DIRECTV 2010 Annual Report Download - page 110

DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Other Comprehensive Income
The following represents the components of OCI, net of taxes, for the years ended December 31:
2010 2009 2008
Tax Tax
Pre-tax (Benefit) Net Pre-tax Tax Net Pre-tax (Benefit) Net
Amount Expense Amount Amount Benefit Amount Amount Expense Amount
(Dollars in Millions)
Amortization of amounts resulting from changes in defined benefit plan experience
and actuarial assumptions, net of taxes .............................. $13 $ 5 $ 8 $ (3) $ (1) $ (2) $(140) $(53) $(87)
Cumulative effect of change in functional currency at Sky Brazil ............... — — — (181) (69) (112) — — —
Foreign currency translation activity during the period ..................... 32 12 20 290 111 179 — — —
Unrealized holding gains (losses) on securities ........................... 6 2 4 11 4 7 (32) (12) (20)
Less: reclassification adjustment for net gains recognized during period ........... (5) (2) (3) — — — — — —
Accumulated Other Comprehensive Loss 2009 through December 31, 2010 and Class B common stock from November 20,
2009 through June 16, 2010. See Note 3 for additional information regarding the
The following represent the components of ‘‘Accumulated other comprehensive Liberty Transaction and Note 13 for additional information regarding the Malone
loss’’ in our Consolidated Balance Sheets as of December 31: Transaction.
2010 2009 We compute basic earnings per common share, or EPS, by dividing net
(Dollars in Millions) income by the weighted average number of common shares outstanding for the
Unamortized net amount resulting from changes in defined period.
benefit plan experience and actuarial assumptions, net of
Diluted EPS considers the effect of common equivalent shares, which consist
taxes.................................... $(119) $(127)
entirely of common stock options and unvested restricted stock units issued to
Unamortized amount resulting from changes in defined
employees. In the computation of diluted EPS under the treasury stock method,
benefit plan provisions, net of taxes ............... (3) (3)
the amount of assumed proceeds from nonvested stock awards and unexercised
Accumulated unrealized gains on securities, net of taxes .... 9 8
stock options includes the amount of compensation cost attributable to future
Accumulated foreign currency translation adjustments ..... 86 66
services not yet recognized, proceeds from the exercise of the options, and the
Total accumulated other comprehensive loss .......... $ (27) $ (56) incremental income tax benefit or liability as if the awards were distributed during
the period. We exclude common equivalent shares from the computation in loss
Note 14: Earnings Per Common Share periods as their effect would be antidilutive and we exclude common stock options
from the computation of diluted EPS when their exercise price is greater than the
Earnings per share has been computed using the number of outstanding shares average market price of our common stock. The following table sets forth the
of DIRECTV Group common stock through November 19, 2009, and based on number of common stock options excluded from the computation of diluted EPS
the outstanding shares of DIRECTV Class A common stock from November 20,
88