DIRECTV 2011 Annual Report Download - page 117

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
There were no stock options granted under the DIRECTV Plan during the Note 17: Other Income and Expenses
years ended December 31, 2011 and December 31, 2009. The following table summarizes the components of ‘‘Other, net’’ in our
The following table presents amounts recorded related to share-based Consolidated Statements of Operations for the years ended December 31:
compensation: 2011 2010 2009
For the Years Ended (Dollars in Millions)
December 31, Equity in earnings from unconsolidated affiliates ........ $109 $ 90 $ 51
2011 2010 2009 Net foreign currency transaction gain (loss) ............ (50) 11 62
(Dollars in Millions) Loss from impairment of investments ................ — — (45)
Share-based compensation expense recognized ........... $103 $82 $55 Fair-value adjustment loss on non-employee stock awards . . . (4) (11) —
Tax benefits associated with share-based compensation Loss on early extinguishment of debt ................ (25) (16) (34)
expense .................................. 40 31 21 Net gain from sale of investments .................. 63 6 —
Actual tax benefits realized for the deduction of share-based Other ..................................... (9) (11) —
compensation expense ......................... 54 60 42 Total other, net ............................ $ 84 $69 $34
Proceeds received from stock options exercised .......... — 38 35
As of December 31, 2011, there was $98 million of total unrecognized See Note 8 regarding equity method investments and net gains and losses
compensation expense related to unvested restricted stock units and stock options recorded on the sale of investments.
that we expect to recognize as follows: $71 million in 2012 and $27 million in
2013. Note 18: Related-Party Transactions
Beginning in 2009, we implemented a net exercise plan pursuant to which we In the ordinary course of our operations, we enter into transactions with
only issue new shares in connection with employee option exercises equal to the related parties as discussed below.
intrinsic value of the exercised award on the exercise date reduced by the amount of Related parties include Globo, which provides programming and advertising to
statutory employee withholding taxes and divided by the current market price of Sky Brazil, and companies in which we hold equity method investments, including
the our common stock. As a result, we no longer receive cash in connection with Sky Mexico and GSN.
the exercise of most stock options, but rather issue significantly fewer shares. In
addition, the company is required to pay the employee withholding taxes to taxing The majority of payments under contractual arrangements with related parties
authorities, the cash payments for which are reported in ‘‘Taxes paid in lieu of are pursuant to multi-year programming contracts. Payments under these contracts
shares issued for share-based compensation’’ in the Consolidated Statements of Cash are typically subject to annual rate increases and are based on the number of
Flows. subscribers receiving the related programming.
Liberty Media, Liberty Global and Discovery Communications
As discussed above in Note 14 of the Notes to the Consolidated Financial
Statements, on June 16, 2010, we completed the Malone Transaction, which
resulted in the reduction of the Malones’ voting interest in DIRECTV from
93