DIRECTV 2007 Annual Report Download - page 63

THE DIRECTV GROUP, INC.
U.S. and its respective subsidiaries to, among other things, make restricted payments, including
dividends, loans or advances to us.
During 2006 and 2007 our Board of Directors approved multiple authorizations for the repurchase
of a total of $5 billion of our common stock, the most recent of which was a $1 billion authorization in
August 2007 that was completed in December 2007. Subsequent to December 31, 2007, our Board of
Directors authorized the repurchase of an additional $1 billion of our common stock. For the year
ended December 31, 2007, we repurchased 86 million shares for $2 billion, at an average price of
$23.48 per share under our share repurchase program.
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 million DIRECTV U.S. revolving credit facility, 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, 2007, we had $3,395 million in total outstanding borrowings, bearing a
weighted average interest rate of 6.8%. Our outstanding borrowings primarily consist of notes payable
and amounts borrowed under a senior secured credit facility of DIRECTV U.S. as more fully described
in Note 8 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, senior secured credit facility and other borrowings
mature as follows: $48 million in 2008; $98 million in 2009; $297 million in 2010; $98 million in 2011;
$10 million in 2012; and $2,842 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, 2007 and 2006.
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