Directv 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Statements of Oper

Consolidated Statements of Operations (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues	$18,671	$17,310	$15,527
Operating costs and expenses
Broadcast programming and other	8,027	7,424	6,681
Subscriber service expenses	1,268	1,139	1,137
Broadcast operations expenses	274	265	216
Selling, general and administrative expenses, exclusive of depreciation and amortization expense
Subscriber acquisition costs	2,478	2,191	1,901
Upgrade and retention costs	1,045	1,027	958
General and administrative expenses	894	873	784
Depreciation and amortization expense	2,275	2,061	1,448
Total operating costs and expenses	16,261	14,980	13,125
Operating profit	2,410	2,330	2,402
Interest income	4	37	69
Interest expense	(348)	(315)	(216)
Other, net	(17)	5	(5)
Income before income taxes	2,049	2,057	2,250
Income tax expense	(794)	(807)	(891)
Net income	$1,255	$1,250	$1,359

Consolidated Balance Sheets

Consolidated Balance Sheets (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
ASSETS
Cash and cash equivalents	$1,716	$1,149
Accounts receivable, net	1,421	1,308
Inventories	200	182
Deferred income taxes	60	46
Prepaid expenses and other	163	261
Total current assets	3,560	2,946
Satellites, net	1,870	1,980
Property and equipment, net	2,998	3,348
Goodwill	3,167	3,189
Intangible assets, net	582	871
Other assets	231	212
Total assets	12,408	12,546
LIABILITIES AND OWNER'S EQUITY
Accounts payable and accrued liabilities	2,727	2,582
Unearned subscriber revenues and deferred credits	353	316
Current portion of long-term debt	308	108
Total current liabilities	3,388	3,006
Long-term debt	6,500	5,725
Deferred income taxes	559	405
Other liabilities and deferred credits	510	763
Owner's equity
Capital stock and additional paid-in capital	1,076	2,403
Retained earnings	375	244
Total owner's equity	1,451	2,647
Total liabilities and owner's equity	$12,408	$12,546

Consolidated Statements of Chan

Consolidated Statements of Changes in Owner's Equity (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007	Dec. 31, 2006
Balance, Value	$2,647	$4,740	$4,388
Net income	1,255	1,250	1,359
Dividend to Parent	(2,500)	(3,400)	(1,050)
Capital contribution from Parent	44	43	41
Adjustment to initially record cumulative effect of adopting accounting standard for uncertainty in income taxes, net of tax			(3)
Other	5	14	5
Balance, Value	1,451	2,647	4,740	4,388
Capital stock and additional paid-in capital (CapitalStockAndAdditionalPaidInCapitalMember)
Balance, Value	2,403	2,782	3,786
Dividend to Parent	(1,376)	(436)	(1,050)
Capital contribution from Parent	44	43	41
Other	5	14	5
Balance, Value	1,076	2,403	2,782	3,786
Retained earnings
Balance, Value	244	1,958	602
Net income	1,255	1,250	1,359
Dividend to Parent	(1,124)	(2,964)
Adjustment to initially record cumulative effect of adopting accounting standard for uncertainty in income taxes, net of tax			(3)
Balance, Value	$375	$244	$1,958	$602

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows From Operating Activities
Net income	$1,255	$1,250	$1,359
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization	2,275	2,061	1,448
Amortization of deferred revenues and deferred credits	(48)	(104)	(98)
Share-based compensation expense	44	43	41
Deferred income taxes	229	52	162
Other	20	11	11
Change in other operating assets and liabilities
Accounts receivable, net	(121)	93	(120)
Inventories	(10)	22	(47)
Prepaid expenses and other	98	(109)	3
Accounts payable and accrued liabilities	(76)	(47)	138
Unearned subscriber revenue and deferred credits	33	(4)	60
Other, net	(8)	9	(48)
Net cash provided by operating activities	3,691	3,277	2,909
Cash Flows From Investing Activities
Cash paid for property and equipment	(443)	(501)	(621)
Cash paid for subscriber leased equipment - subscriber acquisitions	(564)	(599)	(762)
Cash paid for subscriber leased equipment - upgrade and retention	(419)	(537)	(774)
Cash paid for satellites	(59)	(128)	(169)
Investment in companies, net of cash acquired	(11)	(97)	0
Other	0	5	(9)
Net cash used in investing activities	(1,496)	(1,857)	(2,335)
Cash Flows From Financing Activities
Cash proceeds from debt issuance	1,990	2,490	0
Debt issuance costs	(14)	(19)	0
Repayment of long-term debt	(1,018)	(53)	(10)
Repayment of other long-term obligations	(90)	(98)	(72)
Cash dividends to Parent	(2,500)	(3,400)	(1,050)
Excess tax benefit from share-based compensation	4	7	4
Net cash used in financing activities	(1,628)	(1,073)	(1,128)
Net increase (decrease) in cash and cash equivalents	567	347	(554)
Cash and cash equivalents at beginning of the year	1,149	802	1,356
Cash and cash equivalents at end of the year	1,716	1,149	802
Supplemental Cash Flow Information
Cash paid for interest	341	289	211
Cash paid for income taxes	$529	$753	$730

