Virgin Media 2009 Annual Report Download - page 135

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 11—Stock-Based Compensation Plans (Continued)
Compensation Committee’s discretion, in either common stock or an amount of cash equivalent to the
fair market value at the date of vesting.
A summary of the status of our non-vested restricted stock units as of December 31, 2009, and of
the changes during the year ended December 31, 2009, is given below:
Weighted Average
Performance Grant-date
Based Fair Value
Non-vested—beginning of year ................................ 4,335,878 $16.59
Granted ................................................ 1,678,754 8.88
Vested ................................................. (218,268) 24.66
Forfeited or expired ........................................ (1,530,642) 17.65
Non-vested—end of year .................................... 4,265,722 $12.77
The restricted stock units that vested during the years ended December 31, 2009, 2008, 2007 had
total fair value of £0.7 million, nil and nil, respectively.
Note 12—Employee Benefit Plans
Defined Benefit Plans
Certain of our subsidiaries operate defined benefit pension plans in the U.K. The assets of the
plans are held separately from those of ourselves and are invested in specialized portfolios under the
management of investment groups. The pension cost is calculated using the projected unit method. Our
policy is to fund amounts to the defined benefit plans necessary to comply with the funding
requirements as prescribed by the laws and regulations in the U.K. Our defined benefit pension plans
use a measurement date of December 31.
Employer Contributions
In April 2007, we agreed with the trustees of one of our pension plans to a new funding
arrangement whereby we will initially be paying £8.6 million per annum towards the deficit for the next
three years. Additionally, in June 2007, we effected a merger of our three other defined benefit plans.
The merger of these plans was subject to the approval of the trustees and, as a condition of trustee
approval, we agreed to make a specific one-time contribution of £4.5 million. The funding
arrangements with respect to this plan included an agreement to pay a further £2.6 million to fund the
deficit for each of the next seven years. For the year ended December 31, 2009, we contributed
£13.4 million to our pension plans. We anticipate contributing a total of £17.2 million to fund our
pension plans in 2010.
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