Virgin Media 2011 Annual Report Download - page 34
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ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
We own and lease administrative facilities, operational network facilities, and retail facilities throughout the
U.K. We lease our U.K. headquarters in Hook, Hampshire and our principal executive offices in New York City.
The administrative and operational network facilities are utilized by our Consumer and Business segments. The
retail facilities are utilized by our Consumer segment.
ITEM 3. LEGAL PROCEEDINGS
We are involved in lawsuits, claims, investigations and proceedings, including those relating to intellectual
property, commercial, employee and employee benefits, which arise in the ordinary course of our business. For
instance, the U.K. tax authorities have challenged our VAT treatment of certain activities and have assessed us
accordingly. VAT has been paid to Her Majesty’s Revenue and Customs, or HMRC, in order to appeal that
assessment. This may become subject to court proceedings.
Mr. William R. Huff, one of our directors, has advised us that W.R. Huff Asset Management Co., LLC, or
Huff Asset Management, which is controlled by Mr. Huff, may submit one or more claims for indemnification to
the Company. These purportedly arise in connection with payments received by Huff Asset Management in 2004
for advisory services furnished to NTL Incorporated, or NTL, and Telewest Communications PLC, or Telewest.
The businesses of NTL and Telewest merged in 2006 to form the Company. While Mr. Huff has not made a
formal indemnification claim and has not specified the aggregate dollar amount of any potential indemnification
claims, we are disclosing the potential indemnification claims in light of his position as a director. We do not
know whether any indemnification claim will ultimately be brought and we will vigorously defend any
indemnification claims made by Huff Asset Management, if submitted. We have determined that neither an
accrual nor disclosure is required in the financial statements included in this report.
While we do not believe any of the litigation matters alone or in the aggregate will have a material adverse
effect on our financial position or results of operation, any adverse outcome in one or more of these matters could
be material to our consolidated financial statements for any one period.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable
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