Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 30, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'DIRECTV | ' |
Entity Central Index Key | '0001465112 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 525,442,022 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' | ' |
Revenues | $7,880 | ' | $7,416 | $23,160 | $21,686 |
Costs of revenues, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Broadcast programming and other | 3,441 | ' | 3,288 | 9,912 | 9,249 |
Subscriber service expenses | 583 | ' | 566 | 1,674 | 1,592 |
Broadcast operations expenses | 98 | ' | 103 | 305 | 310 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Subscriber acquisition costs | 941 | ' | 944 | 2,564 | 2,549 |
Upgrade and retention costs | 411 | ' | 382 | 1,153 | 1,056 |
General and administrative expenses | 473 | ' | 447 | 1,452 | 1,332 |
Venezuelan currency devaluation charge | ' | 166 | ' | 166 | ' |
Depreciation and amortization expense | 708 | ' | 618 | 2,117 | 1,811 |
Total operating costs and expenses | 6,655 | ' | 6,348 | 19,343 | 17,899 |
Operating profit | 1,225 | ' | 1,068 | 3,817 | 3,787 |
Interest income | 15 | ' | 17 | 56 | 40 |
Interest expense | -182 | ' | -204 | -618 | -622 |
Other, net | 43 | ' | 39 | 6 | 13 |
Income before income taxes | 1,101 | ' | 920 | 3,261 | 3,218 |
Income tax expense | -391 | ' | -348 | -1,192 | -1,189 |
Net income | 710 | ' | 572 | 2,069 | 2,029 |
Less: Net income attributable to noncontrolling interest | -11 | ' | -7 | -20 | -22 |
Net income attributable to DIRECTV | $699 | ' | $565 | $2,049 | $2,007 |
Basic earnings attributable to DIRECTV per common share (in dollars per share) | $1.29 | ' | $0.91 | $3.68 | $3.08 |
Diluted earnings attributable to DIRECTV per common share (in dollars per share) | $1.28 | ' | $0.90 | $3.65 | $3.06 |
Weighted average number of common shares outstanding (in millions): | ' | ' | ' | ' | ' |
Basic (in shares) | 541 | ' | 624 | 557 | 651 |
Diluted (in shares) | 545 | ' | 629 | 562 | 655 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | $710 | $572 | $2,069 | $2,029 |
Defined benefit plans: | ' | ' | ' | ' |
Loss related to changes in plan experience and actuarial assumptions arising during the period | -1 | -1 | -1 | -1 |
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 12 | 9 | 12 | 9 |
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 1 | ' | 1 | ' |
Cash flows hedges: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 78 | -31 | 51 | -31 |
Reclassification adjustments included in net income | -61 | -3 | -13 | -3 |
Foreign currency translation adjustments | -3 | -2 | -51 | -32 |
Available for sale securities: | ' | ' | ' | ' |
Unrealized holding losses on securities | ' | ' | ' | -4 |
Reclassification adjustment for net losses recognized during the period | ' | ' | 1 | ' |
Other comprehensive income (loss) | 26 | -28 | ' | -62 |
Comprehensive income | 736 | 544 | 2,069 | 1,967 |
Less: Comprehensive income attributable to noncontrolling interest | -11 | -6 | -6 | -7 |
Comprehensive income attributable to DIRECTV | $725 | $538 | $2,063 | $1,960 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $1,622 | $1,902 |
Accounts receivable, net of allowances of $118 and $81 | 2,527 | 2,696 |
Inventories | 350 | 412 |
Deferred income taxes | 73 | 73 |
Prepaid expenses and other | 457 | 471 |
Total current assets | 5,029 | 5,554 |
Satellites, net | 2,443 | 2,357 |
Property and equipment, net | 6,462 | 6,038 |
Goodwill | 3,985 | 4,063 |
Intangible assets, net | 930 | 832 |
Investments and other assets | 1,739 | 1,711 |
Total assets | 20,588 | 20,555 |
Current liabilities | ' | ' |
Accounts payable and accrued liabilities | 4,017 | 4,618 |
Unearned subscriber revenues and deferred credits | 715 | 565 |
Current debt | 597 | 358 |
Total current liabilities | 5,329 | 5,541 |
Long-term debt | 18,635 | 17,170 |
Deferred income taxes | 1,542 | 1,672 |
Other liabilities and deferred credits | 1,290 | 1,203 |
Commitments and contingencies | ' | ' |
Redeemable noncontrolling interest | 400 | 400 |
Stockholders' deficit | ' | ' |
Common stock and additional paid-in capital-$0.01 par value, 3,950,000,000 shares authorized, 530,852,885 and 586,839,817 shares issued and outstanding of common stock at September 30, 2013 and December 31, 2012, respectively | 3,671 | 4,021 |
Accumulated deficit | -10,037 | -9,210 |
Accumulated other comprehensive loss | -242 | -242 |
Total stockholders' deficit | -6,608 | -5,431 |
Total liabilities and stockholders' deficit | $20,588 | $20,555 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowances (in dollars) | $118 | $81 |
Common stock and additional paid-in capital, par value (in dollars per share) | $0.01 | $0.01 |
Common stock and additional paid-in capital, shares authorized | 3,950,000,000 | 3,950,000,000 |
Common stock and additional paid-in capital, shares issued | 530,852,885 | 586,839,817 |
Common stock and additional paid-in capital, shares outstanding | 530,852,885 | 586,839,817 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash Flows From Operating Activities | ' | ' |
Net income | $2,069 | $2,029 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 2,117 | 1,811 |
Venezuelan currency devaluation charge | 166 | ' |
DSN Northwest deconsolidation charge | 59 | ' |
Amortization of deferred revenues and deferred credits | -40 | -54 |
Share-based compensation expense | 79 | 77 |
Equity in earnings from unconsolidated affiliates | -86 | -107 |
Net foreign currency transaction loss | 42 | 32 |
Dividends received | 38 | 28 |
Net gains from sale of investments | -8 | -11 |
Deferred income taxes | -19 | 41 |
Excess tax benefit from share-based compensation | -24 | -30 |
Other | -91 | 76 |
Change in other operating assets and liabilities: | ' | ' |
Accounts receivable | 200 | 15 |
Inventories | 53 | -97 |
Prepaid expenses and other | 9 | 146 |
Accounts payable and accrued liabilities | -477 | -143 |
Unearned subscriber revenue and deferred credits | 152 | 139 |
Other, net | 116 | 181 |
Net cash provided by operating activities | 4,355 | 4,133 |
Cash Flows From Investing Activities | ' | ' |
Cash paid for property and equipment | -2,471 | -2,160 |
Cash paid for satellites | -276 | -231 |
Investment in companies, net of cash acquired | -47 | -4 |
Proceeds from sale of investments | 140 | 24 |
Other, net | -158 | 25 |
Net cash used in investing activities | -2,812 | -2,346 |
Cash Flows From Financing Activities | ' | ' |
Issuance of commercial paper (maturity 90 days or less), net | 90 | ' |
Proceeds from short-term borrowings | 441 | ' |
Repayment of short-term borrowings | -327 | ' |
Proceeds from borrowings under revolving credit facility | 10 | 400 |
Repayment of borrowings under revolving credit facility | -10 | -400 |
Proceeds from long-term debt | 1,484 | 5,190 |
Debt issuance costs | -8 | -35 |
Repayment of long-term debt | -9 | -1,500 |
Repayment of other long-term obligations | -48 | -40 |
Common shares repurchased and retired | -3,228 | -3,828 |
Stock options exercised | ' | 2 |
Taxes paid in lieu of shares issued for share-based compensation | -61 | -58 |
Excess tax benefit from share-based compensation | 24 | 30 |
Other, net | 6 | ' |
Net cash used in financing activities | -1,636 | -239 |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | -187 | ' |
Net increase (decrease) in cash and cash equivalents | -280 | 1,548 |
Cash and cash equivalents at beginning of the period | 1,902 | 873 |
Cash and cash equivalents at end of the period | 1,622 | 2,421 |
Supplemental Cash Flow Information | ' | ' |
Cash paid for interest | 784 | 710 |
Cash paid for income taxes | $1,035 | $881 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Description of Business and Basis of Presentation | ' |
Description of Business and Basis of Presentation | ' |
Note 1: Description of Business and Basis of Presentation | |
DIRECTV, which we sometimes refer to as the company, we, or us, is a leading provider of digital television entertainment in the United States and Latin America. We operate two direct-to-home, or DTH, business units: DIRECTV U.S. and DIRECTV Latin America, which are differentiated by their geographic locations and are engaged in acquiring, promoting, selling and distributing digital entertainment programming primarily via satellite to residential and commercial subscribers. In addition, we own and operate regional sports networks and own a 42% interest in Game Show Network, LLC, or GSN, a television network dedicated to game-related programming and Internet interactive game playing. We account for our investment in GSN using the equity method of accounting. | |
• | |
DIRECTV U.S. DIRECTV Holdings LLC and its subsidiaries, which we refer to as DIRECTV U.S., is the largest provider of DTH digital television services and the second largest provider in the multi-channel video programming distribution industry in the United States. | |
• | |
DIRECTV Latin America. DIRECTV Latin America Holdings, Inc. and its subsidiaries, or DIRECTV Latin America, is a leading provider of DTH digital television services throughout Latin America. DIRECTV Latin America is comprised of: PanAmericana, which provides services in Argentina, Chile, Colombia, Ecuador, Puerto Rico, Venezuela and certain other countries in the region, and Sky Brasil Servicos Ltda., or Sky Brasil, which is a 93% owned subsidiary. DIRECTV Latin America also includes our 41% equity method investment in Innova, S. de R.L. de C.V., or Sky Mexico, which we include in the PanAmericana segment. | |
• | |
DIRECTV Sports Networks. DIRECTV Sports Networks LLC and its subsidiaries, or DSN, is comprised primarily of two wholly owned regional sports networks based in Denver, Colorado and Pittsburgh, Pennsylvania, and a regional sports network based in Seattle, Washington in which DSN retains a noncontrolling interest, each of which operates under the brand name ROOT Sports. As further discussed in Note 2 below, on April 16, 2013, DSN transferred 100% of its interest in a regional sports network based in Seattle, Washington, or DSN Northwest, to NW Sports Net LLC. The Seattle Mariners have a majority interest in NW Sports Net LLC and DSN retains a noncontrolling interest, which we account for using the equity method of accounting. The operating results of DSN are reported as part of the "Sports Networks, Eliminations and Other" reporting segment. | |
We have prepared the accompanying unaudited consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial reporting. In the opinion of management, all adjustments (consisting only of normal recurring items) that are necessary for a fair presentation have been included. The results for interim periods are not necessarily indicative of results that may be expected for any other interim period or for the full year. For further information, refer to the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on February 21, 2013, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 filed with the SEC on May 8, 2013, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 filed with the SEC on August 2, 2013, and all of our other filings, including Current Reports on Form 8-K, filed with the SEC after such date and through the date of this report. | |
We prepare our consolidated financial statements in conformity with GAAP, 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. | |
Divestiture
Divestiture | 9 Months Ended |
Sep. 30, 2013 | |
Divestiture | ' |
Divestiture | ' |
Note 2: Divestiture | |
DSN Northwest Transaction | |
On April 16, 2013, DSN transferred 100% of its interest in DSN Northwest to NW Sports Net LLC. Upon completion of the transaction, the Seattle Mariners have a majority interest in NW Sports Net LLC and DSN retains a noncontrolling interest, which we account for using the equity method of accounting. Additionally, DSN provides management oversight and programming services to NW Sports Net LLC as part of management service agreements entered into as part of this transaction. As a result of this transaction, we deconsolidated DSN Northwest and recorded a non-cash, pre-tax charge of approximately $59 million ($56 million after tax) in "Other, net" in the Consolidated Statements of Operations. | |
Goodwill
Goodwill | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill | ' | ||||||||||||||||
Note 3: Goodwill | |||||||||||||||||
The following table sets forth changes in the carrying amounts of "Goodwill" in the Consolidated Balance Sheets by reportable segment for the nine months ended September 30, 2013: | |||||||||||||||||
DIRECTV Latin | |||||||||||||||||
America | Sports | ||||||||||||||||
Networks, | |||||||||||||||||
Eliminations | |||||||||||||||||
DIRECTV | Sky | PanAmericana | and Other | Total | |||||||||||||
U.S. | Brasil | ||||||||||||||||
(Dollars in Millions) | |||||||||||||||||
Balance as of January 1, 2013 | $ | 3,177 | $ | 380 | $ | 211 | $ | 295 | $ | 4,063 | |||||||
Sky Brasil foreign currency translation adjustment | — | (31 | ) | — | — | (31 | ) | ||||||||||
DSN Northwest Transaction | — | — | — | (73 | ) | (73 | ) | ||||||||||
Acquisitions | 11 | 15 | — | — | 26 | ||||||||||||
Balance as of September 30, 2013 | $ | 3,188 | $ | 364 | $ | 211 | $ | 222 | $ | 3,985 | |||||||
Debt
Debt | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Debt | ' | ||||||||||
Debt | ' | ||||||||||
Note 4: Debt | |||||||||||
The following table sets forth our outstanding debt as of: | |||||||||||
September 30, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in Millions) | |||||||||||
Current debt | |||||||||||
Current portion of borrowings under BNDES financing facility | $ | 35 | $ | — | |||||||
Commercial paper | 562 | 358 | |||||||||
Long-term debt | |||||||||||
Borrowings under BNDES financing facility | 50 | — | |||||||||
Senior notes | 18,585 | 17,170 | |||||||||
Total debt | $ | 19,232 | $ | 17,528 | |||||||
The amount of interest accrued related to our outstanding debt was $114 million at September 30, 2013 and $246 million at December 31, 2012. | |||||||||||
Senior Notes | |||||||||||
Nine Months Ended September 30, 2013 Financing Transactions | |||||||||||
On January 10, 2013, DIRECTV U.S. issued, pursuant to a registration statement, $750 million in aggregate principal of 1.750% senior notes due in 2018 with proceeds, net of an original issue discount, of $743 million. We incurred $4 million of debt issuance costs in connection with this transaction. | |||||||||||
On May 13, 2013, DIRECTV U.S. issued, pursuant to a U.S. registration statement, €500 million ($650 million) in aggregate principal of 2.750% senior notes due in 2023 resulting in proceeds, net of an original issue discount, of €497 million ($646 million). The U.S. dollar amounts reflect the conversion of the €500 million aggregate principal and the €497 million proceeds, net of discount, to U.S. dollars based on the exchange rate of €1.00/ $1.30 at May 13, 2013. In connection with the issuance of these senior notes, DIRECTV U.S. entered into cross-currency swaps to effectively convert its fixed-rate euro denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt, as further discussed in Note 5. We incurred $4 million of debt issuance costs in connection with this transaction. | |||||||||||
Nine Months Ended September 30, 2012 Financing Transactions | |||||||||||
On March 8, 2012, DIRECTV U.S. issued the following senior notes in private placement transactions: | |||||||||||
Principal | Proceeds, net | ||||||||||
of discount | |||||||||||
(Dollars in Millions) | |||||||||||
2.400% senior notes due in 2017 | $ | 1,250 | $ | 1,249 | |||||||
3.800% senior notes due in 2022 | 1,500 | 1,499 | |||||||||
5.150% senior notes due in 2042 | 1,250 | 1,248 | |||||||||
$ | 4,000 | $ | 3,996 | ||||||||
We incurred $25 million of debt issuance costs in connection with these transactions. | |||||||||||
On May 15, 2012, DIRECTV U.S. redeemed, pursuant to the terms of its indenture, all of its then outstanding $1,500 million of 7.625% senior notes due in 2016, at a price of 103.813%, plus accrued and unpaid interest, for a total of $1,614 million. We recorded a pre-tax charge of $64 million ($40 million after tax) during the second quarter of 2012, of which $57 million resulted from the premium paid for the redemption and $7 million 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. | |||||||||||
On September 11, 2012, DIRECTV U.S. issued, pursuant to a registration statement, £750 million ($1,208 million) in aggregate principal of 4.375% senior notes due in 2029 with proceeds, net of an original issue discount, of £742 million ($1,194 million). The U.S. dollar amounts reflect the conversion of the £750 million aggregate principal and the £742 million proceeds, net of discount, to U.S. dollars based on the exchange rate of £1.00/ $1.61 at September 11, 2012. In connection with the issuance of these senior notes, DIRECTV U.S. entered into cross-currency swaps to effectively convert its fixed-rate British pound sterling denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt, as further discussed in Note 5. We incurred $9 million of debt issuance costs in connection with this transaction. | |||||||||||
The following table sets forth our outstanding senior notes: | |||||||||||
Principal amount | Carrying value, net of | ||||||||||
unamortized original | |||||||||||
issue discounts | |||||||||||
September 30, | September 30, | December 31, | |||||||||
2013 | 2013 | 2012 | |||||||||
(Dollars in Millions) | |||||||||||
4.750% senior notes due in 2014 | $ | 1,000 | $ | 999 | $ | 999 | |||||
3.550% senior notes due in 2015 | 1,200 | 1,200 | 1,200 | ||||||||
3.125% senior notes due in 2016 | 750 | 750 | 750 | ||||||||
3.500% senior notes due in 2016 | 1,500 | 1,499 | 1,498 | ||||||||
2.400% senior notes due in 2017 | 1,250 | 1,249 | 1,249 | ||||||||
1.750% senior notes due in 2018 | 750 | 744 | — | ||||||||
5.875% senior notes due in 2019 | 1,000 | 995 | 995 | ||||||||
5.200% senior notes due in 2020 | 1,300 | 1,299 | 1,298 | ||||||||
4.600% senior notes due in 2021 | 1,000 | 999 | 999 | ||||||||
5.000% senior notes due in 2021 | 1,500 | 1,495 | 1,495 | ||||||||
3.800% senior notes due in 2022 | 1,500 | 1,499 | 1,499 | ||||||||
2.750% senior noted due in 2023(1) | 676 | 673 | — | ||||||||
4.375% senior notes due in 2029(1) | 1,214 | 1,201 | 1,206 | ||||||||
6.350% senior notes due in 2040 | 500 | 500 | 500 | ||||||||
6.000% senior notes due in 2040 | 1,250 | 1,235 | 1,234 | ||||||||
6.375% senior notes due in 2041 | 1,000 | 1,000 | 1,000 | ||||||||
5.150% senior notes due in 2042 | 1,250 | 1,248 | 1,248 | ||||||||
Total senior notes | $ | 18,640 | $ | 18,585 | $ | 17,170 | |||||
-1 | |||||||||||
These amounts reflect the remeasurement of the aggregate principal and carrying value of our foreign currency denominated senior notes to U.S. dollars based on the exchange rates in effect at each of the dates presented. | |||||||||||
The fair value of our senior notes was approximately $18,501 million at September 30, 2013 and $18,598 million at December 31, 2012. We calculated the fair values based on quoted market prices of our senior notes, which is a Level 1 input under accounting guidance for fair value measurements of assets and liabilities. | |||||||||||
All of our senior notes were issued by DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., or the Co-Issuers, and have been registered under the Securities Act of 1933, as amended. | |||||||||||
Our senior notes mature as follows: $1,000 million in 2014, $1,200 million in 2015, $2,250 million in 2016, $1,250 million in 2017 and $12,940 million in 2018 and thereafter. | |||||||||||
Commercial Paper | |||||||||||
On November 27, 2012, DIRECTV U.S. established a commercial paper program backed by its revolving credit facilities, which provides for the issuance of short-term commercial paper in the United States up to a maximum aggregate principal of $2.5 billion. As of September 30, 2013, we had $562 million of short-term commercial paper outstanding, with a weighted average remaining maturity of 53 days, at a weighted average yield of 0.39%, which may be refinanced on a periodic basis as borrowings mature. As of December 31, 2012, we had $358 million of short-term commercial paper outstanding, with a weighted average remaining maturity of 63 days, at a weighted average yield of 0.54%. Aggregate amounts outstanding under the revolving credit facilities described below and the commercial paper program are limited to $2.5 billion. | |||||||||||
Revolving Credit Facilities | |||||||||||
On September 28, 2012, DIRECTV U.S.' five year, $2.0 billion, revolving credit facility dated February 7, 2011, was terminated and replaced with a three and one-half year, $1.0 billion, revolving credit facility and a five year, $1.5 billion, revolving credit facility. We pay a commitment fee of 0.15% per year for the unused commitment under the revolving credit facilities. Borrowings currently bear interest at a rate equal to the London Interbank Offer Rate (LIBOR) plus 1.25%. Both the commitment fee and the annual interest rate may increase or decrease under certain conditions due to changes in DIRECTV U.S.' long-term, unsecured debt ratings. Under certain conditions, DIRECTV U.S. may increase the borrowing capacity of the revolving credit facilities by an aggregate amount of up to $500 million. Aggregate amounts outstanding under the revolving credit facilities and the commercial paper program are limited to $2.5 billion. As of September 30, 2013, there were no borrowings outstanding under the revolving credit facilities. | |||||||||||
