DIRECTV 2005 Annual Report Download - page 6

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Financial Highlights
Years Ended December 31, 2005 2004 2003
(Dollars in Millions, Except Per Share Amounts)
Revenues $13,165 $11,360 $9,372
Operating profit (loss)(1) $633 $(2,119) $(138)
Depreciation and amortization 853 838 755
Operating profit (loss) before
depreciation and amortization(2) $1,486 $(1,281) $617
Income (loss) from continuing operations
before cumulative effect of
accounting changes $305 $(1,056) $(375)
Income (loss) from discontinued operations,
net of taxes 31 (582) 78
Cumulative effect of accounting
changes, net of taxes –– (311) (65)
Net Income (loss) $336 $(1,949) $(362)
Basic and diluted income (loss) per common share:
Income (loss) from continuing operations before
cumulative effect of accounting changes $0.22 $(0.77) $(0.27)
Income (loss) from discontinued
operations, net of taxes 0.02 (0.42) 0.06
Cumulative effect of accounting changes,
net of taxes –– (0.22) (0.05)
Income (loss) per common share $0.24 $(1.41) $(0.26)
Weighted average number of common
shares outstanding (in millions) 1,388.4 1,384.8 1,382.5
Cash paid for property, equipment and satellites $889 $1,023 $747
As of December 31, 2005 2004 2003
Cash and cash equivalents $3,701 $2,307 $1,435
Total current assets 6,096 4,771 10,416
Total assets 15,630 14,324 19,037
Total current liabilities 2,828 2,695 5,899
Total debt 3,415 2,429 2,661
Total stockholders’ equity 7,940 7,507 9,631
Number of employees (in thousands) 9 12 12
(1) The amount for the year ended December 31, 2004 includes $1,693 million of asset impairment charges, primarily related to the impairment
of the SPACEWAY assets, which is described in Note 5 to the Consolidated Financial Statements included in Item 8, Financial Statements and
Supplementary Data in The DIRECTV Group, Inc.’s Form 10-K for the year ended December 31, 2005, included in this Annual Report.
(2) Operating profit (loss) before depreciation and amortization, which is a financial measure that is not determined in accordance with accounting
principles generally accepted in the United States of America, or GAAP, can be calculated by adding amounts under the caption “Depreciation
and amortization” 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. For a further discussion of operating profit (loss) before
depreciation and amortization, see Summary Data in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations
in The DIRECTV Group, Inc.’s Form 10-K for the year ended December 31, 2005, included in this Annual Report.
DIRECTV U.S. “Free cash flow” of $536 million as used in the following Message to Shareholders is calculated by reducing the DIRECTV U.S. segment’s
$1,283 million of cash provided by operating activities by its $747 million of cash paid for property, equipment and satellites during 2005. These
figures can be found in the DIRECTV Holdings LLC Annual Report on Form 10-K for the year ended December 31, 2005 filed with the SEC on
March 10, 2006. A reconciliation of this non-GAAP measure to the most directly comparable GAAP measure is provided after the Message to Shareholders.