Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document and Entity Information | ||
Entity Registrant Name | DIRECTV | |
Entity Central Index Key | 1465112 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -28 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 504,062,549 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Revenues | $8,143 | $7,855 |
Costs of revenues, exclusive of depreciation and amortization expense | ||
Broadcast programming and other | 3,576 | 3,383 |
Subscriber service expenses | 581 | 551 |
Broadcast operations expenses | 117 | 97 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||
Subscriber acquisition costs | 888 | 827 |
Upgrade and retention costs | 350 | 321 |
General and administrative expenses | 514 | 454 |
Venezuelan currency devaluation charge | 281 | |
Depreciation and amortization expense | 730 | 714 |
Total operating costs and expenses | 6,756 | 6,628 |
Operating profit | 1,387 | 1,227 |
Interest income | 22 | 13 |
Interest expense | -245 | -232 |
Other, net | 7 | 57 |
Income before income taxes | 1,171 | 1,065 |
Income tax expense | -441 | -496 |
Net income | 730 | 569 |
Less: Net income attributable to noncontrolling interest | -8 | |
Net income attributable to DIRECTV | $730 | $561 |
Basic earnings attributable to DIRECTV per common share (in dollars per share) | $1.45 | $1.10 |
Diluted earnings attributable to DIRECTV per common share (in dollars per share) | $1.44 | $1.09 |
Weighted average number of common shares outstanding (in millions): | ||
Basic (in shares) | 503 | 511 |
Diluted (in shares) | 507 | 515 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $730 | $569 |
Cash flows hedges: | ||
Unrealized gains (losses) arising during the period | -121 | -7 |
Reclassification adjustments included in net income | 94 | -8 |
Foreign currency translation adjustments | -132 | 39 |
Other comprehensive income (loss) | -159 | 24 |
Comprehensive income | 571 | 593 |
Comprehensive (income) loss attributable to noncontrolling interest | 18 | -11 |
Comprehensive income attributable to DIRECTV | $589 | $582 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $4,284 | $4,635 |
Accounts receivable, net of allowances of $92 and $109 | 2,635 | 2,800 |
Inventories | 334 | 299 |
Deferred income taxes | 71 | 68 |
Prepaid expenses and other | 722 | 1,017 |
Total current assets | 8,046 | 8,819 |
Satellites, net | 3,045 | 3,040 |
Property and equipment, net | 6,455 | 6,721 |
Goodwill | 3,877 | 3,929 |
Intangible assets, net | 954 | 994 |
Investments and other assets | 1,924 | 1,956 |
Total assets | 24,301 | 25,459 |
Current liabilities | ||
Accounts payable and accrued liabilities | 4,639 | 5,048 |
Unearned subscriber revenues and deferred credits | 570 | 584 |
Current debt | 2,355 | 1,327 |
Total current liabilities | 7,564 | 6,959 |
Long-term debt | 17,058 | 19,485 |
Deferred income taxes | 1,606 | 1,726 |
Other liabilities and deferred credits | 2,353 | 2,117 |
Commitments and contingencies | ||
Stockholders' deficit | ||
Common stock and additional paid-in capital - $0.01 par value, 3,950,000,000 shares authorized, 503,981,177 and 502,733,342 shares issued and outstanding of common stock at March 31, 2015 and December 31, 2014, respectively | 3,608 | 3,613 |
Accumulated deficit | -7,678 | -8,408 |
Accumulated other comprehensive loss | -577 | -418 |
Total DIRECTV stockholders' deficit | -4,647 | -5,213 |
Noncontrolling interest | 367 | 385 |
Total stockholders' deficit | -4,280 | -4,828 |
Total liabilities and stockholders' deficit | $24,301 | $25,459 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowances (in dollars) | $92 | $109 |
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 | 503,981,177 | 502,733,342 |
Common stock and additional paid-in capital, shares outstanding | 503,981,177 | 502,733,342 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows From Operating Activities | ||
Net income | $730 | $569 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 730 | 714 |
Venezuelan currency devaluation charge | 281 | |
Amortization of deferred revenues and deferred credits | -11 | -12 |
Share-based compensation expense | 27 | 20 |
Equity in earnings from unconsolidated affiliates | -33 | -44 |
Net foreign currency transaction loss (gain) | 31 | -6 |
Dividends received | 7 | |
Net gains from sale of investments | -2 | |
Deferred income taxes | 44 | 84 |
Excess tax benefit from share-based compensation | -31 | -22 |
Other | 6 | 15 |
Change in other operating assets and liabilities: | ||
Accounts receivable | 151 | 98 |
Inventories | -37 | -36 |
Prepaid expenses and other | 293 | 303 |
Accounts payable and accrued liabilities | -358 | -397 |
Unearned subscriber revenue and deferred credits | 3 | 43 |
Other, net | 84 | -18 |
Net cash provided by operating activities | 1,636 | 1,590 |
Cash Flows From Investing Activities | ||
Cash paid for property and equipment | -613 | -650 |
Cash paid for satellites | -96 | -54 |
Investment in companies, net of cash acquired | -10 | -4 |
Proceeds from sale of investments | 4 | |
Other, net | 3 | -3 |
Net cash used in investing activities | -716 | -707 |
Cash Flows From Financing Activities | ||
Issuance of commercial paper (maturity 90 days or less), net | 105 | |
Proceeds from short-term borrowings | 90 | |
Repayment of short-term borrowings | -200 | |
Proceeds from long-term debt | 17 | 1,260 |
Debt issuance costs | -6 | |
Repayment of long-term debt | -1,226 | -11 |
Repayment of other long-term obligations | -29 | -15 |
Common shares repurchased and retired | -895 | |
Taxes paid in lieu of shares issued for share-based compensation | -64 | -57 |
Excess tax benefit from share-based compensation | 31 | 22 |
Other, net | -26 | |
Net cash used in financing activities | -1,271 | 267 |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | -316 | |
Net increase (decrease) in cash and cash equivalents | -351 | 834 |
Cash and cash equivalents at beginning of the period | 4,635 | 2,180 |
Cash and cash equivalents at end of the period | 4,284 | 3,014 |
Supplemental Cash Flow Information | ||
Cash paid for interest | 318 | 328 |
Cash paid for income taxes | $49 | $84 |
Description_of_Business_and_Ba
Description of Business and Basis of Presentation | 3 Months Ended | |
Mar. 31, 2015 | ||
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 also 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 two regional sports networks, and also own non-controlling interests in two others, ROOT SPORTS™ Northwest and ROOT SPORTS Southwest. We 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 ROOT SPORTS Northwest, ROOT SPORTS Southwest and 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, Peru, 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 and Other 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 two regional sports networks based in Seattle, Washington and Houston, Texas in which DSN retains a noncontrolling interest, each of which operates under the brand name ROOT SPORTS. In the fourth quarter of 2014, we acquired a noncontrolling interest in Houston Sports Holdings, LLC, or HSH, the regional sports network based in Houston, Texas. 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, 2014 filed with the SEC on February 24, 2015, 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. | ||
Proposed AT&T Merger Transaction | ||
On May 18, 2014, DIRECTV and AT&T Inc., or AT&T, announced that they entered into a definitive agreement under which DIRECTV will combine with AT&T in a stock and cash transaction. The Agreement and Plan of Merger, which was included as Exhibit 2.1 to the Form 8-K filed with the SEC on May 19, 2014, or the Merger Agreement, was approved unanimously by the Board of Directors of each company and was approved by our stockholders at a special meeting held on September 25, 2014. | ||
Subject to the conditions in the Merger Agreement, at the effective time of the merger, our shareholders will receive $95.00 per share, subject to adjustments as described below under the terms of the merger, comprised of $28.50 per share in cash and $66.50 per share in AT&T stock. The stock portion will be subject to a collar such that our shareholders will receive 1.905 AT&T shares if the AT&T stock price is below $34.90 at closing and 1.724 AT&T shares if the AT&T stock price is above $38.58 at closing. If the AT&T stock price at closing is between $34.90 and $38.58, our shareholders will receive a number of shares between 1.724 and 1.905, equal to $66.50 in value. In all cases the AT&T stock price at closing is based on a volume-weighted average as provided in the Merger Agreement. The value of the shares may differ on the date of exchange. The transaction is subject to review by the U.S. Department of Justice and the Federal Communications Commission. The transaction has been reviewed and approved by Brazil telecommunications and Mexican antitrust authorities. The transaction is expected to close in the second quarter of 2015. | ||
In connection with the proposed combination, we have made certain representations, warranties and covenants in the Merger Agreement, including, among other things, covenants by DIRECTV to conduct its business in the ordinary course during the interim period between the execution of the Merger Agreement and consummation of the merger and not to take certain actions prior to the closing of the merger without the prior approval of AT&T. | ||
New_Accounting_Standard
New Accounting Standard | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Standard | |
New Accounting Standard | |
Note 2: New Accounting Standards | |
Debt Issuance Costs. In April 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU requires retrospective adoption and is effective for fiscal periods beginning after December 15, 2015. Early adoption is permitted. The adoption of this ASU will not have a material impact on our financial statements. | |
Revenue Recognition. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, as a new Topic, Accounting Standards Codification (ASC) Topic 606. This is a comprehensive new revenue recognition standard which will supersede existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard will likely be effective for fiscal periods beginning after December 15, 2017 and allows for either a full retrospective or modified retrospective adoption. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. | |
Goodwill
Goodwill | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 three months ended March 31, 2015: | |||||||||||||||||
DIRECTV Latin | |||||||||||||||||
America | Sports | ||||||||||||||||
Networks, | |||||||||||||||||
Eliminations | |||||||||||||||||
DIRECTV | Sky | PanAmericana | and Other | Total | |||||||||||||
U.S. | Brasil | and Other | |||||||||||||||
(Dollars in Millions) | |||||||||||||||||
Balance as of January 1, 2015 | $ | 3,191 | $ | 305 | $ | 211 | $ | 222 | $ | 3,929 | |||||||
Sky Brasil foreign currency translation adjustment | — | (52 | ) | — | — | (52 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Balance as of March 31, 2015 | $ | 3,191 | $ | 253 | $ | 211 | $ | 222 | $ | 3,877 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Debt
Debt | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Debt | |||||||||||
Debt | |||||||||||
Note 4: Debt | |||||||||||
The following table sets forth our outstanding debt as of: | |||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | ||||||||||
(Dollars in Millions) | |||||||||||
Current debt | |||||||||||
Current portion of long-term debt | $ | 2,249 | $ | 1,200 | |||||||
Current portion of borrowings under BNDES financing facility | 106 | 127 | |||||||||
Long-term debt | |||||||||||
Senior notes | 16,936 | 19,327 | |||||||||
Borrowings under BNDES financing facility | 91 | 140 | |||||||||
Borrowings under Desenvolve SP financing facility | 31 | 18 | |||||||||
| | | | | | | | ||||
Total debt | $ | 19,413 | $ | 20,812 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
The amount of interest accrued related to our outstanding debt was $185 million at March 31, 2015 and $278 million at December 31, 2014. | |||||||||||
Senior Notes | |||||||||||
Three Months Ended March 31, 2015 Financing Transaction | |||||||||||
In March 2015, DIRECTV U.S. repaid the 3.550% senior notes due in 2015, or the 2015 Notes, for the unpaid principal balance of $1,200 million, together with accrued and unpaid interest as of that date, as required by the indenture for the 2015 Notes. | |||||||||||
Three Months Ended March 31, 2014 Financing Transactions | |||||||||||
In March 2014, DIRECTV U.S. issued, pursuant to a registration statement, $1,250 million in aggregate principal of 4.45% senior notes due in 2024 with proceeds, net of an original issue discount, of $1,245 million. We incurred $7 million of debt issuance costs in connection with this transaction. | |||||||||||
Also in March 2014, DIRECTV U.S. exercised its early redemption right under the indenture for the 4.750% senior notes due in 2014 ("the 2014 Notes") effective April 24, 2014. The redemption price was based on the remaining scheduled payments of principal and interest using a discount rate equal to the Treasury Rate (as defined in the indenture governing the 2014 Notes) plus 40 basis points, together with accrued and unpaid interest as of April 24, 2014. The aggregate principal amount of the 2014 Notes outstanding was $1,000 million and we made a cash payment of $1,022 million to redeem such Notes. | |||||||||||
The following table sets forth our outstanding senior notes: | |||||||||||
Principal amount | Carrying value, net of | ||||||||||
unamortized original | |||||||||||
issue discounts | |||||||||||
March 31, | March 31, | December 31, | |||||||||
2015 | 2015 | 2014 | |||||||||
(Dollars in Millions) | |||||||||||
3.550% senior notes due in 2015 | $ | — | $ | — | $ | 1,200 | |||||
3.125% senior notes due in 2016 | 750 | 750 | 750 | ||||||||
3.500% senior notes due in 2016 | 1,500 | 1,499 | 1,499 | ||||||||
2.400% senior notes due in 2017 | 1,250 | 1,249 | 1,249 | ||||||||
1.750% senior notes due in 2018 | 750 | 746 | 746 | ||||||||
5.875% senior notes due in 2019 | 1,000 | 996 | 996 | ||||||||
5.200% senior notes due in 2020 | 1,300 | 1,299 | 1,299 | ||||||||
4.600% senior notes due in 2021 | 1,000 | 1,000 | 999 | ||||||||
5.000% senior notes due in 2021(1) | 1,500 | 1,508 | 1,506 | ||||||||
3.800% senior notes due in 2022(1) | 1,500 | 1,522 | 1,520 | ||||||||
2.750% senior notes due in 2023(2) | 537 | 534 | 602 | ||||||||
4.450% senior notes due in 2024(1) | 1,250 | 1,289 | 1,285 | ||||||||
3.950% senior notes due in 2025 | 1,200 | 1,192 | 1,192 | ||||||||
4.375% senior notes due in 2029(2) | 1,111 | 1,101 | 1,157 | ||||||||
5.200% senior notes due in 2033(2) | 518 | 516 | 543 | ||||||||
6.350% senior notes due in 2040 | 500 | 500 | 500 | ||||||||
6.000% senior notes due in 2040 | 1,250 | 1,236 | 1,236 | ||||||||
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 | $ | 19,166 | $ | 19,185 | $ | 20,527 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | The carrying values as of March 31, 2015 and December 31, 2014 include the following fair value adjustments, respectively: increases of $12 million and $10 million for the 5.000% senior notes due in 2021, increases of $22 million and $20 million for the 3.800% senior notes due in 2022 and increases of $43 million and $39 million for the 4.450% senior notes due in 2024. | ||||||||||
-2 | 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 $21,077 million at March 31, 2015 and $22,044 million at December 31, 2014. 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. | |||||||||||
The principal amount of our senior notes mature as follows: $2,250 million in 2016, $1,250 million in 2017, $750 million in 2018, $1,000 million in 2019, $1,300 million in 2020 and $12,616 million thereafter. | |||||||||||
Commercial Paper | |||||||||||
DIRECTV U.S. has 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 March 31, 2015 and December 31, 2014 we had no short-term commercial paper outstanding. Aggregate amounts outstanding under the revolving credit facilities described below and the commercial paper program are limited to $2.5 billion. | |||||||||||
Revolving Credit Facilities | |||||||||||
DIRECTV U.S. has a $1.0 billion revolving credit facility, which expires in February 2016, and a $1.5 billion revolving credit facility, which expires in September 2017. 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 March 31, 2015 and December 31, 2014 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 rank equally in right of payment with all of DIRECTV U.S.' existing and future senior debt and 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. 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 guarantees all of the senior notes outstanding, jointly and severally with DIRECTV Holdings LLC's material domestic subsidiaries. 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 may 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 is not 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. | |||||||||||
