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This excerpt taken from the DTV 8-K filed Jun 1, 2009. LIQUIDITY AND CAPITAL RESOURCES Our principal sources of liquidity are our cash, cash equivalents and the cash flow that we generate from our operations. From 2006 to 2008 we experienced significant growth in net cash provided by operating activities and free cash flow. We expect net cash provided by operating activities and free cash flow to continue to grow and believe that our existing cash balances and cash provided by operations will be sufficient to fund our existing business plan. Additionally, as of December 31, 2008, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility, which is available until 2011. Borrowings under this facility may be required to fund strategic investment opportunities should they arise. At December 31, 2008, our cash and cash equivalents totaled $2.0 billion compared with $1.1 billion at December 31, 2007. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.13 at December 31, 2008 and 0.92 at December 31, 2007. Working capital increased by $747 million to $459 million at December 31, 2008 from working capital deficit of $288 million at December 31, 2007. The increase during the period was mostly due to the increase in our cash and cash equivalent balances resulting from the changes discussed below. 18
This excerpt taken from the DTV 10-Q filed May 8, 2009. LIQUIDITY AND CAPITAL RESOURCES At March 31, 2009, our cash and cash equivalents totaled $2.1 billion compared with $2.0 billion at December 31, 2008. The $100 million increase resulted primarily from $1.0 billion of cash provided by operating activities, partially offset by $539 million of cash paid for the acquisition of satellites, property and equipment and $346 billion in cash used for the repurchase of shares. 34
As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.13 at March 31, 2009 and December 31, 2008. As of March 31, 2009, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility, which is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. During 2009 and 2008 our Board of Directors approved multiple authorizations for the repurchase of our common stock, the most recent of which was in January 2009 authorizing share repurchases of $2.0 billion. As of March 31, 2009, we had approximately $1.6 billion remaining under this authorization. During the three months ended March 31, 2009, we repurchased and retired 17 million shares for $361 million, at an average price of $21.23. We may make purchases under this program in the open market, through negotiated transactions or otherwise. The timing, nature and amount of such transactions will depend on a variety of factors, including market conditions, and the program may be suspended, discontinued or accelerated at any time. The sources of funds for the purchases under the remaining authorization are our existing cash on hand and cash from operations. We expect to fund our cash requirements and our existing business plan using our available cash balances and cash provided by operations. Additional borrowings, which may include borrowings under the $500 million DIRECTV U.S. revolving credit facility, may be required to fund strategic investment opportunities should they arise. These excerpts taken from the DTV 10-K filed Feb 27, 2009. LIQUIDITY AND CAPITAL RESOURCES Our principal sources of liquidity are our cash, cash equivalents and the cash flow that we generate from our operations. From 2006 to 2008 we experienced significant growth in net cash provided by operating activities and free cash flow. We expect net cash provided by operating activities and free cash flow to continue to grow and believe that our existing cash balances and cash provided by operations will be sufficient to fund our existing business plan. Additionally, as of December 31, 2008, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility, which is available until 2011. Borrowings under this facility may be required to fund strategic investment opportunities should they arise. At December 31, 2008, our cash and cash equivalents totaled $2.0 billion compared with $1.1 billion at December 31, 2007. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.13 at December 31, 2008 and 0.92 at December 31, 2007. Working capital increased by $747 million to $459 million at December 31, 2008 from working capital deficit of $288 million at December 31, 2007. The increase during the period was mostly due to the increase in our cash and cash equivalent balances resulting from the changes discussed below. 56
LIQUIDITY AND CAPITAL RESOURCES Our principal sources of liquidity are our cash, cash equivalents and the cash flow that we generate from our operations. From 2006 to 2008 we experienced significant growth in net cash provided by operating activities and free cash flow. We expect net cash provided by operating activities and free cash flow to continue to grow and believe that our existing cash balances and cash provided by operations will be sufficient to fund our existing business plan. Additionally, as of December 31, 2008, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility, which is available until 2011. Borrowings under this facility may be required to fund strategic investment opportunities should they arise. At December 31, 2008, our cash and cash equivalents totaled $2.0 billion compared with $1.1 billion at December 31, 2007. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.13 at December 31, 2008 and 0.92 at December 31, 2007. Working capital increased by $747 million to $459 million at December 31, 2008 from working capital deficit of $288 million at December 31, 2007. The increase during the period was mostly due to the increase in our cash and cash equivalent balances resulting from the changes discussed below. 56
LIQUIDITY AND CAPITAL RESOURCES Our principal sources of liquidity are our cash, cash equivalents and the cash flow that we generate from our operations. From 2006 to 2008 we experienced At As 56
LIQUIDITY AND CAPITAL RESOURCES Our principal sources of liquidity are our cash, cash equivalents and the cash flow that we generate from our operations. From 2006 to 2008 we experienced At As 56
