Virgin Media 2008 Annual Report Download - page 47

• marketing and selling costs;
• costs of maintaining our cable network infrastructure and IT systems; and
• allowances for doubtful accounts.
Mobile
• interconnect costs paid to other carriers relating to mobile call termination services;
• purchase costs of mobile handsets and other equipment;
• subscriber acquisition costs;
• payroll and other employee-related costs;
• marketing and selling costs;
• facility-related costs, such as rent, utilities and rates;
• repairs and maintenance costs; and
• allowances for doubtful accounts.
Content
• television production programming costs;
• amortization of television and movie program costs;
• costs of purchasing consumer goods for re-sale;
• leased satellite transponder costs; and
• payroll and other employee-related costs.
Acquisitions and Disposals
Acquisition of Virgin Mobile
On July 4, 2006, we acquired 100% of the outstanding shares and options of Virgin Mobile
through a U.K. Scheme of Arrangement for a purchase price totaling £953.2 million, including cash of
£419.2 million, common stock valued at £518.8 million and direct transaction costs of £15.2 million.
Reverse Acquisition of Telewest
On March 3, 2006, NTL merged with a subsidiary of Telewest and the merger has been accounted
for as a reverse acquisition of Telewest using the purchase method. In connection with this transaction,
Telewest changed its name to NTL Incorporated, and has since changed its name to Virgin Media Inc.
The total purchase price was £3.5 billion, including cash of £2.3 billion, common stock valued at
£1.1 billion, stock options with a fair value of £29.8 million and direct transaction costs of £25.1 million.
Factors Affecting Our Business
A number of factors affect the performance of our business, at both a general and segment level.
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