DTV » Topics » CONTRACTUAL OBLIGATIONS

This excerpt taken from the DTV 8-K filed Jun 1, 2009.

CONTRACTUAL OBLIGATIONS

        The following table sets forth our contractual obligations as of December 31, 2008, including the future periods in which payments are expected. Additional details regarding these obligations are

21



THE DIRECTV GROUP, INC.


provided in the Notes to the Consolidated Financial Statements in Part II, Item 8 referenced in the table.

 
 
Payments Due By Period
 
Contractual Obligations  
Total
 
Less than
1 year
 
1-3 years
 
3-5 years
 
More than
5 years
 
 
  (Dollars in Millions)
 

Long-term debt obligations (Note 8) (a)

  $ 7,900   $ 440   $ 1,069   $ 3,373   $ 3,018  

Purchase obligations (Note 19) (b)

    3,601     1,308     1,934     336     23  

Operating lease obligations (Note 19) (c)

    291     51     97     71     72  

Capital lease obligations (Note 10)

    977     83     157     151     586  

Other long-term liabilities reflected on the Consolidated Balance Sheets under GAAP (Note 19) (d) (e)

    229     91     138          
                       

Total

  $ 12,998   $ 1,973   $ 3,395   $ 3,931   $ 3,699  
                       

(a)
Long-term debt obligations include interest calculated based on the rates in effect at December 31, 2008, 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 of broadcast programming commitments, satellite construction and launch contracts and service contract commitments. Broadcast programming commitments include guaranteed minimum contractual commitments that are typically based on 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)
Other long-term liabilities consist of amounts DIRECTV U.S. owes to the National Rural Telecommunications Cooperative, or NRTC, for the purchase of distribution rights and to the NRTC members that elected the long-term payment option resulting from the NRTC acquisition transactions in 2004, including interest, and satellite contracts.

(e)
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 $207 million as of December 31, 2008. 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.
This excerpt taken from the DTV 10-Q filed May 8, 2009.

CONTRACTUAL OBLIGATIONS

        The following table sets forth our contractual obligations as of March 31, 2009, including the future periods in which payments are expected. Additional details regarding these obligations are provided in the Notes to the Consolidated Financial Statements in Part I, Item 1 referenced in the table below and the Notes to the Consolidated Financial Statements in Part II, Item 8 in our Form 10-K for the year ended December 31, 2008.

 
 
Payments Due By Period
 
Contractual Obligations
 
Total
 
2009
 
2010-2011
 
2012-2013
 
2014 and
thereafter
 
 
  (Dollars in Millions)
 

Long-term debt obligations (Note 4)(a)

  $ 7,827   $ 365   $ 1,071   $ 3,373   $ 3,018  

Purchase obligations (Note 5)(b)

    7,399     1,023     2,480     2,358     1,538  

Operating lease obligations(c)

    279     38     95     73     73  

Capital lease obligations

    955     63     156     151     585  

Other long-term liabilities reflected on the Consolidated Balance Sheets under GAAP(d)(e)

    207     68     139          
                       

Total

  $ 16,667   $ 1,557   $ 3,941   $ 5,955   $ 5,214  
                       

(a)
Long-term debt obligations include interest calculated based on the rates in effect at March 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 of broadcast programming commitments, satellite construction and launch contracts and service contract commitments. Broadcast programming commitments include guaranteed minimum contractual commitments that are typically based on 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)
Other long-term liabilities consist of amounts DIRECTV U.S. owes to the National Rural Telecommunications Cooperative, or NRTC, for the purchase of distribution rights and to the

37


Table of Contents


THE DIRECTV GROUP, INC.

    NRTC members that elected the long-term payment option resulting from the NRTC acquisition transactions we consummated in 2004, and satellite contracts.

(e)
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 $215 million as of March 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.
These excerpts taken from the DTV 10-K filed Feb 27, 2009.

CONTRACTUAL OBLIGATIONS

        The following table sets forth our contractual obligations as of December 31, 2008, including the future periods in which payments are expected. Additional details regarding these obligations are

59



THE DIRECTV GROUP, INC.


provided in the Notes to the Consolidated Financial Statements in Part II, Item 8 referenced in the table.

 
 
Payments Due By Period
 
Contractual Obligations  
Total
 
Less than
1 year
 
1-3 years
 
3-5 years
 
More than
5 years
 
 
  (Dollars in Millions)
 

Long-term debt obligations (Note 8) (a)

  $ 7,900   $ 440   $ 1,069   $ 3,373   $ 3,018  

Purchase obligations (Note 19) (b)

    3,601     1,308     1,934     336     23  

Operating lease obligations (Note 19) (c)

    291     51     97     71     72  

Capital lease obligations (Note 10)

    977     83     157     151     586  

Other long-term liabilities reflected on the Consolidated Balance Sheets under GAAP (Note 19) (d) (e)

    229     91     138          
                       

Total

  $ 12,998   $ 1,973   $ 3,395   $ 3,931   $ 3,699  
                       

(a)
Long-term debt obligations include interest calculated based on the rates in effect at December 31, 2008, 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 of broadcast programming commitments, satellite construction and launch contracts and service contract commitments. Broadcast programming commitments include guaranteed minimum contractual commitments that are typically based on 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)
Other long-term liabilities consist of amounts DIRECTV U.S. owes to the National Rural Telecommunications Cooperative, or NRTC, for the purchase of distribution rights and to the NRTC members that elected the long-term payment option resulting from the NRTC acquisition transactions in 2004, including interest, and satellite contracts.