This excerpt taken from the DTV 10-Q filed Nov 6, 2008. LIQUIDITY AND CAPITAL RESOURCES At September 30, 2008, our cash and cash equivalents totaled $3.0 billion compared with $1.1 billion at December 31, 2007. The $1.9 billion increase resulted primarily from the $2.5 billion of net cash proceeds from the issuance of senior notes and borrowings under our senior secured credit facility which were completed in May 2008 as described in Note 4 of the Notes to the Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report, $2.8 billion of cash provided by operating activities and a $160 million capital contribution, partially offset by $1.6 billion of cash paid for the acquisition of satellites, property and equipment, $1.8 billion in cash used for the repurchase of shares and $203 million of cash paid for investments. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.48 at September 30, 2008 compared to 0.92 at December 31, 2007. The increase in our current ratio during the nine months ended September 30, 2008 was primarily due to the change in our cash and cash equivalents balance discussed above. As of September 30, 2008, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility, which is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. During 2008 and 2007 our Board of Directors approved multiple authorizations for the repurchase of our common stock, the most recent of which was in May 2008 and increased authorized share repurchases to $3.0 billion. As of September 30, 2008, we had approximately $1.3 billion remaining under this authorization. During the nine months ended September 30, 2008, we repurchased and retired 69.2 million shares for $1.8 billion, at an average price of $26.56. We may make purchases under this program in the open market, through negotiated transactions or otherwise. The timing, nature and amount of such transactions will depend on a variety of factors, including market conditions, and the program may be suspended, discontinued or accelerated at any time. The sources of funds for the purchases under the remaining authorization are our existing cash on hand and cash from operations. We expect to fund our cash requirements and our existing business plan using our available cash balances and cash provided by operations. Additional borrowings, which may include borrowings under the $500 million DIRECTV U.S. revolving credit facility, may be required to fund strategic investment opportunities should they arise. Also, as discussed in Note 6 of the Notes to the Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report, Globo has the right to exchange Sky Brazil shares for cash or our common shares. If Globo exercises this right, we have the option to elect to pay the consideration in cash, shares of our common stock, or a combination of both. In addition, we have approximately $61 million of cash on deposit at our Venezuelan subsidiary that is subject to exchange controls that limit our ability to transfer the cash outside of Venezuela. Venezuelan deposits are denominated in bolivars and translated at the official exchange rate. Several factors may affect our ability to fund our operations and commitments that we discuss in "Contingencies" below. In addition, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our term loans under DIRECTV U.S.' senior secured credit facility. Additionally, DIRECTV U.S.' ability to borrow under the senior secured credit facility is contingent upon DIRECTV U.S. meeting financial and other covenants associated with its credit facility as more fully described in Note 4 of the Notes to 39
the Consolidated Financial Statements in Item 1, Part I of this Quarterly Report and in Note 8 to the Notes to the Consolidated Financial Statements in Item 8, Part II of our 2007 Form 10-K. This excerpt taken from the DTV 10-Q filed Aug 7, 2008. LIQUIDITY AND CAPITAL RESOURCES At June 30, 2008, our cash and cash equivalents totaled $3.8 billion compared with $1.1 billion at December 31, 2007. The $2.7 billion increase resulted primarily from the $2.5 billion of net cash 38 THE DIRECTV GROUP, INC. proceeds from the issuance of senior notes and borrowings under our senior secured credit facility which were completed in May 2008 as described in Note 4 of the Notes to the Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report, $2.0 billion of cash provided by operating activities and a $160 million capital contribution, partially offset by $1.0 billion of cash paid for the acquisition of satellites, property and equipment, $736 million in cash used for the repurchase of shares and $104 million of cash paid for investments. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.75 at June 30, 2008 compared to 0.92 at December 31, 2007. The increase in our current ratio during the six months ended June 30, 2008 was primarily due to the change in our cash and cash equivalents balance discussed above. As of June 30, 2008, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility, which is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. During 2008 and 2007 our Board of Directors approved multiple authorizations for the repurchase of our common stock, the most recent of which was in May 2008 and increased authorized share repurchases to $3.0 billion. As of June 30, 2008, we had approximately $2.4 billion remaining to spend under this authorization. During the six months ended June 30, 2008, we repurchased and retired 30 million shares for $796 million, at an average price of $26.52. We may make purchases under this program in the open market, through negotiated transactions or otherwise. The timing, nature and amount of such transactions will depend on a variety of factors, including market conditions, and the program may be suspended, discontinued or accelerated at any time. The sources of funds for the purchases are our existing cash on hand and cash from operations. