DIRECTV 2006 Annual Report Download - page 6

Financial Highlights
Years Ended December 31, 2006 2005 2004
(Dollars in Millions, Except Per Share Amounts)
Revenues $14,756 $13,165 $11,360
Operating profi t (loss)(1) $2,357 $633 $(2,119)
Depreciation and amortization expense 1,034 853 838
Operating profi t (loss) before
depreciation and amortization(1) (2) $3,391 $1,486 $(1,281)
Income (loss) from continuing operations
before cumulative effect of accounting changes $1,420 $305 $(1,056)
Income (loss) from discontinued operations,
net of taxes — 31 (582)
Cumulative effect of accounting
changes, net of taxes — — (311)
Net Income (loss) $1,420 $336 $(1,949)
Basic income (loss) per common share:
Income (loss) from continuing operations before
cumulative effect of accounting changes $1.13 $0.22 $(0.77)
Income (loss) from discontinued
operations, net of taxes — 0.02 (0.42)
Cumulative effect of accounting changes,
net of taxes — — (0.22)
Basic income (loss) per common share $1.13 $0.24 $(1.41)
Weighted average number of common
shares outstanding (in millions) 1,261.5 1,388.4 1,384.8
Cash paid for property, equipment and satellites $1,976 $889 $1,023
As of December 31, 2006 2005 2004
Cash and cash equivalents $2,499 $3,701 $2,307
Total current assets 4,556 6,096 4,771
Total assets 15,141 15,630 14,324
Total current liabilities 3,323 2,828 2,695
Total debt 3,615 3,415 2,429
Total stockholders’ equity 6,681 7,940 7,507
Number of employees (in thousands) 11 9 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 4 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, 2006, included in this Annual Report.
(2) Operating profi t (loss) before depreciation and amortization, which is a fi nancial 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 expense” to “Operating profi t (loss).” This measure should be used in conjunction with GAAP fi nancial measures and is not
presented as an alternative measure of operating results, as determined in accordance with GAAP. For a further discussion of operating profi t
(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, 2006, included in this Annual Report.
DIRECTV U.S. “Cash Flow before Interest and Taxes” of $1.4 billion as used in the following Message to Shareholders is calculated by deducting
amounts under the captions “Cash paid for property and equipment”, “Cash paid for subscriber leased equipment – subscriber acquisitions”,
“Cash paid for subscriber leased equipment – upgrade and retention”, “Cash paid for satellites” and “Interest income” from “Net cash provided by
operating activities” and adding back “Cash paid for interest” and “Income taxes paid” as disclosed in the Consolidated Statements of Cash Flows
and the Consolidated Statements of Operations found in the DIRECTV Holdings LLC Annual Report on Form 10-K for the year ended December 31,
2006 fi led with the SEC on March 1, 2007. A reconciliation of this non-GAAP measure to the nearest GAAP measure is provided at the back of this
Annual Report.
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