DIRECTV 2006 Annual Report Download - page 68

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THE DIRECTV GROUP, INC.
On February 27, 2007, our Board of Directors authorized the repurchase of up to an additional
$1.0 billion of our common stock, using our available cash and cash from operations, from time to time
through open market purchases or negotiated transactions. The program may be suspended or
discontinued at any time.
In January 2007, we used $325.0 million in cash for the acquisition of Darlene’s 14% minority
interest in DLA LLC and $210.0 million in cash in connection with the assignment of the Sky Brazil
bank loan to a wholly-owned subsidiary of The DIRECTV Group by the lending banks.
We expect to fund our cash requirements and our existing business plan using our available cash
balances, and cash provided by operations. Additional borrowings, which may include borrowings under
the $500.0 million revolving credit facility at DIRECTV U.S., may be required for wireless broadband
strategic investment opportunities should they arise, or if the authorized amount of our share
repurchase program is significantly increased. However, several factors may affect our ability to fund
our operations and commitments that we discuss in ‘‘Contractual Obligations, Off-Balance Sheet
Arrangements and Contingencies’’ below.
In addition, our future cash flows may be reduced if we experience, among other things,
significantly higher subscriber additions than planned, increased subscriber churn or upgrade and
retention costs, higher than planned capital expenditures for satellites and broadcast equipment,
satellite anomalies or signal theft or if we are required to make a prepayment on our Term Loans
under DIRECTV U.S.’ senior secured credit facility.
Debt. At December 31, 2006, we had $3,615.3 million in total outstanding borrowings, bearing a
weighted average interest rate of 7.1%. Our outstanding borrowings primarily consist of notes payable
and amounts borrowed under a credit facility of DIRECTV U.S. as more fully described in Note 9 of
the Notes to the Consolidated Financial Statements in Item 8, Part II of this Annual Report, which we
incorporate herein by reference.
Our short-term borrowings, notes payable, credit facility and other borrowings mature as follows:
$220.1 million in 2007; $47.6 million in 2008; $97.6 million in 2009; $297.5 million in 2010;
$97.6 million in 2011; and $2,852.1 million thereafter. However, these amounts do not reflect potential
prepayments that may be required under DIRECTV U.S.’ senior secured credit facility. We were not
required to make a prepayment for the years ended December 31, 2006 and 2005.
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