Virgin Media 2011 Annual Report Download - page 214

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 12—Related Party Transactions (continued)
During the years ended December 31, 2011, 2010 and 2009, respectively, we incurred expenses of
£10.1 million, £10.1 million, and £9.0 million for charges in respect of brand licensing and promotion of which
£5.0 million and £4.7 million was payable at December 31, 2011 and 2010, respectively.
Other Virgin Companies
As a licensee of the “Virgin” brand name, we participate in mutually beneficial activities with other Virgin
companies. These arrangements are in the ordinary course of business and believed to be on arm’s length terms.
UKTV Joint Ventures
Through our wholly owned subsidiary, Flextech Broadband Limited, we owned a 50% equity investment in
the UKTV joint venture companies until September 30, 2011, when the sale of UKTV was completed. We have
therefore identified the UKTV joint venture companies as related parties to us for the period to September 30,
2011. We also carry the UKTV channels in our pay television packages available to our customers.
As at December 31, 2011 and 2010, included in the balance sheet were amounts related to our share of net
assets, loans receivable, redeemable preference shares, and other payables and receivables in respect of the
UKTV joint ventures totaling £0.0 million and £359.2 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 years ended December 31, 2011,
2010 and 2009, the net expense recognized in respect to these transactions through the consolidated statement of
operations totaled £24.4 million, £24.8 million and £24.3 million, respectively. These amounts are settled on a
net basis at regular intervals.
During the years ended December 31, 2011, 2010 and 2009, we received cash payments from UKTV for
loan principal payments, interest, dividends and consortium tax relief totaling £34.0 million, £34.4 million and
£21.1 million, respectively.
Note 13—Commitments and Contingent Liabilities
At December 31, 2011, we were committed to pay £1,416.5 million for equipment and services, exclusive of
capital and operating leases. This amount includes £643.2 million for operations and maintenance contracts and
other commitments from January 1, 2013 to 2025. 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,
2012 ............................................. £ 626.7
2013 ............................................. 287.3
2014 ............................................. 157.7
2015 ............................................. 115.9
2016 ............................................. 78.6
Thereafter ........................................ 150.3
£1,416.5
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