Desenvolve SP Financing Facility | |||||||||||
In the second quarter of 2014, Sky Brasil entered into a Brazilian real denominated financing facility with Desenvolve SP, an agency created by the Sao Paulo State Government for economic development, under which Sky Brasil may borrow funds for the construction of a satellite and broadcast facility. Each borrowing under the facility, including accrued interest, will be repaid in a single installment five years from the date of such borrowing. The financing facility is secured by a third party bank guarantee. As of March 31, 2015, Sky Brasil had borrowings of R$98 million ($31 million) under the facility bearing interest of 2.5% per year. As of December 31, 2014, Sky Brasil had borrowings of R$48 million ($18 million) under the facility bearing interest of 2.5% per year. The U.S. dollar amounts reflect the conversion of the Brazilian real denominated amounts into U.S. dollars based on the exchange rates of R$3.21 / $1.00 and R$2.66 / $1.00 as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
Borrowings under the Desenvolve SP facility mature as follows: R$48 million ($15 million) in 2019 and R$50 million ($16 million) in 2020. | |||||||||||
BNDES Financing Facility | |||||||||||
In March 2013, Sky Brasil entered into a Brazilian real denominated 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. As of March 31, 2015, Sky Brasil had borrowings of R$633 million ($197 million) outstanding under the BNDES facility bearing interest at a weighted-average rate of 5.22% per year. As of December 31, 2014, Sky Brasil had borrowings of R$710 million ($267 million) outstanding under the BNDES facility bearing interest at a weighted-average rate of 5.11% 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 rates of R$3.21 / $1.00 and R$2.66 / $1.00 as of March 31, 2015 and December 31, 2014, respectively. | |||||||||||
Borrowings under the BNDES facility mature as follows: R$260 million ($81 million) in 2015, R$273 million ($85 million) in 2016 and R$100 million ($31 million) in 2017. The financing facility is collateralized by the financed set-top receivers with an original purchase price of approximately R$1,022 million ($318 million) based on the exchange rate of R$3.21 / $1.00 as of March 31, 2015. | |||||||||||
Restricted Cash | |||||||||||
Restricted cash of $7 million as of March 31, 2015 and $10 million as of December 31, 2014 was included as part of "Prepaid expenses and other" in our Consolidated Balance Sheets. These amounts secure certain of our letters of credit obligations and restrictions on the cash will be removed as the letters of credit expire. | |||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
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 do not use derivatives for trading or speculative purposes. We record derivative financial instruments in the Consolidated Balance Sheets as either assets or liabilities at fair value. We calculate the fair value of derivative 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 yield curves, foreign currency exchange rates, and incorporating counterparty credit risk, as applicable. For derivative financial instruments designated as fair value hedges, the change in the fair value of both the derivative instrument and the hedged item are recognized in earnings in the current period. 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. | ||||||||||||||
The following table sets forth the fair values of assets and liabilities associated with the derivative financial instruments as of: | ||||||||||||||
Assets | Liabilities | |||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | — | $ | 8 | $ | 210 | $ | 24 | ||||||
Fair value hedges: | ||||||||||||||
Interest rate swap contracts | — | 12 | — | 6 | ||||||||||
| | | | | | | | | | | | | | |
Total derivative financial instruments | $ | — | $ | 20 | $ | 210 | $ | 30 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
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: | ||||||||||||||
March 31, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | 2,418 | $ | 2,418 | ||||||||||
Fair value hedges: | ||||||||||||||
Interest rate swaps | — | 3,000 | ||||||||||||
| | | | | | | | |||||||
Total notional amount of derivative financial instruments | $ | 2,418 | $ | 5,418 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
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 no cash collateral from counterparties as of March 31, 2015 and December 31, 2014. We did not have any cash collateral posted with counterparties as of March 31, 2015 and December 31, 2014. 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 | ||||||||||||||
In a series of financing transactions, DIRECTV U.S. issued, pursuant to a U.S. registration statement, the following senior notes: £750 million in aggregate principal of 4.375% senior notes due in 2029, €500 million in aggregate principal of 2.750% senior notes due in 2023 and £350 million in aggregate principal of 5.200% senior notes due in 2033. 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 November 2033. | ||||||||||||||
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 three months ended March 31, 2015, DIRECTV U.S. recorded net remeasurement gains of $151 million in "Other, net" in the Consolidated Statements of Operations related to the remeasurement of the hedged senior notes. To offset these remeasurement gains, we reclassified $151 million ($94 million after tax) from "Accumulated other comprehensive loss" in the Consolidated Balance Sheets to "Other, net" in the Consolidated Statements of Operations. During the three months ended March 31, 2014, DIRECTV U.S. recorded net remeasurement losses of $13 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 $13 million ($8 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 Lock Contracts | ||||||||||||||
Periodically we enter into interest rate lock contracts such as forward starting swaps and treasury locks to hedge against changes in interest payments attributable to changes in the benchmark interest rate during the period leading up to a forecasted issuance of fixed rate debt. These interest rate locks are designated and qualify as cash flow hedges. On March 17, 2014, DIRECTV U.S. issued $1,250 million in aggregate principal of 4.450% senior notes due in 2024. In connection with this transaction, DIRECTV U.S. settled all then-outstanding forward-starting interest rate swaps, which were previously entered into to protect against unfavorable interest rate changes related to the forecasted issuance of debt. These interest rate swaps were designated and qualified as cash flow hedges. As a result of settling these forward-starting interest rate swaps, we recognized $1 million of ineffectiveness in earnings during 2014. As of March 31, 2015, we had $8 million in "Accumulated other comprehensive loss" in the Consolidated Balance Sheets related to these forward-starting interest rate swaps that is being recognized as interest expense over the term of the 4.450% senior notes due in 2024. | ||||||||||||||
Fixed-to-Floating Interest Rate Swap Contracts | ||||||||||||||
DIRECTV U.S. may enter into fixed-to-floating interest rate swap contracts from time to time in order to manage its interest rate exposure. We designate such swaps as fair value hedges. Depending on market conditions, the mix of our fixed interest rate and floating interest rate debt and other factors, we may periodically discontinue these fair value hedges and terminate our fixed-to-floating interest rate swap contracts by settling the contracts or by entering into offsetting contracts. | ||||||||||||||
During 2014, DIRECTV U.S. entered into interest rate swap contracts with a total notional amount of $3,000 million, converting a portion of the total aggregate principal amounts of the 5.000% senior notes due in 2021, the 3.800% senior notes due in 2022 and the 4.450% senior notes due in 2024 from a fixed to floating interest rate. In January 2015, DIRECTV U.S. discontinued the fair value hedges and settled these fixed-to-floating interest rate swap contracts. As a result of these settlements, DIRECTV U.S. received cash proceeds of $18 million, which are included in "Net cash provided by operations" in the Consolidated Statements of Cash Flows. | ||||||||||||||
As of March 31, 2015, there was $77 million of favorable adjustments to the carrying value of the senior notes, which will be amortized to "Interest expense" in the Consolidated Statements of Operations over the remaining term of the hedged senior notes. We calculated 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 yield curves. In connection with the settlement of the fixed-to-floating interest rate swap contracts, we recognized a $2 million gain in "Other, net" in the Consolidated Statements of Operations for the quarter ended March 31, 2015. The periodic interest settlements for the interest rate swap contracts are recorded in "Interest expense" in the Consolidated Statements of Operations. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies | |
Commitments and Contingencies | |
Note 6: Commitments and Contingencies | |
Commitments | |
At March 31, 2015, our minimum payments under agreements to purchase broadcast programming, and the purchase of services that we have outsourced to third parties, such as billing services, and satellite telemetry, tracking and control, satellite construction and launch contracts and broadcast center services aggregated $16,305 million, payable as follows: $1,744 million in the remainder of 2015, $2,140 million in 2016, $1,880 million in 2017, $1,760 million in 2018, $1,936 million in 2019 and $6,845 million thereafter. | |
Venezuela Devaluation and Foreign Currency Exchange Controls | |
Companies operating in Venezuela are required to obtain Venezuelan government approval to exchange Venezuelan bolivars into U.S. dollars and such approval has not consistently been granted for several years. Consequently, our ability to pay U.S. dollar denominated obligations and repatriate cash generated in Venezuela in excess of local operating requirements is limited, which has resulted in increases in the cash balance at our Venezuelan subsidiary, and limited our ability to import set-top receivers and other equipment, limiting the growth of our business in Venezuela. | |
As of March 31, 2015, the mechanisms in Venezuela for exchanging Venezuelan bolivars into U.S. dollars were as follows: (i) the official government mechanism operated by the Venezuelan Central Bank, which has a fixed exchange rate of 6.3 Venezuelan bolivars per U.S. dollar mainly reserved for essential goods and services (ii) the auction based Sistema Complementario de Administración de Divisas, or SICAD, which is intended for dividend and royalty remittances as well as certain imports, including telecommunications equipment and (iii) an open market currency exchange system Sistema Marginal de Divisas, or SIMADI, which is based on supply and demand. As of March 31, 2015, the SICAD exchange rate was 12.0 Venezuelan bolivars per U.S. dollars and the SIMADI exchange rate was 193.0 Venezuelan bolivars per U.S. dollars. | |
Effective March 31, 2014, we changed the exchange rate for remeasuring our Venezuelan subsidiary's monetary net assets from the official exchange rate of 6.3 Venezuelan bolivars per U.S. dollar to the SICAD rate, which was 10.7 Venezuelan bolivars per U.S. dollar as of March 31, 2014. As a result of the devaluation, we recorded a pre-tax charge in "Venezuelan currency devaluation charge" in the Consolidated Statements of Operations of $281 million in the first quarter of 2014, related to the remeasurement of the Venezuelan bolivar denominated net monetary assets of our Venezuelan subsidiary on March 31, 2014. | |
As of March 31, 2015, the SICAD rate was the most representative rate to use for remeasurement, as a limited amount of telecommunications equipment was imported at the SICAD rate during the quarter and the official rate of 6.3 Venezuelan bolivars per U.S. dollar continued to be reserved only for the settlement of U.S. dollar denominated obligations related to purchases of "essential goods and services". In addition, we did not transact in the SIMADI mechanism during the three months ended March 31, 2015. | |
Our Venezuelan subsidiary had Venezuelan bolivar denominated net monetary assets of $534 million, including cash of $554 million, as of March 31, 2015, as compared to Venezuelan bolivar denominated net monetary assets of $481 million, including cash of $481 million, as of December 31, 2014, based on the SICAD exchange rate of 12.0 Venezuelan bolivars per U.S. dollar. In the first quarter of 2015, our Venezuelan subsidiary generated revenues of approximately $200 million and operating profit before depreciation and amortization of approximately $75 million. | |
The exchange rate used to report net monetary assets and operating results of our Venezuelan subsidiary is currently based on the results of periodic SICAD auctions, which are expected to result in fluctuations in reported amounts that could be material to the results of operations in Venezuela in future periods and could materially affect the comparability of results for our Venezuelan subsidiary between periods. Significant uncertainties exist regarding the exchange mechanisms in Venezuela including the nature of transactions that are eligible for repatriation though the official process, SICAD or SIMADI, or any other new exchange mechanism that may emerge, how such mechanisms will operate in the future, as well as the volume of U.S. dollars available under each mechanism. Changes in exchange mechanisms and rates will impact the comparability of our results of operations and financial position, and would likely result in significant future devaluations. | |
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 March 31, 2015. 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 any potential liability would be the responsibility of our equipment vendors pursuant to applicable contractual indemnification provisions. Further, in certain of these cases, suppliers of equipment to DIRECTV are also defendants, and DIRECTV has contractual obligations to indemnify and hold harmless those suppliers in those cases. 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 the likelihood of a material liability in such matters is remote or have made appropriate accruals and the final disposition of these claims is not expected to have a material effect on our consolidated financial position. However, if an adverse ruling is made in a lawsuit involving key intellectual property, such ruling could possibly 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. As previously reported, 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. We have reached a settlement with the individual plaintiffs in the federal cases. In the California state court action, the United States Supreme Court agreed to review the California Court of Appeal's opinion affirming the denial of our motion to compel arbitration. 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. | |
FTC Litigation. On March 11, 2015, the Federal Trade Commission, or FTC, filed a lawsuit against DIRECTV and DIRECTV, LLC in United States District Court for the Northern District of California. The FTC alleges that DIRECTV failed to disclose adequately in our advertisements certain terms and conditions of our programming package offers. The complaint also alleges that DIRECTV violated applicable law by failing adequately to disclose, and to obtain consumers' express consent to, the terms of negative option offers for premium channels. The complaint seeks a permanent injunction to prevent further violations, as well as relief to redress injury to consumers. We believe we have valid defenses to the FTC's claims and we intend to vigorously defend the lawsuit. | |
Waste Disposal Inquiry. In August 2012, DIRECTV U.S. received from the State of California subpoenas and interrogatories related to our generation, handling, record keeping, 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 continuing to review our policies and procedures applicable to all facilities, cooperating with the investigation and recently began discussions with regulators directed at reaching resolution of this matter. | |
Other. We are subject to other legal proceedings and claims that arise in the ordinary course of our business. The amount of ultimate liability with respect to such actions is not expected to materially affect our financial position, results of operations or liquidity. | |
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 result 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 a portion of 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 March 31, 2015, the net book value of in-orbit satellites was $2,119 million, all of which was uninsured. | |
Other | |
