Virgin Media 2010 Annual Report Download - page 146

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 16—Shareholders’ Equity (continued)
program may be effected through open market, privately negotiated, and/or derivative transactions, and may be
implemented through arrangements with one or more brokers. Any shares of common stock acquired in
connection with this program will be held in treasury or cancelled. See Note 8 for a discussion of the conversion
hedges related to our convertible senior notes which were entered into as part of this program.
During year ended December 31, 2010, we repurchased 11.6 million shares of common stock in connection
with this program, at an average purchase price per share of $21.98 (£161.5 million in aggregate), through an
accelerated stock repurchase program and open market repurchases. The shares of common stock acquired in
connection with this program were cancelled. As at December 31, 2010, the remaining amount authorized under
the share repurchase program was £213.5 million. No shares of common stock were repurchased in the year
ended December 31, 2009.
Series A Warrants
On January 10, 2003, we issued Series A warrants to some of our former creditors and stockholders. The
Series A warrants were initially exercisable for a total of 8,750,496 shares of common stock at an exercise price
of $309.88 per share. After adjustment to account for the rights offering and the reverse acquisition of Telewest
in accordance with anti-dilution adjustment provisions, the Series A warrants were exercisable for a total of
25,769,060 shares of our common stock at an exercise price of $105.17 per share. The Series A warrants expired
on January 10, 2011.
Note 17—Commitments and Contingent Liabilities
At December 31, 2010, we were committed to pay £1,262.5 million for equipment and services, exclusive of
capital and operating leases. This amount includes £743.6 million for operations and maintenance contracts and
other commitments from January 1, 2012 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:
2011 ............................................. £ 518.9
2012 ............................................. 251.1
2013 ............................................. 204.4
2014 ............................................. 86.9
2015 ............................................. 74.2
Thereafter ........................................ 127.0
£1,262.5
This table excludes £687.4 million of accounts payable and accrued liabilities as at December 31, 2010
which will be paid in 2011.
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
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