DIRECTV 2008 Annual Report Download - page 115

THE DIRECTV GROUP, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Selected information for our operating segments is reported as follows:
DIRECTV
DIRECTV Latin Corporate
U. S. America and Other Total
(Dollars in millions)
2008
Revenues ............................... $17,310 $2,383 $ — $19,693
Operating profit (loss) ..................... $ 2,330 $ 426 $ (61) $ 2,695
Add: Depreciation and amortization expense ..... 2,061 264 (5) 2,320
Operating profit (loss) before depreciation and
amortization (1) ........................ $ 4,391 $ 690 $ (66) $ 5,015
Segment assets ........................... $12,546 $3,301 $ 692 $16,539
Capital expenditures ....................... 1,765 447 17 2,229
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 ....................... 2,326 336 30 2,692
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 ....................... 1,798 178 — 1,976
(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 (loss) 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.
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