR + 2.38% | 3 month EURIBOR + 2.38% | 3 month LIBOR + 2.40% | 3 month LIBOR + 2.40% | 3 month EURIBOR + 2.88% | 3 month EURIBOR + 2.88% | 3 month LIBOR + 2.90% | 3 month LIBOR + 2.90% | 3 month EURIBOR + 2.38% | 3 month EURIBOR + 2.38% | 3 month LIBOR + 2.40% | 3 month LIBOR + 2.40% | 3 month EURIBOR + 2.88% | 3 month EURIBOR + 2.88% | 3 month LIBOR + 2.90% | 3 month LIBOR + 2.90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate due from counterparty | 9.50% | 9.50% | 6.50% | 6.50% | 8.38% | 8.38% | 8.38% | 8.38% | 6.50% | 6.50% | 5.25% | 5.25% | 5.25% | 5.25% | 9.50% | 9.50% | 9.50% | 9.50% | 6.50% | 6.50% | 8.38% | 8.38% | 8.38% | 8.38% | 6.50% | 6.50% | 5.25% | 5.25% | 5.25% | 5.25% | 9.50% | 9.50% | ||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate due to counterparty (composite) | 6 month LIBOR + 1.94% | 6 month LIBOR + 1.94% | 3 month LIBOR + 2.69% | 3 month LIBOR + 2.69% | 3 month EURIBOR + 2.38% | 3 month EURIBOR + 2.38% | 3 month LIBOR + 3.26% | 3 month LIBOR + 3.26% | 3 month EURIBOR + 2.88% | 3 month EURIBOR + 2.88% | 6 month LIBOR + 1.94% | 6 month LIBOR + 1.94% | 3 month LIBOR + 2.69% | 3 month LIBOR + 2.69% | 3 month EURIBOR + 2.38% | 3 month EURIBOR + 2.38% | 3 month LIBOR + 3.26% | 3 month LIBOR + 3.26% | 3 month EURIBOR + 2.88% | 3 month EURIBOR + 2.88% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average interest rate due to counterparty | 9.98% | 9.98% | 6.91% | 6.91% | 9.03% | 9.03% | 9.00% | 9.00% | 7.02% | 7.02% | 5.80% | 5.80% | 10.18% | 10.18% | 9.98% | 9.98% | 6.91% | 6.91% | 9.03% | 9.03% | 9.00% | 9.00% | 7.02% | 7.02% | 5.80% | 5.80% | 10.18% | 10.18% | ||||||||||||||||||||||||||||||||||||||||||||||||||
Basis spread on variable rate | 1.94% | 2.38% | 2.69% | 2.40% | 2.38% | 2.88% | 3.26% | 2.90% | 2.88% | 1.94% | 2.38% | 2.69% | 2.40% | 2.38% | 2.88% | 3.26% | 2.90% | 2.88% |
Industry Segments (Reconciliation Of Total Segment Contribution To Consolidated Operating Income And Net Income (Loss)) (Details) (GBP £)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
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Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Total segment contribution | £ 605.4 | £ 586.3 | £ 1,183.3 | £ 1,163.9 | ||||||||
Other operating and corporate costs | 193.3 | 194.2 | 394.7 | 395.7 | ||||||||
Restructuring and other charges | (0.5) | (1.1) | 4.9 | 1.5 | ||||||||
Depreciation | 233.0 | 230.2 | 473.2 | 459.0 | ||||||||
Amortization | 0 | 28.1 | 0 | 62.2 | ||||||||
Consolidated operating income | 179.6 | 134.9 | 310.5 | 245.5 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | (98.6) | (113.1) | (204.2) | (227.7) | ||||||||
Loss on extinguishment of debt | 0 | (10.8) | (58.6) | (28.9) | ||||||||
Share of income from equity investments | 0 | 6.8 | 0 | 15.0 | ||||||||
(Loss) gain on derivative instruments | (20.6) | (9.2) | 23.9 | 18.8 | ||||||||
Foreign currency (losses) gains | (1.4) | 5.9 | (5.8) | 13.8 | ||||||||
Interest income and other, net | 6.0 | 81.6 | 6.3 | 83.3 | ||||||||
Income tax (expense) benefit | (0.3) | 2.1 | (0.4) | (17.1) | ||||||||
Income (loss) from continuing operations | 64.7 | 98.2 | 71.7 | 102.7 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.2) | ||||||||
Net income | 64.7 | 98.2 | 71.7 | 101.5 | ||||||||
VMIH and VMIL
|
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Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||||||||||
Total segment contribution | 605.4 | 586.3 | 1,183.3 | 1,163.9 | ||||||||
Other operating and corporate costs | 193.3 | 194.2 | 394.7 | 395.7 | ||||||||
Restructuring and other charges | (0.5) | (1.1) | 4.9 | 1.5 | ||||||||
Depreciation | 233.0 | 230.2 | 473.2 | 459.0 | ||||||||
Amortization | 0 | 28.1 | 0 | 62.2 | ||||||||
Operating loss of subsidiaries not consolidated in either of the companies | (0.2) | 0 | (1.8) | (0.3) | ||||||||
Consolidated operating income | 179.8 | 134.9 | 312.3 | 245.8 | ||||||||
Other income (expense) | ||||||||||||
Interest expense | (89.0) | [1] | (105.3) | [1] | (188.8) | [1] | (214.5) | [1] | ||||
Loss on extinguishment of debt | 0 | (10.8) | 0 | (28.9) | ||||||||
Share of income from equity investments | 0 | 6.8 | 0 | 15.0 | ||||||||
(Loss) gain on derivative instruments | (9.9) | (13.7) | (16.0) | 4.0 | ||||||||
Foreign currency (losses) gains | 14.6 | 3.0 | (0.3) | 9.6 | ||||||||