Description of Business

Description of Business
	12 Months Ended Dec. 31, 2009
Description of Business [Abstract]
Description of Business	Note1: Description of Business DIRECTV HoldingsLLC is an indirect, whollyowned subsidiary of DIRECTV and consists of DIRECTV Enterprises,LLC and its whollyowned subsidiaries and DIRECTV FinancingCo.,Inc. We sometimes refer to DIRECTV HoldingsLLC as DIRECTV Holdings, DIRECTV U.S., we or us and sometimes refer to DIRECTV as our Parent. We are the largest provider of direct-to-home, or DTH, digital television services and the second largest provider in the multichannel video programming distribution, or MVPD, industry in the United States. On November19, 2009, The DIRECTV Group,Inc., or DIRECTV Group, and Liberty Media Corporation, which we refer to as Liberty or Liberty Media, obtained shareholder approval of and closed a series of related transactions which we refer to collectively as the Liberty Transaction. The Liberty Transaction included the split-off of certain of the assets of the Liberty Entertainment group into Liberty Entertainment,Inc., or LEI, which was then split-off from Liberty. Following the split-off, DIRECTV Group and LEI merged with subsidiaries of DIRECTV. As a result of the Liberty Transaction, DIRECTV Group, which is comprised of the DIRECTV U.S. and DIRECTV Latin America businesses, and LEI, which held Libertys 57% interest in DIRECTV Group, a 100% interest in three regional sports networks, a 65% interest in GSN, approximately $120 million in cash and cash equivalents and approximately $2.1 billion of indebtedness and a related series of equity collars became wholly-owned subsidiaries of DIRECTV. DIRECTV Holdings remained a direct subsidiary of DIRECTV Group and became an indirect subsidiary of DIRECTV.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009
Basis of Presentation and Summary of Significant Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note2: Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation We include the accounts of DIRECTV Holdings and our majority owned subsidiaries, after elimination of intercompany accounts and transactions, in the accompanying consolidated financial statements. Use of Estimates in the Preparation of the Consolidated Financial Statements We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, which requires us to make estimates and assumptions that affect amounts reported herein. We base our estimates and assumptions on historical experience and on various other factors that we believe to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, our actual results reported in future periods may be affected by changes in those estimates. Revenue Recognition We recognize subscription and pay-per-view revenues when programming is broadcast to subscribers. We recognize subscriber fees for multiple set-top receivers, our published programming guide, warranty services and equipment rental as revenue, as earned. We recognize advertising revenues when the related services are performed. We defer programming payments received from subscribers in advance of the broadcast as Unearned subscriber revenues and deferred credits in the Consolidated Balance Sheets until earned. We recognize revenues to be received under contractual commitments on a straight-line basis over the minimum contractual period. Broadcast Programming and Other We recognize the costs of television programming distribution rights when we distribute the related programming. We recognize the costs of television programming rights to distribute live sporting events for a season or tournament to expense using the straight-line method over the course of the season or tournament. However, we charge the cost of multi-year programming contracts for live sporting events with minimum guarantee payments, such as DIRECTV U.S. agreement with the NFL, based on the contractual rates in the contract per season, unless the contractual rates are inconsistent with the relative value of the programming from season to season, in which case we record the expense based on the ratio of each periods sports programming package revenues to the estimated total package revenues to be earned over the contract period.. We evaluate estimated total contract revenues at least annually. We defer advance payments in the form of cash and equity instruments from programming content providers for carriage of their signal and recognize them as a reduction of Broadcast programming and other in the Consolidated Statements of Operations on a straight-line basis over the related contract term. We record equity instruments at fair value based on quoted market prices or values determined by management. Subscriber Acquisition Costs Subscriber acquisition costs consist of costs we incur to acquire new subscribers. We include the cost of set-top receivers and other equipment, commissions we pay to national retailers, independent satellite telev

