DIRECTV 2012 Annual Report Download - page 123

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DIRECTV
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS—(continued)
Note 23: Subsequent Events These condensed consolidating financial statements present the condensed
consolidating statements of operations, condensed consolidating statements of
2013 Financing Transactions comprehensive income and condensed consolidating statements of cash flows for the
On January 10, 2013, DIRECTV U.S. issued, pursuant to a registration years ended December 31, 2012, 2011 and 2010, and the condensed consolidating
statement, $750 million in aggregate principal of 1.750% senior notes due in 2018 balance sheets as of December 31, 2012 and December 31, 2011.
with proceeds, net of an original issue discount, of $743 million. We incurred $4 The condensed consolidating financial statements are comprised of DIRECTV,
million of debt issuance costs in connection with this transaction. or the Parent Guarantor, its indirect wholly owned subsidiaries, DIRECTV
Holdings, DIRECTV Financing and each of DIRECTV Holdings’ material
Venezuela Currency Devaluation subsidiaries (other than DIRECTV Financing), or the Guarantor Subsidiaries, as
In February 2013, the Venezuelan government announced a devaluation of the well as other subsidiaries who are not guarantors of the senior notes, or the Non-
Venezuelan bolivar, which will result in a pre-tax charge in ‘‘General and Guarantor Subsidiaries, and the eliminations necessary to present DIRECTV’s
administrative expenses’’ in the Consolidated Statements of Operations of financial statements on a consolidated basis. The Non-Guarantor Subsidiaries
approximately $160 million in the first quarter of 2013. See Note 21 for additional consist primarily of DIRECTV’s direct-to-home digital television services
information regarding the Venezuelan devaluation and foreign currency exchange throughout Latin America which are held by DIRECTV Latin America
controls. Holdings, Inc. and its subsidiaries and DIRECTV Sports Networks LLC and its
subsidiaries which are comprised primarily of three regional sports networks.
Note 24: Condensed Consolidating Financial Statements The accompanying condensed consolidating financial statements are presented
As discussed above in Note 10, on November 14, 2011, DIRECTV provided based on the equity method of accounting for all periods presented. Under this
a guarantee of all the outstanding senior notes of DIRECTV Holdings LLC and method, investments in subsidiaries are recorded at cost and adjusted for the
DIRECTV Financing Co., Inc., or the Co-issuers. subsidiaries’ cumulative results of operations, capital contributions and distributions,
and other changes in equity. Elimination entries include consolidating and
The following condensed consolidating financial statements of DIRECTV and eliminating entries for investments in subsidiaries, intercompany activity and
subsidiaries have been prepared pursuant to rules regarding the preparation of balances, and income taxes.
consolidating financial statements of Regulation S-X. For the periods prior to
November 14, 2011, the condensed consolidating financial statements have been
prepared as if the guarantee had been in place during that period.
103