DIRECTV 2007 Annual Report Download - page 64

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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, 2007, 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 8) (a) ......... $ 4,679 $ 279 $ 840 $ 505 $3,055
Purchase obligations (Note 18) (b) ............. 4,740 1,257 2,392 926 165
Operating lease obligations (Note 18) (c) ........ 531 97 171 177 86
Capital lease obligations (Note 18) (d) .......... 92 8 16 16 52
Other long-term liabilities reflected on the
Consolidated Balance Sheets under GAAP
(Note 18) (e) (f) ........................ 315 76 169 54 16
Total .................................. $10,357 $1,717 $3,588 $1,678 $3,374
(a) Long-term debt obligations include interest calculated based on the rates in effect at December 31,
2007, 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 and
launch 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. Service contract commitments include minimum
commitments for the purchase of services that have been outsourced to third parties, such as
billing services, telemetry, tracking and control services and broadcast center 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) Sky Brazil entered into a transponder capacity agreement on a replacement satellite which began
in January 2008. We expect to account for this agreement as a capital lease. The present value of
minimum payments under this agreement is approximately $247 million, which is not included in
amounts disclosed.
(e) 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 in 2004, and satellite contracts.
(f) Payments due by period for other long-term liabilities reflected on the Consolidated Balance Sheet
under GAAP do not include payments that could be made related to our unrecognized tax benefits
liability, which amounted to $343 million as of December 31, 2007. The timing and amount of any
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