DIRECTV

CIK:0001465112|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 8,441	$ 8,109		$ 16,584	$ 15,964
Costs of revenues, exclusive of depreciation and amortization expense
Broadcast programming and other	3,780	3,498		7,356	6,881
Subscriber service expenses	596	574		1,177	1,125
Broadcast operations expenses	118	107		235	204
Selling, general and administrative expenses, exclusive of depreciation and amortization expense
Subscriber acquisition costs	900	898		1,788	1,725
Upgrade and retention costs	344	362		694	683
General and administrative expenses	601	517		1,115	971
Impairment of fixed and intangible assets	533			533
Venezuelan currency devaluation charge	519		$ 281	519	281
Depreciation and amortization expense	721	729		1,451	1,443
Total operating costs and expenses	8,112	6,685		14,868	13,313
Operating profit	329	1,424		1,716	2,651
Interest income	24	12		46	25
Interest expense	(234)	(230)		(479)	(462)
Other, net	25	35		32	92
Income before income taxes	144	1,241		1,315	2,306
Income tax expense	(502)	(431)		(943)	(927)
Net income (loss)	(358)	810		372	1,379
Less: Net income attributable to noncontrolling interest	(3)	(4)		(3)	(12)
Net income (loss) attributable to DIRECTV	$ (361)	$ 806		$ 369	$ 1,367
Basic earnings (losses) attributable to DIRECTV per common share (in dollars per share)	$ (0.72)	$ 1.60		$ 0.73	$ 2.70
Diluted earnings (losses) attributable to DIRECTV per common share (in dollars per share)	$ (0.72)	$ 1.59		$ 0.73	$ 2.67
Weighted average number of common shares outstanding (in millions):
Basic (in shares)	504	504		504	507
Diluted (in shares)	504	508		508	512

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities
Net income (loss)	$ 372	$ 1,379
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	1,451	1,443
Impairment of fixed and intangible assets	533
Venezuelan currency devaluation charge	519	281
Amortization of deferred revenues and deferred credits	(23)	(24)
Share-based compensation expense	53	45
Equity in earnings from unconsolidated affiliates	(57)	(78)
Net foreign currency transaction loss (gain)	64	(11)
Dividends received	7
Net losses (gains) from sale of investments	5	(17)
Deferred income taxes	95	115
Excess tax benefit from share-based compensation	(31)	(22)
Other	73	45
Change in other operating assets and liabilities:
Accounts receivable	65	133
Inventories	(111)	(29)
Prepaid expenses and other	304	122
Accounts payable and accrued liabilities	(214)	(342)
Unearned subscriber revenue and deferred credits	2	48
Other, net	131	(24)
Net cash provided by operating activities	3,238	3,064
Cash Flows From Investing Activities
Cash paid for property and equipment	(1,251)	(1,417)
Cash paid for satellites	(131)	(109)
Cash paid for short-term investments	(53)
Investment in companies, net of cash acquired	(23)	(8)
Proceeds from sale of investments	2	29
Other, net	(4)	(4)
Net cash used in investing activities	(1,460)	(1,509)
Cash Flows From Financing Activities
Issuance of commercial paper (maturity 90 days or less), net		25
Proceeds from short-term borrowings		270
Repayment of short-term borrowings		(235)
Proceeds from long-term debt	20	1,329
Debt issuance costs		(7)
Repayment of long-term debt	(1,255)	(1,026)
Repayment of other long-term obligations	(51)	(34)
Common shares repurchased and retired		(1,386)
Stock options exercised	9	10
Taxes paid in lieu of shares issued for share-based compensation	(65)	(57)
Excess tax benefit from share-based compensation	31	22
Other, net		(40)
Net cash used in financing activities	(1,311)	(1,129)
Effect of exchange rate changes on Venezuelan cash and cash equivalents	(629)	(316)
Net increase (decrease) in cash and cash equivalents	(162)	110
Cash and cash equivalents at beginning of the period	4,635	2,180
Cash and cash equivalents at end of the period	4,473	2,290
Supplemental Cash Flow Information
Cash paid for interest	412	413
Cash paid for income taxes	$ 384	$ 767

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 4,473	$ 4,635
Accounts receivable, net of allowances of $114 and $109	2,718	2,800
Inventories	418	299
Deferred income taxes	47	68
Prepaid expenses and other	738	1,017
Total current assets	8,394	8,819
Satellites, net	3,010	3,040
Property and equipment, net	6,055	6,721
Goodwill	3,885	3,929
Intangible assets, net	835	994
Investments and other assets	1,921	1,956
Total assets	24,100	25,459
Current liabilities
Accounts payable and accrued liabilities	4,681	5,048
Unearned subscriber revenues and deferred credits	572	584
Current debt	2,355	1,327
Total current liabilities	7,608	6,959
Long-term debt	17,157	19,485
Deferred income taxes	1,624	1,726
Other liabilities and deferred credits	$ 2,282	$ 2,117
Commitments and contingencies
Stockholders' deficit
Common stock and additional paidin capital-$0.01 par value, 3,950,000,000 shares authorized, 504,511,567 and 502,733,342 shares issued and outstanding of common stock at June 30, 2015 and December 31, 2014, respectively	$ 3,645	$ 3,613
Accumulated deficit	(8,039)	(8,408)
Accumulated other comprehensive loss	(552)	(418)
Total DIRECTV stockholders' equity (deficit)	(4,946)	(5,213)
Noncontrolling interest	375	385
Total stockholders' equity (deficit)	(4,571)	(4,828)
Total liabilities and stockholders' deficit	$ 24,100	$ 25,459