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under the $500 million DIRECTV U.S. revolving credit facility, may be required to fund strategic investment opportunities should they arise. Also, as discussed in Note 6 of the Notes to the Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report, Globo has the right to exchange Sky Brazil shares for cash or our common shares. If Globo exercises this right, we have the option to elect to pay the consideration in cash, shares of our common stock, or a combination of both. In addition, we have approximately $80 million of cash on deposit at our Venezuelan subsidiary that is subject to exchange controls that limit our ability to transfer the cash outside of Venezuela. Venezuelan deposits are denominated in bolivars and translated at the official exchange rate. Several factors may affect our ability to fund our operations and commitments that we discuss in "Contingencies" below. In addition, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our term loans under DIRECTV U.S.' senior secured credit facility. Additionally, DIRECTV U.S.' ability to borrow under the senior secured credit facility is contingent upon DIRECTV U.S. meeting financial and other covenants associated with its credit facility as more fully described in Note 4 of the Notes to the Consolidated Financial Statements in Item 1, Part I of this Quarterly Report and in Note 8 to the Notes to the Consolidated Financial Statements in Item 8, Part II of our 2007 Form 10-K. 39 THE DIRECTV GROUP, INC. This excerpt taken from the DTV 10-Q filed May 7, 2008. LIQUIDITY AND CAPITAL RESOURCES At March 31, 2008, our cash and cash equivalents totaled $1.6 billion compared with $1.1 billion at December 31, 2007. The $543 million increase resulted primarily from $1.1 billion of cash provided by operating activities and a $160 million capital contribution, partially offset by $566 million of cash paid for the acquisition of satellites, property and equipment and $160 million in cash used for the repurchase of shares. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.00 at March 31, 2008 compared to 0.92 at December 31, 2007. The increase in our current ratio during the quarter was primarily due to the change in our cash and cash equivalents balance discussed above. As of March 31, 2008, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility, which is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. During 2007 and 2008 our Board of Directors approved multiple authorizations for the repurchase of our common stock. During the first quarter of 2008 we repurchased and retired 7 million shares for $170 million, at an average price of $24.14. Subsequent to March 31, 2008, the Board of Directors approved an increase in our share purchase program to $3 billion, in addition to previously completed share purchases. We may make purchases under this program in the open market, through negotiated transactions or otherwise. The timing, nature and amount of such transactions will depend on a variety of factors, including market conditions, and the program may be suspended, discontinued or accelerated at any time. The sources of funds for such program are available cash, cash from operations and the anticipated proceeds of new borrowings of approximately $2 billion by DIRECTV U.S., which are presently anticipated to be completed in May 2008. Such proposed new borrowings are subject to market conditions and other factors, so there is no assurance that such borrowings will be completed or, if completed, will be sufficient to provide the anticipated amount of funding. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under 31 THE DIRECTV GROUP, INC. the $500 million DIRECTV U.S. revolving credit facility, may be required for wireless broadband and other strategic investment opportunities should they arise. Also, as discussed in Note 6 of the Notes to the Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report, Globo has the right to exchange Sky Brazil shares for cash or our common shares. If Globo exercises this right, we have the option to elect to pay the consideration in cash, shares of our common stock, or a combination of both. Several factors may affect our ability to fund our operations and commitments that we discuss in "Contingencies" below. In addition, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our term loans under DIRECTV U.S.' senior secured credit facility. Additionally, DIRECTV U.S.' ability to borrow under the senior secured credit facility is contingent upon DIRECTV U.S. meeting financial and other covenants associated with its credit facility as more fully described in Note 4 of the Notes to the Consolidated Financial Statements in Item 1, Part I of this Quarterly Report and in Note 8 to the Notes to the Consolidated Financial Statements in Item 8, Part II of our 2007 Form 10-K. These excerpts taken from the DTV 10-K filed Feb 25, 2008. LIQUIDITY AND CAPITAL RESOURCES At December 31, 2007, our cash and cash equivalent balances and short-term investments totaled $1.09 billion compared with $2.67 billion at December 31, 2006. The $1.58 billion decrease resulted primarily from the use of $2.03 billion of cash for the share repurchase program, $2.69 billion of cash for the acquisition of property and satellites, $325 million of cash to purchase Darlene's 14% interest in DLA LLC, and $210 million of cash for the repayment of Sky Brazil debt, partially offset by $3.65 billion of cash provided by operations. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 0.92 at December 31, 2007 and 1.37 at December 31, 2006. Working capital decreased by $1,522 million to a deficit of $288 million at December 31, 2007 from working capital of $1,234 million at December 31, 2006. The decreases during the period were mostly due to the decline in our cash and short-term investment balances resulting from the changes discussed above. As of December 31, 2007, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility. The DIRECTV U.S. credit facility is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV 53 THE DIRECTV GROUP, INC. U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. During 2006 and 2007 our Board of Directors approved multiple authorizations for the repurchase of a total of $5 billion of our common stock, the most recent of which was a $1 billion authorization in August 2007 that was completed in December 2007. Subsequent to December 31, 2007, our Board of Directors authorized the repurchase of an additional $1 billion of our common stock. For the year ended December 31, 2007, we repurchased 86 million shares for $2 billion, at an average price of $23.48 per share under our share repurchase program. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under the $500 million DIRECTV U.S. revolving credit facility, may be required for wireless broadband strategic investment opportunities should they arise, or if the authorized amount of our share repurchase program is significantly increased. However, several factors may affect our ability to fund our operations and commitments that we discuss in "Contractual Obligations, Off-Balance Sheet Arrangements and Contingencies" below. In addition, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our term loans under DIRECTV U.S.' senior secured credit facility. Debt. At December 31, 2007, we had $3,395 million in total outstanding borrowings, bearing a weighted average interest rate of 6.8%. Our outstanding borrowings primarily consist of notes payable and amounts borrowed under a senior secured credit facility of DIRECTV U.S. as more fully described in Note 8 of the Notes to the Consolidated Financial Statements in Item 8, Part II of this Annual Report, which we incorporate herein by reference. Our short-term borrowings, notes payable, senior secured credit facility and other borrowings mature as follows: $48 million in 2008; $98 million in 2009; $297 million in 2010; $98 million in 2011; $10 million in 2012; and $2,842 million thereafter. However, these amounts do not reflect potential prepayments that may be required under DIRECTV U.S.' senior secured credit facility. We were not required to make a prepayment for the years ended December 31, 2007 and 2006. 54 THE DIRECTV GROUP, INC. LIQUIDITY AND CAPITAL RESOURCES At December 31, 2007, our cash and cash equivalent balances and short-term investments totaled $1.09 billion compared with As As 53 THE DIRECTV GROUP, INC. U.S. During We In Debt. At December 31, 2007, we had $3,395 million in total outstanding borrowings, bearing a weighted average Our 54 THE DIRECTV GROUP, INC. This excerpt taken from the DTV 10-Q filed Nov 7, 2007. LIQUIDITY AND CAPITAL RESOURCES At September 30, 2007, our cash and cash equivalent balances and short-term investments totaled $1.20 billion compared with $2.67 billion at December 31, 2006. The $1.47 billion decrease resulted primarily from the use of $2.05 billion of cash for the acquisition of satellites and property, $1.55 million in cash for the share repurchase programs, $325 million of cash to purchase Darlene's 14% interest in DLA LLC and $218 million of cash for the repayment of debt, partially offset by $2.64 billion of cash provided by operations. 38 As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 0.97 at September 30, 2007 and 1.37 at December 31, 2006. The decrease in our current ratio during the quarter was primarily due to the changes in our cash and short-term investment balances as a result of the uses discussed above. DIRECTV U.S. has the ability to borrow up to $500 million under its existing credit facility until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. On February 7, 2006, our Board of Directors authorized a $3.0 billion share repurchase program which we completed in February 2007. On February 27, 2007, our Board of Directors authorized the repurchase of an additional $1.0 billion of our common stock which we completed in August 2007. On August 8, 2007, our Board of Directors authorized the repurchase of an additional $1.0 billion of our common stock. During the nine months ended September 30, 2007, we repurchased 67 million shares for $1.55 billion, at an average price of $23.03 per share. The source of the funds for the purchases is our existing cash on hand and cash from operations. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under the $500 million DIRECTV U.S. revolving credit facility, may be required for wireless broadband strategic investment opportunities should they arise, or if the authorized amount of our share repurchase program is significantly increased. In addition, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our term loans under DIRECTV U.S.' senior secured credit facility. This excerpt taken from the DTV 10-Q filed Aug 9, 2007. LIQUIDITY AND CAPITAL RESOURCES At June 30, 2007, our cash and cash equivalent balances and short-term investments totaled $1.99 billion compared with $2.67 billion at December 31, 2006. The $682 million decrease resulted primarily from the use of $1.35 billion of cash for the acquisition of satellites and property, $697 million in cash for the share repurchase program, $325 million of cash to purchase Darlene's 14% interest in DLA LLC and $215 million cash for the repayment of debt, partially offset by $1.86 million of cash provided by operations. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.19 at June 30, 2007 and 1.37 at December 31, 2006. The decrease in our current ratio during the quarter was 39 due to the changes in our cash and short-term investment balances as a result of the uses discussed above. As of June 30, 2007, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility. The DIRECTV U.S. credit facility is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. On February 7, 2006, our Board of Directors authorized a $3.0 billion share repurchase program which we completed in February 2007. On February 27, 2007, our Board of Directors authorized the repurchase of an additional $1.0 billion of our common stock which we completed in August 2007. During the six months ended June 30, 2007, we repurchased 32 million shares for $737 million, at an average price of $23.31 per share. During the six months ended June 30, 2006, we repurchased 168 million shares for $2.7 billion, at an average price of $16.01 per share. On August 8, 2007, our Board of Directors authorized the repurchase of an additional $1 billion of our common stock. The source of the funds for the purchases is our existing cash on hand and cash from operations. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under the $500 million DIRECTV U.S. revolving credit facility, may be required for wireless broadband strategic investment opportunities should they arise, or if the authorized amount of our share repurchase program is significantly increased. However, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our term loans under DIRECTV U.S.' senior secured credit facility. This excerpt taken from the DTV 10-Q filed May 10, 2007. LIQUIDITY AND CAPITAL RESOURCES At March 31, 2007, our cash and cash equivalent balances and short-term investments totaled $2.38 billion compared with $2.67 billion at December 31, 2006. The $291.7 million decrease resulted primarily from the use of $689.6 million of cash for the acquisition of satellites and property, $325.0 million of cash used to purchase Darlene's 14% interest in DLA LLC, $212.5 million cash used for the repayment of debt and $100.7 million in cash for the share repurchase program partially offset by $998.7 million of cash provided by operations. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.30 at March 31, 2007 and 1.37 at December 31, 2006. The decrease in our current ratio during the quarter 30 was due to the changes in our cash and short-term investment balances as a result of the uses discussed above. As of March 31, 2007, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility. The DIRECTV U.S. credit facility is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. On February 7, 2006, our Board of Directors authorized a $3.0 billion share repurchase program which was completed in February 2007. On February 27, 2007, our Board of Directors authorized the repurchase of up to an additional $1.0 billion of our common stock. During the three months ended March 31, 2007, we repurchased 5.8 million shares for $132.5 million, at an average price of $22.85 per share. During the three months ended March 31, 2006, we repurchased 116.0 million shares for $1.8 billion, at an average price of $15.52 per share. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under the $500.0 million DIRECTV U.S. revolving credit facility, may be required for wireless broadband strategic investment opportunities should they arise, or if the authorized amount of our share repurchase program is significantly increased. However, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our term loans under DIRECTV U.S.' senior secured credit facility. This excerpt taken from the DTV 10-K filed Mar 1, 2007. LIQUIDITY AND CAPITAL RESOURCES At December 31, 2006, our cash and cash equivalent balances and short-term investments totaled $2.67 billion compared with $4.38 billion at December 31, 2005. The $1.71 billion decrease resulted primarily from the use of $2.98 billion of cash for the share repurchase program, $1.98 billion of cash for the acquisition of property and satellites, $373.0 million of cash for the acquisition of our equity interest in Sky Mexico, and $100.2 million of cash for the repayment of other long-term obligations. These cash uses were partially offset by $3.16 billion of cash provided by operations, $182.4 million of cash received from the sale of investments including the investments in HNS LLC and a portion of our investment in Sky Mexico, $257.1 million of cash received from the exercise of stock options by employees, and $141.6 million of cash received from the collection of notes receivable. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.37 at December 31, 2006 and 2.16 at December 31, 2005. Working capital decreased by $2,035.2 million to $1,233.1 million at December 31, 2006 from working capital of $3,268.3 million at December 31, 2005. The decrease in our current ratio during the period was mostly due to the decline in our cash and short-term investment balances resulting from the changes discussed above. As of December 31, 2006, DIRECTV U.S. had the ability to borrow up to $500 million under its existing credit facility. The DIRECTV U.S. credit facility is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. In 2006, we generated $1,185.9 million of free cash flow, defined as net cash provided by operating activities less cash paid for property and satellites. During 2007, we expect free cash flow to remain relatively consistent with 2006. An anticipated increase in operating profit before depreciation and amortization is anticipated to be offset by a significant increase in cash paid for income taxes due mostly to the utilization of our net operating loss carrforwards in 2006 and an increase in capital expenditures for leased subscriber equipment and broadcast equipment to support the launch of new local HD channels. Through December 31, 2006, we have repurchased 184.1 million shares for $2.98 billion, at an average price of $16.16 per share, under our $3.0 billion share repurchase program, which we completed in February 2007. 56 On February 27, 2007, our Board of Directors authorized the repurchase of up to an additional $1.0 billion of our common stock, using our available cash and cash from operations, from time to time through open market purchases or negotiated transactions. The program may be suspended or discontinued at any time. In January 2007, we used $325.0 million in cash for the acquisition of Darlene's 14% minority interest in DLA LLC and $210.0 million in cash in connection with the assignment of the Sky Brazil bank loan to a wholly-owned subsidiary of The DIRECTV Group by the lending banks. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under the $500.0 million revolving credit facility at DIRECTV U.S., may be required for wireless broadband strategic investment opportunities should they arise, or if the authorized amount of our share repurchase program is significantly increased. However, several factors may affect our ability to fund our operations and commitments that we discuss in "Contractual Obligations, Off-Balance Sheet Arrangements and Contingencies" below. In addition, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our Term Loans under DIRECTV U.S.' senior secured credit facility. Debt. At December 31, 2006, we had $3,615.3 million in total outstanding borrowings, bearing a weighted average interest rate of 7.1%. Our outstanding borrowings primarily consist of notes payable and amounts borrowed under a credit facility of DIRECTV U.S. as more fully described in Note 9 of the Notes to the Consolidated Financial Statements in Item 8, Part II of this Annual Report, which we incorporate herein by reference. Our short-term borrowings, notes payable, credit facility and other borrowings mature as follows: $220.1 million in 2007; $47.6 million in 2008; $97.6 million in 2009; $297.5 million in 2010; $97.6 million in 2011; and $2,852.1 million thereafter. However, these amounts do not reflect potential prepayments that may be required under DIRECTV U.S.' senior secured credit facility. We were not required to make a prepayment for the years ended December 31, 2006 and 2005. 