Interest income and other, net | 20.1 | [2] | 83.9 | [2] | 32.7 | [2] | 87.7 | [2] | ||||
Income tax (expense) benefit | (0.3) | 2.1 | (0.4) | (17.1) | ||||||||
Income (loss) from continuing operations | 115.3 | 100.9 | 139.5 | 101.6 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.2) | ||||||||
Net income | £ 115.3 | £ 100.9 | £ 139.5 | £ 100.4 | ||||||||
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Condensed Consolidating Financial Information - Senior Notes (Narrative) (Details)
In Millions, unless otherwise specified |
0 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 28, 2012
Senior Notes 9.50% Due 2016
USD ($)
|
Jun. 30, 2012
Senior Notes 9.50% Due 2016
USD ($)
|
Jun. 30, 2012
Senior Notes 5.25% Due 2022
USD ($)
|
Jun. 30, 2012
United States Of America, Dollars
Senior Notes 9.50% Due 2016
USD ($)
|
Jun. 30, 2012
United States Of America, Dollars
Senior Notes 8.375% Due 2019
USD ($)
|
Jun. 30, 2012
United States Of America, Dollars
Senior Notes 5.25% Due 2022
USD ($)
|
Jun. 30, 2012
Euro Member Countries, Euro
Senior Notes 9.50% Due 2016
EUR (€)
|
Jun. 30, 2012
United Kingdom, Pounds
Senior Notes 8.875% Due 2019
GBP (£)
|
|
Principal amount | $ 1,350.0 | $ 500.0 | $ 500.0 | $ 850.0 | $ 600.0 | $ 500.0 | € 180.0 | £ 350.0 |
Interest rate | 9.50% | 9.50% | 5.25% | 9.50% | 8.375% | 5.25% | 9.50% | 8.875% |
Maturity date | 2016 | 2016 | 2022 | 2016 | 2019 | 2022 | 2016 | 2019 |
Income Per Common Share (Schedule Of Weighted Average Number Of Shares Outstanding) (Details)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Earnings Per Share [Abstract] | ||||
Number of shares outstanding at start of period | 277.6 | 316.8 | 286.4 | 321.3 |
Issue of common stock (weighted average number outstanding during the period) | 0.2 | 0.6 | 1.0 | 2.1 |
Purchase of treasury shares (weighted average) | (1.6) | (1.8) | (8.2) | (5.4) |
Weighted average number of shares outstanding | 276.2 | 315.6 | 279.2 | 318.0 |
Fair Value Measurements (Estimated Impact On Fair Value Of A Hypothetical 20% Increase And Decrease In Stock Price) (Details) (GBP £)
In Millions, unless otherwise specified |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
|
Fair Value Disclosures [Abstract] | |||
Hypothetical increase and decrease in stock price, percentage | 20.00% | ||
Estimated fair value of conversion hedges as reported | £ 171.6 | £ 178.6 | £ 138.2 |
Estimated fair value of conversion hedges assuming a 20% increase in our stock price | 224.7 | ||
Estimated fair value of conversion hedges assuming a 20% decrease in our stock price | £ 113.4 |
Related Party Transactions (Tables) (VMIH and VMIL)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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VMIH and VMIL
|
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Entity Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Related Party Transactions | The following information summarizes our significant related party transactions with Virgin Media Inc. and its group companies (in millions):
|
Comprehensive Income (Loss) (Schedule Of Accumulated Other Comprehensive Income (Loss) Net Of Taxes) (Details) (GBP £)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
---|---|---|---|
Entity Information [Line Items] | |||
Foreign currency translation | £ 152.8 | £ 149.9 | |
Pension liability adjustment | (86.3) | (87.5) | |
Net unrealized losses on derivatives | (34.8) | (37.0) | (32.4) |
Accumulated other comprehensive income (loss), net of tax, total | 31.7 | 30.0 | |
VMIH and VMIL
|
|||
Entity Information [Line Items] | |||
Pension liability adjustment | (86.3) | (87.5) | |
Net unrealized losses on derivatives | (34.8) | (37.0) | (32.4) |
Accumulated other comprehensive income (loss), net of tax, total | £ (121.1) | £ (119.9) |
Derivative Financial Instruments And Hedging Activities (Schedule Of Terms Of Outstanding Foreign Currency Forward Rate Contracts) (Details) (Economic Hedge, Foreign Currency Forward Rate Contracts, Maturity Date April 2012 To December 2012)
In Millions, unless otherwise specified |
6 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2012
USD ($)
|
Jun. 30, 2012
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
GBP (£)
|
|
Maturity date | July 2012 to December 2012 | July 2012 to December 2012 | April 2012 to December 2012 | April 2012 to December 2012 |
