DIRECTV 2003 Annual Report Download - page 117

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS — (concluded)
The Company is contingently liable under standby letters of credit and bonds in the aggregate amount of
$66.6 million which were undrawn at December 31, 2003.
At December 31, 2003, minimum future commitments under noncancelable operating leases having lease
terms in excess of one year were primarily for real property and aggregated $531.5 million, payable as follows:
$181.8 million in 2004, $133.4 million in 2005, $80.5 million in 2006, $57.8 million in 2007, $56.0 million in
2008 and $22.0 million thereafter. Certain of these leases contain escalation clauses and renewal or purchase
options. Rental expenses under operating leases, net of sublease income, were $70.0 million in 2003, $68.0
million in 2002 and $59.7 million in 2001.
The Company has minimum commitments under noncancelable satellite construction and launch contracts,
programming agreements, manufacturer subsidies agreements, TT&C services agreements, billing system
agreements, customer call center maintenance agreements and other vendor obligations. As of December 31,
2003, minimum payments over the terms of applicable contracts are anticipated to be approximately $3,474.7
million, payable as follows: $844.8 million in 2004, $509.3 million in 2005, $657.6 million in 2006, $805.3
million in 2007, $538.7 million in 2008 and $124.6 million thereafter.
Note 21: Subsequent Events
On January 28, 2004, the Company completed the sale of 10,000,000 shares of XM Satellite Radio,
including 3,462,330 shares received from the conversion of a $10 million note receivable, for $254.4 million.
The Company will record a pre-tax gain of $164.0 million in 2004 as a result of this transaction.
During the first quarter of 2004, the Company announced the reduction of corporate office headcount by
over half in connection with a plan to consolidate Corporate and DIRECTV support functions. DLA LLC also
announced additional headcount reductions during the first quarter of 2004, subsequent to its emergence from
bankruptcy and completion of certain transactions that were anticipated under its Reorganization Plan as more
fully discussed in Note 16.
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