DIRECTV 2009 Annual Report Download - page 79

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DIRECTV
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 9) (a) ......... $ 9,102 $ 665 $ 830 $3,473 $4,134
Purchase obligations (Note 19) (b) ............. 9,696 1,805 3,705 2,745 1,441
Operating lease obligations (Note 19) (c) ........ 402 65 118 74 145
Capital lease obligations (Note 11) ............. 930 89 171 159 511
Other long-term liabilities reflected on the
Consolidated Balance Sheets under GAAP
(Note 19) (d) .......................... 140 91 49 — —
Total (e) ................................ $20,270 $2,715 $4,873 $6,451 $6,231
(a) Long-term debt obligations include interest calculated based on the rates in effect at December 31,
2009, 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 primarily of broadcast programming commitments, regional
professional team rights agreements, service contract commitments and satellite launch contracts.
Broadcast programming commitments include guaranteed minimum contractual commitments that
are typically based on a flat fee or 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) 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 $367 million as of December 31, 2009. 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.
(e) Excluded from these obligations are the $1,202 million Collar Loan and the related $400 million
equity collars. During the first quarter of 2010, we paid the remaining principal balance of the loan
and settled the equity collars.
OFF-BALANCE SHEET ARRANGEMENTS
As of December 31, 2009, we were contingently liable under standby letters of credit and bonds in
the aggregate amount of $35 million primarily related to insurance deductibles.
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