Accounts Receivable, Net

Accounts Receivable, Net
	12 Months Ended Dec. 31, 2009
Accounts Receivable, Net [Abstract]
Accounts Receivable, Net	Note3: Accounts Receivable, Net The following table sets forth the amounts recorded for Accounts receivable, net in our Consolidated Balance Sheets as of December31: 2009 2008 (Dollars in Millions) Subscriber $887 $807 Trade and other 563 533 Subtotal 1,450 1,340 Less: Allowance for doubtful accounts (29) (32) Accounts receivable, net $1,421 $1,308

Satellites, Net and Property an

Satellites, Net and Property and Equipment, Net
	12 Months Ended Dec. 31, 2009
Satellites, Net and Property and Equipment, Net [Abstract]
Satellites, Net and Property and Equipment, Net	Note4: Satellites, Net and Property and Equipment, Net The following table sets forth the amounts recorded for Satellites, net and Property and equipment, net in our Consolidated Balance Sheets at December31: Estimated Useful Lives (years) 2009 2008 (Dollars in Millions) Satellites 10-15 $2,355 $2,483 Satellites under construction 354 292 Total 2,709 2,775 Less: Accumulated depreciation (839) (795) Satellites, net $1,870 $1,980 Land and improvements $26 $26 Buildings and leasehold improvements 6-30 301 287 Machinery and equipment 2-23 3,015 2,911 Subscriber leased set-top receivers 3-5 3,995 3,577 Construction in progress 330 235 Total 7,667 7,036 Less: Accumulated depreciation (4,669) (3,688) Property and equipment, net $2,998 $3,348 We capitalized interest costs of $18million in 2009, $18million in 2008 and $51million in 2007, as part of the cost of our property and satellites under construction. Depreciation expense was $1,984million in 2009, $1,707million in 2008 and $1,094million in 2007. On March1, 2006, we introduced a set-top receiver lease program. Prior to March1, 2006, most set-top receivers provided to new and existing subscribers were immediately expensed upon activation as a subscriber acquisition or upgrade and retention cost in the Consolidated Statements of Operations. Subsequent to the introduction of the lease program, we lease most set-top receivers provided to new and existing subscribers, and therefore capitalize the set-top receivers in Property and equipment, net in the Consolidated Balance Sheets. We depreciate capitalized set-top receivers over a three year estimated useful life and include the amount of set-top receivers capitalized each period in the Consolidated Statements of Cash Flows. The following table sets forth the amount of set-top receivers we capitalized, and depreciation expense we recorded under the lease program for each of the periods presented: Years ended December31, Capitalized subscriber leased equipment: 2009 2008 2007 (Dollars in Millions) Subscriber leased equipmentsubscriber acquisitions $564 $599 $762 Subscriber leased equipmentupgrade and retention 419 537 774 Total subscriber leased equipment capitalized $983 $1,136 $1,536 Depreciation expensesubscriber leased equipment $1,333 $1,100 $645