Borrowings under the revolving credit facilities are unsecured senior obligations of DIRECTV U.S. and will rank equally in right of payment with all of DIRECTV U.S.' existing and future senior debt and will rank senior in right of payment to all of DIRECTV U.S.' future subordinated debt, if any. | |||||||||||
Covenants and Restrictions | |||||||||||
The revolving credit facilities require DIRECTV U.S. to maintain at the end of each fiscal quarter a specified ratio of indebtedness to earnings before interest, taxes and depreciation and amortization. The revolving credit facilities also include covenants that limit DIRECTV U.S.' ability to, among other things, (i) incur additional subsidiary indebtedness, (ii) incur liens, (iii) enter into certain transactions with affiliates, (iv) merge or consolidate with another entity, (v) sell, assign, lease or otherwise dispose of all or substantially all of its assets, and (vi) change its lines of business. Additionally, the senior notes contain covenants that are similar. If DIRECTV U.S. fails to comply with these covenants, all or a portion of its borrowings under the senior notes could become immediately payable and its revolving credit facilities could be terminated. At September 30, 2013, management believes DIRECTV U.S. was in compliance with all such covenants. The senior notes and revolving credit facilities also provide that the borrowings may be required to be prepaid if certain change-in-control events, coupled with a ratings decline, occur. | |||||||||||
DIRECTV Guarantors. DIRECTV entered into a series of Supplemental Indentures whereby DIRECTV agreed to fully guarantee all of the senior notes outstanding, jointly and severally with most of DIRECTV Holdings LLC's domestic subsidiaries. The Supplemental Indentures provide that DIRECTV unconditionally guarantees that the principal and interest on the respective senior notes will be paid in full when due and that the obligations of the Co-Issuers to the holders of the outstanding senior notes will be performed. The revolving credit facilities and the commercial paper program are also similarly fully guaranteed by DIRECTV. | |||||||||||
As a result of the guarantees, holders of the senior notes, the revolving credit debt and the commercial paper have the benefit of DIRECTV's interests in the assets and related earnings of our operations that are not held through DIRECTV Holdings LLC and its subsidiaries. Those operations are primarily our DTH digital television services throughout Latin America which are held by DIRECTV Latin America and our regional sports networks which are held by DSN. However, the subsidiaries that own and operate the DIRECTV Latin America business and the regional sports networks have not guaranteed the senior notes, the revolving credit facilities and the commercial paper program. | |||||||||||
The guarantees are unsecured senior obligations of DIRECTV and rank equally in right of payment with all of DIRECTV's existing and future senior debt and rank senior in right of payment to all of DIRECTV's future subordinated debt, if any. The guarantees are effectively subordinated to all existing and future secured obligations, if any, of DIRECTV to the extent of the value of the assets securing the obligations. DIRECTV will not be subject to the covenants contained in each indenture of the senior notes and our guarantees will terminate and be released on the terms set forth in each of the indentures. | |||||||||||
BNDES Financing Facility | |||||||||||
In March 2013, Sky Brasil entered into a financing facility with Banco Nacional de Desenvolvimento Econômico e Social, or BNDES, a government owned bank in Brazil, under which Sky Brasil may borrow funds for the purchase of set-top receivers. Our Board of Directors has approved borrowings of up to R$500 million (or approximately $250 million at the then current exchange rate) under the facility. As of September 30, 2013, Sky Brasil had borrowings of $85 million outstanding under the BNDES facility bearing interest at a weighted-average rate of 2.73% per year. Borrowings under the facility are required to be repaid in 30 monthly installments. The U.S. dollar amounts reflect the conversion of the Brazilian real denominated amounts into U.S. dollars based on the exchange rate of R$2.23 / $1.00 at September 30, 2013. | |||||||||||
Borrowings under the BNDES facility mature as follows: $7 million in 2013, $37 million in 2014, $34 million in 2015 and $7 million in 2016. The financing facility is collateralized by the financed set-top receivers with an original purchase price of approximately $104 million based on the exchange rate at the time of purchase. | |||||||||||
Restricted Cash | |||||||||||
Restricted cash of $7 million as of September 30, 2013 and $6 million as of December 31, 2012 was included as part of "Prepaid expenses and other" in our Consolidated Balance Sheets. These amounts secure certain of our letter of credit obligations and restrictions on the cash will be removed as the letters of credit expire. | |||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
Note 5: Derivative Financial Instruments | ||||||||||||||
We use derivative financial instruments primarily to manage the risks associated with fluctuations in foreign currency exchange rates and interest rates. We record derivative financial instruments in the Consolidated Balance Sheets as either assets or liabilities at fair value. For derivative financial instruments designated as cash flow hedges, the effective portion of the unrealized gains or losses on the derivative financial instruments are initially reported in "Accumulated other comprehensive loss" in the Consolidated Balance Sheets, and subsequently reclassified to earnings in the same periods during which the hedged item affects earnings. The ineffective portion of the unrealized gains and losses on these derivative financial instruments, if any, is recorded immediately in earnings. We evaluate the effectiveness of our derivative financial instruments at inception and on a quarterly basis. We measured no ineffectiveness for the three and nine months ended September 30, 2013 and September 30, 2012. | ||||||||||||||
The following table sets forth the fair values of assets and liabilities associated with the derivative financial instruments as of: | ||||||||||||||
Assets | Liabilities | |||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | 74 | $ | — | $ | — | $ | 17 | ||||||
Interest rate contracts | — | — | 7 | — | ||||||||||
Total fair value of derivative financial instruments | $ | 74 | $ | — | $ | 7 | $ | 17 | ||||||
The fair values of the assets associated with derivative financial instruments are recorded in "Investments and other assets" in the Consolidated Balance Sheets and the fair value of the liabilities associated with derivative financial instruments are recorded in "Other liabilities and deferred credits" in the Consolidated Balance Sheets. | ||||||||||||||
The following table sets forth the notional amounts of outstanding derivative financial instruments as of: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | 1,858 | $ | 1,208 | ||||||||||
Interest rate contracts | 500 | — | ||||||||||||
Total notional amount of derivative financial instruments | $ | 2,358 | $ | 1,208 | ||||||||||
Collateral Arrangements. We have agreements with our derivative instrument counterparties that include collateral provisions which require a party with an unrealized loss position in excess of certain thresholds to post cash collateral for the amount in excess of the threshold. The threshold levels in our collateral agreements are based on each party's credit ratings. We held cash collateral from counterparties of $6 million as of September 30, 2013 and we did not hold any cash collateral from counterparties as of December 31, 2012. We did not have any cash collateral posted with counterparties as of September 30, 2013 and December 31, 2012. We do not offset the fair value of collateral, whether the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable), against the fair value of the derivative instruments. | ||||||||||||||
Cross-Currency Swap Contracts | ||||||||||||||
On September 11, 2012, DIRECTV U.S. issued, pursuant to a U.S. registration statement, £750 million in aggregate principal of 4.375% senior notes due in 2029. On May 13, 2013, DIRECTV U.S. issued, pursuant to a U.S. registration statement, €500 million in aggregate principal of 2.750% senior notes due in 2023. In connection with the issuance of these senior notes, DIRECTV U.S. entered into cross-currency swap contracts to manage the related foreign exchange risk by effectively converting all of the fixed-rate British pound sterling and fixed-rate Euro denominated debt, including annual interest payments and the payment of principal at maturity, to fixed-rate U.S. dollar denominated debt. These cross-currency swaps are designated and qualify as cash flow hedges. The terms of the cross-currency swap contracts correspond to the related hedged senior notes and have maturities ranging from May 2023 to September 2029. | ||||||||||||||
We calculate the fair value of the cross-currency swap contracts using an income-approach model (discounted cash flow analysis), the use of which is considered a Level 2 valuation technique, using observable inputs, such as foreign currency exchange rates, swap rates, cross-currency basis swap spreads and incorporating counterparty credit risk. | ||||||||||||||
During the nine months ended September 30, 2013, DIRECTV U.S. recorded net remeasurement losses of $22 million in "Other, net" in the Consolidated Statements of Operations related to the remeasurement of the hedged senior notes. To offset these remeasurement losses, we reclassified $22 million ($13 million after tax) from "Accumulated other comprehensive loss" in the Consolidated Balance Sheets to "Other, net" in the Consolidated Statements of Operations. During the nine months ended September 30, 2012, DIRECTV U.S. recorded net remeasurement losses of $5 million in "Other, net" in the Consolidated Statements of Operations related to the remeasurement of the hedged senior notes. To offset these remeasurement losses, we reclassified $5 million ($3 million after tax) from "Accumulated other comprehensive loss" in the Consolidated Balance Sheets to "Other, net" in the Consolidated Statements of Operations. These reclassifications eliminate the impact of the remeasurement of the hedged senior notes from our results of operations. | ||||||||||||||
Interest Rate Contracts | ||||||||||||||
DIRECTV U.S. uses various interest rate derivatives, including forward-starting interest rate swaps, to protect against unfavorable interest rate changes related to forecasted issuances of debt. The objective of these arrangements is to hedge our exposure to the variability of future cash flows associated with the interest rate on future debt issuances. These interest rate swaps are designated and qualify as cash flow hedges. | ||||||||||||||
We calculate the fair value of the interest rate swap contracts using an income-approach model (discounted cash flow analysis), the use of which is considered a Level 2 valuation technique, using observable inputs, such as swap rates and incorporating counterparty credit risk. | ||||||||||||||
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Contingencies | ' |
Contingencies | ' |
Note 6: Contingencies | |
Redeemable Noncontrolling Interest | |
In connection with our acquisition of Sky Brasil in 2006, our partner who holds the remaining 7% interest, Globo Comunicações e Participações S.A., or Globo, was granted the right, until January 2014, to require us to purchase all, but not less than all, of its shares in Sky Brasil. Upon exercising this right, the fair value of Sky Brasil shares will be determined by mutual agreement or by an outside valuation expert, and we have the option to elect to pay for the Sky Brasil shares in cash, shares of our common stock or a combination of both. As of September 30, 2013 and December 31, 2012, we estimated that Globo's remaining 7% equity interest in Sky Brasil had a fair value of approximately $400 million. Adjustments to the carrying amount of the redeemable noncontrolling interest are recorded to additional paid-in-capital. We determined the fair values using significant unobservable inputs, which are Level 3 inputs under accounting guidance for measuring fair value. | |
Venezuela Devaluation and Foreign Currency Exchange Controls | |
In February 2013, the Venezuelan government announced a devaluation of the bolivar from the official exchange rate of 4.3 bolivars per U.S. dollar to an official rate of 6.3 bolivars per U.S. dollar. As a result of the devaluation, we recorded a pre-tax charge in "Venezuelan currency devaluation charge" in the Consolidated Statements of Operations of $166 million ($136 million after tax) in the first quarter of 2013, related to the remeasurement of the bolivar denominated net monetary assets of our Venezuelan subsidiary as of the date of the devaluation. There also are ongoing impacts to our results of operations subsequent to the devaluation, primarily related to the translation of local currency financial statements at the new official exchange rate. In the event of a future devaluation of the bolivar, we will recognize a charge to earnings based on the amount of bolivar denominated net monetary assets held at the time of such devaluation. Any future devaluation would also result in ongoing impacts to our results of operations. | |
Companies operating in Venezuela are required to obtain Venezuelan government approval to exchange Venezuelan bolivars into U.S. dollars at the official exchange rate. Our ability to pay U.S. dollar denominated obligations and repatriate cash generated in Venezuela in excess of local operating requirements is limited, resulting in an increase in the cash balance at our Venezuelan subsidiary. At such time that exchange controls are eased, accumulated cash balances may ultimately be repatriated at less than their currently reported value. As of September 30, 2013, our Venezuelan subsidiary had Venezuelan bolivar denominated net monetary assets of $521 million, including cash of $579 million, based on the official exchange rate of 6.3 bolivars per U.S. dollar at that time. | |
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 September 30, 2013. 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 effect on our consolidated financial statements. We expense legal costs as incurred. | |
Intellectual Property Litigation. We are a defendant in several unrelated lawsuits claiming infringement of various patents relating to various aspects of our businesses. In certain of these cases other industry participants are also defendants, and also in certain of these cases we expect that at least some potential liability would be the responsibility of our equipment vendors pursuant to applicable contractual indemnification provisions. To the extent that the allegations in these lawsuits can be analyzed by us at this stage of their proceedings, we believe the claims are without merit and intend to defend the actions vigorously. We have determined that the likelihood of a material liability in such matters is remote or have made appropriate accruals. The final disposition of these claims is not expected to have a material effect on our consolidated financial position or results of operations. However, if an adverse ruling is made in a lawsuit involving key intellectual property, such ruling could result in a loss that would be material to our consolidated results of operations of any one period. No assurance can be given that any adverse outcome would not be material to our consolidated financial position. | |
Early Cancellation Fees. In 2008, a number of plaintiffs filed putative class action lawsuits in state and federal courts challenging the early cancellation fees we assess our customers when they do not fulfill their programming commitments. Several of these lawsuits are pending, some in California state court purporting to represent statewide classes, and some in federal courts purporting to represent nationwide classes. The lawsuits seek both monetary and injunctive relief. While the theories of liability vary, the lawsuits generally challenge these fees under state consumer protection laws as both unfair and inadequately disclosed to customers. Our motions to compel arbitration have been granted in all of the federal cases, except as to claims seeking injunctive relief under California statutes. The denial of our motion as to those claims is currently on appeal. We believe that our early cancellation fees are adequately disclosed, and represent reasonable estimates of the costs we incur when customers cancel service before fulfilling their programming commitments. | |
State and Federal Inquiries. From time to time, we receive investigative inquiries or subpoenas from state and federal authorities with respect to alleged violations of state and federal statutes. These inquiries may lead to legal proceedings in some cases. As reported previously, DIRECTV U.S. received a request for information from the Federal Trade Commission, or FTC, on issues similar to those resolved in 2011 with a multistate group of state attorneys general. We have been cooperating with the FTC by providing information about our sales and marketing practices and customer complaints and have engaged in ongoing negotiations with FTC staff concerning these issues. The FTC staff has advised that they will refer this matter to the Commissioners to obtain authority to file suit if we are unable to agree upon a resolution of these issues. | |
ECAD. As previously reported, Escritorio Central de Arrecadacao, or ECAD, the organization responsible for collecting performance rights fees under Brazilian law, had outstanding claims against Sky Brasil, along with other video distributors in Brazil. In the third quarter, Sky Brasil entered into an agreement with ECAD whereby Sky Brasil agreed to settle all claims for the period from 2004 through December 31, 2013 for a cash payment of $92 million in September 2013. As a result of this settlement, Sky Brasil recognized a $128 million pre-tax gain from the reversal of amounts previously accrued during such period, of which $70 million was recorded as a reduction in "Broadcast programming and other", $37 million was recorded as a reduction in "Interest expense" and $21 million was recorded in "Other, net" in the Consolidated Statements of Operations. Sky Brasil had provided letters of credit related to this dispute in the amount of approximately $104 million, which have now been released. The settlement does not include any agreement as to royalties that will apply after December 31, 2013. | |
Waste Disposal Inquiry. On August 20, 2012, DIRECTV U.S. received from the State of California subpoenas and interrogatories related to our generation, handling, recordkeeping, transportation and disposal of hazardous waste, including universal waste, in the State of California, and the training of employees regarding the same. The investigation is jointly conducted by the Office of the Attorney General and the District Attorney for Alameda County and appears to be part of a broader effort to investigate waste handling and disposal processes of a number of industries. We are diligently reviewing our policies and procedures applicable to all facilities and cooperating with the investigation. | |
Income Tax Matters | |
We have received tax assessments from certain foreign jurisdictions and have agreed to indemnify previously divested businesses for certain tax assessments relating to periods prior to their respective divestitures. These assessments are in various stages of the administrative process or litigation. While the outcome of these assessments and other tax issues cannot be predicted with certainty, we believe that the ultimate outcome will not have a material effect on our consolidated financial position or results of operations. | |
Satellites | |
We may purchase in-orbit and launch insurance to mitigate the potential financial impact of satellite launch and in-orbit failures if the premium costs are considered economic relative to the risk of satellite failure. The insurance generally covers the unamortized book value of covered satellites. We do not insure against lost revenues in the event of a total or partial loss of the capacity of a satellite. We generally rely on in-orbit spare satellites and excess transponder capacity at key orbital slots to mitigate the impact a satellite failure could have on our ability to provide service. At September 30, 2013, the net book value of in-orbit satellites was $1,467 million, all of which was uninsured. | |
Other | |
We are contingently liable under standby letters of credit and bonds in the aggregate amount of $171 million at September 30, 2013, excluding the letters of credit related to the ECAD dispute which have now been released. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Related Party Transactions | ' | |||||||||||||
Related Party Transactions | ' | |||||||||||||
Note 7: Related Party Transactions | ||||||||||||||
In the ordinary course of our operations, we enter into transactions with related parties as discussed below. Related parties include Globo, which provides programming and advertising to Sky Brasil, and companies in which we hold equity method investments, including Sky Mexico, GSN and NW Sports Net LLC. | ||||||||||||||
The majority of payments under contractual arrangements with related parties are pursuant to multi-year programming contracts. Payments under these contracts are typically subject to annual rate increases and are based on the number of subscribers receiving the related programming. | ||||||||||||||
