DIRECTV 2008 Annual Report Download - page 93
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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The following represent significant components of ‘‘Other liabilities and deferred credits’’ in our
Consolidated Balance Sheets as of December 31:
2008 2007
(Dollars in
Millions)
Obligations under capital leases ........................................ $ 542 $ 43
Other accrued taxes ................................................ 428 343
Programming costs ................................................. 251 368
Pension and other postretirement benefits ................................ 179 75
Deferred credits ................................................... 122 213
Other .......................................................... 227 360
Total other liabilities and deferred credits ............................. $1,749 $1,402
Note 8: Debt
The following table sets forth our outstanding debt:
December 31,
Interest Rates at
December 31, 2008 2008 2007
(Dollars in
Millions)
8.375% senior notes due in 2013 .......................... 8.375% $ 910 $ 910
6.375% senior notes due in 2015 .......................... 6.375% 1,000 1,000
7.625% senior notes due in 2016 .......................... 7.625% 1,500 —
Senior secured credit facility, net of unamortized discount of
$9 million as of December 31, 2008 ...................... 3.165% 2,421 1,483
Unamortized bond premium ............................. — 2 2
Total debt ......................................... 5,833 3,395
Less: Current portion of long-term debt .................... (108) (48)
Long-term debt ..................................... $5,725 $3,347
2008 Financing Transactions
In May 2008, DIRECTV U.S. completed financing transactions that included the issuance of
senior notes and an amendment to its existing senior secured credit facility as discussed below. We
incurred $20 million of debt issuance costs in connection with these transactions.
DIRECTV U.S. issued $1,500 million in senior notes due in 2016 in a private placement
transaction. The eight-year notes bear interest at 7.625%. Principal on the senior notes is payable upon
maturity, while interest is payable semi-annually commencing November 15, 2008. The senior notes
have been fully and unconditionally guaranteed, jointly and severally, by substantially all of DIRECTV
U.S.’ current and certain of its future domestic subsidiaries on a senior unsecured basis. On
November 11, 2008, we completed an exchange offer in which holders of substantially all of the
outstanding principal amount of the senior notes exchanged the original senior notes for registered
notes with identical terms, except that the registered notes are registered under the Securities Act of
1933, as amended, and do not bear the legends restricting their transfer.
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