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DIRECTV
Cash Flows Provided By Operating Activities Cash Flows Used in Financing Activities
The increases in net cash provided by operating activities in 2010 and 2009 Under stock repurchase plans approved by our Board of Directors, we
were primarily due to our higher operating profit before depreciation and completed the repurchase of our Class A common stock as follows: $5,111 million
amortization, which resulted from the higher gross profit generated from an increase in 2010, $1,696 million during 2009 and $3,174 million during 2008. In the first
in revenues. Cash paid for income taxes was $705 million in 2010, $484 million in quarter of 2011, we announced a new repurchase program authorization of
2009 and $706 million in 2008. The increase in cash paid for income taxes in $6 billion. We may make purchases under this program in the open market,
2010 resulted mainly from increased income from continuing operations and prior through negotiated transactions or otherwise. The timing, nature and amount of
year tax credits taken in 2009. such transactions will depend on a variety of factors, including market conditions,
and the program may be suspended, discontinued or accelerated at any time. The
Cash Flows Used In Investing Activities sources of funds for the purchases under the remaining authorization are our
existing cash on hand, cash from operations and potential additional borrowings.
During 2008 and 2009, we experienced a reduction in set-top receiver costs
and benefited from the use of refurbished set-top receivers from the DIRECTV During 2010, we had $5,978 million of net cash proceeds from the issuance
U.S. lease program, which resulted in a reduction in capital expenditures for of senior notes. We also repaid $2,323 million of our long-term debt, and paid
property and equipment in 2008 and 2009. From 2009 to 2010, capital approximately $1,537 million to settle the debt and related equity collars assumed
expenditures for set-top receivers at DIRECTV U.S. remained relatively consistent. as part of the Liberty Transaction. During 2009, we had $1,990 million of net cash
proceeds from the issuance of senior notes. We also repaid $1,018 million of our
During 2008, 2009 and 2010, DIRECTV U.S. was in the process of long-term debt, and paid approximately $751 million to settle a portion of the debt
constructing three satellites. Two of those satellites have been completed and placed and related equity collars assumed as part of the Liberty Transaction. In 2008, we
into service. We expect to place the third satellite in service in the second half of had $2,490 million of net cash proceeds from the issuance of senior notes and
2013. borrowings under DIRECTV U.S.’ senior secured credit facility. We also repaid
Capital expenditures in Latin America for set-top receivers provided to $53 million of our long-term debt during 2008.
subscribers increased during 2008, 2009 and 2010. Part of our business strategy in We anticipate additional borrowings in the future in order to achieve our
Latin America is to increase advanced product and multi-box installations; therefore, target of outstanding long-term debt of 2.5 times DIRECTV U.S. operating profit
our capital expenditures in Latin America are expected to continue to increase. before depreciation and amortization.
Additionally, in 2010, we paid $617 million for investments in companies, net
of cash acquired, primarily for the purchase of Globo’s approximate 19% interest in Free Cash Flow
Sky Brazil. We paid $37 million in 2009 and $204 million in 2008 for Free cash flow increased in 2010 as compared to 2009 due to an increase in
investments, net of cash acquired, in various other companies and $97 million, net net cash provided by operating activities described above, partially offset by an
of cash acquired, as part of the Liberty Transaction in 2009. These transactions are increase in capital expenditures. The increase in capital expenditures resulted
described in Note 3 of the Notes to the Consolidated Financial Statements in primarily from an increase in subscriber leased equipment, satellite and other
Part II, Item 8 of this Annual Report. Our cash spending on investment in infrastructure at DTVLA.
companies is discretionary and we may fund strategic investment opportunities
should they arise in the future. Debt
At December 31, 2010, we had $10,510 million in total outstanding
borrowings, bearing a weighted average interest rate of 5.4%. Our outstanding
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