  We present a study of the spatial distribution of subhalos in galactic dark
matter halos using dissipationless cosmological simulations of the concordance
LCDM model. We find that subhalos are distributed anisotropically and are
preferentially located along the major axes of the triaxial mass distributions
of their hosts. The Kolmogorov-Smirnov probability for drawing our simulated
subhalo sample from an isotropic distribution is P_KS \simeq 1.5 \times
10^{-4}. An isotropic distribution of subhalos is thus not the correct null
hypothesis for testing the CDM paradigm. The nearly planar distribution of
observed Milky Way (MW) satellites is marginally consistent (probability \simeq
0.02) with being drawn randomly from the subhalo distribution in our
simulations. Furthermore, if we select the subhalos likely to be luminous, we
find a distribution that is consistent with the observed MW satellites. In
fact, we show that subsamples of the subhalo population with a
centrally-concentrated radial distribution, similar to that of the MW dwarfs,
typically exhibit a comparable degree of planarity. We explore the origin of
the observed subhalo anisotropy and conclude that it is likely due to (1)
preferential accretion of subhalos along filaments, often closely aligned with
the major axis of the host halo, and (2) evolution of satellite orbits within
the prolate, triaxial potentials typical of CDM halos. Agreement between
predictions and observations requires the major axis of the outer dark matter
halo of the Milky Way to be nearly perpendicular to the disk. We discuss
possible observational tests of such disk-halo alignment with current large
galaxy surveys.
