DIRECTV 2008 Annual Report Download - page 99

Download and view the complete annual report

Please find page 99 of the 2008 DIRECTV annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The following table sets forth total minimum lease payments under capital leases along with the
present value of the net minimum lease payments as of December 31, 2008:
(Dollars in Millions)
2009 .......................................................... $ 83
2010 .......................................................... 80
2011 .......................................................... 77
2012 .......................................................... 76
2013 .......................................................... 75
Thereafter ...................................................... 586
Total minimum lease payments ....................................... 977
Less: Amount representing interest .................................... 393
Present value of net minimum lease payments ............................ $584
Assets held under capitalized leases are included in Satellites, net and Property and Equipment,
net in our Consolidated Balance Sheets. We had the following assets held under capital leases as of
December 31:
2008 2007
(Dollars in
Millions)
Satellites under capital leases ............................................ $533 $ 44
Less: Accumulated amortization .......................................... (20) (24)
Satellites, net under capital leases ......................................... $513 $ 20
Property and equipment under capital leases ................................. $27 $11
Less: Accumulated amortization .......................................... (4) (1)
Property and equipment, net under capital leases .............................. $ 23 $10
We paid interest for capital leases of $27 million in 2008, $4 million in 2007 and $2 million in
2006.
Note 11: Pension and Other Postretirement Benefit Plans
Most of our employees are eligible to participate in our funded non-contributory defined benefit
pension plan, which provides defined benefits based on either years of service and final average salary,
or eligible compensation while employed by the company. Additionally, we maintain a funded
contributory defined benefit plan for employees who elected to participate prior to 1991, and an
unfunded, nonqualified pension plan for certain eligible employees. For participants in the contributory
pension plan, we also maintain a postretirement benefit plan for those eligible retirees to participate in
health care and life insurance benefits generally until they reach age 65. Participants may become
eligible for these health care and life insurance benefits if they retire from our company between the
ages of 55 and 65. The health care plan is contributory with participants’ contributions subject to
adjustment annually; the life insurance plan is non-contributory.
On December 31, 2007, we adopted the measurement date provision of SFAS No. 158,
‘‘Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans—an amendment
of FASB Statements No. 87, 88, 106, and 132(R).’’ This provision requires the measurement of plan
86