Virgin Media 2009 Annual Report Download - page 139

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 12—Employee Benefit Plans (Continued)
December 31, 2009. The assets are managed by a number of fund managers, which means as markets
move relative to each other the assets move away from the target investment strategy. Relatively small
deviations from the target investment strategy are permitted; however rebalancing of the assets will be
carried out from time to time. As the main defined benefit pension scheme is now closed to new
entrants, it is 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, 2009 or 2008.
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, 2009 and include
estimated future employee services (in millions):
Pension
Year ending December 31: Benefits
2010 .................................................... £11.9
2011 .................................................... 12.7
2012 .................................................... 13.5
2013 .................................................... 14.3
2014 .................................................... 15.3
Years 2015-2019 ............................................ 92.3
Defined Contribution Pension Plans
Our subsidiaries operate defined contribution pension plans in the U.K. The total expense in
relation to these plans was £15.1 million, £14.7 million and £15.3 million for the years ended
December 31, 2009, 2008 and 2007, respectively.
Note 13—Restructuring and other charges
Restructuring and other charges in the year to December 31, 2009 related primarily to employee
termination and lease exit costs in connection with the restructuring program initiated in 2008 as
discussed below.
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 2008.
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 involves the incurrence of
substantial operating and capital expenditures, including certain costs which may be treated as
restructuring costs. In total, we expect to incur operating expenditures of between £140 million to
£155 million and capital expenditures of between £40 million to £45 million in connection with this plan
over a three-year period.
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