The following table summarizes revenues and expenses with related parties: | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in Millions) | ||||||||||||||
Revenues | $ | 2 | $ | 1 | $ | 5 | $ | 3 | ||||||
Expenses | 235 | 225 | 717 | 696 | ||||||||||
The following table sets forth the amount of accounts receivable from and accounts payable to related parties as of: | ||||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in Millions) | ||||||||||||||
Accounts receivable | $ | 31 | $ | 26 | ||||||||||
Accounts payable | 98 | 90 |
Stockholders_Deficit_and_Redee
Stockholders' Deficit and Redeemable Noncontrolling Interest | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Stockholders' Deficit and Redeemable Noncontrolling Interest | ' | ||||||||||||||||||||||
Stockholders' Deficit and Redeemable Noncontrolling Interest | ' | ||||||||||||||||||||||
Note 8: Stockholders' Deficit and Redeemable Noncontrolling Interest | |||||||||||||||||||||||
Capital Stock and Additional Paid-In Capital | |||||||||||||||||||||||
Our certificate of incorporation authorizes the following capital stock: 3,950,000,000 shares of common stock, par value $0.01 per share, and 50,000,000 shares of preferred stock, par value $0.01 per share. As of September 30, 2013 and December 31, 2012, there were no outstanding shares of preferred stock. | |||||||||||||||||||||||
Share Repurchase Program | |||||||||||||||||||||||
Since 2006 our Board of Directors has approved multiple authorizations for the repurchase of our common stock. In February 2013 our Board of Directors terminated the remaining balance available under the previous authorization and approved a new authorization for up to $4 billion for repurchases of our common stock. As of September 30, 2013, we had approximately $1,589 million remaining under this authorization. The authorization allows us to repurchase our common stock from time to time through open market purchases and 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 authorizations are our existing cash on hand, cash from operations and potential additional borrowings. Purchases are made in the open market, through block trades and other negotiated transactions. Repurchased shares are retired, but remain authorized for registration and issuance in the future. | |||||||||||||||||||||||
The following table sets forth information regarding shares repurchased and retired during the periods presented: | |||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Amounts in Millions, | |||||||||||||||||||||||
Except Per Share Amounts) | |||||||||||||||||||||||
Total cost of repurchased shares | $ | 3,273 | $ | 3,897 | |||||||||||||||||||
Average price per share | $ | 56.46 | $ | 47.67 | |||||||||||||||||||
Number of shares repurchased and retired | 58 | 82 | |||||||||||||||||||||
Of the $3,273 million in repurchases during the nine months ended September 30, 2013, $45 million were paid for in October 2013. Of the $3,897 million in repurchases during the nine months ended September 30, 2012, $96 million were paid for in October 2012. Amounts repurchased but settled subsequent to the end of such periods are considered non-cash financing activities and excluded from the Consolidated Statements of Cash Flows. | |||||||||||||||||||||||
The following tables set forth a reconciliation of stockholders' deficit and redeemable noncontrolling interest for each of the periods presented: | |||||||||||||||||||||||
Stockholders' Deficit | |||||||||||||||||||||||
Common | Common | Accumulated | Accumulated | Total | Redeemable | Net | |||||||||||||||||
Shares | Stock and | Deficit | Other | Stockholders' | Noncontrolling | Income | |||||||||||||||||
Additional | Comprehensive | Deficit | Interest | ||||||||||||||||||||
Paid-In | Loss | ||||||||||||||||||||||
Capital | |||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | |||||||||||||||||||||||
Balance as of January 1, 2013 | 586,839,817 | $ | 4,021 | $ | (9,210 | ) | $ | (242 | ) | $ | (5,431 | ) | $ | 400 | |||||||||
Net income | 2,049 | 2,049 | 20 | $ | 2,069 | ||||||||||||||||||
Stock repurchased and retired | (57,961,428 | ) | (397 | ) | (2,876 | ) | (3,273 | ) | |||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 1,974,496 | (61 | ) | (61 | ) | ||||||||||||||||||
Share-based compensation expense | 79 | 79 | |||||||||||||||||||||
Tax benefit from share-based compensation | 24 | 24 | |||||||||||||||||||||
Adjustment to the fair value of redeemable noncontrolling interest | 6 | 6 | (6 | ) | |||||||||||||||||||
Other | (1 | ) | (1 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | (14 | ) | |||||||||||||||||||
Balance as of September 30, 2013 | 530,852,885 | $ | 3,671 | $ | (10,037 | ) | $ | (242 | ) | $ | (6,608 | ) | $ | 400 | |||||||||
Stockholders' Deficit | |||||||||||||||||||||||
Common | Common | Accumulated | Accumulated | Total | Redeemable | Net | |||||||||||||||||
Shares | Stock and | Deficit | Other | Stockholders' | Noncontrolling | Income | |||||||||||||||||
Additional | Comprehensive | Deficit | Interest | ||||||||||||||||||||
Paid-In | Loss | ||||||||||||||||||||||
Capital | |||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | |||||||||||||||||||||||
Balance as of January 1, 2012 | 691,306,695 | $ | 4,799 | $ | (7,750 | ) | $ | (156 | ) | $ | (3,107 | ) | $ | 265 | |||||||||
Net income | 2,007 | 2,007 | 22 | $ | 2,029 | ||||||||||||||||||
Stock repurchased and retired | (81,713,828 | ) | (567 | ) | (3,330 | ) | (3,897 | ) | |||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 2,162,030 | (54 | ) | (54 | ) | ||||||||||||||||||
Share-based compensation expense | 77 | 77 | |||||||||||||||||||||
Tax benefit from share-based compensation | 30 | 30 | |||||||||||||||||||||
Adjustment to the fair value of redeemable noncontrolling interest | 7 | 7 | (7 | ) | |||||||||||||||||||
Other | (1 | ) | (1 | ) | |||||||||||||||||||
Other comprehensive loss | (62 | ) | (62 | ) | (15 | ) | |||||||||||||||||
Balance as of September 30, 2012 | 611,754,897 | $ | 4,291 | $ | (9,073 | ) | $ | (218 | ) | $ | (5,000 | ) | $ | 265 | |||||||||
Other Comprehensive Income (Loss) | |||||||||||||||||||||||
The following represents the components of other comprehensive income (loss) for each of the periods presented: | |||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Pre-Tax | Tax | Net of | Pre-Tax | Tax | Net of | ||||||||||||||||||
Benefit | Tax | Benefit | Tax | ||||||||||||||||||||
(Expense) | (Expense) | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | $ | (2 | ) | $ | 1 | $ | (1 | ) | $ | (2 | ) | $ | 1 | $ | (1 | ) | |||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 19 | (7 | ) | 12 | 15 | (6 | ) | 9 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Cash flows hedges: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the period | 125 | (47 | ) | 78 | (51 | ) | 20 | (31 | ) | ||||||||||||||
Reclassification adjustments included in net income | (99 | ) | 38 | (61 | ) | (5 | ) | 2 | (3 | ) | |||||||||||||
Foreign currency translation adjustments | (5 | ) | 2 | (3 | ) | (3 | ) | 1 | (2 | ) | |||||||||||||
Other comprehensive income (loss) | $ | 40 | $ | (14 | ) | $ | 26 | $ | (46 | ) | $ | 18 | $ | (28 | ) | ||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Pre-Tax | Tax | Net of | Pre-Tax | Tax | Net of | ||||||||||||||||||
Benefit | Tax | Benefit | Tax | ||||||||||||||||||||
(Expense) | (Expense) | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | $ | (2 | ) | $ | 1 | $ | (1 | ) | $ | (2 | ) | $ | 1 | $ | (1 | ) | |||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 19 | (7 | ) | 12 | 15 | (6 | ) | 9 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Cash flows hedges: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the period | 83 | (32 | ) | 51 | (51 | ) | 20 | (31 | ) | ||||||||||||||
Reclassification adjustments included in net income | (22 | ) | 9 | (13 | ) | (5 | ) | 2 | (3 | ) | |||||||||||||
Foreign currency translation adjustments | (81 | ) | 30 | (51 | ) | (52 | ) | 20 | (32 | ) | |||||||||||||
Available for sale securities: | |||||||||||||||||||||||
Unrealized holding losses on securities | — | — | — | (7 | ) | 3 | (4 | ) | |||||||||||||||
Reclassification adjustment for net losses recognized during the period | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Other comprehensive income (loss) | $ | 1 | $ | (1 | ) | $ | — | $ | (102 | ) | $ | 40 | $ | (62 | ) | ||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||||||||
The following represents the changes in the components of accumulated other comprehensive loss for each of the periods presented: | |||||||||||||||||||||||
Defined | Gains (Losses) | Foreign | Unrealized | Accumulated | |||||||||||||||||||
Benefit | on Cash | Currency | Gains | Other | |||||||||||||||||||
Plan Items | Flow Hedges | Items | (Losses) on | Comprehensive | |||||||||||||||||||
Available for | Loss | ||||||||||||||||||||||
Sale Securities | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Balance as of January 1, 2013 | $ | (184 | ) | $ | (17 | ) | $ | (40 | ) | $ | (1 | ) | $ | (242 | ) | ||||||||
Other comprehensive income (loss) | 12 | 38 | (51 | ) | 1 | — | |||||||||||||||||
Balance as of September 30, 2013 | $ | (172 | ) | $ | 21 | $ | (91 | ) | $ | — | $ | (242 | ) | ||||||||||
Defined | Losses on | Foreign | Unrealized | Accumulated | |||||||||||||||||||
Benefit | Cash Flow | Currency | Gains | Other | |||||||||||||||||||
Plan Items | Hedges | Items | (Losses) on | Comprehensive | |||||||||||||||||||
Available for | Loss | ||||||||||||||||||||||
Sale Securities | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Balance as of January 1, 2012 | $ | (151 | ) | $ | — | $ | (8 | ) | $ | 3 | $ | (156 | ) | ||||||||||
Other comprehensive income (loss) | 8 | (34 | ) | (32 | ) | (4 | ) | (62 | ) | ||||||||||||||
Balance as of September 30, 2012 | $ | (143 | ) | $ | (34 | ) | $ | (40 | ) | $ | (1 | ) | $ | (218 | ) | ||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Common Share | ' | ||||||||||
Earnings Per Common Share | ' | ||||||||||
Note 9: Earnings Per Common Share | |||||||||||
We compute basic earnings per common share, or EPS, by dividing net income attributable to DIRECTV by the weighted average number of common shares outstanding for the period. | |||||||||||
Diluted EPS considers the effect of common equivalent shares, which consist entirely of common stock options and restricted stock units issued to employees. During the nine months ended September 30, 2013, we excluded 0.9 million common stock awards from the computation of diluted EPS because the inclusion of the potential common shares would have had an antidilutive effect. We did not exclude any common stock awards from the computation of diluted EPS during the three months ended September 30, 2013 and the three and nine months ended September 30, 2012. | |||||||||||
The reconciliation of the amounts used in the basic and diluted EPS computation is as follows: | |||||||||||
Income | Shares | Per Share | |||||||||
Amounts | |||||||||||
(Dollars and Shares | |||||||||||
in Millions, | |||||||||||
Except Per Share Amounts) | |||||||||||
Three Months Ended | |||||||||||
September 30, 2013 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 699 | 541 | $ | 1.29 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.01 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 699 | 545 | $ | 1.28 | ||||||
September 30, 2012 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 565 | 624 | $ | 0.91 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 5 | (0.01 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 565 | 629 | $ | 0.9 | ||||||
Income | Shares | Per Share | |||||||||
Amounts | |||||||||||
(Dollars and Shares | |||||||||||
in Millions, | |||||||||||
Except Per Share Amounts) | |||||||||||
Nine Months Ended | |||||||||||
September 30, 2013 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 2,049 | 557 | $ | 3.68 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 5 | (0.03 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 2,049 | 562 | $ | 3.65 | ||||||
September 30, 2012 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 2,007 | 651 | $ | 3.08 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.02 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 2,007 | 655 | $ | 3.06 | ||||||
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Note 10: Segment Reporting | ||||||||||||||||||||
Our reportable segments, which are differentiated by their products and services as well as geographic location, are DIRECTV U.S., Sky Brasil and PanAmericana, which are engaged in acquiring, promoting, selling and distributing digital entertainment programming primarily via satellite to residential and commercial subscribers, and the Sports Networks, Eliminations and Other segment, which includes our regional sports networks that provide programming devoted to local professional sports teams and college sporting events and locally produce their own programming. Sports Networks, Eliminations and Other also includes the corporate office, eliminations and other entities. | ||||||||||||||||||||
Selected information for our operating segments is reported as follows: | ||||||||||||||||||||
External | Intersegment | Total | Operating | Depreciation | Operating | |||||||||||||||
Revenues | Revenues | Revenues | Profit | and | Profit | |||||||||||||||
(Loss) | Amortization | (Loss) Before | ||||||||||||||||||
Expense | Depreciation | |||||||||||||||||||
and | ||||||||||||||||||||
Amortization(1) | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
DIRECTV U.S. | $ | 6,168 | $ | 2 | $ | 6,170 | $ | 987 | $ | 409 | $ | 1,396 | ||||||||
Sky Brasil | 883 | — | 883 | 169 | 184 | 353 | ||||||||||||||
PanAmericana | 779 | — | 779 | 93 | 112 | 205 | ||||||||||||||
DIRECTV Latin America | 1,662 | — | 1,662 | 262 | 296 | 558 | ||||||||||||||
Sports Networks, Eliminations and Other | 50 | (2 | ) | 48 | (24 | ) | 3 | (21 | ) | |||||||||||
Total | $ | 7,880 | $ | — | $ | 7,880 | $ | 1,225 | $ | 708 | $ | 1,933 | ||||||||
September 30, 2012 | ||||||||||||||||||||
DIRECTV U.S. | $ | 5,767 | $ | 2 | $ | 5,769 | $ | 876 | $ | 375 | $ | 1,251 | ||||||||
Sky Brasil | 868 | — | 868 | 122 | 133 | 255 | ||||||||||||||
PanAmericana | 709 | — | 709 | 99 | 101 | 200 | ||||||||||||||
DIRECTV Latin America | 1,577 | — | 1,577 | 221 | 234 | 455 | ||||||||||||||
Sports Networks, Eliminations and Other | 72 | (2 | ) | 70 | (29 | ) | 9 | (20 | ) | |||||||||||
Total | $ | 7,416 | $ | — | $ | 7,416 | $ | 1,068 | $ | 618 | $ | 1,686 | ||||||||
External | Intersegment | Total | Operating | Depreciation | Operating | |||||||||||||||
Revenues | Revenues | Revenues | Profit | and | Profit | |||||||||||||||
(Loss) | Amortization | (Loss) Before | ||||||||||||||||||
Expense | Depreciation | |||||||||||||||||||
and | ||||||||||||||||||||
Amortization(1) | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
DIRECTV U.S. | $ | 17,897 | $ | 6 | $ | 17,903 | $ | 3,343 | $ | 1,225 | $ | 4,568 | ||||||||
Sky Brasil | 2,790 | — | 2,790 | 379 | 547 | 926 | ||||||||||||||
PanAmericana | 2,286 | — | 2,286 | 139 | 328 | 467 | ||||||||||||||
DIRECTV Latin America | 5,076 | — | 5,076 | 518 | 875 | 1,393 | ||||||||||||||
Sports Networks, Eliminations and Other | 187 | (6 | ) | 181 | (44 | ) | 17 | (27 | ) | |||||||||||
Total | $ | 23,160 | $ | — | $ | 23,160 | $ | 3,817 | $ | 2,117 | $ | 5,934 | ||||||||
September 30, 2012 | ||||||||||||||||||||
DIRECTV U.S. | $ | 16,909 | $ | 6 | $ | 16,915 | $ | 3,130 | $ | 1,116 | $ | 4,246 | ||||||||
Sky Brasil | 2,587 | — | 2,587 | 399 | 403 | 802 | ||||||||||||||
PanAmericana | 1,983 | — | 1,983 | 295 | 271 | 566 | ||||||||||||||
DIRECTV Latin America | 4,570 | — | 4,570 | 694 | 674 | 1,368 | ||||||||||||||
Sports Networks, Eliminations and Other | 207 | (6 | ) | 201 | (37 | ) | 21 | (16 | ) | |||||||||||
Total | $ | 21,686 | $ | — | $ | 21,686 | $ | 3,787 | $ | 1,811 | $ | 5,598 | ||||||||
-1 | ||||||||||||||||||||
Operating profit before depreciation and amortization, which is a financial measure that is not determined in accordance with GAAP can be calculated by adding amounts under the caption "Depreciation and amortization expense" to "Operating profit." This measure should be used in conjunction with GAAP financial measures and is not presented as an alternative measure of operating results, as determined in accordance with GAAP. Our management and Board of Directors use operating profit before depreciation and amortization to evaluate the operating performance of our company and our business segments and to allocate resources and capital to business segments. This metric is also used as a measure of performance for incentive compensation purposes and to measure income generated from operations that could be used to fund capital expenditures, service debt or pay taxes. Depreciation and amortization expense primarily represents an allocation to current expense of the cost of historical capital expenditures and for intangible assets resulting from prior business acquisitions. To compensate for the exclusion of depreciation and amortization expense from operating profit, our management and Board of Directors separately measure and budget for capital expenditures and business acquisitions. | ||||||||||||||||||||
We believe this measure is useful to investors, along with GAAP measures (such as revenues, operating profit and net income), to compare our operating performance to other communications, entertainment and media service providers. We believe that investors use current and projected operating profit before depreciation and amortization and similar measures to estimate our current or prospective enterprise value and make investment decisions. This metric provides investors with a means to compare operating results exclusive of depreciation and amortization. Our management believes this is useful given the significant variation in depreciation and amortization expense that can result from the timing of capital expenditures, the capitalization of intangible assets, potential variations in expected useful lives when compared to other companies and periodic changes to estimated useful lives. | ||||||||||||||||||||
The following represents a reconciliation of operating profit before depreciation and amortization to reported net income on the Consolidated Statements of Operations: | ||||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Operating profit before depreciation and amortization | $ | 1,933 | $ | 1,686 | $ | 5,934 | $ | 5,598 | ||||||||||||
Depreciation and amortization | (708 | ) | (618 | ) | (2,117 | ) | (1,811 | ) | ||||||||||||
Operating profit | 1,225 | 1,068 | 3,817 | 3,787 | ||||||||||||||||
Interest income | 15 | 17 | 56 | 40 | ||||||||||||||||
Interest expense | (182 | ) | (204 | ) | (618 | ) | (622 | ) | ||||||||||||
Other, net | 43 | 39 | 6 | 13 | ||||||||||||||||
Income before income taxes | 1,101 | 920 | 3,261 | 3,218 | ||||||||||||||||
Income tax expense | (391 | ) | (348 | ) | (1,192 | ) | (1,189 | ) | ||||||||||||
Net income | 710 | 572 | 2,069 | 2,029 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | (11 | ) | (7 | ) | (20 | ) | (22 | ) | ||||||||||||
Net income attributable to DIRECTV | $ | 699 | $ | 565 | $ | 2,049 | $ | 2,007 | ||||||||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||||||
Note 11: Condensed Consolidating Financial Statements | |||||||||||||||||||||
As discussed above in Note 4, DIRECTV has provided a guarantee of all the outstanding senior notes of DIRECTV Holdings LLC and DIRECTV Financing Co., Inc., or the Co-issuers. | |||||||||||||||||||||
The following condensed consolidating financial statements of DIRECTV and subsidiaries have been prepared pursuant to rules regarding the preparation of consolidating financial statements of Regulation S-X. | |||||||||||||||||||||
These condensed consolidating financial statements present the condensed consolidating statements of operations and condensed consolidating statements of comprehensive income for the three and nine months ended September 30, 2013 and 2012, the condensed consolidating statements of cash flows for the nine months ended September 30, 2013 and 2012, and the condensed consolidating balance sheets as of September 30, 2013 and December 31, 2012. | |||||||||||||||||||||
The condensed consolidating financial statements are comprised of DIRECTV, or the Parent Guarantor, its indirect 100% owned subsidiaries, DIRECTV Holdings, DIRECTV Financing and each of DIRECTV Holdings' material subsidiaries (other than DIRECTV Financing), or the Guarantor Subsidiaries, as well as other subsidiaries who are not guarantors of the senior notes, or the Non-Guarantor Subsidiaries, and the eliminations necessary to present DIRECTV's financial statements on a consolidated basis. The Non-Guarantor Subsidiaries consist primarily of DIRECTV's DTH digital television services throughout Latin America which are held by DIRECTV Latin America Holdings, Inc. and its subsidiaries, and our regional sports networks which are held by DIRECTV Sports Networks LLC and its subsidiaries. | |||||||||||||||||||||
The accompanying condensed consolidating financial statements are presented based on the equity method of accounting for all periods presented. Under this method, investments in subsidiaries are recorded at cost and adjusted for the subsidiaries' cumulative results of operations, capital contributions and distributions, and other changes in equity. Elimination entries include consolidating and eliminating entries for investments in subsidiaries, intercompany activity and balances, and income taxes. | |||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 6,170 | $ | 1,723 | $ | (13 | ) | $ | 7,880 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 2,904 | 548 | (11 | ) | 3,441 | ||||||||||||||
