DIRECTV 2005 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2005 DIRECTV annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

THE DIRECTV GROUP, INC.
CONTRACTUAL OBLIGATIONS, OFF-BALANCE SHEET ARRANGEMENTS AND
CONTINGENCIES
Contractual Obligations
The following table sets forth our contractual obligations as of December 31, 2005, including the
future periods in which payments are expected. Additional details regarding these obligations are
provided in the Notes to the Consolidated Financial Statements in Item 8 referenced in the table.
Payments Due By Period
Less than More than
Contractual Obligations Total 1 year 1-3 years 3-5 years 5 years
(Dollars in Millions)
Long-Term Debt Obligations (Note 9)(a) ...... $ 5,105.1 $ 237.6 $ 511.8 $ 831.7 $3,524.0
Purchase Obligations (Note 21)(b) .......... 5,307.2 1,118.4 1,947.3 1,776.5 465.0
Operating Lease Obligations (Note 21)(c) ..... 610.9 90.4 171.9 137.5 211.1
Capital Lease Obligations ................. 90.0 36.0 54.0 — —
Other Long-Term Liabilities Reflected on the
Consolidated Balance Sheets under GAAP
(Note 3)(d) ......................... 424.0 66.9 146.3 163.2 47.6
Total ................................ $11,537.2 $1,549.3 $2,831.3 $2,908.9 $4,247.7
(a) Long-term debt obligations include interest calculated based on the rates in effect at December 31,
2005 however the obligations do not reflect potential prepayments that may be required under our
senior secured credit facility, if any.
(b) Purchase obligations consist of broadcast programming commitments, satellite construction
contracts, service contract commitments and remaining payments related to the Sky Transactions.
Broadcast programming commitments include guaranteed minimum contractual commitments that
are typically based on a minimum number of required subscribers subscribing to the related
programming. Actual payments may exceed the minimum payment requirements if the actual
number of subscribers subscribing to the related programming exceeds the minimum amounts.
Satellite construction contracts typically exclude the cost to insure and launch satellites. Service
contract commitments include minimum commitments for the purchase of services that have been
outsourced to third parties, such as customer call center operations, billing services and telemetry,
tracking and control services. In most cases, actual payments, which are typically based on volume,
usually exceed these minimum amounts.
(c) Certain of the operating leases contain escalation clauses and renewal or purchase options, which
we do not consider in the amounts disclosed.
(d) Other long-term liabilities consist of amounts DIRECTV U.S. owes to the NRTC for the purchase
of distribution rights and to the NRTC members that elected the long-term payment option
resulting from the NRTC acquisition transactions discussed above.
Off-Balance Sheet Arrangements
We are contingently liable under standby letters of credit and bonds in the aggregate amount of
$16.2 million, which were undrawn at December 31, 2005.
56