DIRECTV 2010 Annual Report Download - page 93

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
cash. These transactions provided us with ownership and control over a significant The following selected unaudited pro forma information is being provided to
portion of DIRECTV U.S.’ home service provider network. We paid $91 million present a summary of the combined results of DIRECTV and 180 Connect for
in cash, net of the $7 million we received from UniTek USA, for the acquisition, 2008 as if the acquisition had occurred as of the beginning of the respective
including the equity purchase price, repayment of assumed debt and related periods, giving effect to purchase accounting adjustments. The pro forma data is
transaction costs. presented for informational purposes only and may not necessarily reflect the results
of our operations had 180 Connect operated as part of us for each of the periods
We accounted for the 180 Connect acquisition using the purchase method of presented, nor are they necessarily indicative of the results of future operations. The
accounting, and began consolidating the results from the date of acquisition. The pro forma information excludes the effect of non-recurring charges.
consolidated financial statements reflect the final allocation of the $91 million net
purchase price to assets acquired and the liabilities assumed based on their Year Ended
December 31, 2008
estimated fair values at the date of acquisition using information currently available.
(Dollars in Millions)
The assets acquired included approximately $5 million in cash. The excess of the
Revenues .................................... $19,693
purchase price over the estimated fair values of the net assets has been recorded as
Net income .................................. 1,479
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 Note 4: Accounts Receivable, Net
180 Connect net assets acquired in July 2008 (dollars in millions):
The following table sets forth the amounts recorded for ‘‘Accounts receivable,
net’’ in our Consolidated Balance Sheets as of December 31:
Total current assets ...................................... $ 18
Property and equipment .................................. 16 2010 2009
Goodwill ............................................ 97 (Dollars in Millions)
Investments and other assets ................................ 51 Subscriber ..................... $1,302 $1,036
Total assets acquired ..................................... $182 Trade and other ................. 775 645
Total current liabilities .................................... $ 83 Subtotal ...................... 2,077 1,681
Other liabilities ........................................ 8 Less: Allowance for doubtful accounts . . (76) (56)
Total liabilities assumed ................................... $ 91 Accounts receivable, net .......... $2,001 $1,625
Net assets acquired .................................... $ 91
71