Subscriber service expenses | — | — | 391 | 192 | — | 583 | |||||||||||||||
Broadcast operations expenses | — | — | 68 | 32 | (2 | ) | 98 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 756 | 185 | — | 941 | |||||||||||||||
Upgrade and retention costs | — | — | 359 | 52 | — | 411 | |||||||||||||||
General and administrative expenses | 12 | — | 296 | 165 | — | 473 | |||||||||||||||
Depreciation and amortization expense | — | — | 409 | 299 | — | 708 | |||||||||||||||
Total operating costs and expenses | 12 | — | 5,183 | 1,473 | (13 | ) | 6,655 | ||||||||||||||
Operating profit (loss) | (12 | ) | — | 987 | 250 | — | 1,225 | ||||||||||||||
Equity in income of consolidated subsidiaries | 706 | 820 | — | — | (1,526 | ) | — | ||||||||||||||
Interest income | 3 | — | 1 | 13 | (2 | ) | 15 | ||||||||||||||
Interest expense | — | (206 | ) | (1 | ) | 23 | 2 | (182 | ) | ||||||||||||
Other, net | — | — | 6 | 37 | — | 43 | |||||||||||||||
Income before income taxes | 697 | 614 | 993 | 323 | (1,526 | ) | 1,101 | ||||||||||||||
Income tax benefit (expense) | 2 | 38 | (173 | ) | (258 | ) | — | (391 | ) | ||||||||||||
Net income | 699 | 652 | 820 | 65 | (1,526 | ) | 710 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 699 | $ | 652 | $ | 820 | $ | 54 | $ | (1,526 | ) | $ | 699 | ||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 5,769 | $ | 1,667 | $ | (20 | ) | $ | 7,416 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 2,685 | 621 | (18 | ) | 3,288 | ||||||||||||||
Subscriber service expenses | — | — | 390 | 176 | — | 566 | |||||||||||||||
Broadcast operations expenses | — | — | 74 | 31 | (2 | ) | 103 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 757 | 187 | — | 944 | |||||||||||||||
Upgrade and retention costs | — | — | 340 | 42 | — | 382 | |||||||||||||||
General and administrative expenses | 17 | — | 272 | 158 | — | 447 | |||||||||||||||
Depreciation and amortization expense | — | — | 375 | 243 | — | 618 | |||||||||||||||
Total operating costs and expenses | 17 | — | 4,893 | 1,458 | (20 | ) | 6,348 | ||||||||||||||
Operating profit (loss) | (17 | ) | — | 876 | 209 | — | 1,068 | ||||||||||||||
Equity in income of consolidated subsidiaries | 576 | 553 | — | — | (1,129 | ) | — | ||||||||||||||
Interest income | — | — | 1 | 19 | (3 | ) | 17 | ||||||||||||||
Interest expense | — | (188 | ) | (1 | ) | (18 | ) | 3 | (204 | ) | |||||||||||
Other, net | (2 | ) | — | 17 | 24 | — | 39 | ||||||||||||||
Income before income taxes | 557 | 365 | 893 | 234 | (1,129 | ) | 920 | ||||||||||||||
Income tax benefit (expense) | 8 | 71 | (340 | ) | (87 | ) | — | (348 | ) | ||||||||||||
Net income | 565 | 436 | 553 | 147 | (1,129 | ) | 572 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 565 | $ | 436 | $ | 553 | $ | 140 | $ | (1,129 | ) | $ | 565 | ||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 17,903 | $ | 5,306 | $ | (49 | ) | $ | 23,160 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 8,147 | 1,808 | (43 | ) | 9,912 | ||||||||||||||
Subscriber service expenses | — | — | 1,102 | 572 | — | 1,674 | |||||||||||||||
Broadcast operations expenses | — | — | 220 | 91 | (6 | ) | 305 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 1,979 | 585 | — | 2,564 | |||||||||||||||
Upgrade and retention costs | — | — | 1,002 | 151 | — | 1,153 | |||||||||||||||
General and administrative expenses | 53 | — | 885 | 514 | — | 1,452 | |||||||||||||||
Venezuelan currency devaluation | — | — | — | 166 | — | 166 | |||||||||||||||
Depreciation and amortization expense | — | — | 1,225 | 892 | — | 2,117 | |||||||||||||||
Total operating costs and expenses | 53 | — | 14,560 | 4,779 | (49 | ) | 19,343 | ||||||||||||||
Operating profit (loss) | (53 | ) | — | 3,343 | 527 | — | 3,817 | ||||||||||||||
Equity in income of consolidated subsidiaries | 2,082 | 2,530 | — | — | (4,612 | ) | — | ||||||||||||||
Interest income | 13 | — | 2 | 49 | (8 | ) | 56 | ||||||||||||||
Interest expense | (1 | ) | (613 | ) | (2 | ) | (10 | ) | 8 | (618 | ) | ||||||||||
Other, net | (4 | ) | — | 22 | (12 | ) | — | 6 | |||||||||||||
Income before income taxes | 2,037 | 1,917 | 3,365 | 554 | (4,612 | ) | 3,261 | ||||||||||||||
Income tax benefit (expense) | 12 | 152 | (835 | ) | (521 | ) | — | (1,192 | ) | ||||||||||||
Net income | 2,049 | 2,069 | 2,530 | 33 | (4,612 | ) | 2,069 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (20 | ) | — | (20 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 2,049 | $ | 2,069 | $ | 2,530 | $ | 13 | $ | (4,612 | ) | $ | 2,049 | ||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | 59 | $ | 16,915 | $ | 4,831 | $ | (119 | ) | $ | 21,686 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 7,549 | 1,754 | (54 | ) | 9,249 | ||||||||||||||
Subscriber service expenses | — | — | 1,096 | 496 | — | 1,592 | |||||||||||||||
Broadcast operations expenses | — | — | 229 | 87 | (6 | ) | 310 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 2,017 | 532 | — | 2,549 | |||||||||||||||
Upgrade and retention costs | — | — | 930 | 126 | — | 1,056 | |||||||||||||||
General and administrative expenses | 33 | — | 907 | 451 | (59 | ) | 1,332 | ||||||||||||||
Depreciation and amortization expense | — | — | 1,116 | 695 | — | 1,811 | |||||||||||||||
Total operating costs and expenses | 33 | — | 13,844 | 4,141 | (119 | ) | 17,899 | ||||||||||||||
Operating profit (loss) | (33 | ) | 59 | 3,071 | 690 | — | 3,787 | ||||||||||||||
Equity in income of consolidated subsidiaries | 2,032 | 1,926 | — | — | (3,958 | ) | — | ||||||||||||||
Interest income | — | — | 1 | 48 | (9 | ) | 40 | ||||||||||||||
Interest expense | (1 | ) | (575 | ) | (2 | ) | (53 | ) | 9 | (622 | ) | ||||||||||
Other, net | (6 | ) | (65 | ) | 26 | 58 | — | 13 | |||||||||||||
Income before income taxes | 1,992 | 1,345 | 3,096 | 743 | (3,958 | ) | 3,218 | ||||||||||||||
Income tax benefit (expense) | 15 | 219 | (1,170 | ) | (253 | ) | — | (1,189 | ) | ||||||||||||
Net income | 2,007 | 1,564 | 1,926 | 490 | (3,958 | ) | 2,029 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (22 | ) | — | (22 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 2,007 | $ | 1,564 | $ | 1,926 | $ | 468 | $ | (3,958 | ) | $ | 2,007 | ||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 699 | $ | 652 | $ | 820 | $ | 65 | $ | (1,526 | ) | $ | 710 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 12 | — | — | — | — | 12 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 1 | — | — | — | — | 1 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized gains arising during the period | — | 78 | — | — | — | 78 | |||||||||||||||
Reclassification adjustments included in net income | — | (61 | ) | — | — | — | (61 | ) | |||||||||||||
Foreign currency translation adjustments | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Other comprehensive income (loss) | 12 | 17 | — | (3 | ) | — | 26 | ||||||||||||||
Comprehensive income | 711 | 669 | 820 | 62 | (1,526 | ) | 736 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Comprehensive income attributable to DIRECTV | $ | 711 | $ | 669 | $ | 820 | $ | 51 | $ | (1,526 | ) | $ | 725 | ||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 565 | $ | 436 | $ | 553 | $ | 147 | $ | (1,129 | ) | $ | 572 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 9 | — | — | — | — | 9 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized losses arising during the period | — | (31 | ) | — | — | — | (31 | ) | |||||||||||||
Reclassification adjustments included in net income | — | (3 | ) | — | — | (3 | ) | ||||||||||||||
Foreign currency translation adjustments | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Other comprehensive income (loss) | 8 | (34 | ) | — | (2 | ) | — | (28 | ) | ||||||||||||
Comprehensive income | 573 | 402 | 553 | 145 | (1,129 | ) | 544 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Comprehensive income attributable to DIRECTV | $ | 573 | $ | 402 | $ | 553 | $ | 139 | $ | (1,129 | ) | $ | 538 | ||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 2,049 | $ | 2,069 | $ | 2,530 | $ | 33 | $ | (4,612 | ) | $ | 2,069 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 12 | — | — | — | — | 12 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 1 | — | — | — | — | 1 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized gains arising during the period | — | 51 | — | — | — | 51 | |||||||||||||||
Reclassification adjustments included in net income | — | (13 | ) | — | — | — | (13 | ) | |||||||||||||
Foreign currency translation adjustments | — | — | — | (51 | ) | — | (51 | ) | |||||||||||||
Available for sale securities: | |||||||||||||||||||||
Reclassification adjustment for net losses recognized during the period | — | — | — | 1 | — | 1 | |||||||||||||||
Other comprehensive income (loss) | 12 | 38 | — | (50 | ) | — | — | ||||||||||||||
Comprehensive income (loss) | 2,061 | 2,107 | 2,530 | (17 | ) | (4,612 | ) | 2,069 | |||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Comprehensive income (loss) attributable to DIRECTV | $ | 2,061 | $ | 2,107 | $ | 2,530 | $ | (23 | ) | $ | (4,612 | ) | $ | 2,063 | |||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 2,007 | $ | 1,564 | $ | 1,926 | $ | 490 | $ | (3,958 | ) | $ | 2,029 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 9 | — | — | — | — | 9 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized losses arising during the period | — | (31 | ) | — | — | — | (31 | ) | |||||||||||||
Reclassification adjustments included in net income | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||
Foreign currency translation adjustments | — | — | — | (32 | ) | — | (32 | ) | |||||||||||||
Available for sale securities: | |||||||||||||||||||||
Unrealized holding losses on securities | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Other comprehensive income (loss) | 8 | (34 | ) | — | (36 | ) | — | (62 | ) | ||||||||||||
Comprehensive income | 2,015 | 1,530 | 1,926 | 454 | (3,958 | ) | 1,967 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Comprehensive income attributable to DIRECTV | $ | 2,015 | $ | 1,530 | $ | 1,926 | $ | 447 | $ | (3,958 | ) | $ | 1,960 | ||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Total current assets | $ | 872 | $ | 713 | $ | 2,906 | $ | 2,206 | $ | (1,668 | ) | $ | 5,029 | ||||||||
Satellites, net | — | — | 1,820 | 623 | — | 2,443 | |||||||||||||||
Property and equipment, net | — | — | 3,556 | 2,906 | — | 6,462 | |||||||||||||||
Goodwill | — | 1,828 | 1,360 | 797 | — | 3,985 | |||||||||||||||
Intangible assets, net | — | — | 525 | 405 | — | 930 | |||||||||||||||
Intercompany receivables | 4,597 | 7,579 | 19,655 | 4,120 | (35,951 | ) | — | ||||||||||||||
Investment in subsidiaries | (9,868 | ) | 17,412 | — | (11,286 | ) | 3,742 | — | |||||||||||||
Investments and other assets | 105 | 151 | 259 | 1,423 | (199 | ) | 1,739 | ||||||||||||||
Total assets | $ | (4,294 | ) | $ | 27,683 | $ | 30,081 | $ | 1,194 | $ | (34,076 | ) | $ | 20,588 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||||||||
Total current liabilities | $ | 540 | $ | 742 | $ | 3,424 | $ | 2,291 | $ | (1,668 | ) | $ | 5,329 | ||||||||
Long-term debt | — | 18,585 | — | 50 | — | 18,635 | |||||||||||||||
Deferred income taxes | — | 34 | 1,429 | 270 | (191 | ) | 1,542 | ||||||||||||||
Intercompany liabilities | 1,356 | 19,655 | 7,579 | 7,361 | (35,951 | ) | — | ||||||||||||||
Other liabilities and deferred credits | 418 | 186 | 237 | 457 | (8 | ) | 1,290 | ||||||||||||||
Redeemable noncontrolling interest | — | — | — | 400 | — | 400 | |||||||||||||||
Stockholders' equity (deficit) | |||||||||||||||||||||
Capital stock and additional paid-in capital | 3,671 | 14 | 4,883 | (9,009 | ) | 4,112 | 3,671 | ||||||||||||||
Retained earnings (accumulated deficit) | (10,037 | ) | (11,555 | ) | 12,529 | (497 | ) | (477 | ) | (10,037 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (242 | ) | 22 | — | (129 | ) | 107 | (242 | ) | ||||||||||||
Total stockholders' equity (deficit) | (6,608 | ) | (11,519 | ) | 17,412 | (9,635 | ) | 3,742 | (6,608 | ) | |||||||||||
Total liabilities and stockholders' equity (deficit) | $ | (4,294 | ) | $ | 27,683 | $ | 30,081 | $ | 1,194 | $ | (34,076 | ) | $ | 20,588 | |||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Total current assets | $ | 883 | $ | 884 | $ | 2,788 | $ | 2,039 | $ | (1,040 | ) | $ | 5,554 | ||||||||
Satellites, net | — | — | 1,795 | 562 | — | 2,357 | |||||||||||||||
Property and equipment, net | — | — | 3,290 | 2,748 | — | 6,038 | |||||||||||||||
Goodwill | — | 1,828 | 1,349 | 886 | — | 4,063 | |||||||||||||||
Intangible assets, net | — | — | 453 | 379 | — | 832 | |||||||||||||||
Intercompany receivables | 4,382 | 6,152 | 16,355 | 3,703 | (30,592 | ) | — | ||||||||||||||
Investment in subsidiaries | (8,687 | ) | 15,001 | — | (10,915 | ) | 4,601 | — | |||||||||||||
Investments and other assets | 180 | 91 | 241 | 1,294 | (95 | ) | 1,711 | ||||||||||||||
Total assets | $ | (3,242 | ) | $ | 23,956 | $ | 26,271 | $ | 696 | $ | (27,126 | ) | $ | 20,555 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||||||||
Total current liabilities | $ | 384 | $ | 646 | $ | 3,526 | $ | 2,025 | $ | (1,040 | ) | $ | 5,541 | ||||||||
Long-term debt | — | 17,170 | — | — | — | 17,170 | |||||||||||||||
Deferred income taxes | — | — | 1,397 | 361 | (86 | ) | 1,672 | ||||||||||||||
Intercompany liabilities | 1,401 | 16,355 | 6,152 | 6,684 | (30,592 | ) | — | ||||||||||||||
Other liabilities and deferred credits | 404 | 131 | 195 | 482 | (9 | ) | 1,203 | ||||||||||||||
Redeemable noncontrolling interest | — | — | — | 400 | — | 400 | |||||||||||||||
Stockholders' equity (deficit) | |||||||||||||||||||||
Capital stock and additional paid-in capital | 4,021 | 12 | 4,802 | (6,632 | ) | 1,818 | 4,021 | ||||||||||||||
Retained earnings (accumulated deficit) | (9,210 | ) | (10,341 | ) | 10,199 | (2,560 | ) | 2,702 | (9,210 | ) | |||||||||||
Accumulated other comprehensive loss | (242 | ) | (17 | ) | — | (64 | ) | 81 | (242 | ) | |||||||||||
Total stockholders' equity (deficit) | (5,431 | ) | (10,346 | ) | 15,001 | (9,256 | ) | 4,601 | (5,431 | ) | |||||||||||
Total liabilities and stockholders' equity (deficit) | $ | (3,242 | ) | $ | 23,956 | $ | 26,271 | $ | 696 | $ | (27,126 | ) | $ | 20,555 | |||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net cash provided by operating activities | $ | 1,096 | $ | 1,568 | $ | 1,623 | $ | 1,701 | $ | (1,633 | ) | $ | 4,355 | ||||||||
Cash flows from investing activities | |||||||||||||||||||||
Cash paid for property and equipment | — | — | (1,327 | ) | (1,144 | ) | — | (2,471 | ) | ||||||||||||
Cash paid for satellites | — | — | (154 | ) | (122 | ) | — | (276 | ) | ||||||||||||
Investment in companies, net of cash acquired | — | — | (38 | ) | (9 | ) | — | (47 | ) | ||||||||||||
Proceeds from sale of investments | 117 | — | 12 | 11 | — | 140 | |||||||||||||||
Return of capital from subsidiary | 1,567 | — | — | — | (1,567 | ) | — | ||||||||||||||
Other, net | — | — | (67 | ) | (91 | ) | — | (158 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 1,684 | — | (1,574 | ) | (1,355 | ) | (1,567 | ) | (2,812 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Issuance of commercial paper (maturity 90 days or less), net | — | 90 | — | — | — | 90 | |||||||||||||||
Proceeds from short-term borrowings | — | 441 | — | — | — | 441 | |||||||||||||||
Repayment of short-term borrowings | — | (327 | ) | — | — | — | (327 | ) | |||||||||||||
Proceeds from borrowings under revolving credit facility | — | 10 | — | — | — | 10 | |||||||||||||||
Repayment of borrowings under revolving credit facility | — | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Proceeds from long-term debt | — | 1,390 | — | 94 | — | 1,484 | |||||||||||||||
Debt issuance costs | — | (8 | ) | — | — | — | (8 | ) | |||||||||||||
Repayment of long-term debt | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Repayment of other long-term obligations | — | — | (18 | ) | (30 | ) | — | (48 | ) | ||||||||||||
Common shares repurchased and retired | (3,228 | ) | — | — | — | — | (3,228 | ) | |||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | — | — | (51 | ) | (10 | ) | — | (61 | ) | ||||||||||||
Excess tax benefit from share-based compensation | — | — | 20 | 4 | — | 24 | |||||||||||||||
Other, net | — | 6 | — | — | — | 6 | |||||||||||||||
Intercompany payments (funding) | 265 | — | 3 | (268 | ) | — | — | ||||||||||||||
Cash dividend to Parent | — | (3,200 | ) | — | — | 3,200 | — | ||||||||||||||
Net cash used in financing activities | (2,963 | ) | (1,608 | ) | (46 | ) | (219 | ) | 3,200 | (1,636 | ) | ||||||||||
Effect of exchange rate changes on Venezuelan cash and cash equivalents | — | — | — | (187 | ) | — | (187 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (183 | ) | (40 | ) | 3 | (60 | ) | — | (280 | ) | |||||||||||
Cash and cash equivalents at beginning of the period | 408 | 728 | 11 | 755 | — | 1,902 | |||||||||||||||
Cash and cash equivalents at the end of the period | $ | 225 | $ | 688 | $ | 14 | $ | 695 | $ | — | $ | 1,622 | |||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net cash provided by operating activities | $ | 1,186 | $ | 1,822 | $ | 1,173 | $ | 1,616 | $ | (1,664 | ) | $ | 4,133 | ||||||||
Cash flows from investing activities | |||||||||||||||||||||
Cash paid for property and equipment | — | — | (1,048 | ) | (1,112 | ) | — | (2,160 | ) | ||||||||||||
Cash paid for satellites | (6 | ) | — | (139 | ) | (86 | ) | — | (231 | ) | |||||||||||
Investment in companies, net of cash acquired | — | — | (1 | ) | (3 | ) | — | (4 | ) | ||||||||||||
Proceeds from sale of investments | — | — | 24 | — | — | 24 | |||||||||||||||
Return of capital from subsidiary | 3,336 | — | — | — | (3,336 | ) | — | ||||||||||||||
Other, net | — | — | (1 | ) | 26 | — | 25 | ||||||||||||||
Net cash provided by (used in) investing activities | 3,330 | — | (1,165 | ) | (1,175 | ) | (3,336 | ) | (2,346 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Proceeds from borrowings under revolving credit facility | — | 400 | — | — | — | 400 | |||||||||||||||
Repayment of borrowings under revolving credit facility | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||
Proceeds from long-term debt | — | 5,190 | — | — | — | 5,190 | |||||||||||||||
Debt issuance costs | — | (35 | ) | — | — | — | (35 | ) | |||||||||||||
Repayment of long-term debt | — | (1,500 | ) | — | — | — | (1,500 | ) | |||||||||||||
Repayment of other long-term obligations | — | — | (15 | ) | (25 | ) | — | (40 | ) | ||||||||||||
Common shares repurchased and retired | (3,828 | ) | — | — | — | — | (3,828 | ) | |||||||||||||
Stock options exercised | 2 | — | — | — | — | 2 | |||||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | — | — | (49 | ) | (9 | ) | — | (58 | ) | ||||||||||||
Excess tax benefit from share-based compensation | — | — | 25 | 5 | — | 30 | |||||||||||||||
Intercompany payments (funding) | 154 | — | 14 | (168 | ) | — | — | ||||||||||||||
Cash dividend to Parent | — | (5,000 | ) | — | — | 5,000 | — | ||||||||||||||
Net cash used in financing activities | (3,672 | ) | (1,345 | ) | (25 | ) | (197 | ) | 5,000 | (239 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 844 | 477 | (17 | ) | 244 | — | 1,548 | ||||||||||||||
Cash and cash equivalents at beginning of the period | 129 | 228 | 4 | 512 | — | 873 | |||||||||||||||
Cash and cash equivalents at the end of the period | $ | 973 | $ | 705 | $ | (13 | ) | $ | 756 | $ | — | $ | 2,421 | ||||||||
Goodwill_Tables
Goodwill (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Schedule of goodwill | ' | ||||||||||||||||
DIRECTV Latin | |||||||||||||||||
America | Sports | ||||||||||||||||
Networks, | |||||||||||||||||
Eliminations | |||||||||||||||||
DIRECTV | Sky | PanAmericana | and Other | Total | |||||||||||||
U.S. | Brasil | ||||||||||||||||
(Dollars in Millions) | |||||||||||||||||
Balance as of January 1, 2013 | $ | 3,177 | $ | 380 | $ | 211 | $ | 295 | $ | 4,063 | |||||||
Sky Brasil foreign currency translation adjustment | — | (31 | ) | — | — | (31 | ) | ||||||||||
DSN Northwest Transaction | — | — | — | (73 | ) | (73 | ) | ||||||||||
Acquisitions | 11 | 15 | — | — | 26 | ||||||||||||
Balance as of September 30, 2013 | $ | 3,188 | $ | 364 | $ | 211 | $ | 222 | $ | 3,985 | |||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Debt | ' | ||||||||||
Schedule of outstanding debt | ' | ||||||||||
September 30, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in Millions) | |||||||||||
Current debt | |||||||||||
Current portion of borrowings under BNDES financing facility | $ | 35 | $ | — | |||||||
Commercial paper | 562 | 358 | |||||||||
Long-term debt | |||||||||||
Borrowings under BNDES financing facility | 50 | — | |||||||||
Senior notes | 18,585 | 17,170 | |||||||||
Total debt | $ | 19,232 | $ | 17,528 | |||||||
Schedule of Senior notes issued on 8 March 2012 | ' | ||||||||||
Principal | Proceeds, net | ||||||||||
of discount | |||||||||||
(Dollars in Millions) | |||||||||||
2.400% senior notes due in 2017 | $ | 1,250 | $ | 1,249 | |||||||
3.800% senior notes due in 2022 | 1,500 | 1,499 | |||||||||
5.150% senior notes due in 2042 | 1,250 | 1,248 | |||||||||
$ | 4,000 | $ | 3,996 | ||||||||
Schedule of outstanding senior notes | ' | ||||||||||
Principal amount | Carrying value, net of | ||||||||||
unamortized original | |||||||||||
issue discounts | |||||||||||
September 30, | September 30, | December 31, | |||||||||
2013 | 2013 | 2012 | |||||||||
(Dollars in Millions) | |||||||||||
4.750% senior notes due in 2014 | $ | 1,000 | $ | 999 | $ | 999 | |||||