Goodwill and Intangible Assets

Goodwill and Intangible Assets
	12 Months Ended Dec. 31, 2009
Goodwill and Intangible Assets [Abstract]
Goodwill and Intangible Assets	Note5: Goodwill and Intangible Assets The following table sets forth the changes in the carrying amounts of Goodwill in the Consolidated Balance Sheets for the years ended December 31, 2009 and 2008: (Dollars in Millions) Balance as of January1, 2008 $3,032 Acquisition related to home service provider business 157 Balance as of December31, 2008 $3,189 Purchase or acquisition accounting adjustments: New acquisitions 24 Finalization of prior acquisitions (46) Balance as of December31, 2009 $3,167 The following table sets forth the components for Intangible assets, net in the Consolidated Balance Sheets at: December 31, 2009 December 31, 2008 Estimated Useful Lives (years) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount (Dollars in Millions) Orbital slots Indefinite $432 $432 $432 $432 72.5 WL orbital license 5 219 $219 219 $180 39 Subscriber related 5-10 1,348 1,309 39 1,348 1,116 232 Dealer network 15 130 90 40 130 79 51 Distribution rights 7 334 263 71 334 217 117 Total intangible assets $2,463 $1,881 $582 $2,463 $1,592 $871 Amortization expense for intangible assets was $289million in 2009, $352million in 2008 and $353 million in 2007. Estimated amortization expense for intangible assets in each of the next five years and thereafter is as follows: $90 million in 2010, $34million in 2011, $10million in 2012, $10million in 2013, $5million in 2014 and $1million thereafter. We performed our annual impairment tests for goodwill and orbital slots in the fourth quarters of 2009, 2008, and 2007. The estimated fair values for each reporting unit and the orbital slots exceeded our carrying values, and accordingly, no impairment losses were recorded during 2009, 2008, or 2007.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities; Other Liabilities and Deferred Credits
	12 Months Ended Dec. 31, 2009
Accounts Payable and Accrued Liabilities; Other Liabilities and Deferred Credits [Abstract]
Accounts Payable and Accrued Liabilities; Other Liabilities and Deferred Credits	Note6: Accounts Payable and Accrued Liabilities; Other Liabilities and Deferred Credits The following represent significant components of Accounts payable and accrued liabilities in our Consolidated Balance Sheets as of December31: 2009 2008 (Dollars in Millions) Programming costs $1,679 $1,532 Accounts payable 302 325 Payroll and employee benefits 122 96 Interest payable 47 45 Property and income taxes 45 35 Other 532 549 Total accounts payable and accrued liabilities $2,727 $2,582 The significant components of Other liabilities and deferred credits in our Consolidated Balance Sheets are as follows as of December 31: 2009 2008 (Dollars in Millions) Other accrued taxes $229 $202 Deferred credits 78 122 Programming costs 76 251 Other 127 188 Total other liabilities and deferred credits $510 $763

Debt

Debt
	12 Months Ended Dec. 31, 2009
Debt [Abstract]
Debt	Note7: Debt The following table sets forth our outstanding debt: December31, 2009 2008 (Dollars in Millions) Senior notes $4,490 $3,410 Senior secured credit facility, net of unamortized discount of $7 million as of December 31, 2009 and $9million as of December31, 2008 2,316 2,421 Unamortized bond premium 2 2 Total debt 6,808 5,833 Less: Current portion of long-term debt (308) (108) Long-term debt $6,500 $5,725 All of the senior notes and the senior secured credit facility were issued by us. The senior secured credit facility is secured by substantially all of our assets. 2009 Financing Transactions On September22, 2009, we issued $1,000million in five-year 4.750% senior notes due in 2014 at a 0.3% discount resulting in $997million of proceeds and $1,000million in 10year 5.875% senior notes due in 2019 at a 0.7% discount resulting in $993million of proceeds in private placement transactions. Principal on these senior notes is payable upon maturity, while interest is payable semi-annually commencing April1, 2010. We incurred $14million of debt issuance costs in connection with these transactions. The senior notes have been fully and unconditionally guaranteed, jointly and severally, by substantially all of our current and certain of its future domestic subsidiaries on a senior unsecured basis. Pursuant to a registration rights agreement with the initial purchasers of the senior notes, we have filed a registration statement, whereby all holders of the original notes can elect to exchange their existing notes for registered notes with identical terms, except that the registered notes will be registered under the Securities Act of 1933, as amended and will not bear the legends restricting their transfer. We expect to complete the registration and exchange of these senior notes within the first half of 2010. On September22, 2009, we purchased, pursuant to a tender offer, $583million of our then outstanding $910million 8.375% senior notes at a price of 103.125% plus accrued and unpaid interest, for a total of $603million. On September23, 2009, we exercised our right to redeem the remaining $327million of the 8.375% senior notes at a price of 102.792% plus accrued and unpaid interest. On October 23, 2009, we redeemed the remaining $327 million of our 8.375% senior notes at a price of 102.792% plus accrued and unpaid interest for a total of $339million. The redemption of our 8.375% senior notes resulted in a 2009 pre-tax charge of $34million, $21million after tax, of which $27million resulted from the premium paid for redemption of our 8.375% senior notes and $7million resulted from the write-off of deferred debt issuance and other transaction costs. The charge was recorded in Other, net in our Consolidated Statements of Operations. 2008 Financing Transactions In May 2008, we completed financing transactions that included the issuance of senior notes and an amendment to our existing senior secured credit facility as discussed below. We incurred $19million of debt issuance costs in connection with these transactio

