DIRECTV 2009 Annual Report Download - page 101

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
and 2008 as if the acquisition had occurred as of the beginning of the period, giving effect to purchase
accounting adjustments. The pro forma data is presented for informational purposes only and may not
necessarily reflect the results of our operations had LEI operated as part of us for the period
presented, nor are they necessarily indicative of the results of future operations. The pro forma
information excludes the effect of non-recurring charges.
Years Ended
December 31,
2009 2008
(Dollars in Millions)
Revenues ............................................... $21,753 $19,905
Net income attributable to DIRECTV .......................... 1,113 1,651
Home Services Providers
180 Connect. In July 2008, we acquired 100% of 180 Connect Inc.’s outstanding common stock
and exchangeable shares. Simultaneously, in a separate transaction, UniTek USA, LLC acquired 100%
of 180 Connect’s cable service operating unit and operations in certain of our installation services
markets in exchange for satellite installation operations in certain markets and $7 million in cash.
These transactions provide us with control over a significant portion of DIRECTV U.S.’ home service
provider network. We paid $91 million in cash, net of the $7 million we received from UniTek USA, for
the acquisition, including the equity purchase price, repayment of assumed debt and related transaction
costs.
We accounted for the 180 Connect acquisition using the purchase method of accounting, and
began consolidating the results from the date of acquisition. The December 31, 2009 consolidated
financial statements reflect the final allocation of the $91 million net purchase price to assets acquired
and the liabilities assumed based on their estimated fair values at the date of acquisition using
information currently available. The assets acquired included approximately $5 million in cash. The
excess of the purchase price over the estimated fair values of the net assets has been recorded as
goodwill, $28 million of which will be deductible for tax purposes.
The following table sets forth the final allocation of the purchase price to the 180 Connect net
assets acquired in July 2008 (dollars in millions):
Total current assets .................................................. $ 18
Property and equipment .............................................. 16
Goodwill ......................................................... 97
Investments and other assets ........................................... 51
Total assets acquired ................................................. $182
Total current liabilities ............................................... $ 83
Other liabilities .................................................... 8
Total liabilities assumed .............................................. $ 91
Net assets acquired ................................................ $ 91
The following selected unaudited pro forma information is being provided to present a summary of
the combined results of DIRECTV and 180 Connect for 2008 as if the acquisition had occurred as of
the beginning of the respective periods, giving effect to purchase accounting adjustments. The pro
forma data is presented for informational purposes only and may not necessarily reflect the results of
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