Hedge type | Economic | Economic | Economic | Economic |
Notional amount due from counterparty | $ 72.0 | $ 72.0 | ||
Notional amount due to counterparty | £ 45.7 | £ 45.7 | ||
Weighted average exchange rate | 1.5750 | 1.5750 | 1.5750 | 1.5750 |
Derivative Financial Instruments And Hedging Activities (Narrative) (Details)
In Millions, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 0 Months Ended | 0 Months Ended | 6 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
USD ($)
|
Jun. 30, 2012
GBP (£)
|
Jun. 30, 2011
GBP (£)
|
Jun. 30, 2012
USD ($)
|
Jun. 30, 2012
GBP (£)
|
Jun. 30, 2011
GBP (£)
|
Jun. 30, 2012
Interest Rate Swaps
GBP (£)
|
Jun. 30, 2012
Cross Currency Interest Rate Swaps
GBP (£)
|
Jun. 30, 2012
Forward Foreign Exchange Contract
GBP (£)
|
Oct. 27, 2010
Convertible Senior Notes 6.50% Due 2016
USD ($)
|
Jun. 30, 2012
Convertible Senior Notes 6.50% Due 2016
Cross Currency Interest Rate Swaps
USD ($)
|
Jun. 30, 2012
Senior Notes 5.25% Due 2022
USD ($)
|
Mar. 13, 2012
Senior Secured Notes 5.25% Due 2022
USD ($)
|
Mar. 28, 2012
Senior Notes 9.50% Due 2016
USD ($)
|
Jun. 30, 2012
Senior Notes 9.50% Due 2016
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
GBP (£)
|
Jun. 30, 2011
VMIH and VMIL
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
GBP (£)
|
Jun. 30, 2011
VMIH and VMIL
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
Interest Rate Swaps
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
Cross Currency Interest Rate Swaps
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
Forward Foreign Exchange Contract
GBP (£)
|
Jun. 30, 2012
VMIH and VMIL
Convertible Senior Notes 6.50% Due 2016
Cross Currency Interest Rate Swaps
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
Senior Notes 5.25% Due 2022
USD ($)
|
Mar. 13, 2012
VMIH and VMIL
Senior Notes 5.25% Due 2022
|
Mar. 13, 2012
VMIH and VMIL
Senior Secured Notes 5.25% Due 2022
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
Senior Secured Notes 5.25% Due 2022
|
Mar. 28, 2012
VMIH and VMIL
Senior Notes 9.50% Due 2016
USD ($)
|
Jun. 30, 2012
VMIH and VMIL
Senior Notes 9.50% Due 2016
USD ($)
|
|
Hedges designated for convertible senior notes price per share cap | $ 35 | ||||||||||||||||||||||||||||
Hedges designated for convertible senior notes percentage | 90.00% | 90.00% | |||||||||||||||||||||||||||
Interest rate | 6.50% | 5.25% | 5.25% | 9.50% | 9.50% | 5.25% | 5.25% | 9.50% | |||||||||||||||||||||
Principal amount | $ 1,000.0 | $ 1,000.0 | $ 500.0 | $ 500.0 | $ 1,350.0 | $ 500.0 | $ 1,000.0 | $ 500.0 | $ 500.0 | $ 1,350.0 | $ 500.0 | ||||||||||||||||||
Maturity date | 2022 | 2022 | 2016 | 2016 | 2022 | 2022 | 2016 | 2016 | |||||||||||||||||||||
Gains on derivative instruments not qualified as cash flow hedges | (14.3) | 28.4 | (3.7) | (11.5) | |||||||||||||||||||||||||
Cash flow hedge gain (loss) to be reclassified from other comprehensive income to earnings within 12 months | (0.3) | (5.7) | 0 | (0.3) | (5.7) | 0 | |||||||||||||||||||||||
Ineffectiveness on fair value hedges | £ (6.2) | £ 0 | £ (4.5) | £ (1.8) | £ (6.2) | £ 0 | £ (4.5) | £ (1.8) |
Contingent Liabilities (Narrative) (Details) (GBP £)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
---|---|
Loss Contingencies [Line Items] | |
Estimated contingent losses | £ 29.7 |
VMIH and VMIL
|
|
Loss Contingencies [Line Items] | |
Estimated contingent losses | £ 29.7 |
Income Per Common Share (Schedule Of Basic and Diluted Income (Loss) Per Common Share) (Details) (GBP £)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
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Numerator for basic income (loss) per common share from continuing operations | £ 64.7 | £ 98.2 | £ 71.7 | £ 102.7 |
Interest on senior convertible notes, net of tax | 10.0 | 13.2 | 0 | 0 |
Numerator for diluted income (loss) per common share from continuing operations | £ 74.7 | £ 111.4 | £ 71.7 | £ 102.7 |
Denominator for basic income per common share | 276.2 | 315.6 | 279.2 | 318.0 |
Share based awards to employees | 4.0 | 6.5 | 4.2 | 6.5 |
Shares issuable under senior convertible notes | 52.0 | 52.0 | 0 | 0 |
Denominator for diluted income per common share | 332.2 | 374.1 | 283.4 | 324.5 |
Fair Value Measurements
