DIRECTV 2008 Annual Report Download - page 82

THE DIRECTV GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
2008 2007 2006
(Dollars in Millions)
Cash Flows From Operating Activities
Net income ...................................................... $1,521 $ 1,451 $ 1,420
Income from discontinued operations, net of taxes ............................. (6) (17) —
Income from continuing operations ....................................... 1,515 1,434 1,420
Adjustments to reconcile income from continuing operations to net cash provided by operating
activities:
Depreciation and amortization ........................................ 2,320 1,684 1,034
Amortization of deferred revenues and deferred credits ........................ (104) (98) (41)
Gain from disposition of businesses ..................................... — — (118)
Dividends received ................................................ 35 — —
Deferred income taxes ............................................. 107 439 765
Other ........................................................ 119 45 23
Change in operating assets and liabilities:
Accounts and notes receivable ....................................... 95 (166) (283)
Inventories ................................................... 18 (45) 139
Prepaid expenses and other ......................................... (96) 46 (12)
Accounts payable and accrued liabilities ................................. (23) 255 158
Unearned subscriber revenues and deferred credits .......................... 8 72 2
Other, net .................................................... (84) (21) 75
Net cash provided by operating activities ............................... 3,910 3,645 3,162
Cash Flows From Investing Activities
Cash paid for property and equipment ..................................... (2,101) (2,523) (1,754)
Cash paid for satellites .............................................. (128) (169) (222)
Investment in companies, net of cash acquired ................................ (204) (348) (389)
Purchase of short-term investments ....................................... — (588) (2,517)
Sale of short-term investments .......................................... — 748 3,029
Proceeds from sale of investments ....................................... — — 182
Proceeds from collection of notes receivable ................................. — — 142
Other, net ...................................................... 45 58 (7)
Net cash used in investing activities .................................. (2,388) (2,822) (1,536)
Cash Flows From Financing Activities
Cash proceeds from debt issuance ....................................... 2,490 — —
Debt issuance costs ................................................. (19) — —
Repayment of long-term debt .......................................... (53) (220) (8)
Net increase (decrease) in short-term borrowings .............................. — 2 (2)
Repayment of other long-term obligations .................................. (117) (121) (100)
Common shares repurchased and retired ................................... (3,174) (2,025) (2,977)
Capital contribution ................................................ 160 — —
Stock options exercised .............................................. 105 118 257
Excess tax benefit from share-based compensation .............................872
Net cash used in financing activities .................................. (600) (2,239) (2,828)
Net increase (decrease) in cash and cash equivalents ............................. 922 (1,416) (1,202)
Cash and cash equivalents at beginning of the year .............................. 1,083 2,499 3,701
Cash and cash equivalents at end of the year .................................. $2,005 $ 1,083 $ 2,499
Supplemental Cash Flow Information
Cash paid for interest ............................................... $ 334 $ 230 $ 243
Cash paid for income taxes ............................................ 706 408 30
The accompanying notes are an integral part of these Consolidated Financial Statements.
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