3.550% senior notes due in 2015 | 1,200 | 1,200 | 1,200 | ||||||||
3.125% senior notes due in 2016 | 750 | 750 | 750 | ||||||||
3.500% senior notes due in 2016 | 1,500 | 1,499 | 1,498 | ||||||||
2.400% senior notes due in 2017 | 1,250 | 1,249 | 1,249 | ||||||||
1.750% senior notes due in 2018 | 750 | 744 | — | ||||||||
5.875% senior notes due in 2019 | 1,000 | 995 | 995 | ||||||||
5.200% senior notes due in 2020 | 1,300 | 1,299 | 1,298 | ||||||||
4.600% senior notes due in 2021 | 1,000 | 999 | 999 | ||||||||
5.000% senior notes due in 2021 | 1,500 | 1,495 | 1,495 | ||||||||
3.800% senior notes due in 2022 | 1,500 | 1,499 | 1,499 | ||||||||
2.750% senior noted due in 2023(1) | 676 | 673 | — | ||||||||
4.375% senior notes due in 2029(1) | 1,214 | 1,201 | 1,206 | ||||||||
6.350% senior notes due in 2040 | 500 | 500 | 500 | ||||||||
6.000% senior notes due in 2040 | 1,250 | 1,235 | 1,234 | ||||||||
6.375% senior notes due in 2041 | 1,000 | 1,000 | 1,000 | ||||||||
5.150% senior notes due in 2042 | 1,250 | 1,248 | 1,248 | ||||||||
Total senior notes | $ | 18,640 | $ | 18,585 | $ | 17,170 | |||||
-1 | |||||||||||
These amounts reflect the remeasurement of the aggregate principal and carrying value of our foreign currency denominated senior notes to U.S. dollars based on the exchange rates in effect at each of the dates presented. | |||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
Schedule of fair values of assets and liabilities associated with the derivative financial instruments | ' | |||||||||||||
Assets | Liabilities | |||||||||||||
September 30, | December 31, | September 30, | December 31, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | 74 | $ | — | $ | — | $ | 17 | ||||||
Interest rate contracts | — | — | 7 | — | ||||||||||
Total fair value of derivative financial instruments | $ | 74 | $ | — | $ | 7 | $ | 17 | ||||||
Schedule of notional amounts of outstanding derivative financial instruments | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | 1,858 | $ | 1,208 | ||||||||||
Interest rate contracts | 500 | — | ||||||||||||
Total notional amount of derivative financial instruments | $ | 2,358 | $ | 1,208 | ||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Related Party Transactions | ' | |||||||||||||
Summary of revenues and expenses with related parties | ' | |||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in Millions) | ||||||||||||||
Revenues | $ | 2 | $ | 1 | $ | 5 | $ | 3 | ||||||
Expenses | 235 | 225 | 717 | 696 | ||||||||||
Schedule of accounts receivable from and accounts payable to related parties | ' | |||||||||||||
September 30, | December 31, | |||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in Millions) | ||||||||||||||
Accounts receivable | $ | 31 | $ | 26 | ||||||||||
Accounts payable | 98 | 90 |
Stockholders_Deficit_and_Redee1
Stockholders' Deficit and Redeemable Noncontrolling Interest (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Stockholders' Deficit and Redeemable Noncontrolling Interest | ' | ||||||||||||||||||||||
Schedule of shares repurchased and retired | ' | ||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
(Amounts in Millions, | |||||||||||||||||||||||
Except Per Share Amounts) | |||||||||||||||||||||||
Total cost of repurchased shares | $ | 3,273 | $ | 3,897 | |||||||||||||||||||
Average price per share | $ | 56.46 | $ | 47.67 | |||||||||||||||||||
Number of shares repurchased and retired | 58 | 82 | |||||||||||||||||||||
Reconciliation of stockholders' deficit and redeemable noncontrolling interest | ' | ||||||||||||||||||||||
Stockholders' Deficit | |||||||||||||||||||||||
Common | Common | Accumulated | Accumulated | Total | Redeemable | Net | |||||||||||||||||
Shares | Stock and | Deficit | Other | Stockholders' | Noncontrolling | Income | |||||||||||||||||
Additional | Comprehensive | Deficit | Interest | ||||||||||||||||||||
Paid-In | Loss | ||||||||||||||||||||||
Capital | |||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | |||||||||||||||||||||||
Balance as of January 1, 2013 | 586,839,817 | $ | 4,021 | $ | (9,210 | ) | $ | (242 | ) | $ | (5,431 | ) | $ | 400 | |||||||||
Net income | 2,049 | 2,049 | 20 | $ | 2,069 | ||||||||||||||||||
Stock repurchased and retired | (57,961,428 | ) | (397 | ) | (2,876 | ) | (3,273 | ) | |||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 1,974,496 | (61 | ) | (61 | ) | ||||||||||||||||||
Share-based compensation expense | 79 | 79 | |||||||||||||||||||||
Tax benefit from share-based compensation | 24 | 24 | |||||||||||||||||||||
Adjustment to the fair value of redeemable noncontrolling interest | 6 | 6 | (6 | ) | |||||||||||||||||||
Other | (1 | ) | (1 | ) | |||||||||||||||||||
Other comprehensive loss | — | — | (14 | ) | |||||||||||||||||||
Balance as of September 30, 2013 | 530,852,885 | $ | 3,671 | $ | (10,037 | ) | $ | (242 | ) | $ | (6,608 | ) | $ | 400 | |||||||||
Stockholders' Deficit | |||||||||||||||||||||||
Common | Common | Accumulated | Accumulated | Total | Redeemable | Net | |||||||||||||||||
Shares | Stock and | Deficit | Other | Stockholders' | Noncontrolling | Income | |||||||||||||||||
Additional | Comprehensive | Deficit | Interest | ||||||||||||||||||||
Paid-In | Loss | ||||||||||||||||||||||
Capital | |||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | |||||||||||||||||||||||
Balance as of January 1, 2012 | 691,306,695 | $ | 4,799 | $ | (7,750 | ) | $ | (156 | ) | $ | (3,107 | ) | $ | 265 | |||||||||
Net income | 2,007 | 2,007 | 22 | $ | 2,029 | ||||||||||||||||||
Stock repurchased and retired | (81,713,828 | ) | (567 | ) | (3,330 | ) | (3,897 | ) | |||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 2,162,030 | (54 | ) | (54 | ) | ||||||||||||||||||
Share-based compensation expense | 77 | 77 | |||||||||||||||||||||
Tax benefit from share-based compensation | 30 | 30 | |||||||||||||||||||||
Adjustment to the fair value of redeemable noncontrolling interest | 7 | 7 | (7 | ) | |||||||||||||||||||
Other | (1 | ) | (1 | ) | |||||||||||||||||||
Other comprehensive loss | (62 | ) | (62 | ) | (15 | ) | |||||||||||||||||
Balance as of September 30, 2012 | 611,754,897 | $ | 4,291 | $ | (9,073 | ) | $ | (218 | ) | $ | (5,000 | ) | $ | 265 | |||||||||
Schedule of components of other comprehensive income (loss) | ' | ||||||||||||||||||||||
Three Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Pre-Tax | Tax | Net of | Pre-Tax | Tax | Net of | ||||||||||||||||||
Benefit | Tax | Benefit | Tax | ||||||||||||||||||||
(Expense) | (Expense) | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | $ | (2 | ) | $ | 1 | $ | (1 | ) | $ | (2 | ) | $ | 1 | $ | (1 | ) | |||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 19 | (7 | ) | 12 | 15 | (6 | ) | 9 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Cash flows hedges: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the period | 125 | (47 | ) | 78 | (51 | ) | 20 | (31 | ) | ||||||||||||||
Reclassification adjustments included in net income | (99 | ) | 38 | (61 | ) | (5 | ) | 2 | (3 | ) | |||||||||||||
Foreign currency translation adjustments | (5 | ) | 2 | (3 | ) | (3 | ) | 1 | (2 | ) | |||||||||||||
Other comprehensive income (loss) | $ | 40 | $ | (14 | ) | $ | 26 | $ | (46 | ) | $ | 18 | $ | (28 | ) | ||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||
Pre-Tax | Tax | Net of | Pre-Tax | Tax | Net of | ||||||||||||||||||
Benefit | Tax | Benefit | Tax | ||||||||||||||||||||
(Expense) | (Expense) | ||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | $ | (2 | ) | $ | 1 | $ | (1 | ) | $ | (2 | ) | $ | 1 | $ | (1 | ) | |||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 19 | (7 | ) | 12 | 15 | (6 | ) | 9 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Cash flows hedges: | |||||||||||||||||||||||
Unrealized gains (losses) arising during the period | 83 | (32 | ) | 51 | (51 | ) | 20 | (31 | ) | ||||||||||||||
Reclassification adjustments included in net income | (22 | ) | 9 | (13 | ) | (5 | ) | 2 | (3 | ) | |||||||||||||
Foreign currency translation adjustments | (81 | ) | 30 | (51 | ) | (52 | ) | 20 | (32 | ) | |||||||||||||
Available for sale securities: | |||||||||||||||||||||||
Unrealized holding losses on securities | — | — | — | (7 | ) | 3 | (4 | ) | |||||||||||||||
Reclassification adjustment for net losses recognized during the period | 2 | (1 | ) | 1 | — | — | — | ||||||||||||||||
Other comprehensive income (loss) | $ | 1 | $ | (1 | ) | $ | — | $ | (102 | ) | $ | 40 | $ | (62 | ) | ||||||||
Schedule of changes in the components of accumulated other comprehensive income (loss) | ' | ||||||||||||||||||||||
Defined | Gains (Losses) | Foreign | Unrealized | Accumulated | |||||||||||||||||||
Benefit | on Cash | Currency | Gains | Other | |||||||||||||||||||
Plan Items | Flow Hedges | Items | (Losses) on | Comprehensive | |||||||||||||||||||
Available for | Loss | ||||||||||||||||||||||
Sale Securities | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Balance as of January 1, 2013 | $ | (184 | ) | $ | (17 | ) | $ | (40 | ) | $ | (1 | ) | $ | (242 | ) | ||||||||
Other comprehensive income (loss) | 12 | 38 | (51 | ) | 1 | — | |||||||||||||||||
Balance as of September 30, 2013 | $ | (172 | ) | $ | 21 | $ | (91 | ) | $ | — | $ | (242 | ) | ||||||||||
Defined | Losses on | Foreign | Unrealized | Accumulated | |||||||||||||||||||
Benefit | Cash Flow | Currency | Gains | Other | |||||||||||||||||||
Plan Items | Hedges | Items | (Losses) on | Comprehensive | |||||||||||||||||||
Available for | Loss | ||||||||||||||||||||||
Sale Securities | |||||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||||
Balance as of January 1, 2012 | $ | (151 | ) | $ | — | $ | (8 | ) | $ | 3 | $ | (156 | ) | ||||||||||
Other comprehensive income (loss) | 8 | (34 | ) | (32 | ) | (4 | ) | (62 | ) | ||||||||||||||
Balance as of September 30, 2012 | $ | (143 | ) | $ | (34 | ) | $ | (40 | ) | $ | (1 | ) | $ | (218 | ) | ||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Earnings Per Common Share | ' | ||||||||||
Schedule of reconciliation of the amounts used in the basic and diluted EPS | ' | ||||||||||
Income | Shares | Per Share | |||||||||
Amounts | |||||||||||
(Dollars and Shares | |||||||||||
in Millions, | |||||||||||
Except Per Share Amounts) | |||||||||||
Three Months Ended | |||||||||||
September 30, 2013 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 699 | 541 | $ | 1.29 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.01 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 699 | 545 | $ | 1.28 | ||||||
September 30, 2012 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 565 | 624 | $ | 0.91 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 5 | (0.01 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 565 | 629 | $ | 0.9 | ||||||
Income | Shares | Per Share | |||||||||
Amounts | |||||||||||
(Dollars and Shares | |||||||||||
in Millions, | |||||||||||
Except Per Share Amounts) | |||||||||||
Nine Months Ended | |||||||||||
September 30, 2013 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 2,049 | 557 | $ | 3.68 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 5 | (0.03 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 2,049 | 562 | $ | 3.65 | ||||||
September 30, 2012 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 2,007 | 651 | $ | 3.08 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.02 | ) | |||||||
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 2,007 | 655 | $ | 3.06 | ||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Selected information for operating segments | ' | |||||||||||||||||||
External | Intersegment | Total | Operating | Depreciation | Operating | |||||||||||||||
Revenues | Revenues | Revenues | Profit | and | Profit | |||||||||||||||
(Loss) | Amortization | (Loss) Before | ||||||||||||||||||
Expense | Depreciation | |||||||||||||||||||
and | ||||||||||||||||||||
Amortization(1) | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
DIRECTV U.S. | $ | 6,168 | $ | 2 | $ | 6,170 | $ | 987 | $ | 409 | $ | 1,396 | ||||||||
Sky Brasil | 883 | — | 883 | 169 | 184 | 353 | ||||||||||||||
PanAmericana | 779 | — | 779 | 93 | 112 | 205 | ||||||||||||||
DIRECTV Latin America | 1,662 | — | 1,662 | 262 | 296 | 558 | ||||||||||||||
Sports Networks, Eliminations and Other | 50 | (2 | ) | 48 | (24 | ) | 3 | (21 | ) | |||||||||||
Total | $ | 7,880 | $ | — | $ | 7,880 | $ | 1,225 | $ | 708 | $ | 1,933 | ||||||||
September 30, 2012 | ||||||||||||||||||||
DIRECTV U.S. | $ | 5,767 | $ | 2 | $ | 5,769 | $ | 876 | $ | 375 | $ | 1,251 | ||||||||
Sky Brasil | 868 | — | 868 | 122 | 133 | 255 | ||||||||||||||
PanAmericana | 709 | — | 709 | 99 | 101 | 200 | ||||||||||||||
DIRECTV Latin America | 1,577 | — | 1,577 | 221 | 234 | 455 | ||||||||||||||
Sports Networks, Eliminations and Other | 72 | (2 | ) | 70 | (29 | ) | 9 | (20 | ) | |||||||||||
Total | $ | 7,416 | $ | — | $ | 7,416 | $ | 1,068 | $ | 618 | $ | 1,686 | ||||||||
External | Intersegment | Total | Operating | Depreciation | Operating | |||||||||||||||
Revenues | Revenues | Revenues | Profit | and | Profit | |||||||||||||||
(Loss) | Amortization | (Loss) Before | ||||||||||||||||||
Expense | Depreciation | |||||||||||||||||||
and | ||||||||||||||||||||
Amortization(1) | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
DIRECTV U.S. | $ | 17,897 | $ | 6 | $ | 17,903 | $ | 3,343 | $ | 1,225 | $ | 4,568 | ||||||||
Sky Brasil | 2,790 | — | 2,790 | 379 | 547 | 926 | ||||||||||||||
PanAmericana | 2,286 | — | 2,286 | 139 | 328 | 467 | ||||||||||||||
DIRECTV Latin America | 5,076 | — | 5,076 | 518 | 875 | 1,393 | ||||||||||||||
Sports Networks, Eliminations and Other | 187 | (6 | ) | 181 | (44 | ) | 17 | (27 | ) | |||||||||||
Total | $ | 23,160 | $ | — | $ | 23,160 | $ | 3,817 | $ | 2,117 | $ | 5,934 | ||||||||
September 30, 2012 | ||||||||||||||||||||
DIRECTV U.S. | $ | 16,909 | $ | 6 | $ | 16,915 | $ | 3,130 | $ | 1,116 | $ | 4,246 | ||||||||
Sky Brasil | 2,587 | — | 2,587 | 399 | 403 | 802 | ||||||||||||||
PanAmericana | 1,983 | — | 1,983 | 295 | 271 | 566 | ||||||||||||||
DIRECTV Latin America | 4,570 | — | 4,570 | 694 | 674 | 1,368 | ||||||||||||||
Sports Networks, Eliminations and Other | 207 | (6 | ) | 201 | (37 | ) | 21 | (16 | ) | |||||||||||
Total | $ | 21,686 | $ | — | $ | 21,686 | $ | 3,787 | $ | 1,811 | $ | 5,598 | ||||||||
-1 | ||||||||||||||||||||
Operating profit before depreciation and amortization, which is a financial measure that is not determined in accordance with GAAP can be calculated by adding amounts under the caption "Depreciation and amortization expense" to "Operating profit." This measure should be used in conjunction with GAAP financial measures and is not presented as an alternative measure of operating results, as determined in accordance with GAAP. Our management and Board of Directors use operating profit before depreciation and amortization to evaluate the operating performance of our company and our business segments and to allocate resources and capital to business segments. This metric is also used as a measure of performance for incentive compensation purposes and to measure income generated from operations that could be used to fund capital expenditures, service debt or pay taxes. Depreciation and amortization expense primarily represents an allocation to current expense of the cost of historical capital expenditures and for intangible assets resulting from prior business acquisitions. To compensate for the exclusion of depreciation and amortization expense from operating profit, our management and Board of Directors separately measure and budget for capital expenditures and business acquisitions. | ||||||||||||||||||||
We believe this measure is useful to investors, along with GAAP measures (such as revenues, operating profit and net income), to compare our operating performance to other communications, entertainment and media service providers. We believe that investors use current and projected operating profit before depreciation and amortization and similar measures to estimate our current or prospective enterprise value and make investment decisions. This metric provides investors with a means to compare operating results exclusive of depreciation and amortization. Our management believes this is useful given the significant variation in depreciation and amortization expense that can result from the timing of capital expenditures, the capitalization of intangible assets, potential variations in expected useful lives when compared to other companies and periodic changes to estimated useful lives. | ||||||||||||||||||||
Reconciliation of operating profit before depreciation and amortization to reported net income | ' | |||||||||||||||||||
Three Months | Nine Months | |||||||||||||||||||
Ended | Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Operating profit before depreciation and amortization | $ | 1,933 | $ | 1,686 | $ | 5,934 | $ | 5,598 | ||||||||||||
Depreciation and amortization | (708 | ) | (618 | ) | (2,117 | ) | (1,811 | ) | ||||||||||||
Operating profit | 1,225 | 1,068 | 3,817 | 3,787 | ||||||||||||||||
Interest income | 15 | 17 | 56 | 40 | ||||||||||||||||
Interest expense | (182 | ) | (204 | ) | (618 | ) | (622 | ) | ||||||||||||
Other, net | 43 | 39 | 6 | 13 | ||||||||||||||||
Income before income taxes | 1,101 | 920 | 3,261 | 3,218 | ||||||||||||||||
Income tax expense | (391 | ) | (348 | ) | (1,192 | ) | (1,189 | ) | ||||||||||||
Net income | 710 | 572 | 2,069 | 2,029 | ||||||||||||||||
Less: Net income attributable to noncontrolling interest | (11 | ) | (7 | ) | (20 | ) | (22 | ) | ||||||||||||
Net income attributable to DIRECTV | $ | 699 | $ | 565 | $ | 2,049 | $ | 2,007 | ||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||||||
Schedule of Condensed Consolidating Statement of Operations | ' | ||||||||||||||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 6,170 | $ | 1,723 | $ | (13 | ) | $ | 7,880 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 2,904 | 548 | (11 | ) | 3,441 | ||||||||||||||
Subscriber service expenses | — | — | 391 | 192 | — | 583 | |||||||||||||||
Broadcast operations expenses | — | — | 68 | 32 | (2 | ) | 98 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 756 | 185 | — | 941 | |||||||||||||||
Upgrade and retention costs | — | — | 359 | 52 | — | 411 | |||||||||||||||
General and administrative expenses | 12 | — | 296 | 165 | — | 473 | |||||||||||||||
Depreciation and amortization expense | — | — | 409 | 299 | — | 708 | |||||||||||||||
Total operating costs and expenses | 12 | — | 5,183 | 1,473 | (13 | ) | 6,655 | ||||||||||||||
Operating profit (loss) | (12 | ) | — | 987 | 250 | — | 1,225 | ||||||||||||||
Equity in income of consolidated subsidiaries | 706 | 820 | — | — | (1,526 | ) | — | ||||||||||||||
Interest income | 3 | — | 1 | 13 | (2 | ) | 15 | ||||||||||||||
Interest expense | — | (206 | ) | (1 | ) | 23 | 2 | (182 | ) | ||||||||||||
Other, net | — | — | 6 | 37 | — | 43 | |||||||||||||||
Income before income taxes | 697 | 614 | 993 | 323 | (1,526 | ) | 1,101 | ||||||||||||||
Income tax benefit (expense) | 2 | 38 | (173 | ) | (258 | ) | — | (391 | ) | ||||||||||||
Net income | 699 | 652 | 820 | 65 | (1,526 | ) | 710 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 699 | $ | 652 | $ | 820 | $ | 54 | $ | (1,526 | ) | $ | 699 | ||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 5,769 | $ | 1,667 | $ | (20 | ) | $ | 7,416 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 2,685 | 621 | (18 | ) | 3,288 | ||||||||||||||
Subscriber service expenses | — | — | 390 | 176 | — | 566 | |||||||||||||||
Broadcast operations expenses | — | — | 74 | 31 | (2 | ) | 103 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 757 | 187 | — | 944 | |||||||||||||||
Upgrade and retention costs | — | — | 340 | 42 | — | 382 | |||||||||||||||
General and administrative expenses | 17 | — | 272 | 158 | — | 447 | |||||||||||||||
Depreciation and amortization expense | — | — | 375 | 243 | — | 618 | |||||||||||||||
Total operating costs and expenses | 17 | — | 4,893 | 1,458 | (20 | ) | 6,348 | ||||||||||||||
Operating profit (loss) | (17 | ) | — | 876 | 209 | — | 1,068 | ||||||||||||||
Equity in income of consolidated subsidiaries | 576 | 553 | — | — | (1,129 | ) | — | ||||||||||||||
Interest income | — | — | 1 | 19 | (3 | ) | 17 | ||||||||||||||
Interest expense | — | (188 | ) | (1 | ) | (18 | ) | 3 | (204 | ) | |||||||||||
Other, net | (2 | ) | — | 17 | 24 | — | 39 | ||||||||||||||
Income before income taxes | 557 | 365 | 893 | 234 | (1,129 | ) | 920 | ||||||||||||||
Income tax benefit (expense) | 8 | 71 | (340 | ) | (87 | ) | — | (348 | ) | ||||||||||||
Net income | 565 | 436 | 553 | 147 | (1,129 | ) | 572 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 565 | $ | 436 | $ | 553 | $ | 140 | $ | (1,129 | ) | $ | 565 | ||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 17,903 | $ | 5,306 | $ | (49 | ) | $ | 23,160 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 8,147 | 1,808 | (43 | ) | 9,912 | ||||||||||||||
Subscriber service expenses | — | — | 1,102 | 572 | — | 1,674 | |||||||||||||||
Broadcast operations expenses | — | — | 220 | 91 | (6 | ) | 305 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 1,979 | 585 | — | 2,564 | |||||||||||||||
Upgrade and retention costs | — | — | 1,002 | 151 | — | 1,153 | |||||||||||||||
General and administrative expenses | 53 | — | 885 | 514 | — | 1,452 | |||||||||||||||
Venezuelan currency devaluation | — | — | — | 166 | — | 166 | |||||||||||||||
Depreciation and amortization expense | — | — | 1,225 | 892 | — | 2,117 | |||||||||||||||
Total operating costs and expenses | 53 | — | 14,560 | 4,779 | (49 | ) | 19,343 | ||||||||||||||
