DIRECTV 2006 Annual Report Download - page 69

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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, 2006, 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) ..... $ 5,141.8 $ 462.6 $ 617.1 $ 826.4 $3,235.7
Purchase Obligations (Note 20) (b) .......... 4,613.0 1,070.2 1,903.2 1,502.2 137.4
Operating Lease Obligations (Note 20) (c) .... 594.3 90.6 171.8 164.5 167.4
Capital Lease Obligations (Note 20) ......... 140.2 49.2 15.2 15.2 60.6
Other Long-Term Liabilities Reflected on the
Consolidated Balance Sheets under GAAP
(Notes 3 and 20) (d) ................... 379.5 72.1 158.1 135.1 14.2
Total ................................ $10,868.8 $1,744.7 $2,865.4 $2,643.4 $3,615.3
(a) Long-term debt obligations include interest calculated based on the rates in effect at December 31,
2006, however, the obligations do not reflect potential prepayments that may be required under
DIRECTV U.S.’ senior secured credit facility, if any, or permitted under its indentures.
(b) Purchase obligations consist of broadcast programming commitments, satellite construction
contracts and service contract commitments. 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 and satellite contracts.
Off-Balance Sheet Arrangements
We are contingently liable under standby letters of credit and bonds in the aggregate amount of
$11.3 million at December 31, 2006.
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