57 This excerpt taken from the DTV 10-Q filed Nov 9, 2006. LIQUIDITY AND CAPITAL RESOURCES At September 30, 2006, our cash and cash equivalent balances and short-term investments totaled $2.27 billion compared with $4.38 billion at December 31, 2005. The $2.11 billion decrease resulted primarily from the use of $2.95 billion of cash for the share repurchase program, $1.29 billion of cash for the acquisition of satellites and property, $373.0 million of cash for the acquisition of our equity interest in Sky Mexico, and $72.3 million of cash for the repayment of other long-term obligations. These cash uses were partially offset by $2.17 billion of cash provided by operations, $182.4 million of cash received from the sale of investments including the investments in HNS LLC and a portion of our investment in Sky Mexico, $115.3 million of cash received from the exercise of stock options by employees, and $141.6 million of cash received from the collection of notes receivable. In addition to our existing cash balances, DIRECTV U.S. currently has the ability to borrow up to $500.0 million under its revolving credit facility. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.30 at September 30, 2006 and 2.16 at December 31, 2005. The decrease in our current ratio during the period was mostly due to the decline in our cash and short-term investment balances resulting from the changes discussed above. Through September 30, 2006, we have repurchased approximately 182.7 million shares of our common stock for approximately $2.95 billion under our $3.0 billion authorized share repurchase program. We expect to have cash requirements during the remainder of 2006 for capital expenditures and to complete our authorized share repurchase program. We expect to fund our cash requirements and our existing business plan using our available cash balances, and cash provided by operations. Additional borrowings, which may include borrowings under the $500.0 million revolving credit facility at DIRECTV U.S., may be required for wireless broadband strategic investment opportunities should they arise, or if the authorized amount of our share repurchase program is significantly increased. This excerpt taken from the DTV 10-Q filed Aug 8, 2006. LIQUIDITY AND CAPITAL RESOURCES At June 30, 2006, our cash and cash equivalent balances and short-term investments totaled $2.0 billion compared with $4.4 billion at December 31, 2005. The $2.3 billion decrease resulted primarily from the use of $2.7 billion in cash for the share repurchase program, $373.0 million of cash used for the acquisition of our equity interest in Sky Mexico, and $734.0 million of cash used for the acquisition of satellites and property, partially offset by $1,300.2 million of cash provided by operations and $182.4 million of proceeds from the sale of investments including the investments in HNS LLC and the portion of our investment in Sky Mexico. In addition to our existing cash balances, DIRECTV U.S currently has the ability to borrow up to $500.0 million under its revolving credit facility. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.48 at June 30, 2006 and 2.16 at December 31, 2005. The decrease in our current ratio during the period was mostly due to the changes in our cash and short-term investment balances as a result of the sources and uses of cash discussed above. On February 7, 2006, our Board of Directors authorized a share repurchase program. Under the repurchase program, we are authorized to spend up to $3.0 billion to repurchase outstanding shares of our common stock. Through June 30, 2006, we have repurchased approximately 168.3 million shares for approximately $2.7 billion, at an average price of $16.01 per share. On July 17, 2006 we deposited $486.3 million with the FCC to participate in its advanced wireless spectrum auction scheduled for August 9, 2006. We expect to have cash requirements during the remainder of 2006 for capital expenditures and to fund our share repurchase program. We expect to fund our cash requirements and our existing business plan using our available cash balances, cash provided by operations, and the $97.0 million in cash we will receive from News Corporation at the close of the Sky Brasil transaction later in 2006. Additional borrowings, which may include borrowings under the $500.0 million revolving credit facility at DIRECTV U.S., may be required for significant wireless broadband strategic investment opportunities should they arise, or if the authorized amount of our share repurchase program is significantly increased. This excerpt taken from the DTV 10-Q filed May 8, 2006. LIQUIDITY AND CAPITAL RESOURCES At March 31, 2006, our cash and cash equivalent balances and short-term investments totaled $2.5 billion compared with $4.4 billion at December 31, 2005. The $1.9 billion decrease resulted primarily from the use of $1.8 billion in cash for the share repurchase program, $373 million of cash used for the acquisition of our equity interest in Sky Mexico, and $270.3 million of cash used for the acquisition of satellites and property, partially offset by $439.8 million of cash provided by operations and $110 million of proceeds from the sale of our investment in HNS LLC. In addition to our existing cash balances, DIRECTV U.S currently has the ability to borrow up to $500.0 million under its revolving credit facility. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 1.56 at March 31, 2006 and 2.16 at December 31, 2005. The decrease in our current ratio during the quarter was due to the changes in our cash and short-term investment balances as a result of the uses discussed above. On February 7, 2006, our Board of Directors authorized a share repurchase program. Under the repurchase program, we are authorized to spend up to $3.0 billion to repurchase outstanding shares of our common stock. Through March 31, 2006, we have repurchased approximately 116.0 million shares for $1.8 billion, at an average price of $15.52 per share. 30 We received $58.7 million in cash on April 27, 2006 in connection with the sale of a portion of our investment in Sky Mexico to Televisa. In addition, we expect to receive an additional $97 million in cash from News Corporation at the close of the Sky Brasil transaction. We expect to have cash requirements during the remainder of 2006 for capital expenditures and to fund our share repurchase program. We expect to fund our cash requirements and our existing business plan using our available cash balances, cash provided by operations, the $500.0 million of available borrowing capacity at DIRECTV U.S and additional borrowings, if needed. This excerpt taken from the DTV 10-K filed Mar 10, 2006. LIQUIDITY AND CAPITAL RESOURCES In 2005, our cash and cash equivalents balance increased $1,393.9 million to $3,701.3 million and our short-term investments balance increased $160.6 million to $683.2 million. These increases resulted primarily from $997.8 million of net proceeds from the refinancing transactions during the second quarter of 2005, $1,171.9 million of cash flows from operating activities, $246.0 million in cash proceeds from the SkyTerra transaction, and $113.1 million of proceeds from the sale of investments, partially offset by cash paid for satellites, property and equipment of $888.7 million. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) was 2.16 at December 31, 2005 and 1.77 at December 31, 2004. Working capital increased by $1,191.7 million to $3,268.3 million at December 31, 2005 from working capital of $2,076.6 million at December 31, 2004. The change was principally due to the increase in cash and short-term investments discussed above and increases in accounts receivable and inventories, partially offset by an increase in accounts payable and accrued liabilities. As of December 31, 2005, DIRECTV U.S. has the ability to borrow up to $500 million under its existing credit facility. The DIRECTV U.S. credit facility is available until 2011. DIRECTV U.S. is subject to restrictive covenants under its credit facility. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us. In 2005, we generated $448.6 million of positive cash flow (defined as net cash provided by operating activities less net cash used in investing activities). During 2006, including an expected net cash requirement of $204.0 million related to the Sky Transactions, we expect an increase in cash flow from 2005 due to an increase in operating profit, partially offset by higher sports programming contract payments and slightly higher capital expenditures at DIRECTV U.S. for satellites and broadcast equipment to support the launch of new local and HD channels, and to replace and backup existing satellites. On February 7, 2006, our Board of Directors authorized a share repurchase program. Under the repurchase program, we are authorized to spend up to $3.0 billion to repurchase outstanding shares of our common stock. We implemented the repurchase program on February 10, 2006. There is no fixed termination date for the repurchase program and purchases may be made in the open market, through block trades and other negotiated transactions. This program may be suspended, discontinued or 54 accelerated at any time. Through March 7, 2006, we have repurchased approximately 110.3 million shares for $1.7 billion, at an average price of $15.50 per share, which includes 100 million shares of our common stock purchased from General Motors employee pension and benefit trusts. We expect to fund our operations and the balance of the share repurchase program from a combination of existing cash balances, cash provided from operations and amounts available under DIRECTV U.S.' existing credit facility. We believe the financing transactions completed in 2005, as described in Note 9 of the Notes to the Consolidated Financial Statements in Item 8, Part II, provide liquidity to fund our operations and commitments for the foreseeable future. However, several factors may affect our ability to fund our operations and commitments that we discuss in "Contractual Obligations, Off-Balance Sheet Arrangements and Contingencies" below. In addition, our future cash flows may be reduced if we experience, among other things, significantly higher subscriber additions than planned, increased subscriber churn or upgrade and retention costs, higher than planned capital expenditures for satellites and broadcast equipment, satellite anomalies or signal theft or if we are required to make a prepayment on our Term Loans. This excerpt taken from the DTV 10-Q filed Nov 4, 2005. LIQUIDITY AND CAPITAL RESOURCES During the nine month period ended September 30, 2005, our cash and cash equivalents balance increased by $1,264.8 million to $3,572.2 million and our short term investments balance increased by $130.4 million from $522.6 million to $653.0 million. These increases resulted primarily from the $966.0 million of net proceeds from the refinancing transactions during the second quarter of 2005, $703.8 million of cash flows from operating activities, $246.0 million in cash proceeds from the SkyTerra transaction, and $113.1 million of proceeds from the sale of our investment in TTSL, partially offset by cash paid for satellites, property and equipment of $616.0 million. In addition to our existing cash 48 balances, at September 30, 2005 DIRECTV U.S. currently has the ability to borrow up to $500.0 million under a revolving credit facility. