DIRECTV 2010 Annual Report Download - page 97

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Note 8: Accounts Payable and Accrued Liabilities; Other Liabilities and Note 9: Debt
Deferred Credits The following table sets forth our outstanding debt:
The following represent significant components of ‘‘Accounts payable and December 31,
accrued liabilities’’ in our Consolidated Balance Sheets as of December 31: 2010 2009
2010 2009 (Dollars in Millions)
(Dollars in Millions) Senior notes ................................. $10,472 $ 4,492
Programming costs ............................ $1,751 $1,788 Senior secured credit facility, net of unamortized discount of
Accounts payable ............................. 951 582 $7 million as of December 31, 2009 ............... — 2,316
Equity collars (see Note 9 for additional information) ..... — 400 Collar Loan ................................. — 1,202
Property and income taxes ....................... 217 157 Other ..................................... 38 —
Payroll and employee benefits ..................... 272 204 Total debt ................................ 10,510 8,010
Interest payable .............................. 138 47 Less: Current portion of long-term debt .............. (38) (1,510)
Other ..................................... 597 579 Long-term debt ............................. $10,472 $ 6,500
Total accounts payable and accrued liabilities ......... $3,926 $3,757
All of the senior notes and the senior secured credit facility were issued by
The following represent significant components of ‘‘Other liabilities and DIRECTV U.S. The senior secured credit facility was secured by substantially all of
deferred credits’’ in our Consolidated Balance Sheets as of December 31: DIRECTV U.S.’ assets. As discussed below, in financing transactions in March and
August 2010, DIRECTV U.S. repaid the remaining balance of the Term Loans
2010 2009 under its senior secured credit facility, which was terminated in February 2011. As
(Dollars in Millions) of February 7, 2011, DIRECTV U.S. had the ability to borrow up to $2 billion
Obligations under capital leases .................... $ 523 $ 537 under a new revolving credit facility discussed below.
Other accrued taxes ............................ 409 595
Pension and other postretirement benefits ............. 106 135 Collar Loan
Deferred credits .............................. 69 78
Programming costs ............................ 43 76 As part of the Liberty Transaction completed on November 19, 2009, we
Other ..................................... 137 257 assumed a credit facility and related equity collars, which we refer to as the Collar
Loan.
Total other liabilities and deferred credits ............ $1,287 $1,678
The equity collars, which used DIRECTV Group shares as the underlying
As of December 31, 2010, there were $30 million of amounts payable to security, were entered into by Liberty prior to the Liberty Transaction for the
vendors for property and equipment and $17 million of amounts payable for purpose of providing credit security to the lending bank on the Collar Loan and, as
satellites in ‘‘Accounts payable and accrued liabilities’’ in the Consolidated Balance a consequence, hedging Liberty’s exposure to default on the Collar Loan by limiting
Sheets, which is considered a non-cash investing activity for purposes of the Liberty’s exposure to downward movements in the price of DIRECTV Group stock
Consolidated Statements of Cash Flows for the year ended December 31, 2010. in exchange for Liberty’s increased exposure to upward movements in the price of
DIRECTV Group stock. As the derivative financial instruments were in respect of
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