Virgin Media 2008 Annual Report Download - page 206

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 15—Commitments and Contingent Liabilities (Continued)
January 1, 2010 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:
2009 ..................................................... £366.8
2010 ..................................................... 105.2
2011 ..................................................... 88.4
2012 ..................................................... 45.1
2013 ..................................................... 20.5
Thereafter ................................................ 52.0
£678.0
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 believes 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. Whilst litigation is inherently unpredictable, 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
monetary value for each performance bond. The amount of commitment expires over the following
periods (in millions):
Year ending December 31:
2009 ..................................................... £12.4
2010 ..................................................... 5.5
2011 ..................................................... —
2012 ..................................................... —
2013 ..................................................... —
Thereafter ................................................. 7.6
£25.5
Note 16—Industry Segments
Our reportable segments Cable, Content and Mobile are based on our method of internal
reporting. Our primary segment is our Cable segment, which consists of the distribution of television
programming to consumers and the provision of broadband and fixed line telephone services to
consumers, businesses and public sector organizations on our cable network and, to a lesser extent, off
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