Virgin Media 2006 Annual Report Download - page 128

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
18. Shareholders’ Equity (Continued)
Stock Repurchase Program
On January 31, 2005, we announced that we intended to use up to £475.0 million of the proceeds from the sale of our Broadcast
operations to repurchase shares of our common stock. During 2005, we paid £114.0 million to effect share repurchases in the open
market.
19. Commitments and Contingent Liabilities
At December 31, 2006, we were committed to pay £605.1 million for equipment and services. This amount includes
£320.2 million for operations and maintenance contracts and other commitments from January 1, 2008 to 2016. The aggregate amount
of the fixed and determinable portions of these obligations for the succeeding five fiscal years and thereafter is as follows (in
millions):
Year ended December 31:
2007 £ 284.9
2008. 72.2
2009. 97.0
2010. 64.5
2011. 37.2
Thereafter 49.3
£ 605.1
We are involved in certain disputes and litigation arising in the ordinary course of our business. None of these matters are
expected to have a material adverse effect on our financial position, results of operations or cash flows.
Our banks have provided guarantees in the form of performance bonds on our behalf as part of our contractual obligations. The
fair value of the guarantees has been calculated by reference to the monetary value for each performance bond. The amount of
commitment expires over the following periods (in millions):
Year ended December 31:
2007 £ 4.9
2008 2.2
2009 9.8
2010 —
2011 —
Thereafter 8.6
£ 25.5
20. Industry Segments
Our reportable segments Cable, Content and Mobile are based on our method of internal reporting. Our primary business segment is our Cable segment,
which consists of our television, broadband and fixed line telephone business. We operate a Content segment through our wholly−owned subsidiaries Virgin
Media Television Limited (“Virgin Media TV’’) and sit−up Limited (“sit−up”), which supply television
F−49
Source: VIRGIN MEDIA INVESTM, 10−K, March 01, 2007