Virgin Media 2012 Annual Report Download - page 181

F-110
and have adopted, a company name for our parent, Virgin Media Inc., over which together with the name “Virgin Media”,
we retain worldwide exclusivity. Under a related agreement, Virgin Enterprises Limited has the right to propose a
candidate to fill a seat on Virgin Media Inc.’s Board of Directors. Pursuant to this right, Virgin Enterprises Limited
proposed Gordon McCallum who was appointed to Virgin Media Inc.’s Board of Directors.
During the first quarter of 2010, ntl:Telewest Business announced that it would rebrand using the Virgin trade marks
to “Virgin Media Business”. Virgin Media has entered into a trade mark license with Virgin Enterprises Ltd under which
an annual royalty is payable of 0.25% of revenues from our business segment, subject to a minimum payment of £1.5
million.
During the years ended December 31, 2012, 2011 and 2010, respectively, we incurred expenses of £10.2 million, £10.1
million, and £10.1 million for charges in respect of brand licensing and promotion of which £5.1 million and £5.0 million
was payable at December 31, 2012 and 2011, 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.
We pay UKTV for purchases of television programming rights. During the years ended December 31, 2011 and 2010,
the net expense recognized in respect to these transactions through the consolidated statement of comprehensive
income totaled £24.4 million and £24.8 million, respectively.
During the years ended December 31, 2011 and 2010, we received cash payments from UKTV for loan principal
payments, interest, dividends and consortium tax relief totaling £34.0 million and £34.4 million, respectively.
Note 11—Commitments and Contingent Liabilities
At December 31, 2012, we were committed to pay £1,369.4 million for equipment and services, exclusive of capital
and operating leases. This amount includes £514.4 million for operations and maintenance contracts and other
commitments from January 1, 2014 to 2019. 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,
2013 £ 663.1
2014 255.9
2015 150.1
2016 97.6
2017 63.1
Thereafter 139.6
1,369.4
Purchase obligations in the table above represent amounts payable under fixed or minimum guaranteed commitments,
and therefore do not represent the total fees that are expected to be paid under certain programming contracts where
amounts payable are generally based on the number of customers receiving the programming
This table excludes £667.7 million of accounts payable and accrued liabilities as at December 31, 2012 which will be
paid in 2013.
Table of Contents
VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES
COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Note 10—Related Party Transactions (continued)