As of March 31, 2015, we were contingently liable under standby letters of credit and bonds in the aggregate amount of $352 million primarily related to judicial deposit and payment guarantees in Latin America and insurance deductibles. | |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, HSH and ROOT SPORTS Northwest. | ||||||||
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 | ||||||||
Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(Dollars in | ||||||||
Millions) | ||||||||
Revenues | $ | 2 | $ | 2 | ||||
Expenses | 241 | 241 | ||||||
The following table sets forth the amount of accounts receivable from and accounts payable to related parties as of: | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(Dollars in Millions) | ||||||||
Accounts receivable | $ | 7 | $ | 26 | ||||
Accounts payable | 112 | 123 | ||||||
Short-term liability | 162 | 149 | ||||||
Long-term liability | 1 | 1 | ||||||
Stockholders_Deficit_and_Nonco
Stockholders' Deficit and Noncontrolling Interest | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Stockholders' Deficit and Noncontrolling Interest | ||||||||||||||||||||||||||
Stockholders' Deficit and Noncontrolling Interest | ||||||||||||||||||||||||||
Note 8: Stockholders' Deficit and Noncontrolling Interest | ||||||||||||||||||||||||||
Capital Stock and Additional Paid-In Capital | ||||||||||||||||||||||||||
Our certificate of incorporation provides for 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. DIRECTV common stock is entitled to one vote per share and trades on the NASDAQ, under the ticker "DTV". As of March 31, 2015 and December 31, 2014, 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 2014 our Board of Directors approved an authorization for up to $3.5 billion for repurchases of our common stock. In accordance with the Merger Agreement, we suspended the share repurchase program and agreed to not purchase, repurchase, redeem or otherwise acquire any shares of our capital stock during the pendency of the proposed transaction and without AT&T's consent, effective May 18, 2014. | ||||||||||||||||||||||||||
For the three months months ended March 31, 2014, we repurchased 13 million shares at an average price of $71.53 per share for a total cost of $925 million. Of the $925 million in repurchases during the three months ended March 31, 2014, $30 million were paid for in April 2014. 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. | ||||||||||||||||||||||||||
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. Globo did not exercise its right to require us to purchase its shares in Sky Brasil. That right has now expired and the noncontrolling interest is no longer redeemable. In accordance with Accounting Standards Codification 480, Distinguishing Liabilities from Equity, during the first quarter of 2014, we reclassified $375 million, which was the fair value of Globo's remaining 7% interest, from "Redeemable noncontrolling interest" to "Noncontrolling interest," a component of stockholders' deficit in the Consolidated Balance Sheets. During the first quarter of 2014, we discontinued fair value accounting for this equity instrument. | ||||||||||||||||||||||||||
The following tables set forth a reconciliation of stockholders' deficit for the three months ended March 31, 2015: | ||||||||||||||||||||||||||
Stockholders' Deficit | ||||||||||||||||||||||||||
DIRECTV | Common | Accumulated | Accumulated | Total | Noncontrolling | Total | ||||||||||||||||||||
Common | Stock and | Deficit | Other | DIRECTV | Interest | Stockholders' | ||||||||||||||||||||
Shares | Additional | Comprehensive | Stockholders' | Deficit | ||||||||||||||||||||||
Paid-In | Loss | Deficit | ||||||||||||||||||||||||
Capital | ||||||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | ||||||||||||||||||||||||||
Balance as of January 1, 2015 | 502,733,342 | $ | 3,613 | $ | (8,408 | ) | $ | (418 | ) | $ | (5,213 | ) | $ | 385 | $ | (4,828 | ) | |||||||||
Net income | 730 | 730 | — | 730 | ||||||||||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 1,247,835 | (62 | ) | (62 | ) | (62 | ) | |||||||||||||||||||
Share-based compensation expense | 27 | 27 | 27 | |||||||||||||||||||||||
Tax benefit from share-based compensation | 31 | 31 | 31 | |||||||||||||||||||||||
Other | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||
Other comprehensive loss | (159 | ) | (159 | ) | (159 | ) | ||||||||||||||||||||
CTA adjustment allocated to noncontrolling interest | (18 | ) | (18 | ) | ||||||||||||||||||||||
Balance as of March 31, 2015 | 503,981,177 | $ | 3,608 | $ | (7,678 | ) | $ | (577 | ) | $ | (4,647 | ) | $ | 367 | $ | (4,280 | ) | |||||||||
The following tables set forth a reconciliation of stockholders' deficit and redeemable noncontrolling interest for the three months ended March 31, 2014: | ||||||||||||||||||||||||||
Stockholders' Deficit | ||||||||||||||||||||||||||
DIRECTV | Common | Accumulated | Accumulated | Total | Noncontrolling | Total | Redeemable | |||||||||||||||||||
Common | Stock and | Deficit | Other | DIRECTV | Interest | Stockholders' | Noncontrolling | |||||||||||||||||||
Shares | Additional | Comprehensive | Stockholders' | Deficit | Interest | |||||||||||||||||||||
Paid-In | Loss | Deficit | ||||||||||||||||||||||||
Capital | ||||||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | ||||||||||||||||||||||||||
Balance as of January 1, 2014 | 519,306,232 | $ | 3,652 | $ | (9,874 | ) | $ | (322 | ) | $ | (6,544 | ) | $ | — | $ | (6,544 | ) | $ | 375 | |||||||
Net income | 561 | 561 | 8 | 569 | ||||||||||||||||||||||
Stock repurchased and retired | (12,928,118 | ) | (89 | ) | (836 | ) | (925 | ) | (925 | ) | ||||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 1,220,957 | (57 | ) | (57 | ) | (57 | ) | |||||||||||||||||||
Share-based compensation expense | 20 | 20 | 20 | |||||||||||||||||||||||
Tax benefit from share-based compensation | 22 | 22 | 22 | |||||||||||||||||||||||
Other | 1 | 1 | 1 | |||||||||||||||||||||||
Other comprehensive income | 24 | 24 | 24 | |||||||||||||||||||||||
CTA adjustment allocated to noncontrolling interest | 3 | 3 | ||||||||||||||||||||||||
Noncontrolling interest | 375 | 375 | (375 | ) | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of March 31, 2014 | 507,599,071 | $ | 3,549 | $ | (10,149 | ) | $ | (298 | ) | $ | (6,898 | ) | $ | 386 | $ | (6,512 | ) | $ | — | |||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||
The following represents the components of other comprehensive income (loss) for each of the periods presented: | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Pre-Tax | Tax Benefit | Net of | Pre-Tax | Tax Benefit | Net of | |||||||||||||||||||||
(Expense) | Tax | (Expense) | Tax | |||||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||
Cash flows hedges: | ||||||||||||||||||||||||||
Unrealized losses arising during the period | $ | (194 | ) | $ | 73 | $ | (121 | ) | $ | (12 | ) | $ | 5 | $ | (7 | ) | ||||||||||
Reclassification adjustments included in "Other, net" | 151 | (57 | ) | 94 | (13 | ) | 5 | (8 | ) | |||||||||||||||||
Foreign currency translation adjustments | (218 | ) | 86 | (132 | ) | 63 | (24 | ) | 39 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Other comprehensive income (loss) | $ | (261 | ) | $ | 102 | $ | (159 | ) | $ | 38 | $ | (14 | ) | $ | 24 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
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 | Foreign | Accumulated | |||||||||||||||||||||||
Benefit Plan | (Losses) on | Currency | Other | |||||||||||||||||||||||
Items | Cash Flow | Items | Comprehensive | |||||||||||||||||||||||
Hedges | Loss | |||||||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||
Balance as of January 1, 2015 | $ | (141 | ) | $ | 44 | $ | (321 | ) | $ | (418 | ) | |||||||||||||||
Other comprehensive loss | — | (27 | ) | (132 | ) | (159 | ) | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance as of March 31, 2015 | $ | (141 | ) | $ | 17 | $ | (453 | ) | $ | (577 | ) | |||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Defined | Gains | Foreign | Accumulated | |||||||||||||||||||||||
Benefit Plan | (Losses) on | Currency | Other | |||||||||||||||||||||||
Items | Cash Flow | Items | Comprehensive | |||||||||||||||||||||||
Hedges | Loss | |||||||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||
Balance as of January 1, 2014 | $ | (123 | ) | $ | 14 | $ | (213 | ) | $ | (322 | ) | |||||||||||||||
Other comprehensive income (loss) | — | (15 | ) | 39 | 24 | |||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance as of March 31, 2014 | $ | (123 | ) | $ | (1 | ) | $ | (174 | ) | $ | (298 | ) | ||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Earnings_Per_Common_Share
Earnings Per Common Share | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
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. We excluded 0.2 million common stock awards from the computation of diluted EPS, for both the three months ended March 31, 2015 and March 31, 2014, because the inclusion of the potential common shares would have had an antidilutive effect. | |||||||||||
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 | |||||||||||
March 31, 2015 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 730 | 503 | $ | 1.45 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.01 | ) | |||||||
| | | | | | | | | | | |
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 730 | 507 | $ | 1.44 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
March 31, 2014 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 561 | 511 | $ | 1.1 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.01 | ) | |||||||
| | | | | | | | | | | |
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 561 | 515 | $ | 1.09 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Segment_Reporting
Segment Reporting | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 and Other, 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 | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
DIRECTV U.S. | $ | 6,456 | $ | 2 | $ | 6,458 | $ | 1,249 | $ | 438 | $ | 1,687 | ||||||||
Sky Brasil | 795 | — | 795 | 54 | 145 | 199 | ||||||||||||||
PanAmericana and Other | 840 | — | 840 | 102 | 144 | 246 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
DIRECTV Latin America | 1,635 | — | 1,635 | 156 | 289 | 445 | ||||||||||||||
Sports Networks, Eliminations and Other | 52 | (2 | ) | 50 | (18 | ) | 3 | (15 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 8,143 | $ | — | $ | 8,143 | $ | 1,387 | $ | 730 | $ | 2,117 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
March 31, 2014 | ||||||||||||||||||||
DIRECTV U.S. | $ | 6,085 | $ | 2 | $ | 6,087 | $ | 1,243 | $ | 426 | $ | 1,669 | ||||||||
Sky Brasil | 939 | — | 939 | 148 | 163 | 311 | ||||||||||||||
PanAmericana and Other | 782 | — | 782 | (174 | ) | 122 | (52 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
DIRECTV Latin America | 1,721 | — | 1,721 | (26 | ) | 285 | 259 | |||||||||||||
Sports Networks, Eliminations and Other | 49 | (2 | ) | 47 | 10 | 3 | 13 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 7,855 | $ | — | $ | 7,855 | $ | 1,227 | $ | 714 | $ | 1,941 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | Operating profit (loss) 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 (loss)." 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 | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(Dollars in | ||||||||||||||||||||
Millions) | ||||||||||||||||||||
Operating profit before depreciation and amortization | $ | 2,117 | $ | 1,941 | ||||||||||||||||
Depreciation and amortization | (730 | ) | (714 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Operating profit | 1,387 | 1,227 | ||||||||||||||||||
Interest income | 22 | 13 | ||||||||||||||||||
Interest expense | (245 | ) | (232 | ) | ||||||||||||||||
Other, net | 7 | 57 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Income before income taxes | 1,171 | 1,065 | ||||||||||||||||||
Income tax expense | (441 | ) | (496 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net income | 730 | 569 | ||||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | (8 | ) | |||||||||||||||||
| | | | | | | | |||||||||||||
Net income attributable to DIRECTV | $ | 730 | $ | 561 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 months ended March 31, 2015 and 2014, the condensed consolidating statements of cash flows for the three months ended March 31, 2015 and 2014, and the condensed consolidating balance sheets as of March 31, 2015 and December 31, 2014. | ||||||||||||||||||||
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. In addition, the Non-Guarantor Subsidiaries include the entity that is the parent of DIRECTV Holdings. | ||||||||||||||||||||
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 March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 6,458 | $ | 1,725 | $ | (40 | ) | $ | 8,143 | |||||||
Operating costs and expenses | ||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Broadcast programming and other | — | — | 2,998 | 616 | (38 | ) | 3,576 | |||||||||||||
Subscriber service expenses | — | — | 385 | 196 | — | 581 | ||||||||||||||
Broadcast operations expenses | — | — | 81 | 38 | (2 | ) | 117 | |||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Subscriber acquisition costs | — | — | 703 | 185 | — | 888 | ||||||||||||||
Upgrade and retention costs | — | — | 308 | 42 | — | 350 | ||||||||||||||
General and administrative expenses | 32 | — | 296 | 186 | — | 514 | ||||||||||||||
Depreciation and amortization expense | — | — | 438 | 292 | — | 730 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total operating costs and expenses | 32 | — | 5,209 | 1,555 | (40 | ) | 6,756 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating profit (loss) | (32 | ) | — | 1,249 | 170 | — | 1,387 | |||||||||||||
Equity in income of consolidated subsidiaries | 750 | 751 | — | 615 | (2,116 | ) | — | |||||||||||||
Interest income | — | 3 | — | 19 | — | 22 | ||||||||||||||
Interest expense | — | (231 | ) | — | (14 | ) | — | (245 | ) | |||||||||||
Other, net | — | 2 | 6 | (1 | ) | — | 7 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | 718 | 525 | 1,255 | 789 | (2,116 | ) | 1,171 | |||||||||||||
Income tax benefit (expense) | 12 | 90 | (504 | ) | (39 | ) | — | (441 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income | 730 | 615 | 751 | 750 | (2,116 | ) | 730 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income attributable to DIRECTV | $ | 730 | $ | 615 | $ | 751 | $ | 750 | $ | (2,116 | ) | $ | 730 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 6,087 | $ | 1,798 | $ | (30 | ) | $ | 7,855 | |||||||
Operating costs and expenses | ||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Broadcast programming and other | — | — | 2,768 | 641 | (26 | ) | 3,383 | |||||||||||||
Subscriber service expenses | — | — | 359 | 192 | — | 551 | ||||||||||||||
Broadcast operations expenses | — | — | 72 | 27 | (2 | ) | 97 | |||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Subscriber acquisition costs | — | — | 648 | 180 | (1 | ) | 827 | |||||||||||||
Upgrade and retention costs | — | — | 281 | 41 | (1 | ) | 321 | |||||||||||||
General and administrative expenses | 9 | — | 290 | 155 | — | 454 | ||||||||||||||
Venezuelan currency devaluation charge | — | — | — | 281 | — | 281 | ||||||||||||||
Depreciation and amortization expense | — | — | 426 | 288 | — | 714 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total operating costs and expenses | 9 | — | 4,844 | 1,805 | (30 | ) | 6,628 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating profit (loss) | (9 | ) | — | 1,243 | (7 | ) | — | 1,227 | ||||||||||||
Equity in income of consolidated subsidiaries | 568 | 787 | — | 648 | (2,003 | ) | — | |||||||||||||
Interest income | — | — | 1 | 12 | — | 13 | ||||||||||||||
Interest expense | — | (220 | ) | (3 | ) | (9 | ) | — | (232 | ) | ||||||||||
Other, net | (2 | ) | — | 5 | 54 | — | 57 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | 557 | 567 | 1,246 | 698 | (2,003 | ) | 1,065 | |||||||||||||
Income tax benefit (expense) | 4 | 81 | (459 | ) | (122 | ) | — | (496 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income | 561 | 648 | 787 | 576 | (2,003 | ) | 569 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income attributable to DIRECTV | $ | 561 | $ | 648 | $ | 787 | $ | 568 | $ | (2,003 | ) | $ | 561 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Net income | $ | 730 | $ | 615 | $ | 751 | $ | 750 | $ | (2,116 | ) | $ | 730 | |||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Cash flows hedges: | ||||||||||||||||||||
Unrealized losses arising during the period | (121 | ) | (121 | ) | — | (121 | ) | 242 | (121 | ) | ||||||||||
Reclassification adjustments included in net income | 94 | 94 | — | 94 | (188 | ) | 94 | |||||||||||||
