DIRECTV 2009 Annual Report Download - page 82

Download and view the complete annual report

Please find page 82 of the 2009 DIRECTV annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 160

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160

DIRECTV
commensurate with the risk involved, when appropriate. Estimation of future cash flows requires
significant judgment about future operating results, and can vary significantly from one evaluation to
the next. Risk adjusted discount rates are not fixed and are subject to change over time. As a result,
changes in estimated future cash flows and/or changes in discount rates could result in a write-down of
goodwill or intangible assets with indefinite lives in a future period which could be material to our
consolidated financial statements.
ACCOUNTING CHANGES AND NEW ACCOUNTING PRONOUNCEMENTS
For a discussion of accounting changes and new accounting pronouncements see Note 2 of the
Notes to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report, which we
incorporate herein by reference.
SECURITY RATINGS
Debt ratings by the various rating agencies reflect each agency’s opinion of the ability of issuers to
repay debt obligations as they come due and expected loss given a default. Ratings in the Baa range for
Moody’s Investors Service, and the BBB range for Standard & Poor’s Ratings Services, or S&P, and the
BBB range for Fitch Ratings, generally indicate adequate current protection of interest payments and
principal security, with certain protective elements lacking. Ratings in the Ba range for Moody’s and
the BB range for S&P and Fitch, generally indicate moderate protection of interest and principal
payments, potentially outweighed by exposure to uncertainties or adverse conditions. In general, lower
ratings result in higher borrowing costs. A security rating is not a recommendation to buy, sell, or hold
securities and may be subject to revision or withdrawal at any time by the assigning rating organization.
Currently, DIRECTV has the following security rating:
Corporate Outlook
Standard & Poor’s ................................................ BBBǁStable
Currently, DIRECTV U.S. has the following security ratings:
Senior Secured Senior Unsecured Corporate Outlook
Standard & Poor’s ......................... BBBǁBBBǁBBBǁStable
Moody’s ................................ Baa2 Ba2 Ba1 Stable
Fitch .................................. BBB BBBǁBBBǁStable
***
70