DIRECTV 2011 Annual Report Download - page 72

DIRECTV
2009. The increase in cash paid for interest is due to the increase in our average Cash Flows Used in Financing Activities
debt outstanding. Under stock repurchase plans approved by our Board of Directors, we
completed the repurchase of our Class A common stock as follows: $5,496 million
Cash Flows Used In Investing Activities in 2011, $5,111 million in 2010, $1,696 million during 2009. In the first quarter
From 2010 to 2011, capital expenditures for set-top receivers at DIRECTV of 2012, we announced a new repurchase program authorization of an additional
U.S. increased primarily due to an increase in gross subscriber additions. From $6 billion. We may make purchases under this program in the open market,
2009 to 2010, capital expenditures for set-top receivers at DIRECTV U.S. through negotiated transactions or otherwise. The timing, nature and amount of
remained relatively consistent. From 2009 to 2011, we have continued to control such transactions will depend on a variety of factors, including market conditions,
capital expenditures by being able to lower average costs to produce set-top receivers and the program may be suspended, discontinued or accelerated at any time. The
and by refurbishing previously used set-top receivers. sources of funds for the purchases under the remaining authorization are our
existing cash on hand, cash from operations and potential additional borrowings.
During 2009, 2010 and 2011, DIRECTV U.S. was in the process of
constructing three satellites. One of these satellites has been completed and placed During 2011, we had $3,990 million of net cash proceeds from the issuance
into service. We expect to place the other two satellites in service in the 2014. of senior notes. We also repaid $1,000 million of our long-term debt during 2011.
During 2010, we had $5,978 million of net cash proceeds from the issuance of
Capital expenditures in Latin America for set-top receivers provided to senior notes. We also repaid $2,323 million of our long-term debt, and paid
subscribers increased during 2009, 2010 and 2011. Part of our business strategy in $1,537 million to settle the debt and related equity collars assumed as part of the
Latin America is to increase advanced product and multi-box installations; therefore, Liberty Transaction. During 2009, we had $1,990 million of net cash proceeds
our capital expenditures in Latin America are expected to continue to increase. from the issuance of senior notes. We also repaid $1,018 million of our long-term
During 2011, DIRECTV Latin America entered into a contract to lease two debt, and paid $751 million to settle a portion of the debt and related equity
satellites for PanAmericana, ISDLA 1 and 2, which are expected to be launched in collars assumed as part of the Liberty Transaction.
2014 and 2015. As a part of the lease agreement, we are required to make We anticipate additional borrowings in the future in order to maintain our
prepayments prior to the launch and commencement of the lease term. Payments target of outstanding long-term debt of 2.5 times our operating profit before
related to the lease agreement totaled $104 million for 2011, and are included in depreciation and amortization of DIRECTV on a consolidated basis; however, we
‘‘Cash paid for satellites’’ in the Consolidated Statements of Cash Flows. This will evaluate our optimal leverage target on an ongoing basis.
transaction is described in Note 20 of the Notes to the Consolidated Financial
Statements in Part II, Item 8 of this Annual Report. Free Cash Flow
Additionally, in 2010, we paid $617 million for investments in companies, net Free cash flow decreased in 2011 as compared to 2010 due to an an increase
of cash acquired, primarily for the purchase of an approximate 19% interest in Sky in capital expenditures and relatively flat net cash provided by operating activities
Brazil held by Globo. We paid $11 million in 2011 and $37 million in 2009 for described above. The increase in capital expenditures resulted primarily from an
investments, net of cash acquired, in various other companies and $97 million, net increase in subscriber leased equipment, satellite and other infrastructure primarily
of cash acquired, as part of the Liberty Transaction in 2009. These transactions are at DIRECTV Latin America.
described in Note 4 of the Notes to the Consolidated Financial Statements in
Part II, Item 8 of this Annual Report. Our cash spending on investment in Debt
companies is discretionary and we may fund strategic investment opportunities
should they arise in the future. At December 31, 2011, we had $13,464 million in total outstanding
borrowings, bearing a weighted average interest rate of 5.2%. Our outstanding
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