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VIRGIN MEDIA INC.
(See note 1)
Notes to Condensed Consolidated Financial Statements — (Continued)
June 30, 2014
(unaudited)
22
The following table summarizes certain information related to the incentive awards granted or remeasured and exercised by
employees of our subsidiaries with respect to Liberty Global ordinary shares during the Successor periods and Old Virgin Media
common stock during the Predecessor period:
Successor Predecessor
Six months
ended
June 30, 2014
Period from
June 8 to
June 30, 2013
Period from
January 1 to
June 7, 2013
Assumptions used to estimate fair value of options, share appreciation
rights (SARs) and PSARs granted:
Risk-free interest rate................................................................................ 0.81 - 1.31% 1.0 - 1.14% 0.40 - 1.42%
Expected life (a)........................................................................................ 3.1 -3.9 years 0.4 - 4.6 years 3.0 - 7.3 years
Expected volatility (a)............................................................................... 25.5 - 26.5% 23.6 - 32.6% 31.1 - 50.9%
Expected dividend yield............................................................................ none none 0.41 - 0.50%
Weighted average grant-date fair value per share awards granted:
Options...................................................................................................... $ — $ 22.80 $ 29.13
SARs ......................................................................................................... $ 8.05 $ — $ —
PSARs....................................................................................................... $ 8.15 $ 8.32 $ —
Restricted share units (RSUs) ................................................................... $ 39.70 $ 37.07 $ 39.39
PSUs.......................................................................................................... $ 40.13 $ 33.93 $ 39.66
Total intrinsic value of awards exercised (in millions):
Options...................................................................................................... £ 20.1 £ 13.0 £ 57.0
PSARs....................................................................................................... £ 0.1 £ — £ —
Cash received by Liberty Global (Successor periods) and Old Virgin
Media (Predecessor period) from exercise of options................................ £ 11.9 £ 6.9 £ 26.7
Income tax benefit related to share-based compensation .............................. £ 3.8 £ 4.8 £ 5.9
______________
(a) The 2013 ranges shown for these assumptions exclude the awards for certain former employees of Virgin Media who were
expected to exercise their awards immediately or soon after the LG/VM Transaction. For these awards, the assumptions
used for expected life and volatility were essentially nil.
Share-Based Award Activity - Liberty Global Ordinary Shares
The following tables summarize the share-based award activity during the six months ended June 30, 2014 with respect to
Liberty Global ordinary shares held by employees of our subsidiaries:
Options — Class A ordinary shares Number of
shares
Weighted
average
exercise price
Weighted
average
remaining
contractual
term
Aggregate
intrinsic
value
in years in millions
Outstanding at January 1, 2014.......................................................... 2,020,610 $ 16.23
Exercised.......................................................................................... (338,251) $ 17.29
Cancelled.......................................................................................... (34,856) $ 21.51
Transfers........................................................................................... (31,731) $ 19.16
Outstanding at June 30, 2014 (a)........................................................ 1,615,772 $ 15.84 6.5 $ 45.9
Exercisable at June 30, 2014.............................................................. 844,163 $ 12.92 5.4 $ 26.4