DIRECTV 2003 Annual Report Download - page 24

THE DIRECTV GROUP, INC.
ACCESS TO COMPANY REPORTS
Our website address is www.directv.com. Our Annual Reports on Form 10-K, Quarterly Reports on
Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished, if any, pursuant to
Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available free of charge through our website as
soon as reasonably practicable after they are electronically filed with, or furnished to, the Securities and
Exchange Commission, or SEC. We are not incorporating by reference in this Annual Report on Form 10-K any
information on our website.
In addition, our subsidiaries, DIRECTV U.S. and PanAmSat, are separate registrants with the SEC. You can
access their Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and
amendments to those reports filed or furnished, if any, pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 free of charge through their websites at www.directv.com and www.panamsat.com,
respectively, as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC.
The public may read and copy any materials we file with the SEC at the SEC’s Public Reference Room at
450 Fifth Street, NW., Washington, DC 20549. You may obtain information regarding the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. We are an electronic filer with the SEC. The SEC
maintains an Internet site (www.sec.gov) that contains reports, proxy and information statements, and other
information regarding issuers that file electronically.
ITEM 2. PROPERTIES
As of December 31, 2003, we had approximately 65 locations operating in 18 states and 44 cities in the U.S.
and approximately 79 additional locations operating in 45 cities in 18 countries outside the U.S. At such date, we
owned approximately 1.7 million square feet of space and leased an additional 2.8 million square feet of space.
The major locations of the Direct-To-Home Broadcast segment include five administrative offices, five broadcast
centers and a call center. The major locations of the Satellite Services segment include three administrative
offices and six teleports. The Network Systems segment’s major locations include seven administrative offices, a
broadcast center and three manufacturing and distribution facilities. We consider our properties adequate for our
present needs.
ITEM 3. LEGAL PROCEEDINGS
(a) Material pending legal proceedings, other than ordinary routine litigation incidental to the business, to
which we became, or were, a party during the year ended December 31, 2003 or subsequent thereto, but before
the filing of this report are summarized below:
CAS 413 Administrative Proceedings. As part of the combination of our defense businesses with
Raytheon Company, or Raytheon, in 1997 and the sale of our satellite systems manufacturing businesses to The
Boeing Company, or Boeing, in 2000, transfers were made from the Company’s retirement plans to the
retirement plans of the buyer in each case of actuarial accrued liabilities and pension assets, including an
appropriate portion of any pension surplus, attributable to the businesses. The Defense Contract Management
Agency, or DCMA, of the U.S. Department of Defense objected to our calculation of the appropriate pension
surplus transferred in these sales under Cost Accounting Standard 413, or CAS 413, which addresses the
treatment of pension assets in such cases. The DCMA issued a Finding of Noncompliance with CAS 413 on
September 30, 2003 in the Raytheon transaction and on October 6, 2003 in the Boeing transaction. We responded
timely to both findings. On December 12, 2003, the DCMA issued a Final Decision and Demand for Payment
related to the Raytheon transaction of approximately $69 million, including interest. We also anticipate an
adverse decision by the DCMA on the Boeing transaction. We have twelve months to appeal each adverse
decision in the U.S. Court of Federal Claims.
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