Foreign currency translation adjustments | (114 | ) | — | — | (132 | ) | 114 | (132 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Other comprehensive loss | (141 | ) | (27 | ) | — | (159 | ) | 168 | (159 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income | 589 | 588 | 751 | 591 | (1,948 | ) | 571 | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | — | 18 | — | 18 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to DIRECTV | $ | 589 | $ | 588 | $ | 751 | $ | 609 | $ | (1,948 | ) | $ | 589 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Net income | $ | 561 | $ | 648 | $ | 787 | $ | 576 | $ | (2,003 | ) | $ | 569 | |||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Cash flows hedges: | ||||||||||||||||||||
Unrealized losses arising during the period | — | (7 | ) | — | — | — | (7 | ) | ||||||||||||
Reclassification adjustments included in net income | — | (8 | ) | — | — | — | (8 | ) | ||||||||||||
Foreign currency translation adjustments | — | — | — | 39 | — | 39 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | — | (15 | ) | — | 39 | — | 24 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income | 561 | 633 | 787 | 615 | (2,003 | ) | 593 | |||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | — | (11 | ) | — | (11 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to DIRECTV | $ | 561 | $ | 633 | $ | 787 | $ | 604 | $ | (2,003 | ) | $ | 582 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Total current assets | $ | 725 | $ | 2,975 | $ | 2,928 | $ | 1,705 | $ | (287 | ) | $ | 8,046 | |||||||
Satellites, net | — | — | 1,713 | 1,332 | — | 3,045 | ||||||||||||||
Property and equipment, net | — | — | 3,841 | 2,614 | — | 6,455 | ||||||||||||||
Goodwill | — | 1,828 | 1,363 | 686 | — | 3,877 | ||||||||||||||
Intangible assets, net | — | — | 509 | 453 | (8 | ) | 954 | |||||||||||||
Intercompany receivables | 4,532 | 12,561 | 29,652 | 603 | (47,348 | ) | — | |||||||||||||
Investment in subsidiaries | (8,730 | ) | 22,133 | — | (10,092 | ) | (3,311 | ) | — | |||||||||||
Investments and other assets | 136 | 75 | 645 | 1,199 | (131 | ) | 1,924 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total assets | $ | (3,337 | ) | $ | 39,572 | $ | 40,651 | $ | (1,500 | ) | $ | (51,085 | ) | $ | 24,301 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
Total current liabilities | $ | 244 | $ | 2,421 | $ | 3,888 | $ | 1,298 | $ | (287 | ) | $ | 7,564 | |||||||
Long-term debt | — | 16,936 | — | 122 | — | 17,058 | ||||||||||||||
Deferred income taxes | — | 17 | 1,731 | (11 | ) | (131 | ) | 1,606 | ||||||||||||
Intercompany liabilities | 612 | 29,623 | 12,646 | 4,467 | (47,348 | ) | — | |||||||||||||
Other liabilities and deferred credits | 454 | 667 | 253 | 987 | (8 | ) | 2,353 | |||||||||||||
Stockholders' equity (deficit) | ||||||||||||||||||||
Common stock and additional paid-in capital | 3,608 | 476 | 5,447 | 3,510 | (9,433 | ) | 3,608 | |||||||||||||
Retained earnings (accumulated deficit) | (7,678 | ) | (10,586 | ) | 16,686 | (11,804 | ) | 5,704 | (7,678 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (577 | ) | 18 | — | (436 | ) | 418 | (577 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total DIRECTV stockholders' equity (deficit) | (4,647 | ) | (10,092 | ) | 22,133 | (8,730 | ) | (3,311 | ) | (4,647 | ) | |||||||||
Noncontrolling interest | — | — | — | 367 | — | 367 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total stockholders' equity (deficit) | (4,647 | ) | (10,092 | ) | 22,133 | (8,363 | ) | (3,311 | ) | (4,280 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity (deficit) | $ | (3,337 | ) | $ | 39,572 | $ | 40,651 | $ | (1,500 | ) | $ | (51,085 | ) | $ | 24,301 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Total current assets | $ | 1,201 | $ | 3,690 | $ | 2,964 | $ | 1,592 | $ | (628 | ) | $ | 8,819 | |||||||
Satellites, net | — | — | 1,717 | 1,323 | — | 3,040 | ||||||||||||||
Property and equipment, net | — | — | 3,891 | 2,830 | — | 6,721 | ||||||||||||||
Goodwill | — | 1,828 | 1,363 | 738 | — | 3,929 | ||||||||||||||
Intangible assets, net | — | — | 512 | 490 | (8 | ) | 994 | |||||||||||||
Intercompany receivables | 4,975 | 11,698 | 28,132 | 1,143 | (45,948 | ) | — | |||||||||||||
Investment in subsidiaries | (9,341 | ) | 21,337 | — | (10,725 | ) | (1,271 | ) | — | |||||||||||
Investments and other assets | 134 | 99 | 670 | 1,185 | (132 | ) | 1,956 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total assets | $ | (3,031 | ) | $ | 38,652 | $ | 39,249 | $ | (1,424 | ) | $ | (47,987 | ) | $ | 25,459 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
Total current liabilities | $ | 527 | $ | 1,454 | $ | 4,244 | $ | 1,362 | $ | (628 | ) | $ | 6,959 | |||||||
Long-term debt | — | 19,327 | — | 158 | — | 19,485 | ||||||||||||||
Deferred income taxes | — | 33 | 1,736 | 89 | (132 | ) | 1,726 | |||||||||||||
Intercompany liabilities | 1,212 | 28,110 | 11,698 | 4,928 | (45,948 | ) | — | |||||||||||||
Other liabilities and deferred credits | 443 | 453 | 234 | 995 | (8 | ) | 2,117 | |||||||||||||
Stockholders' equity (deficit) | ||||||||||||||||||||
Common stock and additional paid-in capital | 3,613 | 432 | 5,403 | 3,489 | (9,324 | ) | 3,613 | |||||||||||||
Retained earnings (accumulated deficit) | (8,408 | ) | (11,202 | ) | 15,934 | (12,554 | ) | 7,822 | (8,408 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (418 | ) | 45 | — | (276 | ) | 231 | (418 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total DIRECTV stockholders' equity (deficit) | (5,213 | ) | (10,725 | ) | 21,337 | (9,341 | ) | (1,271 | ) | (5,213 | ) | |||||||||
Noncontrolling interest | — | — | — | 385 | — | 385 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total stockholders' equity (deficit) | (5,213 | ) | (10,725 | ) | 21,337 | (8,956 | ) | (1,271 | ) | (4,828 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity (deficit) | $ | (3,031 | ) | $ | 38,652 | $ | 39,249 | $ | (1,424 | ) | $ | (47,987 | ) | $ | 25,459 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 32 | $ | (274 | ) | $ | 1,465 | $ | 446 | $ | (33 | ) | $ | 1,636 | ||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities | ||||||||||||||||||||
Cash paid for property and equipment | — | — | (337 | ) | (276 | ) | — | (613 | ) | |||||||||||
Cash paid for satellites | — | — | (45 | ) | (51 | ) | — | (96 | ) | |||||||||||
Investment in companies, net of cash acquired | — | — | (8 | ) | (2 | ) | — | (10 | ) | |||||||||||
Intercompany funding | (139 | ) | (435 | ) | (1,596 | ) | (14 | ) | 2,184 | — | ||||||||||
Other, net | — | — | — | 3 | — | 3 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | (139 | ) | (435 | ) | (1,986 | ) | (340 | ) | 2,184 | (716 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt | — | — | — | 17 | — | 17 | ||||||||||||||
Repayment of long-term debt | — | (1,200 | ) | — | (26 | ) | — | (1,226 | ) | |||||||||||
Repayment of other long-term obligations | — | — | (7 | ) | (22 | ) | — | (29 | ) | |||||||||||
Taxes paid in lieu of shares issued for share-based compensation | (64 | ) | — | (50 | ) | (14 | ) | 64 | (64 | ) | ||||||||||
Excess tax benefit from share-based compensation | 31 | — | 23 | 8 | (31 | ) | 31 | |||||||||||||
Intercompany payments | 23 | 1,532 | 546 | 83 | (2,184 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | (10 | ) | 332 | 512 | 46 | (2,151 | ) | (1,271 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | (117 | ) | (377 | ) | (9 | ) | 152 | — | (351 | ) | ||||||||||
Cash and cash equivalents at beginning of the period | 680 | 3,191 | 20 | 744 | — | 4,635 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of the period | $ | 563 | $ | 2,814 | $ | 11 | $ | 896 | $ | — | $ | 4,284 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 594 | $ | (305 | ) | $ | 1,482 | $ | 489 | $ | (670 | ) | $ | 1,590 | ||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities | ||||||||||||||||||||
Cash paid for property and equipment | — | — | (371 | ) | (279 | ) | — | (650 | ) | |||||||||||
Cash paid for satellites | — | — | (11 | ) | (43 | ) | — | (54 | ) | |||||||||||
Investment in companies, net of cash acquired | — | — | (1 | ) | (3 | ) | — | (4 | ) | |||||||||||
Proceeds from sale of investments | — | — | 4 | — | — | 4 | ||||||||||||||
Return of capital from subsidiary | 400 | — | — | — | (400 | ) | — | |||||||||||||
Intercompany funding | (117 | ) | (408 | ) | (1,464 | ) | (77 | ) | 2,066 | — | ||||||||||
Other, net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | 283 | (408 | ) | (1,843 | ) | (405 | ) | 1,666 | (707 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities | ||||||||||||||||||||
Issuance of commercial paper (maturity 90 days or less), net | — | 105 | — | — | — | 105 | ||||||||||||||
Proceeds from short-term borrowings | — | 90 | — | — | — | 90 | ||||||||||||||
Repayment of short-term borrowings | — | (200 | ) | — | — | — | (200 | ) | ||||||||||||
Proceeds from long-term debt | — | 1,245 | — | 15 | — | 1,260 | ||||||||||||||
Debt issuance costs | — | (6 | ) | — | — | — | (6 | ) | ||||||||||||
Repayment of long-term debt | — | — | — | (11 | ) | — | (11 | ) | ||||||||||||
Repayment of other long-term obligations | — | — | (6 | ) | (9 | ) | — | (15 | ) | |||||||||||
Common shares repurchased and retired | (895 | ) | — | — | — | — | (895 | ) | ||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | (57 | ) | — | (47 | ) | (10 | ) | 57 | (57 | ) | ||||||||||
Excess tax benefit from share-based compensation | 22 | — | 18 | 4 | (22 | ) | 22 | |||||||||||||
Intercompany payments | 9 | 1,465 | 407 | 150 | (2,031 | ) | — | |||||||||||||
Cash dividend to Parent | — | (1,000 | ) | — | — | 1,000 | — | |||||||||||||
Other, net | — | (26 | ) | — | — | — | (26 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | (921 | ) | 1,673 | 372 | 139 | (996 | ) | 267 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | — | — | — | (316 | ) | — | (316 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | (44 | ) | 960 | 11 | (93 | ) | — | 834 | ||||||||||||
Cash and cash equivalents at beginning of the period | 498 | 791 | 6 | 885 | — | 2,180 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of the period | $ | 454 | $ | 1,751 | $ | 17 | $ | 792 | $ | — | $ | 3,014 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Goodwill | |||||||||||||||||
Schedule of goodwill | |||||||||||||||||
DIRECTV Latin | |||||||||||||||||
America | Sports | ||||||||||||||||
Networks, | |||||||||||||||||
Eliminations | |||||||||||||||||
DIRECTV | Sky | PanAmericana | and Other | Total | |||||||||||||
U.S. | Brasil | and Other | |||||||||||||||
(Dollars in Millions) | |||||||||||||||||
Balance as of January 1, 2015 | $ | 3,191 | $ | 305 | $ | 211 | $ | 222 | $ | 3,929 | |||||||
Sky Brasil foreign currency translation adjustment | — | (52 | ) | — | — | (52 | ) | ||||||||||
| | | | | | | | | | | | | | | | | |
Balance as of March 31, 2015 | $ | 3,191 | $ | 253 | $ | 211 | $ | 222 | $ | 3,877 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Debt_Tables
Debt (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
Debt | |||||||||||
Schedule of outstanding debt | |||||||||||
March 31, | December 31, | ||||||||||
2015 | 2014 | ||||||||||
(Dollars in Millions) | |||||||||||
Current debt | |||||||||||
Current portion of long-term debt | $ | 2,249 | $ | 1,200 | |||||||
Current portion of borrowings under BNDES financing facility | 106 | 127 | |||||||||
Long-term debt | |||||||||||
Senior notes | 16,936 | 19,327 | |||||||||
Borrowings under BNDES financing facility | 91 | 140 | |||||||||
Borrowings under Desenvolve SP financing facility | 31 | 18 | |||||||||
| | | | | | | | ||||
Total debt | $ | 19,413 | $ | 20,812 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of outstanding senior notes | |||||||||||
Principal amount | Carrying value, net of | ||||||||||
unamortized original | |||||||||||
issue discounts | |||||||||||
March 31, | March 31, | December 31, | |||||||||
2015 | 2015 | 2014 | |||||||||
(Dollars in Millions) | |||||||||||
3.550% senior notes due in 2015 | $ | — | $ | — | $ | 1,200 | |||||
3.125% senior notes due in 2016 | 750 | 750 | 750 | ||||||||
3.500% senior notes due in 2016 | 1,500 | 1,499 | 1,499 | ||||||||
2.400% senior notes due in 2017 | 1,250 | 1,249 | 1,249 | ||||||||
1.750% senior notes due in 2018 | 750 | 746 | 746 | ||||||||
5.875% senior notes due in 2019 | 1,000 | 996 | 996 | ||||||||
5.200% senior notes due in 2020 | 1,300 | 1,299 | 1,299 | ||||||||
4.600% senior notes due in 2021 | 1,000 | 1,000 | 999 | ||||||||
5.000% senior notes due in 2021(1) | 1,500 | 1,508 | 1,506 | ||||||||
3.800% senior notes due in 2022(1) | 1,500 | 1,522 | 1,520 | ||||||||
2.750% senior notes due in 2023(2) | 537 | 534 | 602 | ||||||||
4.450% senior notes due in 2024(1) | 1,250 | 1,289 | 1,285 | ||||||||
3.950% senior notes due in 2025 | 1,200 | 1,192 | 1,192 | ||||||||
4.375% senior notes due in 2029(2) | 1,111 | 1,101 | 1,157 | ||||||||
5.200% senior notes due in 2033(2) | 518 | 516 | 543 | ||||||||
6.350% senior notes due in 2040 | 500 | 500 | 500 | ||||||||
6.000% senior notes due in 2040 | 1,250 | 1,236 | 1,236 | ||||||||
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 | $ | 19,166 | $ | 19,185 | $ | 20,527 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
-1 | The carrying values as of March 31, 2015 and December 31, 2014 include the following fair value adjustments, respectively: increases of $12 million and $10 million for the 5.000% senior notes due in 2021, increases of $22 million and $20 million for the 3.800% senior notes due in 2022 and increases of $43 million and $39 million for the 4.450% senior notes due in 2024. | ||||||||||
-2 | 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) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative Financial Instruments | ||||||||||||||
Schedule of fair values of assets and liabilities associated with the derivative financial instruments | ||||||||||||||
Assets | Liabilities | |||||||||||||
March 31, | December 31, | March 31, | December 31, | |||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | — | $ | 8 | $ | 210 | $ | 24 | ||||||
Fair value hedges: | ||||||||||||||
Interest rate swap contracts | — | 12 | — | 6 | ||||||||||
| | | | | | | | | | | | | | |
Total derivative financial instruments | $ | — | $ | 20 | $ | 210 | $ | 30 | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of notional amounts of outstanding derivative financial instruments | ||||||||||||||
March 31, | December 31, | |||||||||||||
2015 | 2014 | |||||||||||||
(Dollars in millions) | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Cross-currency swap contracts | $ | 2,418 | $ | 2,418 | ||||||||||
Fair value hedges: | ||||||||||||||
Interest rate swaps | — | 3,000 | ||||||||||||
| | | | | | | | |||||||
Total notional amount of derivative financial instruments | $ | 2,418 | $ | 5,418 | ||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Related Party Transactions | ||||||||
Summary of revenues and expenses with related parties | ||||||||
Three Months | ||||||||
Ended | ||||||||
March 31, | ||||||||
2015 | 2014 | |||||||
(Dollars in | ||||||||
Millions) | ||||||||
Revenues | $ | 2 | $ | 2 | ||||
Expenses | 241 | 241 | ||||||
Schedule of accounts receivable from and accounts payable to related parties | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
(Dollars in Millions) | ||||||||
Accounts receivable | $ | 7 | $ | 26 | ||||
Accounts payable | 112 | 123 | ||||||
Short-term liability | 162 | 149 | ||||||
Long-term liability | 1 | 1 | ||||||
Stockholders_Deficit_and_Nonco1
Stockholders' Deficit and Noncontrolling Interest (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Stockholders' Deficit and Noncontrolling Interest | ||||||||||||||||||||||||||
Schedule of reconciliation of stockholders' deficit | ||||||||||||||||||||||||||
Stockholders' Deficit | ||||||||||||||||||||||||||
DIRECTV | Common | Accumulated | Accumulated | Total | Noncontrolling | Total | ||||||||||||||||||||
Common | Stock and | Deficit | Other | DIRECTV | Interest | Stockholders' | ||||||||||||||||||||
Shares | Additional | Comprehensive | Stockholders' | Deficit | ||||||||||||||||||||||
Paid-In | Loss | Deficit | ||||||||||||||||||||||||
Capital | ||||||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | ||||||||||||||||||||||||||
Balance as of January 1, 2015 | 502,733,342 | $ | 3,613 | $ | (8,408 | ) | $ | (418 | ) | $ | (5,213 | ) | $ | 385 | $ | (4,828 | ) | |||||||||
Net income | 730 | 730 | — | 730 | ||||||||||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 1,247,835 | (62 | ) | (62 | ) | (62 | ) | |||||||||||||||||||
Share-based compensation expense | 27 | 27 | 27 | |||||||||||||||||||||||
Tax benefit from share-based compensation | 31 | 31 | 31 | |||||||||||||||||||||||
Other | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||||
Other comprehensive loss | (159 | ) | (159 | ) | (159 | ) | ||||||||||||||||||||
CTA adjustment allocated to noncontrolling interest | (18 | ) | (18 | ) | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | ||||
Balance as of March 31, 2015 | 503,981,177 | $ | 3,608 | $ | (7,678 | ) | $ | (577 | ) | $ | (4,647 | ) | $ | 367 | $ | (4,280 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | ||||
Stockholders' Deficit | ||||||||||||||||||||||||||
DIRECTV | Common | Accumulated | Accumulated | Total | Noncontrolling | Total | Redeemable | |||||||||||||||||||
