Virgin Media 2009 Annual Report Download - page 206

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
Note 14—Related Party Transactions (Continued)
other payables and receivables in respect of the UKTV joint ventures totaling £359.9 million and
£353.5 million, respectively.
We pay UKTV for purchases of television programming rights and receive payments in respect of
advertising and other business support services provided to UKTV. During the year ended
December 31, 2009, 2008 and 2007, the net expense recognized in respect to these transactions through
the consolidated statement of operations totaled £24.3 million, £22.1 million and £21.4 million,
respectively. These amounts are settled on a net basis at regular intervals.
During the years ended December 31, 2009, 2008 and 2007, we received cash payments from
UKTV for loan principal payments, interest, dividends and consortium tax relief totaling £21.1 million,
£46.7 million and £38.3 million, respectively.
Note 15—Commitments and Contingent Liabilities
At December 31, 2009, we were committed to pay £816.6 million for equipment and services. This
amount includes £311.4 million for operations and maintenance contracts and other commitments from
January 1, 2011 to 2031. 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:
2010 ..................................................... £505.2
2011. .................................................... 121.6
2012. .................................................... 72.5
2013. .................................................... 36.2
2014. .................................................... 19.4
Thereafter ................................................ 61.7
£816.6
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 the Contingencies Topic of the FASB ASC, 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.
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