DIRECTV 2012 Annual Report Download - page 75

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DIRECTV
exercises this right, we have the option to elect to pay the consideration in cash, payments is not reasonably estimable, as such payments are dependent on the
shares of our common stock, or a combination of both. completion and resolution of examinations with tax authorities.
Other. Several factors may affect our ability to fund our operations and Payments Due By Period
commitments that we discuss in ‘‘Contractual Obligations’’, ‘‘Off-Balance Sheet Less than More than
Contractual Obligations Total 1 year 1-3 years 3-5 years 5 years
Arrangements’’ and ‘‘Contingencies’’ below. In addition, our future cash flows may (Dollars in Millions)
be reduced if we experience, among other things, significantly higher subscriber Long-term debt obligations
additions than planned, increased subscriber churn or upgrade and retention costs, (Note 10) (a) ......... $27,895 $ 796 $3,723 $4,780 $18,596
higher than planned capital expenditures for satellites and broadcast equipment, or Purchase obligations
satellite anomalies or signal theft. Additionally, DIRECTV U.S.’ ability to borrow (Note 21) (b) ......... 7,079 2,186 3,092 808 993
under its revolving credit facility is contingent upon DIRECTV U.S. meeting a Operating lease obligations
financial and other covenants associated with its facility as more fully described (Note 21) (c) ......... 978 94 174 174 536
above. Capital lease obligations
(Notes 13 and 21) (d) . . . 1,494 100 234 264 896
CONTRACTUAL OBLIGATIONS
Total ................ $37,446 $3,176 $7,223 $6,026 $21,021
The following table sets forth our contractual obligations as of December 31,
2012, including the future periods in which payments are expected. Additional
(a) Long-term debt obligations include interest calculated based on the rates in
details regarding these obligations are provided in the Notes to the Consolidated
effect at December 31, 2012, however, the obligations do not reflect potential
Financial Statements in Part II, Item 8 of this Annual Report, as referenced in the
prepayments required under indentures.
table. The contractual obligations below do not include payments that could be
made related to our net unrecognized tax benefits liability, which amounted to (b) Purchase obligations consist primarily of broadcast programming
$259 million as of December 31, 2012. The timing and amount of any future commitments, regional professional team rights agreements, service contract
commitments and satellite construction and 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 variable escalation clauses and renewal
or purchase options, which we do not consider in the amounts disclosed.
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