DIRECTV 2006 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2006 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 145

  • 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

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 subsidiary, DIRECTV Holdings LLC, is a separate registrant with the SEC. You
can access DIRECTV Holdings LLC’s 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 our
website at www.directv.com as soon as reasonably practicable after they are electronically filed with, or
furnished to, the SEC.
ITEM 1A. RISK FACTORS
You should carefully consider the following risk factors, as well as the more detailed descriptions
of our business elsewhere in this Annual Report. The risks described below are not the only ones
facing our company. Additional risks not presently known to us or that we currently deem immaterial
may also adversely affect our business, financial condition or results of operations.
Our business, financial condition or results of operations could be materially and adversely affected
by the following:
We may not sustain profitability.
We have sustained significant losses in the past and have significant amounts of debt. If we do not
have sufficient income or other sources of cash, it could affect our ability to service debt and pay other
obligations.
Construction or launch delays on satellites could materially adversely affect our revenues and
earnings.
A key component of our business strategy is our ability to expand our offering of new
programming and services, including increased local and HD programming. In order to accomplish this
goal, we need to construct and launch new satellites. The construction and launch of satellites are often
subject to delays, including satellite and launch vehicle construction delays, periodic unavailability of
reliable launch opportunities due to competition for launch slots, weather and also due general delays
that result when a launch provider experiences a launch failure, and delays in obtaining regulatory
approvals. A significant delay in the future delivery of any satellite would materially adversely affect the
use of the satellite and thus could materially adversely affect our anticipated revenues and earnings. If
satellite construction schedules are not met, there can be no assurance that a launch opportunity will
be available at the time a satellite is ready to be launched. Certain delays in satellite construction could
also jeopardize a satellite authorization that is conditioned on timely construction and launch of the
satellite.
The satellite that DTVLA leases to provide the Sky Brazil service has a shortened useful life due
to a failure of its primary propulsion system. If the operator of this satellite is unable to relocate or
successfully launch a replacement satellite prior to its end-of-life, we may have difficulty finding an
alternative satellite capable of providing the Sky Brazil service.
20