Virgin Media 2011 Annual Report Download - page 136

VIRGIN MEDIA INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 12—Restructuring and other charges
Restructuring and other charges in the year to December 31, 2011, 2010 and 2009 related primarily to
employee termination and lease and contract exit costs in connection with the restructuring program initiated in
2008 as discussed below.
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. Cumulatively, we have incurred expenditures of
approximately £187 million since the inception of the restructuring program that was initiated in 2008.
The following table summarizes, for the years ended December 31, 2011, 2010 and 2009, our historical
restructuring accruals, which are comprised of restructuring accruals prior to 2006 and 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
2008 Restructuring
Accruals
Lease Exit
Costs
Involuntary
Employee
Termination
and Related
Costs
Lease and
Contract
Exit Costs Total
Balance, December 31, 2008 ............................. £55.0 £ 2.0 £ 14.0 £ 71.0
Amendments offset against goodwill ................... (5.7) 0.0 0.0 (5.7)
Charged to expense ................................. 6.9 24.2 20.0 51.1
Revisions ........................................ (5.2) (5.4) (0.1) (10.7)
Utilized .......................................... (11.0) (19.0) (18.4) (48.4)
Balance, December 31, 2009 ............................. 40.0 1.8 15.5 57.3
Amendments offset against goodwill ................... (0.3) 0.0 0.0 (0.3)
Charged to expense ................................. 3.0 7.8 31.7 42.5
Revisions ........................................ 7.2 (0.8) 4.1 10.5
Utilized .......................................... (14.1) (7.7) (30.6) (52.4)
Balance, December 31, 2010 ............................. 35.8 1.1 20.7 57.6
Charged to expense ................................. 2.4 10.2 5.0 17.6
Revisions ........................................ (5.1) (2.2) (1.9) (9.2)
Utilized .......................................... (14.8) (7.1) (9.2) (31.1)
Balance, December 31, 2011 ............................. £18.3 £ 2.0 £ 14.6 £ 34.9
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