Virgin Media 2010 Annual Report Download - page 139

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 13—Restructuring and other charges
Restructuring and other charges in the year to December 31, 2010, 2009 and 2008 related primarily to
employee termination and lease and contract exit costs in connection with the restructuring program initiated in
2008 as discussed below.
The lease and contract exit costs recorded during 2010 primarily relate to payments to exit the long term
property leases for our main London office.
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. During the second
quarter of 2010, we identified further savings through the expansion of the program and revised the estimated
total costs and extended the completion date through the end of 2012. In total, we expect to incur operating
expenditures of between £150 million to £170 million and capital expenditures of between £50 million to
£60 million in connection with this plan over a four-year period.
The following table summarizes, for the years ended December 31, 2010, 2009 and 2008, our historical
restructuring accruals, the restructuring accruals resulting from the acquisitions made by us during 2006 and the
accruals for our restructuring plans announced in the fourth quarter of 2008 (in millions):
Historical
Restructuring
Accruals
2006 Acquisition
Restructuring Accruals
2008
Restructuring Accruals
Lease Exit
Costs
Involuntary
Employee
Termination
and Related
Costs
Lease
Exit Costs
Involuntary
Employee
Termination
and Related
Costs
Lease and
Contract
Exit Costs Total
Balance,
December 31, 2007 ............. £35.9 £ 12.6 £ 41.1 £ — £ — £ 89.6
Charged to expense ............. 2.3 — 3.4 2.0 14.0 21.7
Revisions ..................... (1.0) (1.7) 3.7 — — 1.0
Utilized ...................... (20.7) (10.9) (9.7) — — (41.3)
Balance,
December 31, 2008 ............. 16.5 — 38.5 2.0 14.0 71.0
Amendments offset against
goodwill .................... — — (5.7) — — (5.7)
Charged to expense ............. 2.9 — 4.0 24.2 20.0 51.1
Revisions ..................... (2.8) — (2.4) (5.4) (0.1) (10.7)
Utilized ...................... (4.0) — (7.0) (19.0) (18.4) (48.4)
Balance,
December 31, 2009 ............. 12.6 — 27.4 1.8 15.5 57.3
Amendments offset against
goodwill .................... — — (0.3) — — (0.3)
Charged to expense ............. 1.6 — 1.4 7.8 31.7 42.5
Revisions ..................... — — 7.2 (0.8) 4.1 10.5
Utilized ...................... (3.9) — (10.2) (7.7) (30.6) (52.4)
Balance,
December 31, 2010 ............. £10.3 £ — £ 25.5 £ 1.1 £ 20.7 £ 57.6
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