Income Taxes

Income Taxes
	12 Months Ended Dec. 31, 2009
Income Taxes [Abstract]
Income Taxes	Note8: Income Taxes We base our income tax expense or benefit on reported "Income before income taxes." Deferred income tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes, which are available to us pursuant to our tax sharing agreement with our Parent and as measured by applying currently enacted tax laws. Our income tax expense consisted of the following for theyears ended December31: 2009 2008 2007 (Dollars in Millions) Current tax expense: U.S. federal $(532) $(691) $(633) State and local (69) (64) (156) Total (601) (755) (789) Deferred tax expense: U.S. federal (165) (12) (82) State and local (28) (40) (20) Total (193) (52) (102) Total income tax expense $(794) $(807) $(891) Our income tax expense was different than the amount computed using the U.S. federal statutory income tax rate for the reasons set forth in the following table for theyears ended December31: 2009 2008 2007 (Dollars in Millions) Expected expense at U.S. federal statutory income tax rate $(717) $(720) $(788) U.S. state and local income tax expense, net of federal benefit (64) (77) (102) Tax credits and other (13) (10) (1) Total income tax expense $(794) $(807) $(891) Temporary differences and carryforwards that gave rise to deferred tax assets and liabilities at December31 were as follows: 2009 2008 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities (Dollars in Millions) Depreciation and amortization $ $637 $ $503 Accruals and advances 120 85 90 50 Programming contract liabilities 108 143 Prepaid expenses 19 26 State taxes 12 25 Net operating loss and tax credit carryforwards 29 17 Other temporary differences 8 9 3 6 Subtotal 265 762 253 610 Valuation allowance (2) (2) Total deferred taxes $263 $762 $251 $610 We assessed the deferred tax assets for the respective periods for recoverability and, where applicable, we recorded a valuation allowance to reduce the total deferred tax assets to an amount that will, more likely than not, be realized in the future. The valuation allowance balances of $2 million at December31, 2009 and $2 million at December 31, 2008, are attributable to unused capital losses which are available for carry-forward. As of December 31, 2009, we have $35 million of federal net operating loss carryforward which expire between 2027 and 2028. The utilization of the federal net operating loss carryforward is subject to an annual limitation under Section 382 of the Internal Revenue Code, however we believe that we will

Pension and Other Postretiremen

Pension and Other Postretirement Benefit Plans
	12 Months Ended Dec. 31, 2009
Pension and Other Postretirement Benefit Plans [Abstract]
Pension and Other Postretirement Benefit Plans	Note9: Pension and Other Postretirement Benefit Plans Most of our employees are eligible to participate in our Parents 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 us. We have not separately determined the accumulated benefit obligation and net assets available for benefits for our employees and do not include these items in our Consolidated Balance Sheets. In addition to pension benefits, DIRECTV charges us for the cost of certain other post-retirement benefits. The accumulated other post-retirement benefit obligation related to our employees has not been separately determined and is not included in the accompanying Consolidated Balance Sheets. We also participate in other health and welfare plans of DIRECTV. Our portion of the cost of these benefit plans, allocated from DIRECTV, amounted to $19million in 2009, $16million in 2008 and $16million in 2007.

Share-Based Payment

Share-Based Payment
	12 Months Ended Dec. 31, 2009
Share-Based Payment [Abstract]
Share-Based Payment	Note10: ShareBased Payment Under The DIRECTV Group, Inc. Amended and Restated 2004 Stock Plan, or the DIRECTV Plan, as approved by our Parents stockholders on June5, 2007, shares, rights or options to acquire up to 21million shares of common stock plus the number of shares that were granted under a former plan but which, after December22, 2003 are forfeited, expire or are cancelled without the delivery of shares of common stock or otherwise result in the return of such shares to us, were authorized for grant through June4, 2017, subject to the approval of the Compensation Committee of our Parents Board of Directors. Under the DIRECTV Plan, our Parent issues new shares of its Class A common stock when restricted stock units are earned and when stock options are exercised. Restricted Stock Units. The Compensation Committee of DIRECTV has granted restricted stock units under our Parents stock plans to certain of our employees and executives. Annual awards are mostly performancebased, with final payments in shares of our Parents Class A common stock. Final payment can be reduced from the target award amounts based on our Parent companys performance over a three-year performance period in comparison with pre-established targets. During the year ended December 31, 2009, our employees were granted 2.4million restricted stock units with a weighted average grant-date fair value of $21.26 per share. During the year ended December31, 2008, our employees were granted 2.3million restricted stock units with a weighted average grant-date fair value of approximately $23.15 per share. During the year ended December 31, 2007, our employees were granted 2.5million restricted stock units with a weighted average grant-date fair value of approximately $23.69 per share. The grant date fair value of restricted stock units is based on the closing stock price of our Parents Class A common stock on the date of grant. Stock Options. DIRECTVs Compensation Committee has also granted stock options to acquire our Parents Class A common stock under our Parents stock plans to certain of our employees and executives. The exercise price of options granted is equal to at least 100% of the fair market value of the common stock on the date the options were granted. These nonqualified options generally vest over one to five years, expire ten years from date of grant and are subject to earlier termination under certain conditions. During the year ended December31, 2007, our employees were granted 1.2million stock options with a grant-date fair value of approximately $8.27 per share. No stock options were granted to our employees during 2008 or 2009. The grant date fair value of common stock options is determined by our Parent using the BlackScholes valuation model. The following table presents amounts recorded related to sharebased compensation for the years ended December31: 2009 2008 2007 (Dollars in Millions) Sharebased compensation expense recognized $44 $43 $41 Tax benefits associated with sharebased compensation expense 17 16 16 Actual tax benefits realized for the deduction of sharebased compensation expe