Common | Stock and | Deficit | Other | DIRECTV | Interest | Stockholders' | Noncontrolling | |||||||||||||||||||
Shares | Additional | Comprehensive | Stockholders' | Deficit | Interest | |||||||||||||||||||||
Paid-In | Loss | Deficit | ||||||||||||||||||||||||
Capital | ||||||||||||||||||||||||||
(Amounts in Millions, Except Share Data) | ||||||||||||||||||||||||||
Balance as of January 1, 2014 | 519,306,232 | $ | 3,652 | $ | (9,874 | ) | $ | (322 | ) | $ | (6,544 | ) | $ | — | $ | (6,544 | ) | $ | 375 | |||||||
Net income | 561 | 561 | 8 | 569 | ||||||||||||||||||||||
Stock repurchased and retired | (12,928,118 | ) | (89 | ) | (836 | ) | (925 | ) | (925 | ) | ||||||||||||||||
Stock options exercised and restricted stock units vested and distributed | 1,220,957 | (57 | ) | (57 | ) | (57 | ) | |||||||||||||||||||
Share-based compensation expense | 20 | 20 | 20 | |||||||||||||||||||||||
Tax benefit from share-based compensation | 22 | 22 | 22 | |||||||||||||||||||||||
Other | 1 | 1 | 1 | |||||||||||||||||||||||
Other comprehensive income | 24 | 24 | 24 | |||||||||||||||||||||||
CTA adjustment allocated to noncontrolling interest | 3 | 3 | ||||||||||||||||||||||||
Noncontrolling interest | 375 | 375 | (375 | ) | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of March 31, 2014 | 507,599,071 | $ | 3,549 | $ | (10,149 | ) | $ | (298 | ) | $ | (6,898 | ) | $ | 386 | $ | (6,512 | ) | $ | — | |||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Schedule of components of other comprehensive income (loss) | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||
Pre-Tax | Tax Benefit | Net of | Pre-Tax | Tax Benefit | Net of | |||||||||||||||||||||
(Expense) | Tax | (Expense) | Tax | |||||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||
Cash flows hedges: | ||||||||||||||||||||||||||
Unrealized losses arising during the period | $ | (194 | ) | $ | 73 | $ | (121 | ) | $ | (12 | ) | $ | 5 | $ | (7 | ) | ||||||||||
Reclassification adjustments included in "Other, net" | 151 | (57 | ) | 94 | (13 | ) | 5 | (8 | ) | |||||||||||||||||
Foreign currency translation adjustments | (218 | ) | 86 | (132 | ) | 63 | (24 | ) | 39 | |||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Other comprehensive income (loss) | $ | (261 | ) | $ | 102 | $ | (159 | ) | $ | 38 | $ | (14 | ) | $ | 24 | |||||||||||
| | | | | | | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | | | | |||||||
Schedule of changes in the components of accumulated other comprehensive income (loss) | ||||||||||||||||||||||||||
Defined | Gains | Foreign | Accumulated | |||||||||||||||||||||||
Benefit Plan | (Losses) on | Currency | Other | |||||||||||||||||||||||
Items | Cash Flow | Items | Comprehensive | |||||||||||||||||||||||
Hedges | Loss | |||||||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||
Balance as of January 1, 2015 | $ | (141 | ) | $ | 44 | $ | (321 | ) | $ | (418 | ) | |||||||||||||||
Other comprehensive loss | — | (27 | ) | (132 | ) | (159 | ) | |||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance as of March 31, 2015 | $ | (141 | ) | $ | 17 | $ | (453 | ) | $ | (577 | ) | |||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Defined | Gains | Foreign | Accumulated | |||||||||||||||||||||||
Benefit Plan | (Losses) on | Currency | Other | |||||||||||||||||||||||
Items | Cash Flow | Items | Comprehensive | |||||||||||||||||||||||
Hedges | Loss | |||||||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||||||||
Balance as of January 1, 2014 | $ | (123 | ) | $ | 14 | $ | (213 | ) | $ | (322 | ) | |||||||||||||||
Other comprehensive income (loss) | — | (15 | ) | 39 | 24 | |||||||||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Balance as of March 31, 2014 | $ | (123 | ) | $ | (1 | ) | $ | (174 | ) | $ | (298 | ) | ||||||||||||||
| | | | | | | | | | | | | | |||||||||||||
| | | | | | | | | | | | | | |||||||||||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2015 | |||||||||||
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 | |||||||||||
March 31, 2015 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 730 | 503 | $ | 1.45 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.01 | ) | |||||||
| | | | | | | | | | | |
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 730 | 507 | $ | 1.44 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
March 31, 2014 | |||||||||||
Basic EPS | |||||||||||
Net income attributable to DIRECTV | $ | 561 | 511 | $ | 1.1 | ||||||
Effect of dilutive securities | |||||||||||
Dilutive effect of stock options and restricted stock units | — | 4 | (0.01 | ) | |||||||
| | | | | | | | | | | |
Diluted EPS | |||||||||||
Adjusted net income attributable to DIRECTV | $ | 561 | 515 | $ | 1.09 | ||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Segment_Reporting_Tables
Segment Reporting (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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 | ||||||||||||||||||||
March 31, 2015 | ||||||||||||||||||||
DIRECTV U.S. | $ | 6,456 | $ | 2 | $ | 6,458 | $ | 1,249 | $ | 438 | $ | 1,687 | ||||||||
Sky Brasil | 795 | — | 795 | 54 | 145 | 199 | ||||||||||||||
PanAmericana and Other | 840 | — | 840 | 102 | 144 | 246 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
DIRECTV Latin America | 1,635 | — | 1,635 | 156 | 289 | 445 | ||||||||||||||
Sports Networks, Eliminations and Other | 52 | (2 | ) | 50 | (18 | ) | 3 | (15 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 8,143 | $ | — | $ | 8,143 | $ | 1,387 | $ | 730 | $ | 2,117 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
March 31, 2014 | ||||||||||||||||||||
DIRECTV U.S. | $ | 6,085 | $ | 2 | $ | 6,087 | $ | 1,243 | $ | 426 | $ | 1,669 | ||||||||
Sky Brasil | 939 | — | 939 | 148 | 163 | 311 | ||||||||||||||
PanAmericana and Other | 782 | — | 782 | (174 | ) | 122 | (52 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
DIRECTV Latin America | 1,721 | — | 1,721 | (26 | ) | 285 | 259 | |||||||||||||
Sports Networks, Eliminations and Other | 49 | (2 | ) | 47 | 10 | 3 | 13 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 7,855 | $ | — | $ | 7,855 | $ | 1,227 | $ | 714 | $ | 1,941 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
-1 | Operating profit (loss) 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 (loss)." 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 | ||||||||||||||||||||
Ended | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||
(Dollars in | ||||||||||||||||||||
Millions) | ||||||||||||||||||||
Operating profit before depreciation and amortization | $ | 2,117 | $ | 1,941 | ||||||||||||||||
Depreciation and amortization | (730 | ) | (714 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Operating profit | 1,387 | 1,227 | ||||||||||||||||||
Interest income | 22 | 13 | ||||||||||||||||||
Interest expense | (245 | ) | (232 | ) | ||||||||||||||||
Other, net | 7 | 57 | ||||||||||||||||||
| | | | | | | | |||||||||||||
Income before income taxes | 1,171 | 1,065 | ||||||||||||||||||
Income tax expense | (441 | ) | (496 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Net income | 730 | 569 | ||||||||||||||||||
Less: Net income attributable to noncontrolling interest | — | (8 | ) | |||||||||||||||||
| | | | | | | | |||||||||||||
Net income attributable to DIRECTV | $ | 730 | $ | 561 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Condensed Consolidating Financial Statements | ||||||||||||||||||||
Schedule of Condensed Consolidating Statement of Operations | Condensed Consolidating Statement of Operations | |||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 6,458 | $ | 1,725 | $ | (40 | ) | $ | 8,143 | |||||||
Operating costs and expenses | ||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Broadcast programming and other | — | — | 2,998 | 616 | (38 | ) | 3,576 | |||||||||||||
Subscriber service expenses | — | — | 385 | 196 | — | 581 | ||||||||||||||
Broadcast operations expenses | — | — | 81 | 38 | (2 | ) | 117 | |||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Subscriber acquisition costs | — | — | 703 | 185 | — | 888 | ||||||||||||||
Upgrade and retention costs | — | — | 308 | 42 | — | 350 | ||||||||||||||
General and administrative expenses | 32 | — | 296 | 186 | — | 514 | ||||||||||||||
Depreciation and amortization expense | — | — | 438 | 292 | — | 730 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total operating costs and expenses | 32 | — | 5,209 | 1,555 | (40 | ) | 6,756 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating profit (loss) | (32 | ) | — | 1,249 | 170 | — | 1,387 | |||||||||||||
Equity in income of consolidated subsidiaries | 750 | 751 | — | 615 | (2,116 | ) | — | |||||||||||||
Interest income | — | 3 | — | 19 | — | 22 | ||||||||||||||
Interest expense | — | (231 | ) | — | (14 | ) | — | (245 | ) | |||||||||||
Other, net | — | 2 | 6 | (1 | ) | — | 7 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | 718 | 525 | 1,255 | 789 | (2,116 | ) | 1,171 | |||||||||||||
Income tax benefit (expense) | 12 | 90 | (504 | ) | (39 | ) | — | (441 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income | 730 | 615 | 751 | 750 | (2,116 | ) | 730 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | — | — | — | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income attributable to DIRECTV | $ | 730 | $ | 615 | $ | 751 | $ | 750 | $ | (2,116 | ) | $ | 730 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Operations | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Revenues | $ | — | $ | — | $ | 6,087 | $ | 1,798 | $ | (30 | ) | $ | 7,855 | |||||||
Operating costs and expenses | ||||||||||||||||||||
Costs of revenues, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Broadcast programming and other | — | — | 2,768 | 641 | (26 | ) | 3,383 | |||||||||||||
Subscriber service expenses | — | — | 359 | 192 | — | 551 | ||||||||||||||
Broadcast operations expenses | — | — | 72 | 27 | (2 | ) | 97 | |||||||||||||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||||||||||||||||||||
Subscriber acquisition costs | — | — | 648 | 180 | (1 | ) | 827 | |||||||||||||
Upgrade and retention costs | — | — | 281 | 41 | (1 | ) | 321 | |||||||||||||
General and administrative expenses | 9 | — | 290 | 155 | — | 454 | ||||||||||||||
Venezuelan currency devaluation charge | — | — | — | 281 | — | 281 | ||||||||||||||
Depreciation and amortization expense | — | — | 426 | 288 | — | 714 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total operating costs and expenses | 9 | — | 4,844 | 1,805 | (30 | ) | 6,628 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Operating profit (loss) | (9 | ) | — | 1,243 | (7 | ) | — | 1,227 | ||||||||||||
Equity in income of consolidated subsidiaries | 568 | 787 | — | 648 | (2,003 | ) | — | |||||||||||||
Interest income | — | — | 1 | 12 | — | 13 | ||||||||||||||
Interest expense | — | (220 | ) | (3 | ) | (9 | ) | — | (232 | ) | ||||||||||
Other, net | (2 | ) | — | 5 | 54 | — | 57 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | 557 | 567 | 1,246 | 698 | (2,003 | ) | 1,065 | |||||||||||||
Income tax benefit (expense) | 4 | 81 | (459 | ) | (122 | ) | — | (496 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income | 561 | 648 | 787 | 576 | (2,003 | ) | 569 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | — | (8 | ) | — | (8 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net income attributable to DIRECTV | $ | 561 | $ | 648 | $ | 787 | $ | 568 | $ | (2,003 | ) | $ | 561 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Net income | $ | 730 | $ | 615 | $ | 751 | $ | 750 | $ | (2,116 | ) | $ | 730 | |||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Cash flows hedges: | ||||||||||||||||||||
Unrealized losses arising during the period | (121 | ) | (121 | ) | — | (121 | ) | 242 | (121 | ) | ||||||||||
Reclassification adjustments included in net income | 94 | 94 | — | 94 | (188 | ) | 94 | |||||||||||||
Foreign currency translation adjustments | (114 | ) | — | — | (132 | ) | 114 | (132 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Other comprehensive loss | (141 | ) | (27 | ) | — | (159 | ) | 168 | (159 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income | 589 | 588 | 751 | 591 | (1,948 | ) | 571 | |||||||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | — | 18 | — | 18 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to DIRECTV | $ | 589 | $ | 588 | $ | 751 | $ | 609 | $ | (1,948 | ) | $ | 589 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Net income | $ | 561 | $ | 648 | $ | 787 | $ | 576 | $ | (2,003 | ) | $ | 569 | |||||||
Other comprehensive income (loss), net of taxes: | ||||||||||||||||||||
Cash flows hedges: | ||||||||||||||||||||
Unrealized losses arising during the period | — | (7 | ) | — | — | — | (7 | ) | ||||||||||||
Reclassification adjustments included in net income | — | (8 | ) | — | — | — | (8 | ) | ||||||||||||
Foreign currency translation adjustments | — | — | — | 39 | — | 39 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Other comprehensive income (loss) | — | (15 | ) | — | 39 | — | 24 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income | 561 | 633 | 787 | 615 | (2,003 | ) | 593 | |||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | — | (11 | ) | — | (11 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Comprehensive income attributable to DIRECTV | $ | 561 | $ | 633 | $ | 787 | $ | 604 | $ | (2,003 | ) | $ | 582 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of Condensed Consolidating Balance Sheet | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Total current assets | $ | 725 | $ | 2,975 | $ | 2,928 | $ | 1,705 | $ | (287 | ) | $ | 8,046 | |||||||
Satellites, net | — | — | 1,713 | 1,332 | — | 3,045 | ||||||||||||||
Property and equipment, net | — | — | 3,841 | 2,614 | — | 6,455 | ||||||||||||||
Goodwill | — | 1,828 | 1,363 | 686 | — | 3,877 | ||||||||||||||
Intangible assets, net | — | — | 509 | 453 | (8 | ) | 954 | |||||||||||||
Intercompany receivables | 4,532 | 12,561 | 29,652 | 603 | (47,348 | ) | — | |||||||||||||
Investment in subsidiaries | (8,730 | ) | 22,133 | — | (10,092 | ) | (3,311 | ) | — | |||||||||||
Investments and other assets | 136 | 75 | 645 | 1,199 | (131 | ) | 1,924 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total assets | $ | (3,337 | ) | $ | 39,572 | $ | 40,651 | $ | (1,500 | ) | $ | (51,085 | ) | $ | 24,301 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
Total current liabilities | $ | 244 | $ | 2,421 | $ | 3,888 | $ | 1,298 | $ | (287 | ) | $ | 7,564 | |||||||
Long-term debt | — | 16,936 | — | 122 | — | 17,058 | ||||||||||||||
Deferred income taxes | — | 17 | 1,731 | (11 | ) | (131 | ) | 1,606 | ||||||||||||
Intercompany liabilities | 612 | 29,623 | 12,646 | 4,467 | (47,348 | ) | — | |||||||||||||
Other liabilities and deferred credits | 454 | 667 | 253 | 987 | (8 | ) | 2,353 | |||||||||||||
Stockholders' equity (deficit) | ||||||||||||||||||||
Common stock and additional paid-in capital | 3,608 | 476 | 5,447 | 3,510 | (9,433 | ) | 3,608 | |||||||||||||
Retained earnings (accumulated deficit) | (7,678 | ) | (10,586 | ) | 16,686 | (11,804 | ) | 5,704 | (7,678 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (577 | ) | 18 | — | (436 | ) | 418 | (577 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total DIRECTV stockholders' equity (deficit) | (4,647 | ) | (10,092 | ) | 22,133 | (8,730 | ) | (3,311 | ) | (4,647 | ) | |||||||||
Noncontrolling interest | — | — | — | 367 | — | 367 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total stockholders' equity (deficit) | (4,647 | ) | (10,092 | ) | 22,133 | (8,363 | ) | (3,311 | ) | (4,280 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity (deficit) | $ | (3,337 | ) | $ | 39,572 | $ | 40,651 | $ | (1,500 | ) | $ | (51,085 | ) | $ | 24,301 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
As of December 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Total current assets | $ | 1,201 | $ | 3,690 | $ | 2,964 | $ | 1,592 | $ | (628 | ) | $ | 8,819 | |||||||
Satellites, net | — | — | 1,717 | 1,323 | — | 3,040 | ||||||||||||||
Property and equipment, net | — | — | 3,891 | 2,830 | — | 6,721 | ||||||||||||||
Goodwill | — | 1,828 | 1,363 | 738 | — | 3,929 | ||||||||||||||
Intangible assets, net | — | — | 512 | 490 | (8 | ) | 994 | |||||||||||||
Intercompany receivables | 4,975 | 11,698 | 28,132 | 1,143 | (45,948 | ) | — | |||||||||||||
Investment in subsidiaries | (9,341 | ) | 21,337 | — | (10,725 | ) | (1,271 | ) | — | |||||||||||
Investments and other assets | 134 | 99 | 670 | 1,185 | (132 | ) | 1,956 | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total assets | $ | (3,031 | ) | $ | 38,652 | $ | 39,249 | $ | (1,424 | ) | $ | (47,987 | ) | $ | 25,459 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
Total current liabilities | $ | 527 | $ | 1,454 | $ | 4,244 | $ | 1,362 | $ | (628 | ) | $ | 6,959 | |||||||
Long-term debt | — | 19,327 | — | 158 | — | 19,485 | ||||||||||||||
Deferred income taxes | — | 33 | 1,736 | 89 | (132 | ) | 1,726 | |||||||||||||
Intercompany liabilities | 1,212 | 28,110 | 11,698 | 4,928 | (45,948 | ) | — | |||||||||||||
Other liabilities and deferred credits | 443 | 453 | 234 | 995 | (8 | ) | 2,117 | |||||||||||||
