DIRECTV 2011 Annual Report Download - page 65

DIRECTV
to a benefit recorded for previously unrecognized foreign tax credits and a benefit DIRECTV U.S. Segment
recorded for domestic production activities deduction in 2011. The following table provides operating results and a summary of key
subscriber data for the DIRECTV U.S. segment:
Noncontrolling interests in net earnings of subsidiaries. We recognized
noncontrolling interests in net earnings of subsidiaries of $27 million in 2011 and Change
$114 million in 2010 at Sky Brazil. Noncontrolling interests in net earnings of 2011 2010 $ %
subsidiaries in 2011 decreased due to the Globo Transaction in the fourth quarter (Dollars in Millions, Except Per
of 2010 which increased our ownership percentage in Sky Brazil and a net tax Subscriber Amounts)
benefit attributable to the noncontrolling interest resulting from the release of a Revenues ............................ $21,872 $20,268 $1,604 7.9%
Operating costs and expenses
deferred income tax asset valuation allowance in 2010. Costs of revenues, exclusive of depreciation and
amortization expense
Earnings Per Share. Class A common stock earnings per share and weighted Broadcast programming and other .......... 9,799 8,699 1,100 12.6%
shares outstanding were as follows for the years ended December 31: Subscriber service expenses . . . ............ 1,435 1,340 95 7.1%
Broadcast operations expenses ............. 300 273 27 9.9%
Selling, general and administrative expenses, exclusive
2011 2010
of depreciation and amortization expense
(Shares in Subscriber acquisition costs . . . ............ 2,794 2,631 163 6.2%
Millions) Upgrade and retention costs .............. 1,209 1,106 103 9.3%
Basic earnings attributable to DIRECTV Class A common General and administrative expenses ......... 1,046 1,003 43 4.3%
stockholders per common share ...................... $3.49 $2.31 Depreciation and amortization expense ........... 1,587 1,926 (339) (17.6)%
Diluted earnings attributable to DIRECTV Class A common Total operating costs and expenses ......... 18,170 16,978 1,192 7.0%
stockholders per common share ...................... 3.47 2.30 Operating profit ........................ $3,702 $ 3,290 $ 412 12.5%
Weighted average number of Class A common shares outstanding Operating profit margin ................... 16.9% 16.2% — —
Basic ......................................... 747 870 Other data:
Operating profit before depreciation and amortization . . $ 5,289 $ 5,216 $ 73 1.4%
Diluted ....................................... 752 876 Operating profit before depreciation and amortization
margin ............................ 24.2% 25.7% — —
The increases in basic and diluted earnings per share for Class A common Total number of subscribers (in thousands) ........ 19,885 19,223 662 3.4%
stock were due to higher net income attributable to DIRECTV, a reduction in ARPU .............................. $93.27 $ 89.71 $ 3.56 4.0%
weighted average shares outstanding resulting from our share repurchase program, Average monthly subscriber churn % ............ 1.56% 1.53% — 2.0%
Gross subscriber additions (in thousands) ......... 4,316 4,124 192 4.7%
and the $0.19 reduction to basic and $0.18 reduction to diluted earnings per Subscriber disconnections (in thousands) .......... 3,654 3,461 193 5.6%
Class A common share resulting from the Malone Transaction in 2010. Net subscriber additions (in thousands) .......... 662 663 (1) (0.2)%
Average subscriber acquisition costs—per subscriber
(SAC)............................. $ 813 $ 796 $ 17 2.1%
Capitalized subscriber leased equipment:
Subscriber leased equipment—subscriber acquisitions . . $ 713 $ 651 $ 62 9.5%
Subscriber leased equipment—upgrade and retention . . 315 316 (1) (0.3)%
Total subscriber leased equipment capitalized ....... $1,028 $ 967 $ 616.3%
Depreciation expense—subscriber leased equipment . . . $ 903 $ 1,145 $ (242) (21.1)%
Subscribers. In 2011, net subscriber additions were relatively unchanged as
higher gross additions mainly resulting from improved customer offers were offset
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