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The types of inputs used to measure fair value are classified into the following hierarchy:
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The tables below present our assets and liabilities measured at fair value as at June 30, 2012 and December 31, 2011, aggregated by the level in the fair value hierarchy into which those measurements fall (in millions):
In estimating the fair value of our financial assets and liabilities, we used the following methods and assumptions: Derivative financial instruments: As a result of our financing activities, we are exposed to market risks from changes in interest and foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from interest and foreign currency exchange rate fluctuations through the use of derivative financial instruments such as foreign currency forward rate contracts, interest rate swaps and cross-currency interest rate swaps. These contracts are valued using internal models based on observable inputs, counterparty valuations, or market transactions in either the listed or over-the-counter markets, adjusted for non-performance risk. As such, these derivative instruments are classified within level 2 in the fair value hierarchy. The fair values of our derivative financial instruments are disclosed in note 5. Valuation of conversion hedges: Because the conversion hedges do not qualify for equity classification, the fair values have been included as a non-current derivative financial asset in the condensed consolidated balance sheets. The conversion hedges may only be exercised by us upon maturity of the convertible senior notes. As of June 30, 2012, the fair value of these instruments was estimated to be £171.6 million, using the Black-Scholes Merton valuation technique. The fair values of the conversion hedges are primarily impacted by the price and expected volatility of our stock on the measurement date, but are also impacted by the remaining duration of the options, the strike price ($19.22 per share) of the instrument, the cap price ($35.00 per share) of the instrument, the dividend yield on our stock, exchange rates, and counterparty non-performance risk. The table below presents the estimated impact on the June 30, 2012 fair value of a hypothetical 20% increase and decrease in our stock price, holding all other inputs constant (in millions):
We have determined that the overall valuation of the conversion hedges falls within level 3 of the fair value hierarchy as the assumption for the expected volatility of our stock price over the term of the options is based on an unobservable input and is deemed to be significant to the determination of fair value. Other impacts are not significant or are observable. We utilized expected volatility assumptions of 27% and 35% in the valuation of each component of the conversion hedges as of June 30, 2012. An increase in this input in isolation would generally result in a higher value of the conversion hedges while a decrease in this input would result in a lower value of the conversion hedges. Non-performance risk is based on quoted credit default swaps for counterparties to the contracts. The inclusion of counterparty non-performance risk resulted in a decrease to the fair values of the conversion hedges of £20.0 million and £17.9 million as of June 30, 2012 and 2011, respectively. The following table presents a reconciliation of the beginning and ending balances of the conversion hedges (in millions):
Future changes in fair values of the conversion hedges will be reported as gains (losses) on derivative instruments in the condensed consolidated statements of comprehensive income. Long term debt: The carrying value of our senior credit facility approximates its fair value and is excluded from the table below. The fair values of our senior notes, convertible senior notes and senior secured notes in the following table are based on the market prices in active markets which incorporate non-performance risk. As such, these measurements are classified within level 1 in the fair value hierarchy. The carrying values of the $500 million 5.25% and £650 million 5.50% senior secured notes due 2021 include adjustments of £53.0 million and £92.9 million at June 30, 2012 and £45.7 million and £77.9 million at December 31, 2011, respectively, as a result of our application of fair value hedge accounting to these instruments. The carrying amounts and fair values of our long term debt are as follows (in millions):
