Virgin Media 2012 Annual Report Download - page 30

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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 in
the aggregate amount of approximately $7.4 million. These claims purportedly arise as a result of settlement payments
made and attorneys' fees and other expenses incurred by Huff Asset Management in connection with third-party
litigation and regulatory proceedings involving Huff Asset Management and relating to fees 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. Neither the Company
nor any of its predecessors was or is currently a party to these litigation or regulatory proceedings. There can be no
assurance that the amount or nature of any claim brought against the Company by Huff Asset Management will be
limited to indemnification or the amounts of claims specified above. The Company will vigorously defend any such
claims made by Huff Asset Management. We are disclosing the potential claims in light of Mr. Huff's position as a
director. 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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