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) at September 30, 2005 and December 31, 2004 was 2.17 and 1.77, respectively. The improvement in our current ratio is primarily due to the increase in cash and cash equivalents described above. We expect to fund our future cash requirements using our available cash balances and short-term investments and cash provided by operations. We also have $500.0 million available under DIRECTV U.S.' revolving credit facility, if necessary. This excerpt taken from the DTV 10-Q filed Aug 5, 2005. LIQUIDITY AND CAPITAL RESOURCES During the six month period ended June 30, 2005, our cash and cash equivalents balance increased $1,367.8 million to $3,675.2 million. This increase resulted primarily from the $966.0 million of net proceeds from the refinancing transactions during the second quarter of 2005, $330.4 million of cash flows from operating activities, $246.0 million in proceeds from the SkyTerra transaction, a $143.6 million decrease in short-term investments and $113.1 million of proceeds from the sale of our investment in TTSL, partially offset by expenditures for satellites, property and equipment of $433.2 million. In addition to our existing cash balances, DIRECTV U.S. currently has the ability to borrow up to $500.0 million under a revolving credit facility. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) at June 30, 2005 and December 31, 2004 was 2.28 and 1.77, respectively. We expect to fund our future cash requirements using our available cash balances and short-term investments, cash provided by operations and the $500.0 million of available borrowing capacity at DIRECTV U.S., if necessary. This excerpt taken from the DTV 10-Q filed May 5, 2005. LIQUIDITY AND CAPITAL RESOURCES In the first quarter of 2005, our cash and cash equivalents balance increased $371.1 million to $2,678.5 million. This increase resulted primarily from the sale of $522.6 million of auction rate securities and $79.2 million of proceeds from the sale of our investment in TTSL, partially offset by expenditures for satellites and property of $205.6 million and $33.7 million in repayments of long term debt and other long-term obligations. As discussed in Note 1 of the Notes to the Consolidated Financial Statements in Item 1, Part I of this Quarterly Report, auction rate securities are now reported as "Short-term investments" in the Consolidated Balance Sheets, rather than our former practice of including these investments in "Cash and cash equivalents." In addition to our existing cash 39 balances, DIRECTV U.S currently has the ability to borrow up to $500.0 million under its new revolving credit facility described below. As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) at March 31, 2005 and December 31, 2004 was 1.76 and 1.77, respectively. We expect to have cash requirements during the remainder of 2005 for the $182 million payments related to the Sky Transactions and capital expenditures. We expect to fund these cash requirements and our existing business plan using our available cash balances, cash provided by operations and the $500.0 million of available borrowing capacity at DIRECTV U.S. This excerpt taken from the DTV 10-K filed Mar 1, 2005. LIQUIDITY AND CAPITAL RESOURCES
In 2004, our cash and cash equivalents balance increased $1,050.5 million to $2,830.0 million. This increase resulted primarily from cash proceeds of: $2.64 billion from the sale of PanAmSat; $477.5 million for the sale of
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THE DIRECTV GROUP, INC.
XM Satellite Radio shares; $250.0 million for the execution of the supply and development contract and sale of HNS’ set-top receiver manufacturing operations to Thomson and $226.5 million for the sale of HSS. These sources of cash were partially offset by: $1.02 billion of cash used for capital expenditures primarily at DIRECTV U.S., $960.2 million in payments for the purchase of Pegasus and NRTC subscribers, $398.0 million in payments for the News Corporation and Liberty Media equity stakes in the Sky Latin America platforms, and $213.2 million for required repayments by DIRECTV U.S. on its term loan facility.
As a measure of liquidity, the current ratio (ratio of current assets to current liabilities) at December 31, 2004 and 2003 was 1.77 and 1.77, respectively. Working capital decreased by $2,439.7 million to $2,076.6 million at December 31, 2004 from working capital of $4,516.3 million at December 31, 2003. The change was principally due to the sale of PanAmSat, partially offset by the increase in cash discussed above.
As of December 31, 2004, DIRECTV U.S. has the ability to borrow up to $250 million under existing credit facilities. The DIRECTV U.S. credit facilities are available until 2008. DIRECTV U.S. is subject to restrictive covenants under its credit facilities. These covenants limit the ability of DIRECTV U.S. and its respective subsidiaries to, among other things, make restricted payments, including dividends, loans or advances to us.
In 2004, we generated $1,261.7 million of positive cash flow (defined as net cash provided by operating activities plus net cash provided by investing activities). In 2005, we expect to be about cash flow break-even. The additional operating cash flows resulting from an anticipated improvement in operating profits, the $251.0 million in expected proceeds from the SkyTerra transaction and the proceeds from the sale of our investment in Tata Teleservices Limited’s redeemable preference shares in 2005 will be offset in part by cash requirements for investing activities related to the remaining cash payments at completion of the Sky Transactions. During 2005 and 2006, we anticipate that the amount of capital expenditures will be generally consistent with 2004 due to capital expenditures at DIRECTV U.S. for satellites and broadcast equipment used in the launch of local HDTV channels.
The financing transactions completed in 2003, as described in Note 9 of the Notes to the Consolidated Financial Statements in Item 8, Part II, provide liquidity to fund our existing business plan. As a result, we expect to fund our existing business plan from a combination of existing cash balances, cash provided from operations and amounts available under existing credit facilities. We are currently considering refinancing opportunities or otherwise modifying the maturity, amount and covenants of our outstanding indebtedness, through amendments, restatements or otherwise depending on market conditions.
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