Stockholders' equity (deficit) | ||||||||||||||||||||
Common stock and additional paid-in capital | 3,613 | 432 | 5,403 | 3,489 | (9,324 | ) | 3,613 | |||||||||||||
Retained earnings (accumulated deficit) | (8,408 | ) | (11,202 | ) | 15,934 | (12,554 | ) | 7,822 | (8,408 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (418 | ) | 45 | — | (276 | ) | 231 | (418 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total DIRECTV stockholders' equity (deficit) | (5,213 | ) | (10,725 | ) | 21,337 | (9,341 | ) | (1,271 | ) | (5,213 | ) | |||||||||
Noncontrolling interest | — | — | — | 385 | — | 385 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total stockholders' equity (deficit) | (5,213 | ) | (10,725 | ) | 21,337 | (8,956 | ) | (1,271 | ) | (4,828 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity (deficit) | $ | (3,031 | ) | $ | 38,652 | $ | 39,249 | $ | (1,424 | ) | $ | (47,987 | ) | $ | 25,459 | |||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Three Months Ended March 31, 2015 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 32 | $ | (274 | ) | $ | 1,465 | $ | 446 | $ | (33 | ) | $ | 1,636 | ||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities | ||||||||||||||||||||
Cash paid for property and equipment | — | — | (337 | ) | (276 | ) | — | (613 | ) | |||||||||||
Cash paid for satellites | — | — | (45 | ) | (51 | ) | — | (96 | ) | |||||||||||
Investment in companies, net of cash acquired | — | — | (8 | ) | (2 | ) | — | (10 | ) | |||||||||||
Intercompany funding | (139 | ) | (435 | ) | (1,596 | ) | (14 | ) | 2,184 | — | ||||||||||
Other, net | — | — | — | 3 | — | 3 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash used in investing activities | (139 | ) | (435 | ) | (1,986 | ) | (340 | ) | 2,184 | (716 | ) | |||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities | ||||||||||||||||||||
Proceeds from long-term debt | — | — | — | 17 | — | 17 | ||||||||||||||
Repayment of long-term debt | — | (1,200 | ) | — | (26 | ) | — | (1,226 | ) | |||||||||||
Repayment of other long-term obligations | — | — | (7 | ) | (22 | ) | — | (29 | ) | |||||||||||
Taxes paid in lieu of shares issued for share-based compensation | (64 | ) | — | (50 | ) | (14 | ) | 64 | (64 | ) | ||||||||||
Excess tax benefit from share-based compensation | 31 | — | 23 | 8 | (31 | ) | 31 | |||||||||||||
Intercompany payments | 23 | 1,532 | 546 | 83 | (2,184 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | (10 | ) | 332 | 512 | 46 | (2,151 | ) | (1,271 | ) | |||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | (117 | ) | (377 | ) | (9 | ) | 152 | — | (351 | ) | ||||||||||
Cash and cash equivalents at beginning of the period | 680 | 3,191 | 20 | 744 | — | 4,635 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of the period | $ | 563 | $ | 2,814 | $ | 11 | $ | 896 | $ | — | $ | 4,284 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Three Months Ended March 31, 2014 | ||||||||||||||||||||
Parent | Co-Issuers | Guarantor | Non- | Eliminations | DIRECTV | |||||||||||||||
Guarantor | Subsidiaries | Guarantor | Consolidated | |||||||||||||||||
Subsidiaries | ||||||||||||||||||||
(Dollars in Millions) | ||||||||||||||||||||
Cash flows from operating activities | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 594 | $ | (305 | ) | $ | 1,482 | $ | 489 | $ | (670 | ) | $ | 1,590 | ||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from investing activities | ||||||||||||||||||||
Cash paid for property and equipment | — | — | (371 | ) | (279 | ) | — | (650 | ) | |||||||||||
Cash paid for satellites | — | — | (11 | ) | (43 | ) | — | (54 | ) | |||||||||||
Investment in companies, net of cash acquired | — | — | (1 | ) | (3 | ) | — | (4 | ) | |||||||||||
Proceeds from sale of investments | — | — | 4 | — | — | 4 | ||||||||||||||
Return of capital from subsidiary | 400 | — | — | — | (400 | ) | — | |||||||||||||
Intercompany funding | (117 | ) | (408 | ) | (1,464 | ) | (77 | ) | 2,066 | — | ||||||||||
Other, net | — | — | — | (3 | ) | — | (3 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) investing activities | 283 | (408 | ) | (1,843 | ) | (405 | ) | 1,666 | (707 | ) | ||||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash flows from financing activities | ||||||||||||||||||||
Issuance of commercial paper (maturity 90 days or less), net | — | 105 | — | — | — | 105 | ||||||||||||||
Proceeds from short-term borrowings | — | 90 | — | — | — | 90 | ||||||||||||||
Repayment of short-term borrowings | — | (200 | ) | — | — | — | (200 | ) | ||||||||||||
Proceeds from long-term debt | — | 1,245 | — | 15 | — | 1,260 | ||||||||||||||
Debt issuance costs | — | (6 | ) | — | — | — | (6 | ) | ||||||||||||
Repayment of long-term debt | — | — | — | (11 | ) | — | (11 | ) | ||||||||||||
Repayment of other long-term obligations | — | — | (6 | ) | (9 | ) | — | (15 | ) | |||||||||||
Common shares repurchased and retired | (895 | ) | — | — | — | — | (895 | ) | ||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | (57 | ) | — | (47 | ) | (10 | ) | 57 | (57 | ) | ||||||||||
Excess tax benefit from share-based compensation | 22 | — | 18 | 4 | (22 | ) | 22 | |||||||||||||
Intercompany payments | 9 | 1,465 | 407 | 150 | (2,031 | ) | — | |||||||||||||
Cash dividend to Parent | — | (1,000 | ) | — | — | 1,000 | — | |||||||||||||
Other, net | — | (26 | ) | — | — | — | (26 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net cash provided by (used in) financing activities | (921 | ) | 1,673 | 372 | 139 | (996 | ) | 267 | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | — | — | — | (316 | ) | — | (316 | ) | ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in cash and cash equivalents | (44 | ) | 960 | 11 | (93 | ) | — | 834 | ||||||||||||
Cash and cash equivalents at beginning of the period | 498 | 791 | 6 | 885 | — | 2,180 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents at end of the period | $ | 454 | $ | 1,751 | $ | 17 | $ | 792 | $ | — | $ | 3,014 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Description_of_Business_and_Ba1
Description of Business and Basis of Presentation (Details) (USD $) | 3 Months Ended | 0 Months Ended |
Mar. 31, 2015 | 18-May-14 | |
item | ||
Description of Business and Basis of Presentation | ||
Number of regional sports networks owned and operated by the entity | 2 | |
Game Show Network, LLC | ||
Ownership interests | ||
Ownership percentage of equity method investment | 42.00% | |
Sky Brasil | ||
Ownership interests | ||
Ownership percentage in subsidiary | 93.00% | |
AT&T | ||
Proposed AT&T Merger Transaction | ||
Stock price at closing, low end (in dollars per share) | $34.90 | |
Stock price at closing, high end (in dollars per share) | $38.58 | |
AT&T | DIRECTV | ||
Proposed AT&T Merger Transaction | ||
Share price (in dollars per share) | $95 | |
Share price in cash (in dollars per share) | $28.50 | |
Share price in stock (in dollars per share) | $66.50 | |
Stock portion of shares to be received by shareholders if stock price is below $34.90 at closing | 1.905 | |
Stock portion of shares to be received by shareholders if stock price is above $38.58 at closing | 1.724 | |
Sky Mexico | ||
Ownership interests | ||
Ownership percentage of equity method investment | 41.00% |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Changes in the carrying amounts of goodwill | ||
Goodwill, beginning balance | $3,929 | |
Sky Brasil foreign currency translation adjustment | -52 | |
Goodwill, ending balance | 3,877 | |
DIRECTV U.S. | ||
Changes in the carrying amounts of goodwill | ||
Goodwill, beginning balance | 3,191 | |
Goodwill, ending balance | 3,191 | 3,191 |
Sky Brasil | ||
Changes in the carrying amounts of goodwill | ||
Goodwill, beginning balance | 305 | |
Sky Brasil foreign currency translation adjustment | -52 | |
Goodwill, ending balance | 253 | |
PanAmericana and Other | ||
Changes in the carrying amounts of goodwill | ||
Goodwill, beginning balance | 211 | |
Goodwill, ending balance | 211 | 211 |
Sports Networks, Eliminations and Other | ||
Changes in the carrying amounts of goodwill | ||
Goodwill, beginning balance | 222 | |
Goodwill, ending balance | $222 | $222 |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Debt instrument | ||
Current debt, Current portion of long-term debt | $2,249 | $1,200 |
Long-term debt, Senior notes | 16,936 | 19,327 |
Total debt | 19,413 | 20,812 |
Interest accrued on outstanding debt | 185 | 278 |
BNDES Financing Facility | ||
Debt instrument | ||
Current debt, Current portion of borrowings under financing facility | 106 | 127 |
Long-term debt, borrowings under financing facility | 91 | 140 |
Desenvolve SP financing facility | ||
Debt instrument | ||
Long-term debt, borrowings under financing facility | $31 | $18 |
Debt_Details_2
Debt (Details 2) (USD $) | 3 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 24, 2014 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 17, 2014 |
Debt instrument | ||||||
Repayment of senior notes | $1,226 | $11 | ||||
Principal amount | 19,166 | |||||
Senior notes | 19,185 | 20,527 | ||||
Proceeds, net of discount | 17 | 1,260 | ||||
Senior notes 3.550% due 2015 | ||||||
Debt instrument | ||||||
Repayment of senior notes | 1,200 | |||||
Senior notes | 1,200 | |||||
Senior note, interest rate (as a percent) | 3.55% | |||||
Senior notes 4.750% due 2014 | ||||||
Debt instrument | ||||||
Principal amount | 1,000 | 1,000 | ||||
Basis for variable interest rate | Treasury Rate | |||||
Interest rate added to variable base rate (as a percent) | 0.40% | |||||
Cash payment to redeem Notes | 1,022 | |||||
Senior note, interest rate (as a percent) | 4.75% | 4.75% | ||||
Senior notes 3.125% due 2016 | ||||||
Debt instrument | ||||||
Principal amount | 750 | |||||
Senior notes | 750 | 750 | ||||
Senior note, interest rate (as a percent) | 3.13% | |||||
Senior notes 3.500% due 2016 | ||||||
Debt instrument | ||||||
Principal amount | 1,500 | |||||
Senior notes | 1,499 | 1,499 | ||||
Senior note, interest rate (as a percent) | 3.50% | |||||
Senior notes 2.400% due 2017 | ||||||
Debt instrument | ||||||
Principal amount | 1,250 | |||||
Senior notes | 1,249 | 1,249 | ||||
Senior note, interest rate (as a percent) | 2.40% | |||||
Senior notes 1.750% due in 2018 | ||||||
Debt instrument | ||||||
Principal amount | 750 | |||||
Senior notes | 746 | 746 | ||||
Senior note, interest rate (as a percent) | 1.75% | |||||
Senior notes 5.875% due 2019 | ||||||
Debt instrument | ||||||
Principal amount | 1,000 | |||||
Senior notes | 996 | 996 | ||||
Senior note, interest rate (as a percent) | 5.88% | |||||
Senior notes 5.200% Due 2020 | ||||||
Debt instrument | ||||||
Principal amount | 1,300 | |||||
Senior notes | 1,299 | 1,299 | ||||
Senior note, interest rate (as a percent) | 5.20% | |||||
Senior notes 4.600% due 2021 | ||||||
Debt instrument | ||||||
Principal amount | 1,000 | |||||
Senior notes | 1,000 | 999 | ||||
Senior note, interest rate (as a percent) | 4.60% | |||||
Senior notes 5.000% due 2021 | ||||||
Debt instrument | ||||||
Principal amount | 1,500 | |||||
Senior notes | 1,508 | 1,506 | ||||
Senior note, interest rate (as a percent) | 5.00% | |||||
Fair value adjustment | 12 | 10 | ||||
Senior notes 3.800% due 2022 | ||||||
Debt instrument | ||||||
Principal amount | 1,500 | |||||
Senior notes | 1,522 | 1,520 | ||||
Senior note, interest rate (as a percent) | 3.80% | |||||
Fair value adjustment | 22 | 20 | ||||
Senior notes 2.750% due 2023 | ||||||
Debt instrument | ||||||
Principal amount | 537 | |||||
Senior notes | 534 | 602 | ||||
Senior note, interest rate (as a percent) | 2.75% | |||||
Senior notes 4.450% due 2024 | ||||||
Debt instrument | ||||||
Principal amount | 1,250 | 1,250 | 1,250 | |||
Senior notes | 1,289 | 1,285 | ||||
Senior note, interest rate (as a percent) | 4.45% | 4.45% | 4.45% | |||
Proceeds, net of discount | 1,245 | |||||
Debt issuance costs | 7 | 7 | 7 | |||
Fair value adjustment | 43 | 39 | ||||
Senior notes 3.950% due 2025 | ||||||
Debt instrument | ||||||
Principal amount | 1,200 | |||||
Senior notes | 1,192 | 1,192 | ||||
Senior note, interest rate (as a percent) | 3.95% | |||||
Senior notes 4.375% due 2029 | ||||||
Debt instrument | ||||||
Principal amount | 1,111 | |||||
Senior notes | 1,101 | 1,157 | ||||
Senior note, interest rate (as a percent) | 4.38% | |||||
Senior notes 5.200% due 2033 | ||||||
Debt instrument | ||||||
Principal amount | 518 | |||||
Senior notes | 516 | 543 | ||||
Senior note, interest rate (as a percent) | 5.20% | |||||
Senior notes 6.350% due 2040 | ||||||
Debt instrument | ||||||
Principal amount | 500 | |||||
Senior notes | 500 | 500 | ||||
Senior note, interest rate (as a percent) | 6.35% | |||||
Senior notes 6.000% due 2040 | ||||||
Debt instrument | ||||||
Principal amount | 1,250 | |||||
Senior notes | 1,236 | 1,236 | ||||
Senior note, interest rate (as a percent) | 6.00% | |||||
Senior notes 6.375% due 2041 | ||||||
Debt instrument | ||||||
Principal amount | 1,000 | |||||
Senior notes | 1,000 | 1,000 | ||||
Senior note, interest rate (as a percent) | 6.38% | |||||
Senior notes 5.150% due 2042 | ||||||
Debt instrument | ||||||
Principal amount | 1,250 | |||||
Senior notes | $1,248 | $1,248 | ||||
Senior note, interest rate (as a percent) | 5.15% |
Debt_Details_3
Debt (Details 3) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 |
USD ($) | USD ($) | Commercial Paper. | Commercial Paper. | Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility, Series One | Revolving Credit Facility, Series Two | Desenvolve SP financing facility | Desenvolve SP financing facility | Desenvolve SP financing facility | Desenvolve SP financing facility | BNDES Financing Facility | BNDES Financing Facility | BNDES Financing Facility | BNDES Financing Facility | BNDES Financing Facility | BNDES Financing Facility | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | Sky Brasil | |||
USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | USD ($) | BRL | Set-top receivers | Set-top receivers | |||||||||
item | USD ($) | BRL | ||||||||||||||||
Debt instrument | ||||||||||||||||||
Senior notes, fair value | $21,077,000,000 | $22,044,000,000 | ||||||||||||||||
2015 | 81,000,000 | 260,000,000 | ||||||||||||||||
2016 | 2,250,000,000 | 85,000,000 | 273,000,000 | |||||||||||||||
2017 | 1,250,000,000 | 31,000,000 | 100,000,000 | |||||||||||||||
2018 | 750,000,000 | |||||||||||||||||
2019 | 1,000,000,000 | 15,000,000 | 48,000,000 | |||||||||||||||
2020 | 1,300,000,000 | 16,000,000 | 50,000,000 | |||||||||||||||
Thereafter | 12,616,000,000 | |||||||||||||||||
Current debt, Commercial paper | 0 | 0 | ||||||||||||||||
Borrowing capacity under credit facility | 1,000,000,000 | 1,500,000,000 | ||||||||||||||||
Borrowing capacity under credit facility | 2,500,000,000 | 2,500,000,000 | ||||||||||||||||
Installment period of repayment from date of each borrowing | 5 years | 5 years | ||||||||||||||||
Loans outstanding | 0 | 0 | 31,000,000 | 98,000,000 | 18,000,000 | 48,000,000 | 197,000,000 | 633,000,000 | 267,000,000 | 710,000,000 | ||||||||
U.S. dollars based exchange rate | 3.21 | 2.66 | 3.21 | 2.66 | 3.21 | |||||||||||||
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% | |||||||||||||||||
Maximum Additional borrowing capacity | 500,000,000 | |||||||||||||||||
Original purchase price | 318,000,000 | 1,022,000,000 | ||||||||||||||||
Restricted cash | $7,000,000 | $10,000,000 | ||||||||||||||||
Weighted-average interest rate (as a percent) | 2.50% | 2.50% | 2.50% | 2.50% | 5.22% | 5.22% | 5.11% | 5.11% | ||||||||||
Number of monthly installments to repay borrowings | 30 | 30 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||||||||||||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Jan. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Senior notes 4.375% due 2029 | Senior notes 2.750% due 2023 | Senior notes 5.200% due 2033 | Senior notes 4.450% due 2024 | Senior notes 4.450% due 2024 | Senior notes 4.450% due 2024 | Senior notes 5.000% due 2021 | Senior notes 5.000% due 2021 | Senior notes 3.800% due 2022 | Senior notes 3.800% due 2022 | 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 | Cross-currency swap contracts | Interest rate swaps | Interest rate swaps | Forward-starting interest rate swap contracts | Forward-starting interest rate swap contracts | Forward-starting interest rate swap contracts | Fixed-to-floating interest rate swap contracts | Fixed-to-floating interest rate swap contracts | Fixed-to-floating interest rate swap contracts | Fixed-to-floating interest rate swap contracts | Fixed-to-floating interest rate swap contracts | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Senior notes 4.375% due 2029 | Senior notes 2.750% due 2023 | Senior notes 5.200% due 2033 | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Fair value hedges | USD ($) | Senior notes 4.450% due 2024 | Senior notes 4.450% due 2024 | USD ($) | Senior notes 5.000% due in 2021 and senior notes 3.800% due in 2022 | Senior notes 5.000% due in 2021 and senior notes 3.800% due in 2022 | Fair value hedges | Fair value hedges | ||||