Related Party Transactions

Related Party Transactions
	12 Months Ended Dec. 31, 2009
Related Party Transactions [Abstract]
Related Party Transactions	Note11: Related Party Transactions In the ordinary course of our operations, we enter into transactions with related parties as discussed below. DIRECTV and affiliates We determine our income taxes based upon our tax sharing agreement with our Parent, which generally provides that the current income tax liability or receivable be computed as if we were a separate taxpayer. Payments made to our Parent under this tax sharing arrangement were $502million in 2009, $721million in 2008 and $709million in 2007. We also receive an allocation of employee benefit expenses from DIRECTV. We believe that our consolidated financial statements reflect our cost of doing business in accordance with SEC Staff Accounting Bulletin No.55, Allocation of Expenses and Related Disclosures in Financial Statements of Subsidiaries, Divisions or Lesser Business Components of Another Entity. We paid dividends to our Parent in the amounts of $2,500million in 2009, $3,400million in 2008 and $1,050million in 2007 from available cash and cash equivalents. In addition, we paid $1,500 million in dividends to our Parentduring January and February 2010. Beginning November 19, 2009, transactions with the regional sports networks which were acquired by DIRECTV on that date are also included as transactions with DIRECTV and affiliates. Liberty Media, Liberty Global and Discovery Communications Beginning with Libertys acquisition of its ownership interest in DIRECTV Group from News Corporation on February27, 2008, transactions with Liberty Media Corporation, or Liberty Media, and its affiliates, including its equity method investees, may be considered to be related party transactions. Our transactions with Liberty Media and its affiliates consist primarily of the purchase of programming. Although as a result of the Liberty Transaction, Liberty no longer has any equity interest in DIRECTV, John Malone, Chairman of the Board of Directors of DIRECTV and of Liberty Media, has an approximate 24% voting interest in DIRECTV, an approximate 31% voting interest in Discovery Communications,Inc., or Discovery Communications, and an approximate 40% voting interest in Liberty GlobalInc., or Liberty Global, and serves as Chairman of Liberty Global, and certain of Liberty Medias management and directors also serve as directors of Discovery Communications or Liberty Global. As a result of this common ownership and management, transactions with Discovery Communications and Liberty Global, and their subsidiaries or equity method investees may be considered to be related party transactions. Our transactions with Discovery Communications and Liberty Global consist primarily of purchases of programming created, owned or distributed by Discovery Communications and its subsidiaries and investees. News Corporation and affiliates News Corporation and its affiliates were considered related parties until February27, 2008, when News Corporation transferred its 41% interest in our Parents common stock to Liberty Media. Accordingly, the following contractual arrangements with News Corporation and its affiliates are considered related party transactions and reported through February27, 200

