DIRECTV 2007 Annual Report Download - page 106

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THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Note 17: Segment Reporting
Our two business segments, DIRECTV U.S. and DIRECTV Latin America, acquire, promote, sell
and distribute digital entertainment programming via satellite to residential and commercial subscribers.
Through April 22, 2005, we also operated the Network Systems segment, a provider of satellite-based
private business networks and broadband Internet access. As a result of the SkyTerra transactions
described in Note 3, after April 22, 2005, we no longer consolidate HNS, which formerly comprised the
Network Systems segment. Corporate and Other includes the corporate office, eliminations and other
entities.
Selected information for our operating segments is reported as follows:
DIRECTV DIRECTV Latin Network Corporate
U. S. America Systems and Other Total
(Dollars in Millions)
2007
Revenues ........................... $15,527 $1,719 $ — $ — $17,246
Operating profit (loss) .................. $ 2,402 $ 159 $ — $ (75) $ 2,486
Add: Depreciation and amortization expense . 1,448 235 — 1 1,684
Operating profit (loss) before depreciation
and amortization (1) ................. $ 3,850 $ 394 $ — $ (74) $ 4,170
Segment assets ....................... $12,297 $2,456 $ — $ 310 $15,063
Capital expenditures (2) ................ 2,330 336 — 30 2,696
2006
Revenues ........................... $13,744 $1,013 $ — $ (2) $14,755
Operating profit (loss) .................. $ 2,348 $ 79 $ — $ (70) $ 2,357
Add: Depreciation and amortization expense . 873 165 — (4) 1,034
Operating profit (loss) before depreciation
and amortization (1) ................. $ 3,221 $ 244 $ — $ (74) $ 3,391
Segment assets ....................... $11,687 $2,001 $ — $1,453 $15,141
Capital expenditures (2) ................ 1,809 178 — — 1,987
2005
Revenues ........................... $12,216 $ 742 $211 $ (5) $13,164
Operating profit (loss) .................. $ 802 $ (19) $(61) $ (89) $ 633
Add: Depreciation and amortization expense . 698 160 — (5) 853
Operating profit (loss) before depreciation
and amortization (1) ................. $ 1,500 $ 141 $(61) $ (94) $ 1,486
Segment assets ....................... $10,525 $1,148 $ — $3,957 $15,630
Capital expenditures (2) ................ 782 90 18 34 924
(1) 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 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,
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