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VMIH
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Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The types of inputs used to measure fair value are classified into the following hierarchy:
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. In estimating the fair value of our financial assets and liabilities, we used the following methods and assumptions: Derivative financial instruments: As a result of our financing activities, we are exposed to market risks from changes in interest and foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from interest and foreign currency exchange rate fluctuations through the use of derivative financial instruments such as, foreign currency forward rate contracts, interest rate swaps and cross-currency interest rate swaps. These contracts are valued using internal models based on observable inputs, counterparty valuations, or market transactions in either the listed or over-the-counter markets, adjusted for non-performance risk. As such, these derivative instruments are classified within level 2 in the fair value hierarchy. The fair values of our derivative financial instruments are disclosed in note 5. Long term debt: The carrying value of our senior credit facility approximates its fair value and is excluded from the table below. The fair values of the senior notes and senior secured notes in the following table are based on the market prices in active markets which incorporate non-performance risk. As such, these measurements are classified within level 1 in the fair value hierarchy. The carrying values of the $500 million 5.25% and £650 million 5.50% senior secured notes due 2021 include adjustments of £53.0 million and £92.9 million at June 30, 2012, and £45.7 million and £77.9 million at December 31, 2011, respectively, as a result of our application of fair value hedge accounting to these instruments. The carrying amounts and fair values of our long term debt are as follows (in millions):
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VMIL
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Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The types of inputs used to measure fair value are classified into the following hierarchy:
We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. In estimating the fair value of our financial assets and liabilities, we used the following methods and assumptions: Derivative financial instruments: As a result of our financing activities, we are exposed to market risks from changes in interest and foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from interest and foreign currency exchange rate fluctuations through the use of derivative financial instruments such as, foreign currency forward rate contracts, interest rate swaps and cross-currency interest rate swaps. These contracts are valued using internal models based on observable inputs, counterparty valuations, or market transactions in either the listed or over-the-counter markets, adjusted for non-performance risk. As such, these derivative instruments are classified within level 2 in the fair value hierarchy. The fair values of our derivative financial instruments are disclosed in note 5. Long term debt: The carrying value of our senior credit facility approximates its fair value and is excluded from the table below. The fair values of the senior notes and senior secured notes in the following table are based on the market prices in active markets which incorporate non-performance risk. As such, these measurements are classified within level 1 in the fair value hierarchy. The carrying values of the $500 million 5.25% and £650 million 5.50% senior secured notes due 2021 include adjustments of £53.0 million and £92.9 million at June 30, 2012, and £45.7 million and £77.9 million at December 31, 2011, respectively, as a result of our application of fair value hedge accounting to these instruments. The carrying amounts and fair values of our long term debt are as follows (in millions):
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