Acquisitions

Acquisitions
	12 Months Ended Dec. 31, 2009
Acquisitions [Abstract]
Acquisitions	Note12: Acquisitions Home Services Providers 180 Connect. In July 2008, we acquired 100% of 180 ConnectInc.s outstanding common stock and exchangeable shares. Simultaneously, in a separate transaction, UniTek USA,LLC acquired 100% of 180 Connects cable service operating unit and operations in certain of our installation services markets in exchange for satellite installation operations in certain markets and $7million in cash. These transactions provide us with control over a significant portion of our home service provider network. We paid $91million in cash, net of the $7million we received from UniTek USA, for the acquisition, including the equity purchase price, repayment of assumed debt and related transaction costs. We accounted for the 180 Connect acquisition using the purchase method of accounting, and began consolidating the results from the date of acquisition. The December31, 2009 consolidated financial statements reflect the final allocation of the $91million net purchase price to assets acquired and the liabilities assumed based on their estimated fair values at the date of acquisition using information currently available. The assets acquired included approximately $5million in cash. The excess of the purchase price over the estimated fair values of the net assets has been recorded as goodwill, of which$28millionwill be deductible for tax purposes. The following table sets forth the final allocation of the purchase price to the 180 Connect net assets acquired in July 2008 (dollars in millions): Total current assets $18 Property and equipment 16 Goodwill 97 Investments and other assets 51 Total assets acquired $182 Total current liabilities $83 Other liabilities 8 Total liabilities assumed $91 Net assets acquired $91 The following selected unaudited pro forma information is being provided to present a summary of the combined results of us and 180 Connect for 2008 as if the acquisition had occurred as of the beginning of the period, giving effect to purchase accounting adjustments. The pro forma data is presented for informational purposes only and may not necessarily reflect the results of our operations had 180 Connect operated as part of us for the period presented, nor are they necessarily indicative of the results of future operations. The pro forma information excludes the effect of non-recurring charges. Year Ended December31, 2008 (Dollars in Millions) Revenues $17,310 Net income 1,208

Commitments and Contingencies

Commitments and Contingencies
	12 Months Ended Dec. 31, 2009
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note13: Commitments and Contingencies Commitments At December31, 2009, minimum future commitments under noncancelable operating leases having lease terms in excess of one year were primarily for satellite transponder leases and real property and aggregated $232million, payable as follows: $41million in 2010, $35million in 2011, $32million in 2012, $31million in 2013, $15million in 2014 and $78million thereafter. Certain of these leases contain escalation clauses and renewal or purchase options, which we have not considered in the amounts disclosed. Rental expenses under operating leases were $62million in 2009, $53million in 2008 and $52million in 2007. At December31, 2009, our minimum payments under agreements to purchase broadcast programming, regional professional team rights and the purchase of services that we have outsourced to third parties, such as billing services, and satellite telemetry, tracking and control, satellite launch contracts and broadcast center services aggregated $8,297million, payable as follows: $1,671million in 2010, $1,663million in 2011, $1,787million in 2012, $1,392million in 2013, $1,147million in 2014 and $637million thereafter. At December 31, 2009, other long-term obligations totaling $183million are payable approximately as follows: $97million in 2010, $58million in 2011, $9million in 2012, $7million in 2013, $3 million in 2014 and $9million thereafter. These amounts are recorded in Accounts payable and accrued liabilities and Other liabilities and deferred credits in the Consolidated Balance Sheets. Contingencies Litigation. Litigation is subject to uncertainties and the outcome of individual litigated matters is not predictable with assurance. Various legal actions, claims and proceedings are pending against us arising in the ordinary course of business. We have established loss provisions for matters in which losses are probable and can be reasonably estimated. Some of the matters may involve compensatory, punitive, or treble damage claims, or demands that if granted, could require us to pay damages or make other expenditures in amounts that could not be estimated at December 31, 2009. After discussion with counsel representing us in those actions, it is the opinion of management that such litigation is not expected to have a material adverse effect on our consolidated financial statements. Finisar Corporation. As previously reported, we were successful in 2008 getting the jury verdict in the Finisar case vacated on appeal. The original verdict found the patent to be valid and willfully infringed, and the jury awarded approximately $79million in damages. The trial court increased the damages award by $25million because of the jury finding of willful infringement and awarded pre-judgment interest of $13million. DIRECTV was also ordered to pay into escrow $1.60 per new set-top receiver manufactured for use with the DIRECTV system beginning June17, 2006 and continuing until the patent expires in 2012 or was otherwise found to be invalid. On April18, 2008, the Court of Appeals reversed the verdict of the district court in part, vacated the findings of infringement, and remanded for further p

