DIRECTV 2011 Annual Report Download - page 107

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Assets held under capitalized leases are included in ‘‘Satellites, net’’ and The components of the pension benefit obligation and the other
‘‘Property and Equipment, net’’ in our Consolidated Balance Sheets. We had the postretirement benefit obligation, including amounts recognized in the Consolidated
following assets held under capital leases as of December 31: Balance Sheets, are shown below for the years ended December 31:
2011 2010 Other
Pension Postretirement
(Dollars in Millions) Benefits Benefits
Satellites under capital leases ....................... $527 $554 2011 2010 2011 2010
Less: Accumulated amortization ..................... (140) (106) (Dollars in Millions)
Change in Net Benefit Obligation
Satellites, net under capital leases .................... $387 $448 Net benefit obligation at beginning of year ......... $521 $498 $ 21 $ 21
Property and equipment under capital leases ............. $104 $ 93 Service cost ............................ 25 19 1 1
Interest cost ............................ 29 28 1 1
Less: Accumulated amortization ..................... (38) (22) Plan participants’ contributions ................ 1 1 — —
Property and equipment, net under capital leases .......... $ 66 $ 71 Actuarial loss ........................... 43 11 1 1
Benefits paid ........................... (36) (35) (1) (3)
Change in plan .......................... — (1) — —
Excluded from the table above are future payments for ISDLA-1 and
Net benefit obligation at end of year ............ 583 521 23 21
ISDLA-2, satellites currently under construction for DIRECTV Latin America,
Change in Plan Assets
which we expect to account for as capital leases at the time they are placed into Fair value of plan assets at beginning of year ........ 429 374 — —
service. See Note 20 for further discussion. Actual return on plan assets .................. 15 45 — —
Employer contributions ..................... 40 45 1 3
We paid interest for capital leases of $51 million in 2011, $55 million in Benefits paid ........................... (36) (35) (1) (3)
2010 and $56 million in 2009. Fair value of plan assets at end of year ........... 448 429 — —
Funded status at end of year ................. $(135) $ (92) $(23) $(21)
Note 13: Pension and Other Postretirement Benefit Plans
Amounts recognized in the consolidated balance
Most of our employees are eligible to participate in our funded sheets consist of:
non-contributory defined benefit pension plan, which provides defined benefits Accounts payable and accrued liabilities ......... $ (6) $ (5) $ (2) $(2)
based on either years of service and final average salary, or eligible compensation Other liabilities and deferred credits ........... (129) (87) (21) (19)
Deferred tax assets ...................... 94 74 1 —
while employed by us. Additionally, we maintain a funded contributory defined Accumulated other comprehensive loss .......... 149 122 2 —
benefit plan for employees who elected to participate prior to 1991, and an Amounts recognized in the accumulated other
unfunded, nonqualified pension plan for certain eligible employees. For participants comprehensive loss consist of:
Unamortized net amount resulting from changes in
in the contributory pension plan, we also maintain a postretirement benefit plan for defined benefit plan experience and actuarial
those retirees eligible to participate in health care and life insurance benefits assumptions, net of taxes ................. 147 119 2 —
generally until they reach age 65. Participants may become eligible for these health Unamortized amount resulting from changes in
care and life insurance benefits if they retire from our company between the ages of defined benefit plan provisions, net of taxes ..... 2 3 — —
55 and 65. The health care plan is contributory with participants’ contributions Total ............................. $149 $122 $ 2 $ —
subject to adjustment annually; the life insurance plan is non-contributory.
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