(e)
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 $207 million as of December 31, 2008. 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.

CONTRACTUAL OBLIGATIONS

        The following table sets forth our contractual obligations as of December 31, 2008, including the future periods in which payments are expected. Additional details regarding these obligations are

59



THE DIRECTV GROUP, INC.


provided in the Notes to the Consolidated Financial Statements in Part II, Item 8 referenced in the table.

 
 
Payments Due By Period
 
Contractual Obligations  
Total
 
Less than
1 year
 
1-3 years
 
3-5 years
 
More than
5 years
 
 
  (Dollars in Millions)
 

Long-term debt obligations (Note 8) (a)

  $ 7,900   $ 440   $ 1,069   $ 3,373   $ 3,018  

Purchase obligations (Note 19) (b)

    3,601     1,308     1,934     336     23  

Operating lease obligations (Note 19) (c)

    291     51     97     71     72  

Capital lease obligations (Note 10)

    977     83     157     151     586  

Other long-term liabilities reflected on the Consolidated Balance Sheets under GAAP (Note 19) (d) (e)

    229     91     138          
                       

Total

  $ 12,998   $ 1,973   $ 3,395   $ 3,931   $ 3,699  
                       

(a)
Long-term debt obligations include interest calculated based on the rates in effect at December 31, 2008, 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 of broadcast programming commitments, satellite construction and launch contracts and service contract commitments. Broadcast programming commitments include guaranteed minimum contractual commitments that are typically based on 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)
Other long-term liabilities consist of amounts DIRECTV U.S. owes to the National Rural Telecommunications Cooperative, or NRTC, for the purchase of distribution rights and to the NRTC members that elected the long-term payment option resulting from the NRTC acquisition transactions in 2004, including interest, and satellite contracts.

(e)
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 $207 million as of December 31, 2008. 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.

CONTRACTUAL OBLIGATIONS



        The following table sets forth our contractual obligations as of December 31, 2008, including the future periods in which payments are expected. Additional
details regarding these obligations are



59









THE DIRECTV GROUP, INC.






provided
in the Notes to the Consolidated Financial Statements in Part II, Item 8 referenced in the table.

































































































































































































 
 
Payments Due By Period



 
Contractual Obligations  
Total



 
Less than

1 year



 
1-3 years




 
3-5 years



 
More than

5 years



 
 
 (Dollars in Millions)
 

Long-term debt obligations (Note 8) (a)

 $7,900 $440 $1,069 $3,373 $3,018 

Purchase obligations (Note 19) (b)

  3,601  1,308  1,934  336  23 

Operating lease obligations (Note 19) (c)

  291  51  97  71  72 

Capital lease obligations (Note 10)

  977  83  157  151  586 

Other long-term liabilities reflected on the Consolidated Balance Sheets under GAAP (Note 19) (d) (e)

  229  91  138     
            

Total

 $12,998 $1,973 $3,395 $3,931 $3,699 
            










(a)
Long-term
debt obligations include interest calculated based on the rates in effect at December 31, 2008, 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 of broadcast programming commitments, satellite construction and launch contracts and service contract commitments. Broadcast
programming commitments include guaranteed minimum contractual commitments that are typically based on 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)
Other
long-term liabilities consist of amounts DIRECTV U.S. owes to the National Rural Telecommunications Cooperative, or NRTC, for the purchase
of distribution rights and to the NRTC members that elected the long-term payment option resulting from the NRTC acquisition transactions in 2004, including interest, and satellite
contracts.


(e)
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 $207 million as of December 31, 2008. 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.


CONTRACTUAL OBLIGATIONS



        The following table sets forth our contractual obligations as of December 31, 2008, including the future periods in which payments are expected. Additional
details regarding these obligations are



59









THE DIRECTV GROUP, INC.






provided
in the Notes to the Consolidated Financial Statements in Part II, Item 8 referenced in the table.

































































































































































































 
 
Payments Due By Period



 
Contractual Obligations  
Total



 
Less than

1 year



 
1-3 years




 
3-5 years



 
More than

5 years



 
 
 (Dollars in Millions)
 

Long-term debt obligations (Note 8) (a)

 $7,900 $440 $1,069 $3,373 $3,018 

Purchase obligations (Note 19) (b)

  3,601  1,308  1,934  336  23 

Operating lease obligations (Note 19) (c)

  291  51  97  71  72 

Capital lease obligations (Note 10)

  977  83  157  151  586 

Other long-term liabilities reflected on the Consolidated Balance Sheets under GAAP (Note 19) (d) (e)

  229  91  138     
            

Total

 $12,998 $1,973 $3,395 $3,931 $3,699 
            










(a)
Long-term
debt obligations include interest calculated based on the rates in effect at December 31, 2008, 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 of broadcast programming commitments, satellite construction and launch contracts and service contract commitments. Broadcast
programming commitments include guaranteed minimum contractual commitments that are typically based on 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)
Other
long-term liabilities consist of amounts DIRECTV U.S. owes to the National Rural Telecommunications Cooperative, or NRTC, for the purchase
of distribution rights and to the NRTC members that elected the long-term payment option resulting from the NRTC acquisition transactions in 2004, including interest, and satellite
contracts.


(e)
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 $207 million as of December 31, 2008. 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.


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