DIRECTV 2012 Annual Report Download - page 115

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Note 18: Other Income and Expenses DIRECTV from approximately 24% to approximately 3% and Dr. Malone’s
resignation from our Board of Directors.
The following table sets forth the components of ‘‘Other, net’’ in our
Consolidated Statements of Operations for the years ended December 31: Prior to the completion of the Malone Transaction, Dr. Malone was Chairman
of the Board of Directors of DIRECTV and of Liberty Media. Dr. Malone also had
2012 2011 2010 an approximate 35% voting interest in Liberty Media, an approximate 31% voting
(Dollars in Millions) interest in Discovery Communications, Inc., or Discovery Communications, an
Equity in earnings from unconsolidated affiliates ........ $131 $109 $ 90 approximate 40% voting interest in Liberty Global Inc., or Liberty Global, and
Net foreign currency transaction gain (loss) ........... (34) (50) 11 serves as Chairman of Liberty Global, and certain of Liberty Media’s management
Fair value adjustment loss on non-employee stock awards . . (4) (4) (11) and directors also serve as directors of Discovery Communications or Liberty
Loss on early extinguishment of debt ................ (64) (25) (16) Global. As a result of this common ownership and management, transactions with
Gain on sale of investments ...................... 122 63 6 Liberty Media, Discovery Communications and Liberty Global and their
Other .................................... (11) (9) (11) subsidiaries or equity method investees were considered to be related party
Total other, net ............................ $140 $ 84 $ 69 transactions through the completion of the Malone Transaction. Our transactions
with Liberty Media, Discovery Communications and Liberty Global consisted
See Note 8 regarding equity method investments and net gains and losses primarily of purchases of programming created, owned or distributed by Liberty
recorded on the sale of investments. Media and Discovery Communications and its subsidiaries and investees.
The following table sets forth sales and purchase transactions with related
Note 19: Related-Party Transactions parties for the years ended December 31:
In the ordinary course of our operations, we enter into transactions with
2012 2011 2010
related parties as discussed below.
(Dollars in Millions)
Related parties include Globo, which provides programming and advertising to Sales:
Sky Brasil, and companies in which we hold equity method investments, including Liberty Media and affiliates ...................... $ — $ — $ 26
Sky Mexico and GSN. Discovery Communications, Liberty Global and affiliates . . — — 5
Globo and other ............................. 5 6 13
The majority of payments under contractual arrangements with related parties
are pursuant to multi-year programming contracts. Payments under these contracts Total ................................... $ 5 $ 6 $ 44
are typically subject to annual rate increases and are based on the number of Purchases:
subscribers receiving the related programming. Liberty Media and affiliates ...................... $ — $ — $143
Discovery Communications, Liberty Global and affiliates . . — — 128
Liberty Media, Liberty Global and Discovery Communications Globo and other ............................. 874 854 622
As discussed above in Note 15, on June 16, 2010, we completed the Malone Total ................................... $874 $854 $893
Transaction, which resulted in the reduction of the Malones’ voting interest in
95