Operating profit (loss) | (53 | ) | — | 3,343 | 527 | — | 3,817 | ||||||||||||||
Equity in income of consolidated subsidiaries | 2,082 | 2,530 | — | — | (4,612 | ) | — | ||||||||||||||
Interest income | 13 | — | 2 | 49 | (8 | ) | 56 | ||||||||||||||
Interest expense | (1 | ) | (613 | ) | (2 | ) | (10 | ) | 8 | (618 | ) | ||||||||||
Other, net | (4 | ) | — | 22 | (12 | ) | — | 6 | |||||||||||||
Income before income taxes | 2,037 | 1,917 | 3,365 | 554 | (4,612 | ) | 3,261 | ||||||||||||||
Income tax benefit (expense) | 12 | 152 | (835 | ) | (521 | ) | — | (1,192 | ) | ||||||||||||
Net income | 2,049 | 2,069 | 2,530 | 33 | (4,612 | ) | 2,069 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (20 | ) | — | (20 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 2,049 | $ | 2,069 | $ | 2,530 | $ | 13 | $ | (4,612 | ) | $ | 2,049 | ||||||||
Condensed Consolidating Statement of Operations | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Revenues | $ | — | $ | 59 | $ | 16,915 | $ | 4,831 | $ | (119 | ) | $ | 21,686 | ||||||||
Operating costs and expenses | |||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Broadcast programming and other | — | — | 7,549 | 1,754 | (54 | ) | 9,249 | ||||||||||||||
Subscriber service expenses | — | — | 1,096 | 496 | — | 1,592 | |||||||||||||||
Broadcast operations expenses | — | — | 229 | 87 | (6 | ) | 310 | ||||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | |||||||||||||||||||||
Subscriber acquisition costs | — | — | 2,017 | 532 | — | 2,549 | |||||||||||||||
Upgrade and retention costs | — | — | 930 | 126 | — | 1,056 | |||||||||||||||
General and administrative expenses | 33 | — | 907 | 451 | (59 | ) | 1,332 | ||||||||||||||
Depreciation and amortization expense | — | — | 1,116 | 695 | — | 1,811 | |||||||||||||||
Total operating costs and expenses | 33 | — | 13,844 | 4,141 | (119 | ) | 17,899 | ||||||||||||||
Operating profit (loss) | (33 | ) | 59 | 3,071 | 690 | — | 3,787 | ||||||||||||||
Equity in income of consolidated subsidiaries | 2,032 | 1,926 | — | — | (3,958 | ) | — | ||||||||||||||
Interest income | — | — | 1 | 48 | (9 | ) | 40 | ||||||||||||||
Interest expense | (1 | ) | (575 | ) | (2 | ) | (53 | ) | 9 | (622 | ) | ||||||||||
Other, net | (6 | ) | (65 | ) | 26 | 58 | — | 13 | |||||||||||||
Income before income taxes | 1,992 | 1,345 | 3,096 | 743 | (3,958 | ) | 3,218 | ||||||||||||||
Income tax benefit (expense) | 15 | 219 | (1,170 | ) | (253 | ) | — | (1,189 | ) | ||||||||||||
Net income | 2,007 | 1,564 | 1,926 | 490 | (3,958 | ) | 2,029 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (22 | ) | — | (22 | ) | |||||||||||||
Net income attributable to DIRECTV | $ | 2,007 | $ | 1,564 | $ | 1,926 | $ | 468 | $ | (3,958 | ) | $ | 2,007 | ||||||||
Schedule of Condensed Consolidating Statement of Comprehensive Income | ' | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 699 | $ | 652 | $ | 820 | $ | 65 | $ | (1,526 | ) | $ | 710 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 12 | — | — | — | — | 12 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 1 | — | — | — | — | 1 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized gains arising during the period | — | 78 | — | — | — | 78 | |||||||||||||||
Reclassification adjustments included in net income | — | (61 | ) | — | — | — | (61 | ) | |||||||||||||
Foreign currency translation adjustments | — | — | — | (3 | ) | — | (3 | ) | |||||||||||||
Other comprehensive income (loss) | 12 | 17 | — | (3 | ) | — | 26 | ||||||||||||||
Comprehensive income | 711 | 669 | 820 | 62 | (1,526 | ) | 736 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (11 | ) | — | (11 | ) | |||||||||||||
Comprehensive income attributable to DIRECTV | $ | 711 | $ | 669 | $ | 820 | $ | 51 | $ | (1,526 | ) | $ | 725 | ||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Three Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 565 | $ | 436 | $ | 553 | $ | 147 | $ | (1,129 | ) | $ | 572 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 9 | — | — | — | — | 9 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized losses arising during the period | — | (31 | ) | — | — | — | (31 | ) | |||||||||||||
Reclassification adjustments included in net income | — | (3 | ) | — | — | (3 | ) | ||||||||||||||
Foreign currency translation adjustments | — | — | — | (2 | ) | — | (2 | ) | |||||||||||||
Other comprehensive income (loss) | 8 | (34 | ) | — | (2 | ) | — | (28 | ) | ||||||||||||
Comprehensive income | 573 | 402 | 553 | 145 | (1,129 | ) | 544 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Comprehensive income attributable to DIRECTV | $ | 573 | $ | 402 | $ | 553 | $ | 139 | $ | (1,129 | ) | $ | 538 | ||||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 2,049 | $ | 2,069 | $ | 2,530 | $ | 33 | $ | (4,612 | ) | $ | 2,069 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 12 | — | — | — | — | 12 | |||||||||||||||
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 1 | — | — | — | — | 1 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized gains arising during the period | — | 51 | — | — | — | 51 | |||||||||||||||
Reclassification adjustments included in net income | — | (13 | ) | — | — | — | (13 | ) | |||||||||||||
Foreign currency translation adjustments | — | — | — | (51 | ) | — | (51 | ) | |||||||||||||
Available for sale securities: | |||||||||||||||||||||
Reclassification adjustment for net losses recognized during the period | — | — | — | 1 | — | 1 | |||||||||||||||
Other comprehensive income (loss) | 12 | 38 | — | (50 | ) | — | — | ||||||||||||||
Comprehensive income (loss) | 2,061 | 2,107 | 2,530 | (17 | ) | (4,612 | ) | 2,069 | |||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (6 | ) | — | (6 | ) | |||||||||||||
Comprehensive income (loss) attributable to DIRECTV | $ | 2,061 | $ | 2,107 | $ | 2,530 | $ | (23 | ) | $ | (4,612 | ) | $ | 2,063 | |||||||
Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Net income | $ | 2,007 | $ | 1,564 | $ | 1,926 | $ | 490 | $ | (3,958 | ) | $ | 2,029 | ||||||||
Other comprehensive income (loss), net of taxes: | |||||||||||||||||||||
Defined benefit plans: | |||||||||||||||||||||
Loss related to changes in plan experience and actuarial assumptions arising during the period | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 9 | — | — | — | — | 9 | |||||||||||||||
Cash flows hedges: | |||||||||||||||||||||
Unrealized losses arising during the period | — | (31 | ) | — | — | — | (31 | ) | |||||||||||||
Reclassification adjustments included in net income | — | (3 | ) | — | — | — | (3 | ) | |||||||||||||
Foreign currency translation adjustments | — | — | — | (32 | ) | — | (32 | ) | |||||||||||||
Available for sale securities: | |||||||||||||||||||||
Unrealized holding losses on securities | — | — | — | (4 | ) | — | (4 | ) | |||||||||||||
Other comprehensive income (loss) | 8 | (34 | ) | — | (36 | ) | — | (62 | ) | ||||||||||||
Comprehensive income | 2,015 | 1,530 | 1,926 | 454 | (3,958 | ) | 1,967 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||
Comprehensive income attributable to DIRECTV | $ | 2,015 | $ | 1,530 | $ | 1,926 | $ | 447 | $ | (3,958 | ) | $ | 1,960 | ||||||||
Schedule of Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
As of September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Total current assets | $ | 872 | $ | 713 | $ | 2,906 | $ | 2,206 | $ | (1,668 | ) | $ | 5,029 | ||||||||
Satellites, net | — | — | 1,820 | 623 | — | 2,443 | |||||||||||||||
Property and equipment, net | — | — | 3,556 | 2,906 | — | 6,462 | |||||||||||||||
Goodwill | — | 1,828 | 1,360 | 797 | — | 3,985 | |||||||||||||||
Intangible assets, net | — | — | 525 | 405 | — | 930 | |||||||||||||||
Intercompany receivables | 4,597 | 7,579 | 19,655 | 4,120 | (35,951 | ) | — | ||||||||||||||
Investment in subsidiaries | (9,868 | ) | 17,412 | — | (11,286 | ) | 3,742 | — | |||||||||||||
Investments and other assets | 105 | 151 | 259 | 1,423 | (199 | ) | 1,739 | ||||||||||||||
Total assets | $ | (4,294 | ) | $ | 27,683 | $ | 30,081 | $ | 1,194 | $ | (34,076 | ) | $ | 20,588 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||||||||
Total current liabilities | $ | 540 | $ | 742 | $ | 3,424 | $ | 2,291 | $ | (1,668 | ) | $ | 5,329 | ||||||||
Long-term debt | — | 18,585 | — | 50 | — | 18,635 | |||||||||||||||
Deferred income taxes | — | 34 | 1,429 | 270 | (191 | ) | 1,542 | ||||||||||||||
Intercompany liabilities | 1,356 | 19,655 | 7,579 | 7,361 | (35,951 | ) | — | ||||||||||||||
Other liabilities and deferred credits | 418 | 186 | 237 | 457 | (8 | ) | 1,290 | ||||||||||||||
Redeemable noncontrolling interest | — | — | — | 400 | — | 400 | |||||||||||||||
Stockholders' equity (deficit) | |||||||||||||||||||||
Capital stock and additional paid-in capital | 3,671 | 14 | 4,883 | (9,009 | ) | 4,112 | 3,671 | ||||||||||||||
Retained earnings (accumulated deficit) | (10,037 | ) | (11,555 | ) | 12,529 | (497 | ) | (477 | ) | (10,037 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (242 | ) | 22 | — | (129 | ) | 107 | (242 | ) | ||||||||||||
Total stockholders' equity (deficit) | (6,608 | ) | (11,519 | ) | 17,412 | (9,635 | ) | 3,742 | (6,608 | ) | |||||||||||
Total liabilities and stockholders' equity (deficit) | $ | (4,294 | ) | $ | 27,683 | $ | 30,081 | $ | 1,194 | $ | (34,076 | ) | $ | 20,588 | |||||||
Condensed Consolidating Balance Sheet | |||||||||||||||||||||
As of December 31, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Total current assets | $ | 883 | $ | 884 | $ | 2,788 | $ | 2,039 | $ | (1,040 | ) | $ | 5,554 | ||||||||
Satellites, net | — | — | 1,795 | 562 | — | 2,357 | |||||||||||||||
Property and equipment, net | — | — | 3,290 | 2,748 | — | 6,038 | |||||||||||||||
Goodwill | — | 1,828 | 1,349 | 886 | — | 4,063 | |||||||||||||||
Intangible assets, net | — | — | 453 | 379 | — | 832 | |||||||||||||||
Intercompany receivables | 4,382 | 6,152 | 16,355 | 3,703 | (30,592 | ) | — | ||||||||||||||
Investment in subsidiaries | (8,687 | ) | 15,001 | — | (10,915 | ) | 4,601 | — | |||||||||||||
Investments and other assets | 180 | 91 | 241 | 1,294 | (95 | ) | 1,711 | ||||||||||||||
Total assets | $ | (3,242 | ) | $ | 23,956 | $ | 26,271 | $ | 696 | $ | (27,126 | ) | $ | 20,555 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||||||||||||||||||
Total current liabilities | $ | 384 | $ | 646 | $ | 3,526 | $ | 2,025 | $ | (1,040 | ) | $ | 5,541 | ||||||||
Long-term debt | — | 17,170 | — | — | — | 17,170 | |||||||||||||||
Deferred income taxes | — | — | 1,397 | 361 | (86 | ) | 1,672 | ||||||||||||||
Intercompany liabilities | 1,401 | 16,355 | 6,152 | 6,684 | (30,592 | ) | — | ||||||||||||||
Other liabilities and deferred credits | 404 | 131 | 195 | 482 | (9 | ) | 1,203 | ||||||||||||||
Redeemable noncontrolling interest | — | — | — | 400 | — | 400 | |||||||||||||||
Stockholders' equity (deficit) | |||||||||||||||||||||
Capital stock and additional paid-in capital | 4,021 | 12 | 4,802 | (6,632 | ) | 1,818 | 4,021 | ||||||||||||||
Retained earnings (accumulated deficit) | (9,210 | ) | (10,341 | ) | 10,199 | (2,560 | ) | 2,702 | (9,210 | ) | |||||||||||
Accumulated other comprehensive loss | (242 | ) | (17 | ) | — | (64 | ) | 81 | (242 | ) | |||||||||||
Total stockholders' equity (deficit) | (5,431 | ) | (10,346 | ) | 15,001 | (9,256 | ) | 4,601 | (5,431 | ) | |||||||||||
Total liabilities and stockholders' equity (deficit) | $ | (3,242 | ) | $ | 23,956 | $ | 26,271 | $ | 696 | $ | (27,126 | ) | $ | 20,555 | |||||||
Schedule of Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net cash provided by operating activities | $ | 1,096 | $ | 1,568 | $ | 1,623 | $ | 1,701 | $ | (1,633 | ) | $ | 4,355 | ||||||||
Cash flows from investing activities | |||||||||||||||||||||
Cash paid for property and equipment | — | — | (1,327 | ) | (1,144 | ) | — | (2,471 | ) | ||||||||||||
Cash paid for satellites | — | — | (154 | ) | (122 | ) | — | (276 | ) | ||||||||||||
Investment in companies, net of cash acquired | — | — | (38 | ) | (9 | ) | — | (47 | ) | ||||||||||||
Proceeds from sale of investments | 117 | — | 12 | 11 | — | 140 | |||||||||||||||
Return of capital from subsidiary | 1,567 | — | — | — | (1,567 | ) | — | ||||||||||||||
Other, net | — | — | (67 | ) | (91 | ) | — | (158 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 1,684 | — | (1,574 | ) | (1,355 | ) | (1,567 | ) | (2,812 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Issuance of commercial paper (maturity 90 days or less), net | — | 90 | — | — | — | 90 | |||||||||||||||
Proceeds from short-term borrowings | — | 441 | — | — | — | 441 | |||||||||||||||
Repayment of short-term borrowings | — | (327 | ) | — | — | — | (327 | ) | |||||||||||||
Proceeds from borrowings under revolving credit facility | — | 10 | — | — | — | 10 | |||||||||||||||
Repayment of borrowings under revolving credit facility | — | (10 | ) | — | — | — | (10 | ) | |||||||||||||
Proceeds from long-term debt | — | 1,390 | — | 94 | — | 1,484 | |||||||||||||||
Debt issuance costs | — | (8 | ) | — | — | — | (8 | ) | |||||||||||||
Repayment of long-term debt | — | — | — | (9 | ) | — | (9 | ) | |||||||||||||
Repayment of other long-term obligations | — | — | (18 | ) | (30 | ) | — | (48 | ) | ||||||||||||
Common shares repurchased and retired | (3,228 | ) | — | — | — | — | (3,228 | ) | |||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | — | — | (51 | ) | (10 | ) | — | (61 | ) | ||||||||||||
Excess tax benefit from share-based compensation | — | — | 20 | 4 | — | 24 | |||||||||||||||
Other, net | — | 6 | — | — | — | 6 | |||||||||||||||
Intercompany payments (funding) | 265 | — | 3 | (268 | ) | — | — | ||||||||||||||
Cash dividend to Parent | — | (3,200 | ) | — | — | 3,200 | — | ||||||||||||||
Net cash used in financing activities | (2,963 | ) | (1,608 | ) | (46 | ) | (219 | ) | 3,200 | (1,636 | ) | ||||||||||
Effect of exchange rate changes on Venezuelan cash and cash equivalents | — | — | — | (187 | ) | — | (187 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (183 | ) | (40 | ) | 3 | (60 | ) | — | (280 | ) | |||||||||||
Cash and cash equivalents at beginning of the period | 408 | 728 | 11 | 755 | — | 1,902 | |||||||||||||||
Cash and cash equivalents at the end of the period | $ | 225 | $ | 688 | $ | 14 | $ | 695 | $ | — | $ | 1,622 | |||||||||
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||||
For the Nine Months Ended September 30, 2012 | |||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | ||||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | ||||||||||||||||||
Subsidiaries | |||||||||||||||||||||
(Dollars in Millions) | |||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||
Net cash provided by operating activities | $ | 1,186 | $ | 1,822 | $ | 1,173 | $ | 1,616 | $ | (1,664 | ) | $ | 4,133 | ||||||||
Cash flows from investing activities | |||||||||||||||||||||
Cash paid for property and equipment | — | — | (1,048 | ) | (1,112 | ) | — | (2,160 | ) | ||||||||||||
Cash paid for satellites | (6 | ) | — | (139 | ) | (86 | ) | — | (231 | ) | |||||||||||
Investment in companies, net of cash acquired | — | — | (1 | ) | (3 | ) | — | (4 | ) | ||||||||||||
Proceeds from sale of investments | — | — | 24 | — | — | 24 | |||||||||||||||
Return of capital from subsidiary | 3,336 | — | — | — | (3,336 | ) | — | ||||||||||||||
Other, net | — | — | (1 | ) | 26 | — | 25 | ||||||||||||||
Net cash provided by (used in) investing activities | 3,330 | — | (1,165 | ) | (1,175 | ) | (3,336 | ) | (2,346 | ) | |||||||||||
Cash flows from financing activities | |||||||||||||||||||||
Proceeds from borrowings under revolving credit facility | — | 400 | — | — | — | 400 | |||||||||||||||
Repayment of borrowings under revolving credit facility | — | (400 | ) | — | — | — | (400 | ) | |||||||||||||
Proceeds from long-term debt | — | 5,190 | — | — | — | 5,190 | |||||||||||||||
Debt issuance costs | — | (35 | ) | — | — | — | (35 | ) | |||||||||||||
Repayment of long-term debt | — | (1,500 | ) | — | — | — | (1,500 | ) | |||||||||||||
Repayment of other long-term obligations | — | — | (15 | ) | (25 | ) | — | (40 | ) | ||||||||||||
Common shares repurchased and retired | (3,828 | ) | — | — | — | — | (3,828 | ) | |||||||||||||
Stock options exercised | 2 | — | — | — | — | 2 | |||||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | — | — | (49 | ) | (9 | ) | — | (58 | ) | ||||||||||||
Excess tax benefit from share-based compensation | — | — | 25 | 5 | — | 30 | |||||||||||||||
Intercompany payments (funding) | 154 | — | 14 | (168 | ) | — | — | ||||||||||||||
Cash dividend to Parent | — | (5,000 | ) | — | — | 5,000 | — | ||||||||||||||
Net cash used in financing activities | (3,672 | ) | (1,345 | ) | (25 | ) | (197 | ) | 5,000 | (239 | ) | ||||||||||
Net increase (decrease) in cash and cash equivalents | 844 | 477 | (17 | ) | 244 | — | 1,548 | ||||||||||||||
Cash and cash equivalents at beginning of the period | 129 | 228 | 4 | 512 | — | 873 | |||||||||||||||
Cash and cash equivalents at the end of the period | $ | 973 | $ | 705 | $ | (13 | ) | $ | 756 | $ | — | $ | 2,421 | ||||||||
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Details) | 0 Months Ended | |||
Apr. 16, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Regional sports networks | Game Show Network, LLC | Sky Brasil | Sky Mexico | |
DSN | ||||
Ownership interests | ' | ' | ' | ' |
Ownership percentage of equity method investment | ' | 42.00% | ' | 41.00% |
Ownership percentage in subsidiary | ' | ' | 93.00% | ' |
Ownership interest transferred (as a percent) | 100.00% | ' | ' | ' |
Divestiture_Details
Divestiture (Details) (USD $) | 9 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Apr. 16, 2013 |
DSN | ||
Divestitures | ' | ' |
Ownership interest transferred (as a percent) | ' | 100.00% |
Pre-tax charge on deconsolidation | $59 | $59 |
After-tax charge on deconsolidation | ' | $56 |
Goodwill_Details
Goodwill (Details) (USD $) | 9 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
DIRECTV U.S. | Sky Brasil | PanAmericana | PanAmericana | Sports Networks, Eliminations and Other | ||
Changes in the carrying amounts of goodwill | ' | ' | ' | ' | ' | ' |
Goodwill, beginning balance | $4,063 | $3,177 | $380 | $211 | $211 | $295 |
Sky Brasil foreign currency translation adjustment | -31 | ' | -31 | ' | ' | ' |
DSN Northwest Transaction | -73 | ' | ' | ' | ' | -73 |
Acquisitions | 26 | 11 | 15 | ' | ' | ' |
Goodwill, ending balance | $3,985 | $3,188 | $364 | $211 | $211 | $222 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt | ' | ' |
Current debt, current portion of borrowings under BNDES financing facility | $35 | ' |
Current debt, Commercial paper | 562 | 358 |
Long-term debt, borrowings under BNDES financing facility | 50 | ' |
Long-term debt, Senior notes | 18,585 | 17,170 |
Total debt | 19,232 | 17,528 |
Interest accrued on outstanding debt | $114 | $246 |
Debt_Details_2
Debt (Details 2) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 28, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Mar. 08, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jan. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 13-May-13 | 13-May-13 | Sep. 30, 2013 | Sep. 11, 2012 | Sep. 11, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 15-May-12 | Jun. 30, 2012 |
USD ($) | USD ($) | VEF | VEF | USD ($) | Total Senior notes | Total Senior notes | Senior notes 4.750% due 2014 | Senior notes 4.750% due 2014 | Senior notes 3.550% due 2015 | Senior notes 3.550% due 2015 | Senior notes 3.125% due 2016 | Senior notes 3.125% due 2016 | Senior notes 3.500% due 2016 | Senior notes 3.500% due 2016 | Senior notes 2.400% due 2017 | Senior notes 2.400% due 2017 | Senior notes 2.400% due 2017 | Senior notes 1.750% due in 2018 | Senior notes 1.750% due in 2018 | Senior notes 5.875% due 2019 | Senior notes 5.875% due 2019 | Senior notes 5.200% Due 2020 | Senior notes 5.200% Due 2020 | Senior notes 4.600% due 2021 | Senior notes 4.600% due 2021 | Senior notes 5.000% due 2021 | Senior notes 5.000% due 2021 | Senior notes 3.800% due 2022 | Senior notes 3.800% due 2022 | Senior notes 3.800% due 2022 | Senior notes 2.750% due 2023 | Senior notes 2.750% due 2023 | Senior notes 2.750% due 2023 | Senior notes 4.375% due 2029 | Senior notes 4.375% due 2029 | Senior notes 4.375% due 2029 | Senior notes 4.375% due 2029 | Senior notes 6.350% due 2040 | Senior notes 6.350% due 2040 | Senior notes 6.000% due 2040 | Senior notes 6.000% due 2040 | Senior notes 6.375% due 2041 | Senior notes 6.375% due 2041 | Senior notes 5.150% due 2042 | Senior notes 5.150% due 2042 | Senior notes 5.150% due 2042 | Senior notes 7.625% due 2016 | Senior notes 7.625% due 2016 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | $18,640 | ' | ' | ' | ' | ' | ' | $1,000 | ' | $1,200 | ' | $750 | ' | $1,500 | ' | ' | $1,250 | ' | ' | $750 | $1,000 | ' | $1,300 | ' | $1,000 | ' | $1,500 | ' | ' | $1,500 | ' | ' | ' | $676 | ' | ' | $1,214 | ' | $500 | ' | $1,250 | ' | $1,000 | ' | ' | $1,250 | ' | ' | ' |
Senior notes | 18,585 | ' | ' | ' | 17,170 | ' | ' | 999 | 999 | 1,200 | 1,200 | 750 | 750 | 1,499 | 1,498 | ' | 1,249 | 1,249 | ' | 744 | 995 | 995 | 1,299 | 1,298 | 999 | 999 | 1,495 | 1,495 | ' | 1,499 | 1,499 | ' | ' | 673 | ' | ' | 1,201 | 1,206 | 500 | 500 | 1,235 | 1,234 | 1,000 | 1,000 | ' | 1,248 | 1,248 | ' | ' |
Senior note, interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | 4.75% | 4.75% | 3.55% | 3.55% | 3.13% | 3.13% | 3.50% | 3.50% | ' | 2.40% | 2.40% | 1.75% | 1.75% | 5.88% | 5.88% | 5.20% | 5.20% | 4.60% | 4.60% | 5.00% | 5.00% | ' | 3.80% | 3.80% | 2.75% | 2.75% | 2.75% | 4.38% | 4.38% | 4.38% | 4.38% | 6.35% | 6.35% | 6.00% | 6.00% | 6.38% | 6.38% | ' | 5.15% | 5.15% | 7.63% | ' |
