Virgin Media 2007 Annual Report Download - page 136

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
17. Shareholders’ Equity (Continued)
governing the Series A warrants is governed by New York law. The Series A warrants are listed on the
NASDAQ National Market under the symbol ‘‘VMEDW.’’ The Series A warrants may be subject to
further change.
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.
18. Commitments and Contingent Liabilities
At December 31, 2007, we were committed to pay £724.1 million for equipment and services. This
amount includes £369.9 million for operations and maintenance contracts and other commitments from
January 1, 2009 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 ending December 31:
2008 .................................................................. £354.2
2009 .................................................................. 122.4
2010 .................................................................. 80.0
2011 .................................................................. 77.8
2012 .................................................................. 39.9
Thereafter .............................................................. 49.8
£724.1
We are involved in lawsuits, claims, investigations and proceedings, consisting of intellectual
property, commercial, employee and employee benefits which arise in the ordinary course of our
business. In accordance with FASB Statement No. 5, Accounting for Contingencies, or FAS 5, we
recognize a provision for a liability when management believe that it is both probable that a liability
has been incurred and the amount of the loss can be reasonably estimated. We believe we have
adequate provisions for any such matters. We review these provisions at least quarterly and adjust these
provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other
information and events pertaining to a particular case. Litigation is inherently unpredictable. However,
we believe that we have valid defenses with respect to legal matters pending against us. Nevertheless, it
is possible that cash flows or results of operations could be materially affected in any particular period
by the unfavorable resolution of one or more of these contingencies, or because of the diversion of
management’s attention and the creation of significant expenses.
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
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