DIRECTV 2009 Annual Report Download - page 96

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
The following tables present the changes to previously reported amounts in our Consolidated
Balance Sheets as a result of the adoption of the revised guidance:
As
Originally As Effect of
December 31, 2008 Reported Adjusted Change
(Dollars in Millions)
Redeemable noncontrolling interest ..................... $ 103 $ 325 $222
Common stock and additional paid in capital .............. 8,540 8,318 (222)
Total stockholders’ equity ............................. 4,853 4,631 (222)
As
Originally As Effect of
December 31, 2007 Reported Adjusted Change
(Dollars in Millions)
Redeemable noncontrolling interest ..................... $ 11 $ 300 $289
Common stock and additional paid in capital .............. 9,318 9,029 (289)
Total stockholders’ equity ............................. 6,302 6,013 (289)
As
Originally As Effect of
December 31, 2006 Reported Adjusted Change
(Dollars in Millions)
Redeemable noncontrolling interest ..................... $ — $ 270 $270
Common stock and additional paid in capital .............. 9,836 9,566 (270)
Total stockholders’ equity ............................. 6,681 6,473 (208)
Business Combinations. On January 1, 2009 we adopted a new business combination accounting
standard that requires the acquiring entity in a business combination to record 100% of all assets and
liabilities acquired, including goodwill and any non-controlling interest, generally at their fair values for
all business combinations, whether partial, full or step acquisitions. Under the new standard, certain
contingent assets and liabilities, as well as contingent consideration, are also required to be recognized
at fair value on the date of acquisition and acquisition-related transaction and restructuring costs will
be expensed. Additionally, disclosures are required describing the nature and financial effect of the
business combination and the standard also changes the accounting for certain income tax assets
recorded in purchase accounting. The adoption of the new accounting requirements as required, on
January 1, 2009, changed the way we account for adjustments to deferred tax asset valuation allowances
recorded in purchase accounting for prior business combinations so that adjustments to these deferred
tax asset valuation allowances will no longer be recorded to goodwill but rather adjustments will be
recorded in ‘‘Income tax expense’’ in the Consolidated Statements of Operations. Additionally, the
adoption of the new accounting guidance changed the accounting for all business combinations we
consummate after January 1, 2009.
Sky Brazil Functional Currency. Based on cumulatively significant changes in economic facts and
circumstances, we have determined that the local Brazilian currency should be the functional currency
of Sky Brazil for purposes of financial statement translation beginning in the second quarter of 2009.
As a result of this change in functional currency, on April 1, 2009 we recorded a $165 million decrease
to previously reported values for nonmonetary assets and a $53 million increase in our related deferred
income tax assets and liabilities, and an offsetting $112 million decrease to the ‘‘Cumulative translation
adjustment’’, a component of ‘‘Accumulated other comprehensive loss’’ in stockholders’ equity in the
Consolidated Balance Sheets. In addition, as a result of this change in functional currency, changes in
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