Virgin Media 2008 Annual Report Download - page 138

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 12—Employee Benefit Plans (Continued)
anticipated that the investment strategy will move towards a higher proportion of bonds over time to
reflect the steadily maturing profile of liabilities and the improvement in the funding position.
There were no directly owned shares of our common stock included in the equity securities at
December 31, 2008 or 2007.
Cash Flows
We expect to contribute a total of £13.5 million to our defined benefit pension plans during 2009.
Estimated Future Benefit Payments
The benefits expected to be paid out of the pension plans in total are set out below for each of
the next five years and the following five years in aggregate. The benefits expected to be paid are based
on the same assumptions used to measure our benefit obligation at December 31, 2008 and include
estimated future employee services (in millions):
Year ending December 31, Pension Benefits
2009 ............................................... £11.7
2010 ............................................... 12.7
2011 ............................................... 13.7
2012 ............................................... 14.8
2013 ............................................... 16.0
Years 2014-2018 ....................................... 101.5
Defined Contribution Pension Plans
Our subsidiaries operate defined contribution pension plans in the U.K. The total expense in
relation to these plans was £14.7 million, £15.3 million and £12.4 million for the years ended
December 31, 2008, 2007 and 2006, respectively.
Note 13—Restructuring and other charges
Restructuring and other charges in the year to December 31, 2008 related primarily to lease and
contract exit costs in connection with the restructuring program initiated in the last quarter of 2008 as
discussed below. Restructuring and other charges in the year ended December 31, 2007 related
primarily to employee termination costs and lease exit costs in connection with our restructuring
programs initiated in respect of the reverse acquisition of Telewest.
During the fourth quarter of 2008, we commenced the implementation of a restructuring plan
aimed at driving further improvements in our operational performance and eliminating inefficiencies in
order to create a fully-integrated, customer-focused organization. This plan will involve the incurrence
of substantial operating and capital expenditures, including certain costs which we expect to treat as
restructuring costs under FAS 146. In total, we expect to incur up to £40.0 million in capital
expenditures, up to £45.0 million in employee termination costs, up to £55.0 million in lease and
contract exit costs, and up to £60.0 million in other general and administration expenditures in relation
to this plan over a three year period.
F-44