DIRECTV 2008 Annual Report Download - page 73

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THE DIRECTV GROUP, INC.
provided in the Notes to the Consolidated Financial Statements in Part II, 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) ......... $ 7,900 $ 440 $1,069 $3,373 $3,018
Purchase obligations (Note 19) (b) ............. 3,601 1,308 1,934 336 23
Operating lease obligations (Note 19) (c) ........ 291 51 97 71 72
Capital lease obligations (Note 10) ............. 977 83 157 151 586
Other long-term liabilities reflected on the
Consolidated Balance Sheets under GAAP
(Note 19) (d) (e) ........................ 229 91 138 — —
Total .................................. $12,998 $1,973 $3,395 $3,931 $3,699
(a) Long-term debt obligations include interest calculated based on the rates in effect at December 31,
2008, 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) Other long-term liabilities consist of amounts DIRECTV U.S. owes to the National Rural
Telecommunications Cooperative, or 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, including interest, and satellite contracts.
(e) 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 net unrecognized tax
benefits liability, which amounted to $207 million as of December 31, 2008. The timing and
amount of any future payments is not reasonably estimable, as such payments are dependent on
the completion and resolution of examinations with tax authorities. We do not expect a significant
payment related to these obligations within the next twelve months.
OFF-BALANCE SHEET ARRANGEMENTS
As of December 31, 2008, we were contingently liable under standby letters of credit and bonds in
the aggregate amount of $33 million primarily related to insurance deductibles and foreign tax refunds.
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