DIRECTV 2007 Annual Report Download - page 74

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THE DIRECTV GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
2007 2006 2005
(Dollars in Millions)
Cash Flows From Operating Activities
Net income ...................................................... $1,451 $ 1,420 $ 336
Income from discontinued operations, net of taxes ............................. (17) — (31)
Income from continuing operations ....................................... 1,434 1,420 305
Adjustments to reconcile income from continuing operations to net cash provided by operating
activities:
Depreciation and amortization ........................................ 1,684 1,034 853
Amortization of deferred revenues and deferred credits ........................ (98) (41) (47)
Gain from disposition of businesses, net .................................. — (118) (45)
Equity in earnings from unconsolidated affiliates ............................. (35) (27) (1)
Net loss (gain) from sale or impairment of investments ......................... 9 (14) 1
Loss on disposal of fixed assets ........................................ 8 20 3
Share-based compensation expense ..................................... 49 39 41
Write-off of debt issuance costs ........................................——19
Deferred income taxes and other ....................................... 453 770 188
Change in operating assets and liabilities:
Accounts and notes receivable ....................................... (166) (283) (130)
Inventories ................................................... (45) 139 (159)
Prepaid expenses and other ......................................... 46 (12) (35)
Accounts payable and accrued liabilities ................................. 255 158 312
Unearned subscriber revenue and deferred credits .......................... 72 2 15
Other, net .................................................... (21) 75 (148)
Net cash provided by operating activities ............................... 3,645 3,162 1,172
Cash Flows From Investing Activities
Purchase of short-term investments ....................................... (588) (2,517) (4,673)
Sale of short-term investments .......................................... 748 3,029 4,512
Cash paid for property and equipment ..................................... (2,523) (1,754) (489)
Cash paid for satellites .............................................. (169) (222) (400)
Investment in companies, net of cash acquired ................................ (348) (389) (1)
Proceeds from sale of investments ....................................... — 182 113
Proceeds from collection of notes receivable ................................. — 142 —
Proceeds from sale of property ......................................... 33 13 —
Proceeds from sale of businesses, net ..................................... — — 246
Other, net ...................................................... 25 (20) (31)
Net cash used in investing activities .................................. (2,822) (1,536) (723)
Cash Flows From Financing Activities
Common shares repurchased and retired ................................... (2,025) (2,977) —
Repayment of long-term debt .......................................... (220) (8) (2,005)
Long-term debt borrowings ............................................ — — 3,003
Net increase (decrease) in short-term borrowings .............................. 2 (2) (2)
Repayment of other long-term obligations .................................. (121) (100) (91)
Debt issuance costs ................................................. — — (5)
Stock options exercised .............................................. 118 257 45
Excess tax benefit from share-based compensation ............................. 7 2 —
Net cash (used in) provided by financing activities ......................... (2,239) (2,828) 945
Net (decrease) increase in cash and cash equivalents ............................. (1,416) (1,202) 1,394
Cash and cash equivalents at beginning of the year .............................. 2,499 3,701 2,307
Cash and cash equivalents at end of the year .................................. $1,083 $ 2,499 $ 3,701
Supplemental Cash Flow Information
Cash paid for interest ............................................... $ 230 $ 243 $ 240
Cash paid for income taxes ............................................ 408 30 13
The accompanying notes are an integral part of these Consolidated Financial Statements.
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