DIRECTV 2006 Annual Report Download - page 117

THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS —(continued)
leases, net of sublease income, were $110.2 million in 2006, $108.8 million in 2005 and $180.5 million in
2004.
At December 31, 2006, our minimum payments under agreements to purchase broadcast
programming, and the purchase of services that we have outsourced to third parties, such as billing
services, and satellite telemetry, tracking and control and satellite construction and launch contracts
aggregated $4,613.0 million, payable as follows: $1,070.2 million in 2007, $920.9 million in 2008,
$982.3 million in 2009, $955.9 million in 2010, $546.3 million in 2011 and $137.4 million thereafter.
As of December 31, 2006, other long-term obligations totaling $480.6 million are payable
approximately as follows: $116.0 million in 2007, $80.6 million in 2008, $85.5 million in 2009,
$89.7 million in 2010, $54.6 million in 2011 and $54.2 million thereafter. These amounts are recorded
in ‘‘Accounts payable and accrued liabilities’’ and ‘‘Other Liabilities and Deferred Credits’’ in the
Consolidated Balance Sheets.
Contingencies
Litigation
Litigation is subject to uncertainties and the outcome of individual litigated matters is not
predictable with assurance. Various legal actions, claims and proceedings are pending against us arising
in the ordinary course of business. We have established loss provisions for matters in which losses are
probable and can be reasonably estimated. Some of the matters may involve compensatory, punitive, or
treble damage claims, or demands that, if granted, could require us to pay damages or make other
expenditures in amounts that could not be estimated at December 31, 2006. After discussion with
counsel representing us in those actions, it is the opinion of management that such litigation is not
expected to have a material adverse effect on our consolidated results of operations or financial
position.
Darlene Investments LLC. On October 18, 2004, Darlene filed suit in the circuit court for
Miami-Dade County, Florida, against The DIRECTV Group and certain of our subsidiaries, News
Corporation, and others, which we refer to collectively as the Defendants. The suit alleged fraud and
violation of fiduciary, contractual and other duties owed to Darlene and to DLA LLC by one or more
of the Defendants. Darlene sought injunctive relief to preclude DLA LLC from consummating the Sky
Transactions, $1 billion in damages and other relief. On November 3, 2005, the state court judge
dismissed certain charges, including fraud claims, for improper venue and entered an order essentially
staying the balance of the proceedings, including those related to fiduciary and other duties and those
brought against News Corporation, pending the arbitration between Darlene, DIRECTV and DLA
LLC.
In June 2005, we filed suit against Darlene in the United States District Court for the Southern
District of New York seeking specific performance and declaratory relief with respect to the release
agreement and covenant not to sue executed by Darlene in February 2004 in connection with the DLA
LLC reorganization and related transactions. On September 27, 2006, the District Court granted our
motion for summary judgment and found Darlene liable for breach of contract.
On January 30, 2007, we acquired Darlene’s 14% equity interest in DLA LLC for $325.0 million.
All pending litigation related to Darlene against us and the other parties described above has been
dismissed.
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