GBP (£) | EUR (€) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Senior notes 5.000% due 2021 | Senior notes 3.800% due 2022 | ||||||||||||||||||||
USD ($) | |||||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Assets | $8 | ||||||||||||||||||||||||||||||
Interest rate swap contracts, Assets | 12 | ||||||||||||||||||||||||||||||
Liabilities | 210 | 24 | 6 | ||||||||||||||||||||||||||||
Total fair value of derivative financial instruments, Assets | 20 | ||||||||||||||||||||||||||||||
Total fair value of derivative financial instruments, Liabilities | 210 | 30 | |||||||||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||||||||||
Total notional amount of derivative financial instruments | 2,418 | 5,418 | 2,418 | 2,418 | 3,000 | 3,000 | |||||||||||||||||||||||||
Cash collateral from counterparties | 0 | 0 | |||||||||||||||||||||||||||||
Principal | 19,166 | 1,111 | 537 | 518 | 1,250 | 1,250 | 1,500 | 1,500 | 750 | 500 | 350 | ||||||||||||||||||||
Senior note, interest rate (as a percent) | 4.38% | 2.75% | 5.20% | 4.45% | 4.45% | 5.00% | 3.80% | 4.38% | 2.75% | 5.20% | 4.45% | 4.45% | 5.00% | 3.80% | |||||||||||||||||
Amount reclassified from accumulated other comprehensive gain (loss) into other, net | -151 | 13 | 151 | -13 | |||||||||||||||||||||||||||
Net foreign currency transaction gains (losses) | 31 | -6 | -151 | 13 | |||||||||||||||||||||||||||
After tax gain (loss) reclassified from accumulated other comprehensive loss into other, net | 94 | -8 | -94 | 8 | |||||||||||||||||||||||||||
Amount of ineffectiveness measured | 1 | 2 | |||||||||||||||||||||||||||||
Aggregate cash proceeds received | 18 | ||||||||||||||||||||||||||||||
Fair value adjustment | 43 | 39 | 12 | 10 | 22 | 20 | |||||||||||||||||||||||||
Increase in carrying amount of debt instrument | 77 | ||||||||||||||||||||||||||||||
Amount recorded in "Accumulated other comprehensive loss" | $8 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 3 Months Ended | 3 Months Ended | |||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2015 |
USD ($) | USD ($) | VEF | Venezuelan Subsidiary | Venezuelan Subsidiary | SICAD 1 | SICAD 1 | SICAD 1 | SIMADI | |
USD ($) | USD ($) | VEF | VEF | VEF | VEF | ||||
Unrecorded purchase commitments | |||||||||
Minimum payments under agreements to purchase | $16,305 | ||||||||
Remainder of 2015 | 1,744 | ||||||||
2016 | 2,140 | ||||||||
2017 | 1,880 | ||||||||
2018 | 1,760 | ||||||||
2019 | 1,936 | ||||||||
Thereafter | 6,845 | ||||||||
Loss contingencies | |||||||||
Exchange rate set by the Venezuelan government (in bolivars fuerte per U.S. dollar) | 6.3 | ||||||||
Pre-tax charge related to remeasurement of bolivar denominated net monetary assets due to devaluation | 281 | ||||||||
Exchange rate (in bolivars fuerte per U.S. dollar) | 12 | 12 | 10.7 | 193 | |||||
Venezuelan bolivar fuerte denominated assets in excess liabilities | 534 | 481 | |||||||
Venezuelan bolivars fuerte denominated cash | 554 | 481 | |||||||
Venezuelan bolivars fuerte denominated Revenue | 200 | ||||||||
Venezuelan bolivars fuerte denominated operating profit before depreciation and amortization | 2,117 | 1,941 | 75 | ||||||
In-orbit satellites, net book value | 2,119 | ||||||||
Other | |||||||||
Contingent liability for standby letters of credit | $352 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Related Party Transactions | |||
Revenues | $2 | $2 | |
Expenses | 241 | 241 | |
Accounts receivable | 7 | 26 | |
Accounts payable | 112 | 123 | |
Short-term liability | 162 | 149 | |
Long-term liability | $1 | $1 |
Stockholders_Deficit_and_Nonco2
Stockholders' Deficit and Noncontrolling Interest (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
item | ||
Stockholders' Deficit and Noncontrolling Interest | ||
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 |
Number of votes per share of common stock | 1 |
Stockholders_Deficit_and_Nonco3
Stockholders' Deficit and Noncontrolling Interest (Details 2) (USD $) | 1 Months Ended | 3 Months Ended | 0 Months Ended |
Apr. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | |
Information regarding shares repurchased and retired | |||
Average price per share (in dollars per share) | $71.53 | ||
Number of shares repurchased and retired | 12,928,118 | ||
Total cost of repurchased shares | $925,000,000 | ||
Amount paid for stock repurchases | 30,000,000 | 895,000,000 | |
Noncontrolling interest | 375,000,000 | ||
Sky Brasil | |||
Information regarding shares repurchased and retired | |||
Estimated fair value of Globo's interest in Sky Brasil | 375,000,000 | ||
Noncontrolling interest, ownership percentage | 7.00% | ||
Maximum | |||
Information regarding shares repurchased and retired | |||
Stock repurchases authorized | $3,500,000,000 |
Stockholders_Deficit_and_Nonco4
Stockholders' Deficit and Noncontrolling Interest (Details 3) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance (in shares) | 502,733,342 | |
Balance | ($4,828) | ($6,544) |
Net income | 730 | 569 |
Stock repurchased and retired (in shares) | -12,928,118 | |
Stock repurchased and retired | -925 | |
Stock options exercised and restricted stock units vested and distributed | -62 | -57 |
Share-based compensation expense | 27 | 20 |
Tax benefit from share-based compensation | 31 | 22 |
Other | -1 | 1 |
Other comprehensive loss | -159 | 24 |
CTA adjustment allocated to noncontrolling interest | -18 | 3 |
Noncontrolling interest | 375 | |
Ending balance (in shares) | 503,981,177 | |
Balance | -4,280 | -6,512 |
DIRECTV Common Shares | ||
Increase (Decrease) in Stockholders' Equity | ||
Beginning balance (in shares) | 502,733,342 | 519,306,232 |
Stock repurchased and retired (in shares) | -12,928,118 | |
Stock options exercised and restricted stock units vested and distributed (in shares) | 1,247,835 | 1,220,957 |
Ending balance (in shares) | 503,981,177 | 507,599,071 |
Common Stock and Additional Paid-In Capital | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance | 3,613 | 3,652 |
Stock repurchased and retired | -89 | |
Stock options exercised and restricted stock units vested and distributed | -62 | -57 |
Share-based compensation expense | 27 | 20 |
Tax benefit from share-based compensation | 31 | 22 |
Other | -1 | 1 |
Balance | 3,608 | 3,549 |
Accumulated Deficit | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance | -8,408 | -9,874 |
Net income | 730 | 561 |
Stock repurchased and retired | -836 | |
Balance | -7,678 | -10,149 |
Accumulated Other Comprehensive Loss | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance | -418 | -322 |
Other comprehensive loss | -159 | 24 |
Balance | -577 | -298 |
Total Stockholder's Deficit | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance | -5,213 | -6,544 |
Net income | 730 | 561 |
Stock repurchased and retired | -925 | |
Stock options exercised and restricted stock units vested and distributed | -62 | -57 |
Share-based compensation expense | 27 | 20 |
Tax benefit from share-based compensation | 31 | 22 |
Other | -1 | 1 |
Other comprehensive loss | -159 | 24 |
Balance | -4,647 | -6,898 |
Noncontrolling Interest | ||
Increase (Decrease) in Stockholders' Equity | ||
Balance | 385 | |
Net income | 8 | |
CTA adjustment allocated to noncontrolling interest | -18 | 3 |
Noncontrolling interest | 375 | |
Balance | $367 | $386 |
Stockholders_Deficit_and_Nonco5
Stockholders' Deficit and Noncontrolling Interest (Details 4) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Change in the redeemable noncontrolling interest | |
Noncontrolling interest | $375 |
Redeemable Noncontrolling Interest | |
Change in the redeemable noncontrolling interest | |
Beginning balance, Redeemable Noncontrolling Interest | 375 |
Noncontrolling interest | ($375) |
Stockholders_Deficit_and_Nonco6
Stockholders' Deficit and Noncontrolling Interest (Details 5) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Unrealized gains (losses) arising during the period | ||||
Pre-Tax | ($194) | ($12) | ||
Tax Benefit (Expense) | 73 | 5 | ||
Net of Tax | -121 | -7 | ||
Reclassification adjustments included in "Other, net" | ||||
Pre-Tax | 151 | -13 | ||
Tax Benefit (Expense) | -57 | 5 | ||
Net of Tax | 94 | -8 | ||
Foreign currency translation adjustments | ||||
Pre-Tax | -218 | 63 | ||
Tax Benefit (Expense) | 86 | -24 | ||
Net of Tax | -132 | 39 | ||
Other comprehensive loss | ||||
Pre-Tax | -261 | 38 | ||
Tax Benefit (Expense) | 102 | -14 | ||
Other comprehensive income (loss) | -159 | 24 | ||
Changes in accumulated other comprehensive loss | ||||
Balance at the beginning of the period | -418 | -322 | ||
Other comprehensive loss | -159 | 24 | ||
Balance at the end of the period | -577 | -298 | ||
Defined Benefit Plan Items | ||||
Changes in accumulated other comprehensive loss | ||||
Balance at the beginning of the period | -141 | -123 | ||
Balance at the end of the period | -141 | -123 | -141 | -123 |
Cash flow hedges | ||||
Other comprehensive loss | ||||
Other comprehensive income (loss) | -27 | -15 | ||
Changes in accumulated other comprehensive loss | ||||
Balance at the beginning of the period | 44 | 14 | ||
Other comprehensive loss | -27 | -15 | ||
Balance at the end of the period | 17 | -1 | ||
Foreign Currency Items | ||||
Other comprehensive loss | ||||
Other comprehensive income (loss) | -132 | 39 | ||
Changes in accumulated other comprehensive loss | ||||
Balance at the beginning of the period | -321 | -213 | ||
Other comprehensive loss | -132 | 39 | ||
Balance at the end of the period | ($453) | ($174) |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Basic EPS | ||
Net income attributable to DIRECTV | $730 | $561 |
Weighted average number of common shares outstanding | 503 | 511 |
Earnings per share attributable to DIRECTV (in dollars per share) | $1.45 | $1.10 |
Effect of dilutive securities | ||
Dilutive effect of stock options and restricted stock units (in shares) | 4 | 4 |
Dilutive effect of stock options and restricted stock units, per share amount (in dollars per share) | ($0.01) | ($0.01) |
Diluted EPS | ||
Adjusted net income attributable to DIRECTV | $730 | $561 |
Weighted average number of common shares outstanding | 507 | 515 |
Net Income (in dollars per share) | $1.44 | $1.09 |
Common stock options excluded from the computation of diluted EPS (in shares) | 0.2 | 0.2 |
Segment_Reporting_Details
Segment Reporting (Details ) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment reporting information | ||
Total revenues | $8,143 | $7,855 |
Operating profit (loss) | 1,387 | 1,227 |
Depreciation and amortization expense | 730 | 714 |
Operating Profit (Loss) Before Depreciation and Amortization | 2,117 | 1,941 |
DIRECTV Latin America | ||
Segment reporting information | ||
Total revenues | 1,635 | 1,721 |
Operating profit (loss) | 156 | -26 |
Depreciation and amortization expense | 289 | 285 |
Operating Profit (Loss) Before Depreciation and Amortization | 445 | 259 |
Operating segments | ||
Segment reporting information | ||
Total revenues | 8,143 | 7,855 |
Operating segments | DIRECTV Latin America | ||
Segment reporting information | ||
Total revenues | 1,635 | 1,721 |
DIRECTV U.S. | ||
Segment reporting information | ||
Total revenues | 6,458 | 6,087 |
Operating profit (loss) | 1,249 | 1,243 |
Depreciation and amortization expense | 438 | 426 |
Operating Profit (Loss) Before Depreciation and Amortization | 1,687 | 1,669 |
DIRECTV U.S. | Operating segments | ||
Segment reporting information | ||
Total revenues | 6,456 | 6,085 |
DIRECTV U.S. | Intersegment elimination | ||
Segment reporting information | ||
Total revenues | 2 | 2 |
Sky Brasil | ||
Segment reporting information | ||
Total revenues | 795 | 939 |
Operating profit (loss) | 54 | 148 |
Depreciation and amortization expense | 145 | 163 |
Operating Profit (Loss) Before Depreciation and Amortization | 199 | 311 |
Sky Brasil | Operating segments | ||
Segment reporting information | ||
Total revenues | 795 | 939 |
PanAmericana and Other | ||
Segment reporting information | ||
Total revenues | 840 | 782 |
Operating profit (loss) | 102 | -174 |
Depreciation and amortization expense | 144 | 122 |
Operating Profit (Loss) Before Depreciation and Amortization | 246 | -52 |
PanAmericana and Other | Operating segments | ||
Segment reporting information | ||
Total revenues | 840 | 782 |
Sports Networks, Eliminations and Other | ||
Segment reporting information | ||
Total revenues | 50 | 47 |
Operating profit (loss) | -18 | 10 |
Depreciation and amortization expense | 3 | 3 |
Operating Profit (Loss) Before Depreciation and Amortization | -15 | 13 |
Sports Networks, Eliminations and Other | Operating segments | ||
Segment reporting information | ||
Total revenues | 52 | 49 |
Sports Networks, Eliminations and Other | Intersegment elimination | ||
Segment reporting information | ||
Total revenues | ($2) | ($2) |
Segment_Reporting_Details_2
Segment Reporting (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating profit before depreciation and amortization | $2,117 | $1,941 |
Depreciation and amortization expense | -730 | -714 |
Operating profit | 1,387 | 1,227 |
Interest income | 22 | 13 |
Interest expense | -245 | -232 |
Other, net | 7 | 57 |
Income before income taxes | 1,171 | 1,065 |
Income tax expense | -441 | -496 |
Net income | 730 | 569 |
Less: Net income attributable to noncontrolling interest | -8 | |
Net income attributable to DIRECTV | $730 | $561 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Details) (Parent Subsidiaries, Reportable legal entity) | Mar. 31, 2015 |
Parent Subsidiaries | Reportable legal entity | |
Ownership percentage in subsidiary | 100.00% |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidating Statement of Operations | ||
Revenues | $8,143 | $7,855 |
Costs of revenues, exclusive of depreciation and amortization expense | ||
Broadcast programming and other | 3,576 | 3,383 |
Subscriber service expenses | 581 | 551 |
Broadcast operations expenses | 117 | 97 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||
Subscriber acquisition costs | 888 | 827 |
Upgrade and retention costs | 350 | 321 |
General and administrative expenses | 514 | 454 |
Venezuelan currency devaluation charge | 281 | |
Depreciation and amortization expense | 730 | 714 |
Total operating costs and expenses | 6,756 | 6,628 |
Operating profit | 1,387 | 1,227 |
Interest income | 22 | 13 |
Interest expense | -245 | -232 |
Other, net | 7 | 57 |
Income before income taxes | 1,171 | 1,065 |
Income tax benefit (expense) | -441 | -496 |
Net income | 730 | 569 |
Less: Net income attributable to noncontrolling interest | -8 | |
Net income attributable to DIRECTV | 730 | 561 |
Reportable legal entity | Parent Subsidiaries | ||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||
General and administrative expenses | 32 | 9 |
Total operating costs and expenses | 32 | 9 |
Operating profit | -32 | -9 |
Equity in income of consolidated subsidiaries | 750 | 568 |
Other, net | -2 | |
Income before income taxes | 718 | 557 |
Income tax benefit (expense) | 12 | 4 |
Net income | 730 | 561 |
Net income attributable to DIRECTV | 730 | 561 |
Reportable legal entity | Co-Issuers | ||
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||
Equity in income of consolidated subsidiaries | 751 | 787 |
Interest income | 3 | |
Interest expense | -231 | -220 |
Other, net | 2 | |
Income before income taxes | 525 | 567 |
Income tax benefit (expense) | 90 | 81 |
Net income | 615 | 648 |
Net income attributable to DIRECTV | 615 | 648 |
Reportable legal entity | Guarantor Subsidiaries | ||
Condensed Consolidating Statement of Operations | ||
Revenues | 6,458 | 6,087 |
Costs of revenues, exclusive of depreciation and amortization expense | ||
Broadcast programming and other | 2,998 | 2,768 |
Subscriber service expenses | 385 | 359 |
Broadcast operations expenses | 81 | 72 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||
Subscriber acquisition costs | 703 | 648 |
Upgrade and retention costs | 308 | 281 |
General and administrative expenses | 296 | 290 |
Depreciation and amortization expense | 438 | 426 |
Total operating costs and expenses | 5,209 | 4,844 |
Operating profit | 1,249 | 1,243 |
Interest income | 1 | |
Interest expense | -3 | |
Other, net | 6 | 5 |
Income before income taxes | 1,255 | 1,246 |
Income tax benefit (expense) | -504 | -459 |
Net income | 751 | 787 |
Net income attributable to DIRECTV | 751 | 787 |
Reportable legal entity | Non-guarantor Subsidiaries | ||
Condensed Consolidating Statement of Operations | ||
Revenues | 1,725 | 1,798 |
Costs of revenues, exclusive of depreciation and amortization expense | ||
Broadcast programming and other | 616 | 641 |
Subscriber service expenses | 196 | 192 |
Broadcast operations expenses | 38 | 27 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||
Subscriber acquisition costs | 185 | 180 |
Upgrade and retention costs | 42 | 41 |
General and administrative expenses | 186 | 155 |
Venezuelan currency devaluation charge | 281 | |
Depreciation and amortization expense | 292 | 288 |
Total operating costs and expenses | 1,555 | 1,805 |