Principal | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | 750 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | 650 | 500 | ' | 1,208 | 750 | ' | ' | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | ' | ' |
Proceeds, net of discount | 1,484 | 5,190 | ' | ' | ' | 3,996 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,249 | ' | ' | 743 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,499 | ' | ' | 646 | 497 | ' | 1,194 | 742 | ' | ' | ' | ' | ' | ' | ' | ' | 1,248 | ' | ' | ' | ' |
U.S. dollars based exchange rate | ' | ' | 6.3 | 4.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.3 | ' | ' | 1.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes repurchased as a percentage of outstanding principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 103.81% | ' |
Total repayment of long-term debt, including redemption premium and accrued and unpaid interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,614 | ' |
Pre-tax charge on repayment of remaining principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64 |
After-tax charge on repayment of remaining principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40 |
Premium paid for redemption of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57 |
Write-off of deferred debt issuance and other transaction costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Repayment of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500 | ' |
Debt_Details_3
Debt (Details 3) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Nov. 27, 2012 | Sep. 28, 2012 | Sep. 30, 2013 | Nov. 27, 2012 | Sep. 28, 2012 | Sep. 28, 2012 | Sep. 30, 2013 | Sep. 28, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 |
USD ($) | USD ($) | Total Senior notes | Total Senior notes | Commercial Paper | Commercial Paper | Commercial Paper | Previous Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility, Series One | Revolving Credit Facility, Series One | Revolving Credit Facility, Series Two | Revolving Credit Facility, Series Two | BNDES Financing Facility | BNDES Financing Facility | BNDES Financing Facility | BNDES Financing Facility | BNDES Financing Facility | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | |||
USD ($) | BRL | USD ($) | BRL | Set-top receivers | ||||||||||||||||
item | USD ($) | |||||||||||||||||||
Debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes, fair value | ' | ' | $18,501,000,000 | $18,598,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' |
2014 | ' | ' | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' |
2015 | ' | ' | 1,200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,000,000 | ' | ' | ' | ' |
2016 | ' | ' | 2,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' |
2017 | ' | ' | 1,250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | 12,940,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current debt, Commercial paper | 562,000,000 | 358,000,000 | ' | ' | 562,000,000 | 358,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity under credit facility | ' | ' | ' | ' | ' | ' | ' | 2,000,000,000 | ' | ' | ' | 1,000,000,000 | 1,000,000,000 | 1,500,000,000 | 1,500,000,000 | ' | ' | 250,000,000 | 500,000,000 | ' |
Borrowing capacity under credit facility | ' | ' | ' | ' | 2,500,000,000 | ' | 2,500,000,000 | ' | 2,500,000,000 | 2,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of line of credit facility | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '3 years 6 months | '3 years 6 months | '5 years | '5 years | ' | ' | ' | ' | ' |
Loans outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | 85,000,000 | ' | ' | ' | ' |
U.S. dollars based exchange rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.23 | ' | ' | ' |
Commitment fee for unused commitment for revolving credit facility (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior unsecured credit facility, basis for variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | 'London interbank offer rate (LIBOR) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior unsecured credit facility, interest rate added to variable base rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining maturity period | ' | ' | ' | ' | '53 days | '63 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average yield (as a percent) | ' | ' | ' | ' | 0.39% | 0.54% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104,000,000 |
Restricted cash | $7,000,000 | $6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.73% | 2.73% | ' | ' | ' |
Number of monthly installments to repay borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30 | 30 | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 11, 2012 | Sep. 11, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | 13-May-13 | 13-May-13 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 11, 2012 | 13-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 |
USD ($) | USD ($) | USD ($) | USD ($) | Senior notes 4.375% due 2029 | Senior notes 4.375% due 2029 | Senior notes 4.375% due 2029 | Senior notes 4.375% due 2029 | Senior notes 2.750% due 2023 | Senior notes 2.750% due 2023 | Senior notes 2.750% due 2023 | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cross-currency swap contracts | Cross-currency swap contracts | Cross-currency swap contracts | Cross-currency swap contracts | Cross-currency swap contracts | Interest rate contracts | |
USD ($) | GBP (£) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Senior notes 4.375% due 2029 | Senior notes 2.750% due 2023 | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | ||||||||
GBP (£) | EUR (€) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||
Derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of ineffectiveness measured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74 | ' | ' | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' |
Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 |
Total fair value of derivative financial instruments, Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 74 | ' | 74 | ' | ' | ' | ' | ' | ' | ' | ' |
Total fair value of derivative financial instruments, Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | 7 | ' | 17 | ' | ' | ' | ' | ' | ' |
Derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total notional amount of derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,358 | ' | 2,358 | ' | 1,208 | ' | ' | 1,858 | ' | 1,208 | 500 |
Cash collateral from counterparties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' |
Principal | ' | ' | ' | ' | 1,208 | 750 | ' | ' | 650 | 500 | ' | ' | ' | ' | ' | ' | 750 | 500 | ' | ' | ' | ' |
Senior note, interest rate (as a percent) | ' | ' | ' | ' | 4.38% | 4.38% | 4.38% | 4.38% | 2.75% | 2.75% | 2.75% | ' | ' | ' | ' | ' | 4.38% | 2.75% | ' | ' | ' | ' |
Amount reclassified from accumulated other comprehensive loss into other, net | -99 | -5 | -22 | -5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22 | 5 | ' | ' |
After tax gain (loss) reclassified from accumulated other comprehensive loss into other, net | -61 | -3 | -13 | -3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 3 | ' | ' |
Net foreign currency transaction losses | ' | ' | $42 | $32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $22 | $5 | ' | ' |
Contingencies_Details
Contingencies (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 28, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
USD ($) | USD ($) | VEF | VEF | USD ($) | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Standby letters of credit | |
USD ($) | USD ($) | Broadcast Programming and Other | Interest Expense | Other Income | USD ($) | ||||||
USD ($) | USD ($) | USD ($) | |||||||||
Loss contingencies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interest, ownership percentage | ' | ' | ' | ' | ' | 7.00% | 7.00% | ' | ' | ' | ' |
Estimated fair value of Globo's interest in Sky Brasil | ' | $400 | ' | ' | $400 | $400 | $400 | ' | ' | ' | ' |
Exchange rate set by the Venezuelan government (in bolivars fuerte per U.S. dollar) | ' | ' | 6.3 | 4.3 | ' | ' | ' | ' | ' | ' | ' |
Pre-tax charge related to remeasurement of bolivar denominated net monetary assets due to devaluation | 166 | 166 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Venezuelan bolivar fuerte denominated assets in excess liabilities | ' | 521 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
After-tax charge related to remeasurement of bolivar denominated net monetary assets due to devaluation | 136 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Venezuelan bolivars fuerte denominated cash | ' | 579 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
In-orbit satellites, net book value | ' | 1,467 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment for settlement of claims | ' | ' | ' | ' | ' | 92 | ' | ' | ' | ' | ' |
Gain related to settlement with ECAD | ' | ' | ' | ' | ' | 128 | ' | 70 | 37 | 21 | ' |
Letters of credit released | ' | ' | ' | ' | ' | 104 | ' | ' | ' | ' | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent liability for standby letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $171 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Related party transactions | ' | ' | ' | ' | ' |
Revenues | $2 | $1 | $5 | $3 | ' |
Expenses | 235 | 225 | 717 | 696 | ' |
Accounts receivable | 31 | ' | 31 | ' | 26 |
Accounts payable | $98 | ' | $98 | ' | $90 |
Stockholders_Deficit_and_Redee2
Stockholders' Deficit and Redeemable Noncontrolling Interest (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Stockholders' Deficit | ' | ' |
Common stock, shares authorized | 3,950,000,000 | 3,950,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 50,000,000 | ' |
Preferred stock, par value (in dollars per share) | $0.01 | ' |
Preferred stock, shares outstanding | 0 | 0 |
Stockholders_Deficit_and_Redee3
Stockholders' Deficit and Redeemable Noncontrolling Interest (Details 2) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | ||
Oct. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2013 | |
Maximum | |||||
Information regarding shares repurchased and retired | ' | ' | ' | ' | ' |
Stock repurchases authorized | ' | ' | ' | ' | $4,000,000,000 |
Remaining authorization under share repurchase program | ' | ' | 1,589,000,000 | ' | ' |
Total cost of repurchased shares | ' | ' | 3,273,000,000 | 3,897,000,000 | ' |
Average price per share (in dollars per share) | ' | ' | $56.46 | $47.67 | ' |
Number of shares repurchased and retired | ' | ' | 57,961,428 | 81,713,828 | ' |
Amount paid for stock repurchases | $45,000,000 | $96,000,000 | $3,228,000,000 | $3,828,000,000 | ' |
Stockholders_Deficit_and_Redee4
Stockholders' Deficit and Redeemable Noncontrolling Interest (Details 3) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Common Stock | Common Stock | Common Stock and Additional Paid-In Capital | Common Stock and Additional Paid-In Capital | Accumulated Deficit | Accumulated Deficit | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss | Total Stockholder's Deficit | Total Stockholder's Deficit | |||||
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance (in shares) | ' | ' | 586,839,817 | ' | 586,839,817 | 691,306,695 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | ' | ' | ($5,431) | ' | ' | ' | $4,021 | $4,799 | ($9,210) | ($7,750) | ($156) | ($242) | ($242) | ($5,431) | ($3,107) |
Net income | 710 | 572 | 2,069 | 2,029 | ' | ' | ' | ' | 2,049 | 2,007 | ' | ' | ' | 2,049 | 2,007 |
Stock repurchased and retired (in shares) | ' | ' | -57,961,428 | -81,713,828 | -57,961,428 | -81,713,828 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchased and retired | ' | ' | -3,273 | -3,897 | ' | ' | -397 | -567 | -2,876 | -3,330 | ' | ' | ' | -3,273 | -3,897 |
Stock options exercised and restricted stock units vested and distributed (in shares) | ' | ' | ' | ' | 1,974,496 | 2,162,030 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised and restricted stock units vested and distributed | ' | ' | ' | ' | ' | ' | -61 | -54 | ' | ' | ' | ' | ' | -61 | -54 |
Share-based compensation expense | ' | ' | ' | ' | ' | ' | 79 | 77 | ' | ' | ' | ' | ' | 79 | 77 |
Tax benefit from share-based compensation | ' | ' | ' | ' | ' | ' | 24 | 30 | ' | ' | ' | ' | ' | 24 | 30 |
Adjustment to the fair value of redeemable noncontrolling interest | ' | ' | ' | ' | ' | ' | 6 | 7 | ' | ' | ' | ' | ' | 6 | 7 |
Other | ' | ' | ' | ' | ' | ' | -1 | -1 | ' | ' | ' | ' | ' | -1 | -1 |
Other comprehensive loss | 26 | -28 | ' | -62 | ' | ' | ' | ' | ' | ' | -62 | ' | ' | ' | -62 |
Ending balance (in shares) | 530,852,885 | ' | 530,852,885 | ' | 530,852,885 | 611,754,897 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | ($6,608) | ' | ($6,608) | ' | ' | ' | $3,671 | $4,291 | ($10,037) | ($9,073) | ($218) | ($242) | ($242) | ($6,608) | ($5,000) |
Stockholders_Deficit_and_Redee5
Stockholders' Deficit and Redeemable Noncontrolling Interest (Details 4) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Change in the redeemable noncontrolling interest | ' | ' | ' | ' |
Beginning balance, Redeemable Noncontrolling Interest | ' | ' | $400 | ' |
Net income attributable to noncontrolling interest | 11 | 7 | 20 | 22 |
Ending balance, Redeemable Noncontrolling Interest | 400 | ' | 400 | ' |
Redeemable Noncontrolling Interest | ' | ' | ' | ' |
Change in the redeemable noncontrolling interest | ' | ' | ' | ' |
Beginning balance, Redeemable Noncontrolling Interest | ' | ' | 400 | 265 |
Net income attributable to noncontrolling interest | ' | ' | 20 | 22 |
Adjustment to the fair value of redeemable noncontrolling interest | ' | ' | -6 | -7 |
Other comprehensive loss | ' | ' | -14 | -15 |
Ending balance, Redeemable Noncontrolling Interest | $400 | $265 | $400 | $265 |
Stockholders_Deficit_and_Redee6
Stockholders' Deficit and Redeemable Noncontrolling Interest (Details 5) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Loss related to changes in plan experience and actuarial assumptions arising during the period | ' | ' | ' | ' |
Pre-Tax | ($2) | ($2) | ($2) | ($2) |
Tax Benefit (Expense) | 1 | 1 | 1 | 1 |
Net of Tax | -1 | -1 | -1 | -1 |
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | ' | ' | ' | ' |
Pre-Tax | 19 | 15 | 19 | 15 |
Tax Benefit (Expense) | -7 | -6 | -7 | -6 |
Net of Tax | 12 | 9 | 12 | 9 |
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | ' | ' | ' | ' |
Pre-Tax | 2 | ' | 2 | ' |
Tax Benefit (Expense) | -1 | ' | -1 | ' |
Net of Tax | 1 | ' | 1 | ' |
Unrealized gains (losses) arising during the period | ' | ' | ' | ' |
Pre-Tax | 125 | -51 | 83 | -51 |
Tax Benefit (Expense) | -47 | 20 | -32 | 20 |
Net of Tax | 78 | -31 | 51 | -31 |
Reclassification adjustments included in net income | ' | ' | ' | ' |
Pre-Tax | -99 | -5 | -22 | -5 |
Tax Benefit (Expense) | 38 | 2 | 9 | 2 |
Net of Tax | -61 | -3 | -13 | -3 |
Foreign currency translation adjustments | ' | ' | ' | ' |
Pre-Tax | -5 | -3 | -81 | -52 |
Tax Benefit (Expense) | 2 | 1 | 30 | 20 |
Net of Tax | -3 | -2 | -51 | -32 |
Unrealized holding losses on securities: | ' | ' | ' | ' |
Pre-Tax | ' | ' | ' | -7 |
Tax Benefit (Expense) | ' | ' | ' | 3 |
Net of Tax | ' | ' | ' | -4 |
Reclassification adjustment for net losses recognized during the period | ' | ' | ' | ' |
Pre-tax | ' | ' | 2 | ' |
Tax Benefit (Expense) | ' | ' | -1 | ' |
Net of Tax | ' | ' | 1 | ' |
Other comprehensive income (loss) | ' | ' | ' | ' |
Pre-Tax | 40 | -46 | 1 | -102 |
Tax Benefit (Expense) | -14 | 18 | -1 | 40 |
Other comprehensive income (loss) | 26 | -28 | ' | -62 |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -242 | -156 |
Other comprehensive income (loss) | 26 | -28 | ' | -62 |
Balance at the end of the period | -242 | -218 | -242 | -218 |
Defined Benefit Plan Items | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | 12 | 8 |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -184 | -151 |
Other comprehensive income (loss) | ' | ' | 12 | 8 |
Balance at the end of the period | -172 | -143 | -172 | -143 |
Losses on Cash Flow Hedges | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | 38 | -34 |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -17 | ' |
Other comprehensive income (loss) | ' | ' | 38 | -34 |
Balance at the end of the period | 21 | -34 | 21 | -34 |
Foreign Currency Items | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | -51 | -32 |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -40 | -8 |
Other comprehensive income (loss) | ' | ' | -51 | -32 |
Balance at the end of the period | -91 | -40 | -91 | -40 |
Unrealized Gains (Losses) on Available for Sale securities | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | 1 | -4 |
Changes in accumulated other comprehensive loss | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | -1 | 3 |
Other comprehensive income (loss) | ' | ' | 1 | -4 |
Balance at the end of the period | ' | ($1) | ' | ($1) |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Common Share | ' | ' | ' | ' |
Common stock awards excluded from the computation of diluted EPS (in shares) | ' | ' | 0.9 | ' |
Basic EPS | ' | ' | ' | ' |
Net income attributable to DIRECTV | $699 | $565 | $2,049 | $2,007 |
Weighted average number of common shares outstanding | 541 | 624 | 557 | 651 |
Earnings per share attributable to DIRECTV (in dollars per share) | $1.29 | $0.91 | $3.68 | $3.08 |
Effect of dilutive securities | ' | ' | ' | ' |
Dilutive effect of stock options and restricted stock units (in shares) | 4 | 5 | 5 | 4 |
Dilutive effect of stock options and restricted stock units, per share amount (in dollars per share) | ($0.01) | ($0.01) | ($0.03) | ($0.02) |
Diluted EPS | ' | ' | ' | ' |
Adjusted net income attributable to DIRECTV | $699 | $565 | $2,049 | $2,007 |
Weighted average number of common shares outstanding | 545 | 629 | 562 | 655 |
Net Income (in dollars per share) | $1.28 | $0.90 | $3.65 | $3.06 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment reporting information | ' | ' | ' | ' |
External revenues | $7,880 | $7,416 | $23,160 | $21,686 |
Total revenues | 7,880 | 7,416 | 23,160 | 21,686 |
Operating profit (loss) | 1,225 | 1,068 | 3,817 | 3,787 |
Depreciation and amortization expense | 708 | 618 | 2,117 | 1,811 |
Operating Profit (Loss) Before Depreciation and Amortization | 1,933 | 1,686 | 5,934 | 5,598 |
DIRECTV U.S. | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' |
External revenues | 6,168 | 5,767 | 17,897 | 16,909 |
Intersegment revenues | 2 | 2 | 6 | 6 |
Total revenues | 6,170 | 5,769 | 17,903 | 16,915 |
Operating profit (loss) | 987 | 876 | 3,343 | 3,130 |
Depreciation and amortization expense | 409 | 375 | 1,225 | 1,116 |
Operating Profit (Loss) Before Depreciation and Amortization | 1,396 | 1,251 | 4,568 | 4,246 |
DIRECTV Latin America | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' |
External revenues | 1,662 | 1,577 | 5,076 | 4,570 |
Total revenues | 1,662 | 1,577 | 5,076 | 4,570 |
Operating profit (loss) | 262 | 221 | 518 | 694 |
Depreciation and amortization expense | 296 | 234 | 875 | 674 |
Operating Profit (Loss) Before Depreciation and Amortization | 558 | 455 | 1,393 | 1,368 |
Sky Brasil | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' |
External revenues | 883 | 868 | 2,790 | 2,587 |
Total revenues | 883 | 868 | 2,790 | 2,587 |
Operating profit (loss) | 169 | 122 | 379 | 399 |
Depreciation and amortization expense | 184 | 133 | 547 | 403 |
Operating Profit (Loss) Before Depreciation and Amortization | 353 | 255 | 926 | 802 |
PanAmericana | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' |
External revenues | 779 | 709 | 2,286 | 1,983 |
Total revenues | 779 | 709 | 2,286 | 1,983 |
Operating profit (loss) | 93 | 99 | 139 | 295 |
Depreciation and amortization expense | 112 | 101 | 328 | 271 |
Operating Profit (Loss) Before Depreciation and Amortization | 205 | 200 | 467 | 566 |
Sports Networks, Eliminations and Other | ' | ' | ' | ' |
Segment reporting information | ' | ' | ' | ' |
External revenues | 50 | 72 | 187 | 207 |
Intersegment revenues | -2 | -2 | -6 | -6 |
Total revenues | 48 | 70 | 181 | 201 |
Operating profit (loss) | -24 | -29 | -44 | -37 |
Depreciation and amortization expense | 3 | 9 | 17 | 21 |
Operating Profit (Loss) Before Depreciation and Amortization | ($21) | ($20) | ($27) | ($16) |
Segment_Reporting_Details_2
Segment Reporting (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting | ' | ' | ' | ' |
Operating profit before depreciation and amortization | $1,933 | $1,686 | $5,934 | $5,598 |
Depreciation and amortization expense | -708 | -618 | -2,117 | -1,811 |
Operating profit | 1,225 | 1,068 | 3,817 | 3,787 |
Interest income | 15 | 17 | 56 | 40 |
Interest expense | -182 | -204 | -618 | -622 |
Other, net | 43 | 39 | 6 | 13 |
Income before income taxes | 1,101 | 920 | 3,261 | 3,218 |
Income tax expense | -391 | -348 | -1,192 | -1,189 |
Net income | 710 | 572 | 2,069 | 2,029 |
Less: Net income attributable to noncontrolling interest | -11 | -7 | -20 | -22 |
Net income attributable to DIRECTV | $699 | $565 | $2,049 | $2,007 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Financial Statements | ' | ' | ' | ' | ' |
Revenues | $7,880 | ' | $7,416 | $23,160 | $21,686 |
Costs of revenues, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Broadcast programming and other | 3,441 | ' | 3,288 | 9,912 | 9,249 |
Subscriber service expenses | 583 | ' | 566 | 1,674 | 1,592 |
Broadcast operations expenses | 98 | ' | 103 | 305 | 310 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Subscriber acquisition costs | 941 | ' | 944 | 2,564 | 2,549 |
Upgrade and retention costs | 411 | ' | 382 | 1,153 | 1,056 |
General and administrative expenses | 473 | ' | 447 | 1,452 | 1,332 |
Venezuelan currency devaluation | ' | 166 | ' | 166 | ' |
Depreciation and amortization expense | 708 | ' | 618 | 2,117 | 1,811 |