Condensed Consolidating Financi

Condensed Consolidating Financial Statements
	12 Months Ended Dec. 31, 2009
Condensed Consolidating Financial Statements [Abstract]
Condensed Consolidating Financial Statements	Note14: Condensed Consolidating Financial Statements The following presents the condensed consolidating statements of operations for the years ended December 31, 2009, 2008 and 2007, the condensed consolidating balance sheets as of December 31, 2009 and 2008, and the condensed consolidating statements of cash flows for the years ended December 31, 2009, 2008 and 2007 of DIRECTV Holdings together with DIRECTV FinancingCo.,Inc., or the Co-Issuers, and each of DIRECTV Holdings material subsidiaries (other than DIRECTV Financing), or the Guarantor Subsidiaries, and the eliminations necessary to present DIRECTV Holdings financial statements on a consolidated basis. These condensed consolidating financial statements should be read in conjunction with the accompanying consolidated financial statements of DIRECTV Holdings. Condensed Consolidating Statement of Operations For the Year Ended December 31, 2009 Co-Issuers Guarantor Subsidiaries Eliminations DIRECTV Holdings Consolidated (Dollars in Millions) Revenues $332 $18,671 $(332) $18,671 Operating costs and expenses Costs of revenues, exclusive of depreciation and amortization expense Broadcast programming and other 8,027 8,027 Subscriber service expenses 1,268 1,268 Broadcast operations expenses 274 274 Selling, general and administrative expenses, exclusive of depreciation and amortization expense Subscriber acquisition costs 2,478 2,478 Upgrade and retention costs 1,045 1,045 General and administrative expenses 1,226 (332) 894 Depreciation and amortization expense 2,275 2,275 Total operating costs and expenses 16,593 (332) 16,261 Operating profit 332 2,078 2,410 Equity in income of consolidated subsidiaries 1,275 (1,275) Interest income 4 4 Interest expense (335) (13) (348) Other, net (34) 17 (17) Income before income taxes 1,242 2,082 (1,275) 2,049 Income tax benefit (expense) 13 (807) (794) Net income $1,255 $1,275 $(1,275) $1,255 Condensed Consolidating Statement of Operations For the Year Ended December 31, 2008 Co-Issuers Guarantor Subsidiaries Eliminations DIRECTV Holdings Consolidated (Dollars in Millions) Revenues $287 $17,310 $(287) $17,310 Operating costs and expenses Costs of revenues, exclusive of depreciation and amortization expense Broadcast programming and other 7,424 7,424 Subscriber service expenses 1,139 1,139 Broadcast operations expenses 265 265 Selling, general and administrative expenses, exclusive of depreciation and amortization expense Subscriber acquisition costs 2,191 2,191 Upgrade and retention costs 1,027 1,027 General and administrative expenses 1,160 (287) 873 Depreciation and amortization expense 2,061 2,061 Tot

Selected Quarterly Data

Selected Quarterly Data
	12 Months Ended Dec. 31, 2009
Selected Quarterly Data [Abstract]
Selected Quarterly Data	Note15: Selected Quarterly Data (Unaudited) The following table presents unaudited selected quarterly data for 2009 and 2008: 1st 2nd 3rd 4th (Dollars in Millions) 2009 Quarters Revenues $4,303 $4,539 $4,703 $5,126 Operating profit 397 652 611 750 Net income 197 350 311 397 2008 Quarters Revenues $4,049 $4,196 $4,324 $4,741 Operating profit 593 717 532 488 Net income 332 402 266 250

Schedule of Valuation and Quali

Schedule of Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009
Schedule II Valuation and Qualifying Accounts [Abstract]
Schedule II Valuation and Qualifying Accounts	SCHEDULEIIVALUATION AND QUALIFYING ACCOUNTS Description Balance at Beginning of year Additions Charged to costs and expenses Additions Charged to other accounts Deductions Balance at end of year (Dollars in Millions) For the Year Ended December 31, 2009 Allowances Deducted from Assets Accounts receivable $(32) $(200) $(238)(a) $441(b) $(29) For the Year Ended December 31, 2008 Allowances Deducted from Assets Accounts receivable $(39) $(181) $(192)(a) $380(b) $(32) For the Year Ended December 31, 2007 Allowances Deducted from Assets Accounts receivable $(39) $(172) $(158)(a) $330(b) $(39) (a) Primarily reflects the recovery of accounts previously written-off. (b) Primarily relates to accounts written-off. Reference should be made to the Notes to the Consolidated Financial Statements.

Document Information

Document Information
	12 Months Ended Dec. 31, 2009
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	2009-12-31

Entity Information

Entity Information (USD $)
In Millions, except Share data	12 Months Ended Dec. 31, 2009
Entity Information [Line Items]
Entity Registrant Name	DIRECTV HOLDINGS LLC
Entity Central Index Key	0001234308
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float	$0
Entity Common Stock, Shares Outstanding	0