Operating profit | 170 | -7 |
Equity in income of consolidated subsidiaries | 615 | 648 |
Interest income | 19 | 12 |
Interest expense | -14 | -9 |
Other, net | -1 | 54 |
Income before income taxes | 789 | 698 |
Income tax benefit (expense) | -39 | -122 |
Net income | 750 | 576 |
Less: Net income attributable to noncontrolling interest | -8 | |
Net income attributable to DIRECTV | 750 | 568 |
Eliminations | ||
Condensed Consolidating Statement of Operations | ||
Revenues | -40 | -30 |
Costs of revenues, exclusive of depreciation and amortization expense | ||
Broadcast programming and other | -38 | -26 |
Broadcast operations expenses | -2 | -2 |
Selling, general and administrative expenses, exclusive of depreciation and amortization expense | ||
Subscriber acquisition costs | -1 | |
Upgrade and retention costs | -1 | |
Total operating costs and expenses | -40 | -30 |
Equity in income of consolidated subsidiaries | -2,116 | -2,003 |
Income before income taxes | -2,116 | -2,003 |
Net income | -2,116 | -2,003 |
Net income attributable to DIRECTV | ($2,116) | ($2,003) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidating Statement of Comprehensive Income | ||
Net income | $730 | $569 |
Cash flows hedges: | ||
Unrealized gains (losses) arising during the period | -121 | -7 |
Reclassification adjustments included in net income | 94 | -8 |
Foreign currency translation adjustments | -132 | 39 |
Other comprehensive income (loss) | -159 | 24 |
Comprehensive income | 571 | 593 |
Comprehensive income attributable to noncontrolling interest | 18 | -11 |
Comprehensive income attributable to DIRECTV | 589 | 582 |
Reportable legal entity | Parent Subsidiaries | ||
Condensed Consolidating Statement of Comprehensive Income | ||
Net income | 730 | 561 |
Cash flows hedges: | ||
Unrealized gains (losses) arising during the period | -121 | |
Reclassification adjustments included in net income | 94 | |
Foreign currency translation adjustments | -114 | |
Other comprehensive income (loss) | -141 | |
Comprehensive income | 589 | 561 |
Comprehensive income attributable to DIRECTV | 589 | 561 |
Reportable legal entity | Co-Issuers | ||
Condensed Consolidating Statement of Comprehensive Income | ||
Net income | 615 | 648 |
Cash flows hedges: | ||
Unrealized gains (losses) arising during the period | -121 | -7 |
Reclassification adjustments included in net income | 94 | -8 |
Other comprehensive income (loss) | -27 | -15 |
Comprehensive income | 588 | 633 |
Comprehensive income attributable to DIRECTV | 588 | 633 |
Reportable legal entity | Guarantor Subsidiaries | ||
Condensed Consolidating Statement of Comprehensive Income | ||
Net income | 751 | 787 |
Cash flows hedges: | ||
Comprehensive income | 751 | 787 |
Comprehensive income attributable to DIRECTV | 751 | 787 |
Reportable legal entity | Non-guarantor Subsidiaries | ||
Condensed Consolidating Statement of Comprehensive Income | ||
Net income | 750 | 576 |
Cash flows hedges: | ||
Unrealized gains (losses) arising during the period | -121 | |
Reclassification adjustments included in net income | 94 | |
Foreign currency translation adjustments | -132 | 39 |
Other comprehensive income (loss) | -159 | 39 |
Comprehensive income | 591 | 615 |
Comprehensive income attributable to noncontrolling interest | 18 | -11 |
Comprehensive income attributable to DIRECTV | 609 | 604 |
Eliminations | ||
Condensed Consolidating Statement of Comprehensive Income | ||
Net income | -2,116 | -2,003 |
Cash flows hedges: | ||
Unrealized gains (losses) arising during the period | 242 | |
Reclassification adjustments included in net income | -188 | |
Foreign currency translation adjustments | 114 | |
Other comprehensive income (loss) | 168 | |
Comprehensive income | -1,948 | -2,003 |
Comprehensive income attributable to DIRECTV | ($1,948) | ($2,003) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Statements (Details 4) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
ASSETS | ||||
Total current assets | $8,046 | $8,819 | ||
Satellites, net | 3,045 | 3,040 | ||
Property and equipment, net | 6,455 | 6,721 | ||
Goodwill | 3,877 | 3,929 | ||
Intangible assets, net | 954 | 994 | ||
Investments and other assets | 1,924 | 1,956 | ||
Total assets | 24,301 | 25,459 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Total current liabilities | 7,564 | 6,959 | ||
Long-term debt | 17,058 | 19,485 | ||
Deferred income taxes | 1,606 | 1,726 | ||
Other liabilities and deferred credits | 2,353 | 2,117 | ||
Stockholders' equity (deficit) | ||||
Common stock and additional paid-in capital - $0.01 par value, 3,950,000,000 shares authorized, 503,981,177 and 502,733,342 shares issued and outstanding of common stock at March 31, 2015 and December 31, 2014, respectively | 3,608 | 3,613 | ||
Retained earnings (accumulated deficit) | -7,678 | -8,408 | ||
Accumulated other comprehensive income (loss) | -577 | -418 | -298 | -322 |
Total DIRECTV stockholders' deficit | -4,647 | -5,213 | ||
Noncontrolling interest | 367 | 385 | ||
Total stockholders' deficit | -4,280 | -4,828 | -6,512 | -6,544 |
Total liabilities and stockholders' deficit | 24,301 | 25,459 | ||
Reportable legal entity | Parent Subsidiaries | ||||
ASSETS | ||||
Total current assets | 725 | 1,201 | ||
Intercompany receivables | 4,532 | 4,975 | ||
Investment in subsidiaries | -8,730 | -9,341 | ||
Investments and other assets | 136 | 134 | ||
Total assets | -3,337 | -3,031 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Total current liabilities | 244 | 527 | ||
Intercompany liabilities | 612 | 1,212 | ||
Other liabilities and deferred credits | 454 | 443 | ||
Stockholders' equity (deficit) | ||||
Common stock and additional paid-in capital - $0.01 par value, 3,950,000,000 shares authorized, 503,981,177 and 502,733,342 shares issued and outstanding of common stock at March 31, 2015 and December 31, 2014, respectively | 3,608 | 3,613 | ||
Retained earnings (accumulated deficit) | -7,678 | -8,408 | ||
Accumulated other comprehensive income (loss) | -577 | -418 | ||
Total DIRECTV stockholders' deficit | -4,647 | -5,213 | ||
Total stockholders' deficit | -4,647 | -5,213 | ||
Total liabilities and stockholders' deficit | -3,337 | -3,031 | ||
Reportable legal entity | Co-Issuers | ||||
ASSETS | ||||
Total current assets | 2,975 | 3,690 | ||
Goodwill | 1,828 | 1,828 | ||
Intercompany receivables | 12,561 | 11,698 | ||
Investment in subsidiaries | 22,133 | 21,337 | ||
Investments and other assets | 75 | 99 | ||
Total assets | 39,572 | 38,652 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Total current liabilities | 2,421 | 1,454 | ||
Long-term debt | 16,936 | 19,327 | ||
Deferred income taxes | 17 | 33 | ||
Intercompany liabilities | 29,623 | 28,110 | ||
Other liabilities and deferred credits | 667 | 453 | ||
Stockholders' equity (deficit) | ||||
Common stock and additional paid-in capital - $0.01 par value, 3,950,000,000 shares authorized, 503,981,177 and 502,733,342 shares issued and outstanding of common stock at March 31, 2015 and December 31, 2014, respectively | 476 | 432 | ||
Retained earnings (accumulated deficit) | -10,586 | -11,202 | ||
Accumulated other comprehensive income (loss) | 18 | 45 | ||
Total DIRECTV stockholders' deficit | -10,092 | -10,725 | ||
Total stockholders' deficit | -10,092 | -10,725 | ||
Total liabilities and stockholders' deficit | 39,572 | 38,652 | ||
Reportable legal entity | Guarantor Subsidiaries | ||||
ASSETS | ||||
Total current assets | 2,928 | 2,964 | ||
Satellites, net | 1,713 | 1,717 | ||
Property and equipment, net | 3,841 | 3,891 | ||
Goodwill | 1,363 | 1,363 | ||
Intangible assets, net | 509 | 512 | ||
Intercompany receivables | 29,652 | 28,132 | ||
Investments and other assets | 645 | 670 | ||
Total assets | 40,651 | 39,249 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Total current liabilities | 3,888 | 4,244 | ||
Deferred income taxes | 1,731 | 1,736 | ||
Intercompany liabilities | 12,646 | 11,698 | ||
Other liabilities and deferred credits | 253 | 234 | ||
Stockholders' equity (deficit) | ||||
Common stock and additional paid-in capital - $0.01 par value, 3,950,000,000 shares authorized, 503,981,177 and 502,733,342 shares issued and outstanding of common stock at March 31, 2015 and December 31, 2014, respectively | 5,447 | 5,403 | ||
Retained earnings (accumulated deficit) | 16,686 | 15,934 | ||
Total DIRECTV stockholders' deficit | 22,133 | 21,337 | ||
Total stockholders' deficit | 22,133 | 21,337 | ||
Total liabilities and stockholders' deficit | 40,651 | 39,249 | ||
Reportable legal entity | Non-guarantor Subsidiaries | ||||
ASSETS | ||||
Total current assets | 1,705 | 1,592 | ||
Satellites, net | 1,332 | 1,323 | ||
Property and equipment, net | 2,614 | 2,830 | ||
Goodwill | 686 | 738 | ||
Intangible assets, net | 453 | 490 | ||
Intercompany receivables | 603 | 1,143 | ||
Investment in subsidiaries | -10,092 | -10,725 | ||
Investments and other assets | 1,199 | 1,185 | ||
Total assets | -1,500 | -1,424 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Total current liabilities | 1,298 | 1,362 | ||
Long-term debt | 122 | 158 | ||
Deferred income taxes | -11 | 89 | ||
Intercompany liabilities | 4,467 | 4,928 | ||
Other liabilities and deferred credits | 987 | 995 | ||
Stockholders' equity (deficit) | ||||
Common stock and additional paid-in capital - $0.01 par value, 3,950,000,000 shares authorized, 503,981,177 and 502,733,342 shares issued and outstanding of common stock at March 31, 2015 and December 31, 2014, respectively | 3,510 | 3,489 | ||
Retained earnings (accumulated deficit) | -11,804 | -12,554 | ||
Accumulated other comprehensive income (loss) | -436 | -276 | ||
Total DIRECTV stockholders' deficit | -8,730 | -9,341 | ||
Noncontrolling interest | 367 | 385 | ||
Total stockholders' deficit | -8,363 | -8,956 | ||
Total liabilities and stockholders' deficit | -1,500 | -1,424 | ||
Eliminations | ||||
ASSETS | ||||
Total current assets | -287 | -628 | ||
Intangible assets, net | -8 | -8 | ||
Intercompany receivables | -47,348 | -45,948 | ||
Investment in subsidiaries | -3,311 | -1,271 | ||
Investments and other assets | -131 | -132 | ||
Total assets | -51,085 | -47,987 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
Total current liabilities | -287 | -628 | ||
Deferred income taxes | -131 | -132 | ||
Intercompany liabilities | -47,348 | -45,948 | ||
Other liabilities and deferred credits | -8 | -8 | ||
Stockholders' equity (deficit) | ||||
Common stock and additional paid-in capital - $0.01 par value, 3,950,000,000 shares authorized, 503,981,177 and 502,733,342 shares issued and outstanding of common stock at March 31, 2015 and December 31, 2014, respectively | -9,433 | -9,324 | ||
Retained earnings (accumulated deficit) | 5,704 | 7,822 | ||
Accumulated other comprehensive income (loss) | 418 | 231 | ||
Total DIRECTV stockholders' deficit | -3,311 | -1,271 | ||
Total stockholders' deficit | -3,311 | -1,271 | ||
Total liabilities and stockholders' deficit | ($51,085) | ($47,987) |
Condensed_Consolidating_Financ6
Condensed Consolidating Financial Statements (Details 5) (USD $) | 1 Months Ended | 3 Months Ended | |
In Millions, unless otherwise specified | Apr. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | |||
Net cash provided by operating activities | $1,636 | $1,590 | |
Cash flows from investing activities | |||
Cash paid for property and equipment | -613 | -650 | |
Cash paid for satellites | -96 | -54 | |
Investment in companies, net of cash acquired | -10 | -4 | |
Proceeds from sale of investments | 4 | ||
Other, net | 3 | -3 | |
Net cash used in investing activities | -716 | -707 | |
Cash flows from financing activities | |||
Issuance of commercial paper (maturity 90 days or less), net | 105 | ||
Proceeds from short-term borrowings | 90 | ||
Repayment of short-term borrowings | -200 | ||
Proceeds from long-term debt | 17 | 1,260 | |
Debt issuance costs | -6 | ||
Repayment of long-term debt | -1,226 | -11 | |
Repayment of other long-term obligations | -29 | -15 | |
Common shares repurchased and retired | -30 | -895 | |
Taxes paid in lieu of shares issued for share-based compensation | -64 | -57 | |
Excess tax benefit from share-based compensation | 31 | 22 | |
Other, net | -26 | ||
Net cash used in financing activities | -1,271 | 267 | |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | -316 | ||
Net increase (decrease) in cash and cash equivalents | -351 | 834 | |
Cash and cash equivalents at beginning of the period | 3,014 | 4,635 | 2,180 |
Cash and cash equivalents at end of the period | 4,284 | 3,014 | |
Reportable legal entity | Parent Subsidiaries | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 32 | 594 | |
Cash flows from investing activities | |||
Return of capital from subsidiary | 400 | ||
Intercompany funding | -139 | -117 | |
Net cash used in investing activities | -139 | 283 | |
Cash flows from financing activities | |||
Common shares repurchased and retired | -895 | ||
Taxes paid in lieu of shares issued for share-based compensation | -64 | -57 | |
Excess tax benefit from share-based compensation | 31 | 22 | |
Intercompany payments | 23 | 9 | |
Net cash used in financing activities | -10 | -921 | |
Net increase (decrease) in cash and cash equivalents | -117 | -44 | |
Cash and cash equivalents at beginning of the period | 680 | 498 | |
Cash and cash equivalents at end of the period | 563 | 454 | |
Reportable legal entity | Co-Issuers | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | -274 | -305 | |
Cash flows from investing activities | |||
Intercompany funding | -435 | -408 | |
Net cash used in investing activities | -435 | -408 | |
Cash flows from financing activities | |||
Issuance of commercial paper (maturity 90 days or less), net | 105 | ||
Proceeds from short-term borrowings | 90 | ||
Repayment of short-term borrowings | -200 | ||
Proceeds from long-term debt | 1,245 | ||
Debt issuance costs | -6 | ||
Repayment of long-term debt | -1,200 | ||
Intercompany payments | 1,532 | 1,465 | |
Cash dividend to Parent | -1,000 | ||
Other, net | -26 | ||
Net cash used in financing activities | 332 | 1,673 | |
Net increase (decrease) in cash and cash equivalents | -377 | 960 | |
Cash and cash equivalents at beginning of the period | 3,191 | 791 | |
Cash and cash equivalents at end of the period | 2,814 | 1,751 | |
Reportable legal entity | Guarantor Subsidiaries | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 1,465 | 1,482 | |
Cash flows from investing activities | |||
Cash paid for property and equipment | -337 | -371 | |
Cash paid for satellites | -45 | -11 | |
Investment in companies, net of cash acquired | -8 | -1 | |
Proceeds from sale of investments | 4 | ||
Intercompany funding | -1,596 | -1,464 | |
Net cash used in investing activities | -1,986 | -1,843 | |
Cash flows from financing activities | |||
Repayment of other long-term obligations | -7 | -6 | |
Taxes paid in lieu of shares issued for share-based compensation | -50 | -47 | |
Excess tax benefit from share-based compensation | 23 | 18 | |
Intercompany payments | 546 | 407 | |
Net cash used in financing activities | 512 | 372 | |
Net increase (decrease) in cash and cash equivalents | -9 | 11 | |
Cash and cash equivalents at beginning of the period | 20 | 6 | |
Cash and cash equivalents at end of the period | 11 | 17 | |
Reportable legal entity | Non-guarantor Subsidiaries | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | 446 | 489 | |
Cash flows from investing activities | |||
Cash paid for property and equipment | -276 | -279 | |
Cash paid for satellites | -51 | -43 | |
Investment in companies, net of cash acquired | -2 | -3 | |
Intercompany funding | -14 | -77 | |
Other, net | 3 | -3 | |
Net cash used in investing activities | -340 | -405 | |
Cash flows from financing activities | |||
Proceeds from long-term debt | 17 | 15 | |
Repayment of long-term debt | -26 | -11 | |
Repayment of other long-term obligations | -22 | -9 | |
Taxes paid in lieu of shares issued for share-based compensation | -14 | -10 | |
Excess tax benefit from share-based compensation | 8 | 4 | |
Intercompany payments | 83 | 150 | |
Net cash used in financing activities | 46 | 139 | |
Effect of exchange rate changes on Venezuelan cash and cash equivalents | -316 | ||
Net increase (decrease) in cash and cash equivalents | 152 | -93 | |
Cash and cash equivalents at beginning of the period | 744 | 885 | |
Cash and cash equivalents at end of the period | 896 | 792 | |
Eliminations | |||
Cash flows from operating activities | |||
Net cash provided by operating activities | -33 | -670 | |
Cash flows from investing activities | |||
Return of capital from subsidiary | -400 | ||
Intercompany funding | 2,184 | 2,066 | |
Net cash used in investing activities | 2,184 | 1,666 | |
Cash flows from financing activities | |||
Taxes paid in lieu of shares issued for share-based compensation | 64 | 57 | |
Excess tax benefit from share-based compensation | -31 | -22 | |
Intercompany payments | -2,184 | -2,031 | |
Cash dividend to Parent | 1,000 | ||
Net cash used in financing activities | ($2,151) | ($996) |