Total operating costs and expenses | 6,655 | ' | 6,348 | 19,343 | 17,899 |
Operating profit | 1,225 | ' | 1,068 | 3,817 | 3,787 |
Interest income | 15 | ' | 17 | 56 | 40 |
Interest expense | -182 | ' | -204 | -618 | -622 |
Other, net | 43 | ' | 39 | 6 | 13 |
Income before income taxes | 1,101 | ' | 920 | 3,261 | 3,218 |
Income tax benefit (expense) | -391 | ' | -348 | -1,192 | -1,189 |
Net income | 710 | ' | 572 | 2,069 | 2,029 |
Less: Net income attributable to noncontrolling interest | -11 | ' | -7 | -20 | -22 |
Net income attributable to DIRECTV | 699 | ' | 565 | 2,049 | 2,007 |
Parent Guarantor | ' | ' | ' | ' | ' |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
General and administrative expenses | 12 | ' | 17 | 53 | 33 |
Total operating costs and expenses | 12 | ' | 17 | 53 | 33 |
Operating profit | -12 | ' | -17 | -53 | -33 |
Equity in income of consolidated subsidiaries | 706 | ' | 576 | 2,082 | 2,032 |
Interest income | 3 | ' | ' | 13 | ' |
Interest expense | ' | ' | ' | -1 | -1 |
Other, net | ' | ' | -2 | -4 | -6 |
Income before income taxes | 697 | ' | 557 | 2,037 | 1,992 |
Income tax benefit (expense) | 2 | ' | 8 | 12 | 15 |
Net income | 699 | ' | 565 | 2,049 | 2,007 |
Net income attributable to DIRECTV | 699 | ' | 565 | 2,049 | 2,007 |
Co-Issuers | ' | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | 59 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Operating profit | ' | ' | ' | ' | 59 |
Equity in income of consolidated subsidiaries | 820 | ' | 553 | 2,530 | 1,926 |
Interest expense | -206 | ' | -188 | -613 | -575 |
Other, net | ' | ' | ' | ' | -65 |
Income before income taxes | 614 | ' | 365 | 1,917 | 1,345 |
Income tax benefit (expense) | 38 | ' | 71 | 152 | 219 |
Net income | 652 | ' | 436 | 2,069 | 1,564 |
Net income attributable to DIRECTV | 652 | ' | 436 | 2,069 | 1,564 |
Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' | ' |
Revenues | 6,170 | ' | 5,769 | 17,903 | 16,915 |
Costs of revenues, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Broadcast programming and other | 2,904 | ' | 2,685 | 8,147 | 7,549 |
Subscriber service expenses | 391 | ' | 390 | 1,102 | 1,096 |
Broadcast operations expenses | 68 | ' | 74 | 220 | 229 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Subscriber acquisition costs | 756 | ' | 757 | 1,979 | 2,017 |
Upgrade and retention costs | 359 | ' | 340 | 1,002 | 930 |
General and administrative expenses | 296 | ' | 272 | 885 | 907 |
Depreciation and amortization expense | 409 | ' | 375 | 1,225 | 1,116 |
Total operating costs and expenses | 5,183 | ' | 4,893 | 14,560 | 13,844 |
Operating profit | 987 | ' | 876 | 3,343 | 3,071 |
Interest income | 1 | ' | 1 | 2 | 1 |
Interest expense | -1 | ' | -1 | -2 | -2 |
Other, net | 6 | ' | 17 | 22 | 26 |
Income before income taxes | 993 | ' | 893 | 3,365 | 3,096 |
Income tax benefit (expense) | -173 | ' | -340 | -835 | -1,170 |
Net income | 820 | ' | 553 | 2,530 | 1,926 |
Net income attributable to DIRECTV | 820 | ' | 553 | 2,530 | 1,926 |
Non-guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' | ' |
Revenues | 1,723 | ' | 1,667 | 5,306 | 4,831 |
Costs of revenues, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Broadcast programming and other | 548 | ' | 621 | 1,808 | 1,754 |
Subscriber service expenses | 192 | ' | 176 | 572 | 496 |
Broadcast operations expenses | 32 | ' | 31 | 91 | 87 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Subscriber acquisition costs | 185 | ' | 187 | 585 | 532 |
Upgrade and retention costs | 52 | ' | 42 | 151 | 126 |
General and administrative expenses | 165 | ' | 158 | 514 | 451 |
Venezuelan currency devaluation | ' | ' | ' | 166 | ' |
Depreciation and amortization expense | 299 | ' | 243 | 892 | 695 |
Total operating costs and expenses | 1,473 | ' | 1,458 | 4,779 | 4,141 |
Operating profit | 250 | ' | 209 | 527 | 690 |
Interest income | 13 | ' | 19 | 49 | 48 |
Interest expense | 23 | ' | -18 | -10 | -53 |
Other, net | 37 | ' | 24 | -12 | 58 |
Income before income taxes | 323 | ' | 234 | 554 | 743 |
Income tax benefit (expense) | -258 | ' | -87 | -521 | -253 |
Net income | 65 | ' | 147 | 33 | 490 |
Less: Net income attributable to noncontrolling interest | -11 | ' | -7 | -20 | -22 |
Net income attributable to DIRECTV | 54 | ' | 140 | 13 | 468 |
Eliminations | ' | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' | ' |
Revenues | -13 | ' | -20 | -49 | -119 |
Costs of revenues, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
Broadcast programming and other | -11 | ' | -18 | -43 | -54 |
Broadcast operations expenses | -2 | ' | -2 | -6 | -6 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ' | ' | ' | ' | ' |
General and administrative expenses | ' | ' | ' | ' | -59 |
Total operating costs and expenses | -13 | ' | -20 | -49 | -119 |
Equity in income of consolidated subsidiaries | -1,526 | ' | -1,129 | -4,612 | -3,958 |
Interest income | -2 | ' | -3 | -8 | -9 |
Interest expense | 2 | ' | 3 | 8 | 9 |
Income before income taxes | -1,526 | ' | -1,129 | -4,612 | -3,958 |
Net income | -1,526 | ' | -1,129 | -4,612 | -3,958 |
Net income attributable to DIRECTV | ($1,526) | ' | ($1,129) | ($4,612) | ($3,958) |
DTV Holdings | ' | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' | ' |
Ownership percentage in subsidiary | 100.00% | ' | ' | 100.00% | ' |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Net income | $710 | $572 | $2,069 | $2,029 |
Defined benefit plans: | ' | ' | ' | ' |
Loss related to changes in plan experience and actuarial assumptions arising during the period | -1 | -1 | -1 | -1 |
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 12 | 9 | 12 | 9 |
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 1 | ' | 1 | ' |
Cash flows hedges: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 78 | -31 | 51 | -31 |
Reclassification adjustments included in net income | -61 | -3 | -13 | -3 |
Foreign currency translation adjustments | -3 | -2 | -51 | -32 |
Available for sale securities: | ' | ' | ' | ' |
Unrealized holding losses on securities | ' | ' | ' | -4 |
Reclassification adjustment for net losses recognized during the period | ' | ' | 1 | ' |
Other comprehensive income (loss) | 26 | -28 | ' | -62 |
Comprehensive income | 736 | 544 | 2,069 | 1,967 |
Less: Comprehensive income attributable to noncontrolling interest | -11 | -6 | -6 | -7 |
Comprehensive income attributable to DIRECTV | 725 | 538 | 2,063 | 1,960 |
Parent Guarantor | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Net income | 699 | 565 | 2,049 | 2,007 |
Defined benefit plans: | ' | ' | ' | ' |
Loss related to changes in plan experience and actuarial assumptions arising during the period | -1 | -1 | -1 | -1 |
Amortization of amounts resulting from changes in plan experience and actuarial assumptions recognized as periodic benefit cost | 12 | 9 | 12 | 9 |
Amortization of amounts resulting from changes in plan provisions recognized as periodic benefit cost | 1 | ' | 1 | ' |
Available for sale securities: | ' | ' | ' | ' |
Other comprehensive income (loss) | 12 | 8 | 12 | 8 |
Comprehensive income | 711 | 573 | 2,061 | 2,015 |
Comprehensive income attributable to DIRECTV | 711 | 573 | 2,061 | 2,015 |
Co-Issuers | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Net income | 652 | 436 | 2,069 | 1,564 |
Cash flows hedges: | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period | 78 | -31 | 51 | -31 |
Reclassification adjustments included in net income | -61 | -3 | -13 | -3 |
Available for sale securities: | ' | ' | ' | ' |
Other comprehensive income (loss) | 17 | -34 | 38 | -34 |
Comprehensive income | 669 | 402 | 2,107 | 1,530 |
Comprehensive income attributable to DIRECTV | 669 | 402 | 2,107 | 1,530 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Net income | 820 | 553 | 2,530 | 1,926 |
Available for sale securities: | ' | ' | ' | ' |
Comprehensive income | 820 | 553 | 2,530 | 1,926 |
Comprehensive income attributable to DIRECTV | 820 | 553 | 2,530 | 1,926 |
Non-guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Net income | 65 | 147 | 33 | 490 |
Cash flows hedges: | ' | ' | ' | ' |
Foreign currency translation adjustments | -3 | -2 | -51 | -32 |
Available for sale securities: | ' | ' | ' | ' |
Unrealized holding losses on securities | ' | ' | ' | -4 |
Reclassification adjustment for net losses recognized during the period | ' | ' | 1 | ' |
Other comprehensive income (loss) | -3 | -2 | -50 | -36 |
Comprehensive income | 62 | 145 | -17 | 454 |
Less: Comprehensive income attributable to noncontrolling interest | -11 | -6 | -6 | -7 |
Comprehensive income attributable to DIRECTV | 51 | 139 | -23 | 447 |
Eliminations | ' | ' | ' | ' |
Condensed Consolidating Financial Statements | ' | ' | ' | ' |
Net income | -1,526 | -1,129 | -4,612 | -3,958 |
Available for sale securities: | ' | ' | ' | ' |
Comprehensive income | -1,526 | -1,129 | -4,612 | -3,958 |
Comprehensive income attributable to DIRECTV | ($1,526) | ($1,129) | ($4,612) | ($3,958) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
ASSETS | ' | ' | ' | ' |
Total current assets | $5,029 | $5,554 | ' | ' |
Satellites, net | 2,443 | 2,357 | ' | ' |
Property and equipment, net | 6,462 | 6,038 | ' | ' |
Goodwill | 3,985 | 4,063 | ' | ' |
Intangible assets, net | 930 | 832 | ' | ' |
Investments and other assets | 1,739 | 1,711 | ' | ' |
Total assets | 20,588 | 20,555 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' | ' | ' |
Total current liabilities | 5,329 | 5,541 | ' | ' |
Long-term debt | 18,635 | 17,170 | ' | ' |
Deferred income taxes | 1,542 | 1,672 | ' | ' |
Other liabilities and deferred credits | 1,290 | 1,203 | ' | ' |
Redeemable noncontrolling interest | 400 | 400 | ' | ' |
Stockholders' equity (deficit) | ' | ' | ' | ' |
Capital stock and additional paid-in capital | 3,671 | 4,021 | ' | ' |
Retained earnings (accumulated deficit) | -10,037 | -9,210 | ' | ' |
Accumulated other comprehensive income (loss) | -242 | -242 | -218 | -156 |
Total stockholders' deficit | -6,608 | -5,431 | ' | ' |
Total liabilities and stockholders' deficit | 20,588 | 20,555 | ' | ' |
Parent Guarantor | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Total current assets | 872 | 883 | ' | ' |
Intercompany receivables | 4,597 | 4,382 | ' | ' |
Investment in subsidiaries | -9,868 | -8,687 | ' | ' |
Investments and other assets | 105 | 180 | ' | ' |
Total assets | -4,294 | -3,242 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' | ' | ' |
Total current liabilities | 540 | 384 | ' | ' |
Intercompany liabilities | 1,356 | 1,401 | ' | ' |
Other liabilities and deferred credits | 418 | 404 | ' | ' |
Stockholders' equity (deficit) | ' | ' | ' | ' |
Capital stock and additional paid-in capital | 3,671 | 4,021 | ' | ' |
Retained earnings (accumulated deficit) | -10,037 | -9,210 | ' | ' |
Accumulated other comprehensive income (loss) | -242 | -242 | ' | ' |
Total stockholders' deficit | -6,608 | -5,431 | ' | ' |
Total liabilities and stockholders' deficit | -4,294 | -3,242 | ' | ' |
Co-Issuers | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Total current assets | 713 | 884 | ' | ' |
Goodwill | 1,828 | 1,828 | ' | ' |
Intercompany receivables | 7,579 | 6,152 | ' | ' |
Investment in subsidiaries | 17,412 | 15,001 | ' | ' |
Investments and other assets | 151 | 91 | ' | ' |
Total assets | 27,683 | 23,956 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' | ' | ' |
Total current liabilities | 742 | 646 | ' | ' |
Long-term debt | 18,585 | 17,170 | ' | ' |
Deferred income taxes | 34 | ' | ' | ' |
Intercompany liabilities | 19,655 | 16,355 | ' | ' |
Other liabilities and deferred credits | 186 | 131 | ' | ' |
Stockholders' equity (deficit) | ' | ' | ' | ' |
Capital stock and additional paid-in capital | 14 | 12 | ' | ' |
Retained earnings (accumulated deficit) | -11,555 | -10,341 | ' | ' |
Accumulated other comprehensive income (loss) | 22 | -17 | ' | ' |
Total stockholders' deficit | -11,519 | -10,346 | ' | ' |
Total liabilities and stockholders' deficit | 27,683 | 23,956 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Total current assets | 2,906 | 2,788 | ' | ' |
Satellites, net | 1,820 | 1,795 | ' | ' |
Property and equipment, net | 3,556 | 3,290 | ' | ' |
Goodwill | 1,360 | 1,349 | ' | ' |
Intangible assets, net | 525 | 453 | ' | ' |
Intercompany receivables | 19,655 | 16,355 | ' | ' |
Investments and other assets | 259 | 241 | ' | ' |
Total assets | 30,081 | 26,271 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' | ' | ' |
Total current liabilities | 3,424 | 3,526 | ' | ' |
Deferred income taxes | 1,429 | 1,397 | ' | ' |
Intercompany liabilities | 7,579 | 6,152 | ' | ' |
Other liabilities and deferred credits | 237 | 195 | ' | ' |
Stockholders' equity (deficit) | ' | ' | ' | ' |
Capital stock and additional paid-in capital | 4,883 | 4,802 | ' | ' |
Retained earnings (accumulated deficit) | 12,529 | 10,199 | ' | ' |
Total stockholders' deficit | 17,412 | 15,001 | ' | ' |
Total liabilities and stockholders' deficit | 30,081 | 26,271 | ' | ' |
Non-guarantor Subsidiaries | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Total current assets | 2,206 | 2,039 | ' | ' |
Satellites, net | 623 | 562 | ' | ' |
Property and equipment, net | 2,906 | 2,748 | ' | ' |
Goodwill | 797 | 886 | ' | ' |
Intangible assets, net | 405 | 379 | ' | ' |
Intercompany receivables | 4,120 | 3,703 | ' | ' |
Investment in subsidiaries | -11,286 | -10,915 | ' | ' |
Investments and other assets | 1,423 | 1,294 | ' | ' |
Total assets | 1,194 | 696 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' | ' | ' |
Total current liabilities | 2,291 | 2,025 | ' | ' |
Long-term debt | 50 | ' | ' | ' |
Deferred income taxes | 270 | 361 | ' | ' |
Intercompany liabilities | 7,361 | 6,684 | ' | ' |
Other liabilities and deferred credits | 457 | 482 | ' | ' |
Redeemable noncontrolling interest | 400 | 400 | ' | ' |
Stockholders' equity (deficit) | ' | ' | ' | ' |
Capital stock and additional paid-in capital | -9,009 | -6,632 | ' | ' |
Retained earnings (accumulated deficit) | -497 | -2,560 | ' | ' |
Accumulated other comprehensive income (loss) | -129 | -64 | ' | ' |
Total stockholders' deficit | -9,635 | -9,256 | ' | ' |
Total liabilities and stockholders' deficit | 1,194 | 696 | ' | ' |
Eliminations | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' |
Total current assets | -1,668 | -1,040 | ' | ' |
Intercompany receivables | -35,951 | -30,592 | ' | ' |
Investment in subsidiaries | 3,742 | 4,601 | ' | ' |
Investments and other assets | -199 | -95 | ' | ' |
Total assets | -34,076 | -27,126 | ' | ' |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' | ' | ' |
Total current liabilities | -1,668 | -1,040 | ' | ' |
Deferred income taxes | -191 | -86 | ' | ' |
Intercompany liabilities | -35,951 | -30,592 | ' | ' |
Other liabilities and deferred credits | -8 | -9 | ' | ' |
Stockholders' equity (deficit) | ' | ' | ' | ' |
Capital stock and additional paid-in capital | 4,112 | 1,818 | ' | ' |
Retained earnings (accumulated deficit) | -477 | 2,702 | ' | ' |
Accumulated other comprehensive income (loss) | 107 | 81 | ' | ' |
Total stockholders' deficit | 3,742 | 4,601 | ' | ' |
Total liabilities and stockholders' deficit | ($34,076) | ($27,126) | ' | ' |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Statements (Details 4) (USD $) | 1 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Oct. 31, 2013 | Oct. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | $4,355 | $4,133 |
Cash flows from investing activities | ' | ' | ' | ' |
Cash paid for property and equipment | ' | ' | -2,471 | -2,160 |
Cash paid for satellites | ' | ' | -276 | -231 |
Investment in companies, net of cash acquired | ' | ' | -47 | -4 |
Proceeds from sale of investments | ' | ' | 140 | 24 |
Other, net | ' | ' | -158 | 25 |
Net cash used in investing activities | ' | ' | -2,812 | -2,346 |
Cash flows from financing activities | ' | ' | ' | ' |
Issuance of commercial paper (maturity 90 days or less), net | ' | ' | 90 | ' |
Proceeds from short-term borrowings | ' | ' | 441 | ' |
Repayment of short-term borrowings | ' | ' | -327 | ' |
Proceeds from borrowings under revolving credit facility | ' | ' | 10 | 400 |
Repayment of borrowings under revolving credit facility | ' | ' | -10 | -400 |
Proceeds from long-term debt | ' | ' | 1,484 | 5,190 |
Debt issuance costs | ' | ' | -8 | -35 |
Repayment of long-term debt | ' | ' | -9 | -1,500 |
Repayment of other long-term obligations | ' | ' | -48 | -40 |
Common shares repurchased and retired | -45 | -96 | -3,228 | -3,828 |
Stock options exercised | ' | ' | ' | 2 |
Taxes paid in lieu of shares issued for share-based compensation | ' | ' | -61 | -58 |
Excess tax benefit from share-based compensation | ' | ' | 24 | 30 |
Other, net | ' | ' | 6 | ' |
Net cash used in financing activities | ' | ' | -1,636 | -239 |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | ' | ' | -187 | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | -280 | 1,548 |
Cash and cash equivalents at beginning of the period | 1,622 | 2,421 | 1,902 | 873 |
Cash and cash equivalents at end of the period | ' | ' | 1,622 | 2,421 |
Parent Guarantor | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 1,096 | 1,186 |
Cash flows from investing activities | ' | ' | ' | ' |
Cash paid for satellites | ' | ' | ' | -6 |
Proceeds from sale of investments | ' | ' | 117 | ' |
Return of capital from subsidiary | ' | ' | 1,567 | 3,336 |
Net cash used in investing activities | ' | ' | 1,684 | 3,330 |
Cash flows from financing activities | ' | ' | ' | ' |
Common shares repurchased and retired | ' | ' | -3,228 | -3,828 |
Stock options exercised | ' | ' | ' | 2 |
Intercompany payments (funding) | ' | ' | 265 | 154 |
Net cash used in financing activities | ' | ' | -2,963 | -3,672 |
Net increase (decrease) in cash and cash equivalents | ' | ' | -183 | 844 |
Cash and cash equivalents at beginning of the period | ' | ' | 408 | 129 |
Cash and cash equivalents at end of the period | ' | ' | 225 | 973 |
Co-Issuers | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 1,568 | 1,822 |
Cash flows from financing activities | ' | ' | ' | ' |
Issuance of commercial paper (maturity 90 days or less), net | ' | ' | 90 | ' |
Proceeds from short-term borrowings | ' | ' | 441 | ' |
Repayment of short-term borrowings | ' | ' | -327 | ' |
Proceeds from borrowings under revolving credit facility | ' | ' | 10 | 400 |
Repayment of borrowings under revolving credit facility | ' | ' | -10 | -400 |
Proceeds from long-term debt | ' | ' | 1,390 | 5,190 |
Debt issuance costs | ' | ' | -8 | -35 |
Repayment of long-term debt | ' | ' | ' | -1,500 |
Other, net | ' | ' | 6 | ' |
Cash dividend to Parent | ' | ' | -3,200 | -5,000 |
Net cash used in financing activities | ' | ' | -1,608 | -1,345 |
Net increase (decrease) in cash and cash equivalents | ' | ' | -40 | 477 |
Cash and cash equivalents at beginning of the period | ' | ' | 728 | 228 |
Cash and cash equivalents at end of the period | ' | ' | 688 | 705 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 1,623 | 1,173 |
Cash flows from investing activities | ' | ' | ' | ' |
Cash paid for property and equipment | ' | ' | -1,327 | -1,048 |
Cash paid for satellites | ' | ' | -154 | -139 |
Investment in companies, net of cash acquired | ' | ' | -38 | -1 |
Proceeds from sale of investments | ' | ' | 12 | 24 |
Other, net | ' | ' | -67 | -1 |
Net cash used in investing activities | ' | ' | -1,574 | -1,165 |
Cash flows from financing activities | ' | ' | ' | ' |
Repayment of other long-term obligations | ' | ' | -18 | -15 |
Taxes paid in lieu of shares issued for share-based compensation | ' | ' | -51 | -49 |
Excess tax benefit from share-based compensation | ' | ' | 20 | 25 |
Intercompany payments (funding) | ' | ' | 3 | 14 |
Net cash used in financing activities | ' | ' | -46 | -25 |
Net increase (decrease) in cash and cash equivalents | ' | ' | 3 | -17 |
Cash and cash equivalents at beginning of the period | ' | ' | 11 | 4 |
Cash and cash equivalents at end of the period | ' | ' | 14 | -13 |
Non-guarantor Subsidiaries | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | 1,701 | 1,616 |
Cash flows from investing activities | ' | ' | ' | ' |
Cash paid for property and equipment | ' | ' | -1,144 | -1,112 |
Cash paid for satellites | ' | ' | -122 | -86 |
Investment in companies, net of cash acquired | ' | ' | -9 | -3 |
Proceeds from sale of investments | ' | ' | 11 | ' |
Other, net | ' | ' | -91 | 26 |
Net cash used in investing activities | ' | ' | -1,355 | -1,175 |
Cash flows from financing activities | ' | ' | ' | ' |
Proceeds from long-term debt | ' | ' | 94 | ' |
Repayment of long-term debt | ' | ' | -9 | ' |
Repayment of other long-term obligations | ' | ' | -30 | -25 |
Taxes paid in lieu of shares issued for share-based compensation | ' | ' | -10 | -9 |
Excess tax benefit from share-based compensation | ' | ' | 4 | 5 |
Intercompany payments (funding) | ' | ' | -268 | -168 |
Net cash used in financing activities | ' | ' | -219 | -197 |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | ' | ' | -187 | ' |
Net increase (decrease) in cash and cash equivalents | ' | ' | -60 | 244 |
Cash and cash equivalents at beginning of the period | ' | ' | 755 | 512 |
Cash and cash equivalents at end of the period | ' | ' | 695 | 756 |
Eliminations | ' | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' | ' |
Net cash provided by operating activities | ' | ' | -1,633 | -1,664 |
Cash flows from investing activities | ' | ' | ' | ' |
Return of capital from subsidiary | ' | ' | -1,567 | -3,336 |
Net cash used in investing activities | ' | ' | -1,567 | -3,336 |
Cash flows from financing activities | ' | ' | ' | ' |
Cash dividend to Parent | ' | ' | 3,200 | 5,000 |
Net cash used in financing activities | ' | ' | $3,200 | $5,000 |