Virgin Media 2008 Annual Report Download - page 199

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 11—Employee Benefit Plans (Continued)
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 12—Restructuring and other charges
Restructuring and other charges in the year to December 31, 2008 related primarily to contract
and lease 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 £45.0 million in employee
termination costs, up to £55.0 million in lease and contract exit costs, up to £40.0 million in capital
expenditures and up to £60.0 million in other general and administration expenditures in relation to
this plan over a three year period.
The following tables summarize, for the years ended December 31, 2006, 2007 and 2008, our
historical restructuring accruals, the restructuring accruals resulting from the acquisitions made by us
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